— Total revenues increased 8.9 percent year-over-year to $97.7 million —
(ORLANDO, Fla.) May 14, 2014 — CNL Lifestyle Properties, Inc., a real estate investment trust (“we,” “our” or “us”), today announced its operating results for the first quarter ended March 31, 2014.
First Quarter 2014
- Total revenues increased $8 million or 8.9 percent as compared to the first quarter of 2013.
- Net loss decreased $2.9 million or 12.6 percent as compared to the first quarter of 2013. Excluding impairment charges, net loss improved $6.3 million or 26.9 percent as compared to the first quarter of 2013.
- Funds from Operations (“FFO”) and FFO per share increased $2.6 million and $0.01 per share, respectively, as compared to the first quarter of 2013 primarily as a result of an increase in rental income from leased properties acquired after the first quarter of 2013.
- Modified Funds from Operations (“MFFO”) increased $0.2 million with no change to MFFO per share, as compared to the first quarter of 2013.
- Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) decreased $7.4 million or 21 percent as compared to the first quarter of 2013 primarily as a result of a reduction in cash distributions received from our unconsolidated entities due to the July 2013 sale of our interests in 42 properties that were held in three unconsolidated entities.
- In March 2014, we engaged Jefferies LLC, a leading global investment banking and advisory firm, to assist in actively evaluating various strategic opportunities including the sale of either us or our assets, potential merger opportunities, or the listing of our common stock.
The following table presents selected comparable financial data through March 31, 2014:
| SUMMARY FINANCIAL RESULTS | ||
| (Millions except ratios and per share data) | ||
|
|
Quarter ended | |
|
|
March 31, | |
|
|
2014 | 2013 |
| Total revenues |
$ 97.7 |
$ 89.7 |
| Total expenses |
101.7 |
94.3 |
| Operating loss |
(4.0) |
(4.6) |
| Net loss |
(20.4) |
(23.3) |
| Net loss per share |
(0.06) |
(0.07) |
| FFO |
21.6 |
18.9 |
| FFO per share |
0.07 |
0.06 |
| MFFO |
19.3 |
19.1 |
| MFFO per share |
0.06 |
0.06 |
| Adjusted EBITDA |
27.6 |
35.0 |
| Cash flows from operating activities |
37.6 |
48.6 |
|
|
|
|
| As of March 31, 2014: |
|
|
| Total assets |
$ 2,718.8 |
|
| Total debt |
1,248.0 |
|
| Leverage ratio |
45.9% |
|
|
|
|
|
| * 49.0% including our share of unconsolidated assets and debts | ||
|
|
|
|
See detailed financial information and full reconciliation of FFO, MFFO and Adjusted EBITDA, which are Non-Generally Accepted Accounting Principles (“Non-GAAP”) measures, on the following pages
Portfolio Highlights
The following tables summarize the Company’s “same-store” comparable consolidated properties that we have owned during the entirety of both periods presented, and includes information for both leased and managed properties (other than for rent coverage, which includes all leased properties):
First Quarter 2014
| Number | Quarter Ended March 31, | TTM | |||||||||||||
| of | 2014 | 2013 | Increase/(Decrease) | Rent | |||||||||||
| Properties | Revenue | EBITDA * | Revenue | EBITDA * | Revenue | EBITDA | Coverage * | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ski and mountain lifestyle |
17 |
|
$241,579 |
|
$110,312 |
|
$256,246 |
|
$119,893 |
|
-5.7% |
|
-8.0% |
|
1.35x |
| Golf |
48 |
|
34,007 |
|
9,018 |
|
34,339 |
|
9,038 |
|
-1.0% |
|
-0.2% |
|
1.37x |
| Attractions |
21 |
|
22,727 |
|
(8,595) |
|
21,111 |
|
(9,755) |
|
7.7% |
|
11.9% |
|
1.92x |
| Senior housing |
20 |
|
17,263 |
|
5,207 |
|
16,675 |
|
5,475 |
|
3.5% |
|
-4.9% |
|
n/a |
| Marinas |
17 |
|
5,289 |
|
1,248 |
|
6,046 |
|
2,140 |
|
-12.5% |
|
-41.7% |
|
0.57x |
| Additional lifestyle |
1 |
|
1,704 |
|
912 |
|
1,195 |
|
541 |
|
42.6% |
|
68.6% |
|
n/a |
|
|
|
|
|
|
|
||||||||||
|
|
124 |
|
$322,569 |
|
$118,102 |
|
$335,612 |
|
$127,332 |
|
-3.9% |
|
-7.2% |
|
1.39x |
*As of March 31, 2014, on a trailing 12-month (“TTM”) basis for all properties subject to lease calculated as property-level EBITDA before recurring capital expenditures divided by base rent.
- As of May 6, 2014, we owned a portfolio of 146 lifestyle properties of which 54 properties are held for sale, including our portfolio of 48 golf courses.
- Revenue and property-level EBITDA declined 3.9 percent and 7.2 percent, respectively, as compared to the same first-quarter period in 2013.
- Drought and unusually warm temperatures, particularly in California and the Pacific Northwest, caused certain ski and mountain lifestyle properties to experience poor operating results during the 2013/2014 season compared to the 2012/2013 season.
