NEW ROCHELLE, NY — Entertainment Properties Trust, Owners of New Roc City in New Rochelle, reported to investors on its settlement with Capelli Enterprises as part of its Second Quarter Earnings Report.
Cappelli Settlement
As previously announced, on June 18, 2010, the Company entered into a series of agreements with Mr. Cappelli and several of his affiliates and mutually released and settled all claims, obligations and liabilities, including all pending litigation. As a result of the settlement, the Concord resort land and the New Rochelle (New Roc) entertainment retail center are now wholly-owned properties of the Company, and the Company no longer has an interest in City Center, an entertainment retail center in White Plains, New York. A gain was recorded of $4 thousand related to the settlement and is included in other income.
Entertainment Properties Trust projected that the Cappelli Settlement would have a significant impact on EPT’s bottom line.
Guidance Update
The Company is revising its 2010 investment spending guidance from $300 million to $350 million.
The Company is also revising its 2010 guidance for FFO as adjusted per diluted share to $3.30 to $3.40 from the previous guidance of $3.30 to $3.45. This guidance reflects the Company’s lower leverage as a result of the equity offering and settlement with Cappelli in the second quarter, as well as recent debt transactions and expected investment spending for 2010 of $350 million. Including the charge of $0.35 per diluted share for costs associated with loan refinancing, the guidance for FFO per diluted share is $2.95 to $3.05.
According to the Entertainment Properties Trust web site, the company is a real estate investment trust (REIT) that develops, owns, leases, and finances properties for consumer-preferred, high-quality businesses. EPR’s investments are guided by a focus on inflection opportunities that are associated with or support enduring uses, excellent executions, attractive economics, and an advantageous market position. The Company’s total assets exceed $2.9 billion and include megaplex movie theatres and entertainment retail centers, as well as other destination recreational and specialty investments.
More on the EPT web site.