"During the year, we executed well on our strategy of strengthening our balance sheet and reducing overall debt," says Paul McDowell, CapLease's chairman and CEO, in a release. "We meaningfully lowered our debt and increased our cash on hand while extending the maturity of our credit facility until 2011."

McDowell adds that "our high credit quality portfolio continued to perform as expected and we expect that performance will continue. The proactive steps we have taken position us well to execute on our 2010 strategy which will be focused on driving increased free cash flow through continued debt reduction and the resumption of portfolio growth on an opportunistic basis."

At year's end, CapLease agreed to an early lease termination with Qwest Corp., the sole tenant at its two Omaha properties. Both leases were due to expire in June of this year. In a release, CapLease says it's actively negotiating extensions with the subtenants as well as lease-ups of the vacant space in the buildings. The company also recognized an $11.9-million impairment loss on our Johnston, RI property which is now vacant; it too is being actively marketed to prospective tenants.

Company president and CEO Gordon DuGan says in a release, "We are excited for the opportunities 2010 holds; with CPA:17 funds raised now exceeding $850 million, we continue to see strong investor preference for long term income producing investments." As a result, DuGan says, "we feel we are well positioned to maintain our role as a leading provider of long term capital to creditworthy corporations and property owners worldwide."

Click here for a related story in the current issue of Real Estate Forum.

Instant Insights /

CapLease, W.P. Carey Post Strong 2009 Results

Related Stories

Recommended For You