By RTT News, February 25, 2013, 07:23:00 AM EDT
(RTTNews.com) - CommonWealth REIT ( CWH ) reported that its fourth-quarter funds from operation or FFO available for common shareholders rose to $75.56 million from $63.03 million in the year ago quarter. FFO per share for the quarter increased to $0.90 from $0.75 in the year ago quarter.
Normalized funds from operations, or Normalized FFO, available for common shareholders for the quarter was $68.7 million, or $0.82 per share, compared to Normalized FFO of $63.8 million or $0.76 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.
Net loss available for common shareholders for the quarter was $163.9 million or $1.96 per share compared to net income of $1.1 million or $0.01 per share for the same quarter last year.
Net loss for the latest-quarter included a loss on asset impairment of $168.6 million, or $2.01 per share, partially offset by a gain of $7.2 million, or $0.09 per share, from the issuance of shares by an equity investee.
Rental income for the quarter rose to $264.69 million from $233.53 million in the prior year quarter.
Four analysts had consensus revenue estimate of $263.56 million for the quarter.
In a separate press release, CommonWealth announced that it has commenced a tender offer to purchase for cash up to $450 million of the outstanding principal amount of the respective debt securities. The tender offer consists of an offer which is being made upon the terms and subject to the conditions set forth in an offer to purchase and related letter of transmittal, dated February 25, 2013, to purchase up to $450 million aggregate principal amount of the 5.75% Senior Notes due February 15, 2014, 6.40% Senior Notes due February 15, 2015, 5.75% Senior Notes due November 1, 2015 and 6.25% Senior Notes due August 15, 2016.
The company noted that the offer will expire at midnight, New York City time, at the end of March 22, 2013, unless extended . Holders must validly tender and not validly withdraw their Senior Notes at or prior to 5:00 p.m., New York City time, on March 8, 2013, unless extended to be eligible to receive the Total Consideration, which includes an early tender premium of $20 per $1,000 principal amount of Senior Notes accepted for purchase.
Senior Notes may be validly withdrawn at any time before 5:00 p.m., New York City time, March 8, 2013, unless such date and time is extended by the company, but not thereafter.
Separately, CommonWealth REIT announced it has commenced a public offering of 27 million common shares. The company expects that the underwriters will also be granted a 30-day option to purchase up to an additional 4.05 million common shares.
The company expects to use the proceeds of this offering to purchase up to $450 million of unsecured senior notes due between 2014 and 2016 in a tender offer.
Proceeds from the sale of common shares not used to repurchase notes in the tender offer will be used to repay other debt and to fund general business purposes, the company said.
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