Business & Finance
Business and Finance
Business and Finance
Wed, December 8, 2010 CapLease Updates Dividend Policy; Declares 8% Increase in Fourth Quarter Dividend
NEW YORK--([ BUSINESS WIRE ])--CapLease, Inc. (NYSE: LSE)today provided the following dividend updates.
Dividend Policy
The Companya™s Board of Directors announced an increase in the Companya™s quarterly dividend by 8% beginning with the fourth quarter of 2010 to $0.065 per share. That increase reflects the Companya™s significant progress on its business plan over the past 12 months, including the restart of portfolio growth and additional debt reduction of approximately $90 million expected for full year 2010. The Board of Directors will continue to evaluate the Companya™s dividend policy throughout the year as the Company implements its 2011 plans which are focused on increasing cash flow through continued portfolio growth and debt reduction.
Mr. Paul McDowell, Chairman and Chief Executive Officer, stated, aWe are pleased to announce the increase in our dividend which reflects the Companya™s progress and achievements in 2010. Our dividend is well covered by existing operations and further by the recently announced investment transactions. We are optimistic that we will continue to grow the portfolio and generate strong cash flows in 2011.a
Fourth Quarter 2010 Dividends
Consistent with the foregoing dividend policy, the Company announced today that its Board of Directors has declared a cash dividend of $0.065 per share of common stock and per limited partnership unit for the fourth quarter of 2010.
The Companya™s Board of Directors also declared a cash dividend of $0.5078125 per share of 8.125% Series A Cumulative Redeemable Preferred Stock (NYSE: LSEPrA) for the fourth quarter of 2010.
The fourth quarter 2010 common and the preferred dividends are payable on January 18, 2011 to stockholders of record as of December 31, 2010.
Stockholders interested in learning how to participate in CapLeasea™s dividend reinvestment and direct stock purchase plan or receiving a plan prospectus may do so by contacting American Stock Transfer & Trust Company, the plan administrator, through its Web site at [ www.amstock.com ] or by calling (866) 706-0513. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of CapLease.
Forward-Looking and Cautionary Statements:
The Companya™s future dividend expectations are subject to the forward-looking and cautionary statements included in this press release. Forward-looking statements in this press release involve a number of risks and uncertainties and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following important factors could cause actual results to differ materially from those projected in such forward-looking statements.
- our ability to implement our 2011 business plan, including to add new assets and reduce our debt obligations;
- declines in our lendera™s valuation of the assets securing our revolving credit facility with Wells Fargo Bank, National Association;
- adverse changes in the financial condition of the tenants underlying our investments;
- increases in our financing costs (including as a result of LIBOR rate increases), our general and administrative costs and/or our property expenses; and
- deterioration in general market conditions or in the commercial real estate markets in particular;
- changes in our industry, the industries of our tenants, interest rates or the general economy.
Developments in any of those areas could cause actual results to differ materially from results that have been or may be projected. For a more detailed discussion of the trends, risks and uncertainties that may affect our operating and financial results and our ability to achieve the financial objectives discussed in this press release, readers should review the Companya™s most recent Annual Report on Form 10-K, including the section entitled aRisk Factors,a and the Companya™s other periodic filings with the SEC. Copies of these documents are available on our web site at [ www.caplease.com ] and on the SECa™s website at [ www.sec.gov ]. We caution that the foregoing list of important factors is not complete and we do not undertake to update any forward-looking statement.
About the Company:
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.