- Our senior housing communities, on average, experienced increases in Occupancy and revenue per occupied unit (“RevPOU”), which increased property operating revenue for our portfolio; however, in certain locations severe winter storms forced staff to stay at facilities over multiple nights, resulting in overtime labor costs as well as unanticipated repairs and snow removal costs. These cost increases led to a decrease in portfolio EBITDA despite the increase in revenue, however, these assets largely continued to perform well.
The following table presents same-store, unaudited property-level information of our senior housing properties as of and for the quarters ended March 31, 2014, and 2013:
| Occupancy | RevPOU | ||||||||||||
| As of | Quarter Ended | ||||||||||||
| Number | March 31, | Increase/ | March 31, | Increase/ | |||||||||
| of Properties | 2014 | 2013 | Decrease | 2014 | 2013 | Decrease | |||||||
| Senior housing | 20 | 95.8% | 95.3% |
|
0.5% |
|
$3,816 | $3,744 |
|
1.9% | |||
|
|
|
|
|
||||||||||
Acquisition Activity
During the quarter ended March 31, 2014, we acquired one senior housing community located in Cranston, Rhode Island, for an aggregate purchase price of $15.3 million.
Distributions
For the quarter ended March 31, 2014, we declared and paid distributions of approximately $34.3 million ($0.1063 per share). Our Board of Directors will continue to evaluate the level of distributions going forward, which will be based on a variety of factors including current and expected future cash flows from our properties.
Stock Issuance and Redemptions
For the quarter ended March 31, 2014, we issued approximately 2 million shares for total net proceeds of $13.6 million and redeemed 0.4 million shares with a value of approximately $3 million.
Supplemental Information
See our quarterly report on Form 10-Q for the quarter ended March 31, 2014 on our website at www.CNLLifestyleREIT.com for additional information.
CNL LIFESTYLE PROPERTIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
|
|
March 31, | December 31, | |
|
|
2014 | 2013 | |
|
|
|||
| ASSETS |
|
|
|
|
|
|
|
|
| Real estate investment properties, net (including $181,616 and $184,306 |
|
|
|
| related to consolidated variable interest entities, respectively) |
$ 1,758,850 |
|
$ 2,068,973 |
| Assets held for sale, net |
417,057 |
|
90,794 |
| Investments in unconsolidated entities |
133,638 |
|
132,324 |
| Mortgages and other notes receivable, net |
117,838 |
|
117,963 |
| Cash |
86,490 |
|
71,574 |
| Deferred rent and lease incentives |
56,469 |
|
57,378 |
| Other assets |
53,849 |
|
52,310 |
| Restricted cash |
49,154 |
|
51,335 |
| Intangibles, net |
27,105 |
|
36,922 |
| Accounts and other receivables, net |
18,338 |
|
21,080 |
|
|
|||
| Total Assets |
$ 2,718,788 |
|
$ 2,700,653 |
|
|
|||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
| Mortgages and other notes payable (including $93,788 and $87,095 related to |
|
|
|
| non-recourse debt of consolidated variable interest entities, respectively) |
$ 803,476 |
|
$ 760,192 |
| Senior notes, net of discount |
394,502 |
|
394,419 |
| Line of credit |
50,000 |
|
50,000 |
| Other liabilities |
85,957 |
|
76,816 |
| Accounts payable and accrued expenses |
59,489 |
|
49,823 |
| Due to affiliates |
921 |
|
1,025 |
|
|
|||
| Total Liabilities |
1,394,345 |
|
1,332,275 |
|
|
|
|
|
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
| Preferred stock, $.01 par value per share 200 million shares authorized and unissued |
– |
|
– |
| Excess shares, $.01 par value per share 120 million shares authorized and unissued |
– |
|
– |
| Common stock, $.01 par value per share |
|
|
|
| One billion shares authorized; 347,102 and 345,114 shares issued and 324,180 |
|
|
|
| and 322,627 shares outstanding as of March 31, 2014 and December 31, 2013, |
|
|
|
| respectively |
3,242 |
|
3,226 |
| Capital in excess of par value |
2,856,898 |
|
2,846,265 |
| Accumulated deficit |
(422,338) |
|
(401,985) |
| Accumulated distributions |
(1,107,700) |
|
(1,073,422) |
| Accumulated other comprehensive loss |
(5,659) |
|
(5,706) |
|
|
|||
| Total Stockholders’ Equity |
1,324,443 |
|
1,368,378 |
|
|
|||
| Total Liabilities and Stockholders’ Equity |
$ 2,718,788 |
|
$ 2,700,653 |
CNL LIFESTYLE PROPERTIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
|
|
Quarter Ended | ||
|
|
March 31, | ||
|
|
2014 | 2013 | |
|
|
|||
| Revenues: |
|
|
|
| Rental income from operating leases |
$ 42,854 |
|
$ 39,470 |
| Property operating revenues |
51,668 |
|
46,803 |
| Interest income on mortgages and other notes receivable |
3,133 |
|
3,419 |
|
|
|||
| Total revenues |
97,655 |
|
89,692 |
|
|
|||
| Expenses: |
|
|
|
| Property operating expenses |
51,004 |
|
47,252 |
| Asset management fees to advisor |
8,571 |
|
9,213 |
| General and administrative |
3,996 |
|
3,993 |
| Ground lease and permit fees |
3,643 |
|
4,002 |
| Acquisition fees and costs |
724 |
|
367 |
| Other operating expenses |
763 |
|
678 |
| Bad debt expense |
1,006 |
|
26 |
| Depreciation and amortization |
& |
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