CapLease Inc. (LSE, Financial) filed Quarterly Report for the period ended 2009-03-31.
CapLease Inc. is a real estate investment trust or REIT that invests primarily in single tenant commercial real estate assets subject to long-term leases to high credit quality tenants. CapLease Inc. has a market cap of $134.6 million; its shares were traded at around $2.84 with a P/E ratio of 2.6 and P/S ratio of 0.7. The dividend yield of CapLease Inc. stocks is 7%.
Interest expense decreased $1.5 million, or 6%, to $23.1 million, from $24.5 million. The decrease in the 2009 period resulted primarily from $1.1 million of lower interest expense on floating rate borrowings (resulting from lower borrowings and interest rates in the 2009 period) and $0.3 million of lower interest expense on property mortgages. The Company s average balance outstanding and effective financing rate under its floating rate borrowings was approximately $187 million at 3.86% during the 2009 period (average 30-day LIBOR of 0.45%), compared with approximately $232 million at 4.51% during the 2008 period (average 30-day LIBOR of 3.51%).
Net loss increased $2.1 million, to $(3.9) million, from $(1.8) million, primarily as a result of the loss on investments in the 2009 period, offset in part by gain on extinguishment of debt in the 2009 period and the loss on derivatives in the 2008 period. Net loss allocable to common stockholders was $(4.6) million in the first quarter of 2009, reflecting dividends to preferred stockholders of $0.7 million.
We had $185.5 million outstanding as of March 31, 2009 under our Wachovia credit agreement, which borrowings were secured by loan investments with an aggregate carry value of $77.7 million, intercompany mortgage loans and investments in our CDO with an aggregate carry value of $143.9 million, CMBS investments with a carry value of $19.5 million and a single owned property with a carry value of $42.9 million.
Through March 31, 2009, our primary capital issuances have been our initial public offering of common stock in March 2004 (net proceeds of $221.8 million), a Series A preferred stock issuance in October 2005 (net proceeds of $33.7 million), trust preferred debt issued in December 2005 (net proceeds of $29.9 million), a follow-on common stock offering in each of May 2006 and May/June 2007 (net proceeds of $57.3 million and $104.8 million, respectively), and a $75.0 million 7.50% Convertible Senior Note offering in October 2007 (net proceeds of $72.8 million). Through April 2009, we have repurchased $20.1 million of the convertible senior notes at price of $9.2 million, or a 54.4% discount from the face amount of the notes.
We also completed an entirely fixed rate CDO financing in March 2005. We aggregated approximately $300 million of assets and then transferred these assets into a wholly-owned securitization vehicle, and issued $285 million face amount of multi-class notes and $15 million of preferred equity through the securitization vehicle. The assets serve as collateral for our obligations under the notes. The securitization vehicle is an SPE, with its business limited to the issuance of the notes and the preferred equity, the acquisition of the collateral and certain other matters related thereto. The net amount of the debt we issued was $268.1 million, inclusive of a $0.4 million discount to face, as we retained the three most junior note classes aggregating a face amount of $16.5 million and the full $15 million of preferred equity. Each of the five note classes of the CDO was and continues to be rated investment grade. Through October 2009, we expect to reinvest principal repayments on the underlying assets into qualifying replacement collateral. The CDO notes have a stated maturity in January 2040, but are expected to mature in January 2015 when the notes become subject to a
Read the The complete ReportLSE is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
CapLease Inc. is a real estate investment trust or REIT that invests primarily in single tenant commercial real estate assets subject to long-term leases to high credit quality tenants. CapLease Inc. has a market cap of $134.6 million; its shares were traded at around $2.84 with a P/E ratio of 2.6 and P/S ratio of 0.7. The dividend yield of CapLease Inc. stocks is 7%.
Highlight of Business Operations:
We rely primarily on equity and debt capital to fund our portfolio growth. Through March 31, 2009, our primary capital issuances have been our initial public offering of common stock in March 2004 (net proceeds of $221.8 million), a Series A preferred stock issuance in October 2005 (net proceeds of $33.7 million), trust preferred debt issued in December 2005 (net proceeds of $29.9 million), a follow-on common stock offering in each of May 2006 and May/June 2007 (net proceeds of $57.3 million and $104.8 million, respectively), and a $75.0 million 7.50% convertible senior note offering in October 2007 (net proceeds of $72.8 million).Interest expense decreased $1.5 million, or 6%, to $23.1 million, from $24.5 million. The decrease in the 2009 period resulted primarily from $1.1 million of lower interest expense on floating rate borrowings (resulting from lower borrowings and interest rates in the 2009 period) and $0.3 million of lower interest expense on property mortgages. The Company s average balance outstanding and effective financing rate under its floating rate borrowings was approximately $187 million at 3.86% during the 2009 period (average 30-day LIBOR of 0.45%), compared with approximately $232 million at 4.51% during the 2008 period (average 30-day LIBOR of 3.51%).
Net loss increased $2.1 million, to $(3.9) million, from $(1.8) million, primarily as a result of the loss on investments in the 2009 period, offset in part by gain on extinguishment of debt in the 2009 period and the loss on derivatives in the 2008 period. Net loss allocable to common stockholders was $(4.6) million in the first quarter of 2009, reflecting dividends to preferred stockholders of $0.7 million.
We had $185.5 million outstanding as of March 31, 2009 under our Wachovia credit agreement, which borrowings were secured by loan investments with an aggregate carry value of $77.7 million, intercompany mortgage loans and investments in our CDO with an aggregate carry value of $143.9 million, CMBS investments with a carry value of $19.5 million and a single owned property with a carry value of $42.9 million.
Through March 31, 2009, our primary capital issuances have been our initial public offering of common stock in March 2004 (net proceeds of $221.8 million), a Series A preferred stock issuance in October 2005 (net proceeds of $33.7 million), trust preferred debt issued in December 2005 (net proceeds of $29.9 million), a follow-on common stock offering in each of May 2006 and May/June 2007 (net proceeds of $57.3 million and $104.8 million, respectively), and a $75.0 million 7.50% Convertible Senior Note offering in October 2007 (net proceeds of $72.8 million). Through April 2009, we have repurchased $20.1 million of the convertible senior notes at price of $9.2 million, or a 54.4% discount from the face amount of the notes.
We also completed an entirely fixed rate CDO financing in March 2005. We aggregated approximately $300 million of assets and then transferred these assets into a wholly-owned securitization vehicle, and issued $285 million face amount of multi-class notes and $15 million of preferred equity through the securitization vehicle. The assets serve as collateral for our obligations under the notes. The securitization vehicle is an SPE, with its business limited to the issuance of the notes and the preferred equity, the acquisition of the collateral and certain other matters related thereto. The net amount of the debt we issued was $268.1 million, inclusive of a $0.4 million discount to face, as we retained the three most junior note classes aggregating a face amount of $16.5 million and the full $15 million of preferred equity. Each of the five note classes of the CDO was and continues to be rated investment grade. Through October 2009, we expect to reinvest principal repayments on the underlying assets into qualifying replacement collateral. The CDO notes have a stated maturity in January 2040, but are expected to mature in January 2015 when the notes become subject to a
Read the The complete ReportLSE is in the portfolios of HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
