Attached files
| file | filename |
|---|---|
| 8-K - 8-K - InvenTrust Properties Corp. | d865505d8k.htm |
| EX-99.1 - EX-99.1 - InvenTrust Properties Corp. | d865505dex991.htm |
| EX-10.4 - EX-10.4 - InvenTrust Properties Corp. | d865505dex104.htm |
| EX-10.1 - EX-10.1 - InvenTrust Properties Corp. | d865505dex101.htm |
| EX-10.2 - EX-10.2 - InvenTrust Properties Corp. | d865505dex102.htm |
| EX-10.3 - EX-10.3 - InvenTrust Properties Corp. | d865505dex103.htm |
Exhibit 99.2
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
On February 3, 2015 (the “Distribution Date”), Inland American Real Estate Trust, Inc. (the “Company”) completed the previously announced spin-off (“Spin-off”) of Xenia Hotels & Resorts, Inc. (“Xenia”) through a taxable pro-rata distribution by the Company of 95% of the outstanding common stock of Xenia to holders of record of the Company’s common stock as of the close of business on January 20, 2015 (the “Record Date”). Each holder of record of the Company’s common stock received one share of Xenia’s common stock for every eight shares of the Company’s common stock held at the close of business on the Record Date (the “Distribution”). In lieu of fractional shares, stockholders of the Company will receive cash. On February 4, 2015, Xenia’s common stock began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “XHR.”
On November 17, 2014, the Company and certain of its subsidiaries completed the sale of the Company’s suburban select service hotel portfolio consisting of 52 properties and certain hotel related assets (the “Select Service Portfolio”) to IHP I Owner JV, LLC, a Delaware limited liability company (“IHP I”), IHP West Homestead (PA) Owner LLC, a Delaware limited liability company (“IHP West” and, together with IHP I, the “Buyers”) and/or certain of their respective affiliated assignees for approximately $1.071 billion in cash (the “Disposition”).
The following unaudited pro forma consolidated financial statements are based upon the historical financial statements for the Company, adjusted to reflect the Spin-off and the Disposition.
INLAND AMERICAN REAL ESTATE TRUST, INC.
(A Maryland Corporation)
Pro Forma Consolidated Balance Sheet
September 30, 2014
(Dollar amounts in thousands, except share amounts)
| September 30, 2014 | September 30, 2014 | |||||||||||||||
| Consolidated Company (a) | Select Service Pro Forma Adjustments |
Xenia Pro Forma Adjustments |
Pro Forma Consolidated Company |
|||||||||||||
| Assets |
||||||||||||||||
| Investment properties: |
||||||||||||||||
| Land |
$ | 1,141,244 | $ | — | $ | (334,168 | )(n) | $ | 807,076 | |||||||
| Building and other improvements |
5,777,308 | — | (2,685,840 | )(n) | 3,091,468 | |||||||||||
| Construction in progress |
271,363 | — | (27,723 | )(n) | 243,640 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
7,189,915 | — | (3,047,731 | ) | 4,142,184 | |||||||||||
| Less accumulated depreciation |
(1,060,639 | ) | 469,808 | (n) | (590,831 | ) | ||||||||||
|
|
|
|
|
|
|
|||||||||||
| Net investment properties |
6,129,276 | (2,577,923 | ) | 3,551,353 | ||||||||||||
| Cash and cash equivalents |
348,790 | 480,038 | (f) | (536,685 | )(o)(r) | 292,143 | ||||||||||
| Restricted cash and escrows |
148,856 | — | (105,296 | )(n) | 43,560 | |||||||||||
| Investment in marketable securities |
139,158 | — | 116,516 | (q) | 255,674 | |||||||||||
| Investment in unconsolidated entities |
248,865 | — | — | 248,865 | ||||||||||||
| Accounts and rents receivable |
75,556 | — | (31,429 | )(n) | 44,127 | |||||||||||
| Intangible assets, net |
163,860 | — | (65,155 | )(n) | 98,705 | |||||||||||
| Deferred costs and other assets |
90,018 | — | (33,901 | )(n) | 56,117 | |||||||||||
| Assets held for sale |
937,394 | (937,394 | )(g) | — | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
$ | 8,281,773 | $ | (457,356 | ) | $ | (3,233,873 | ) | $ | 4,590,544 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Liabilities |
||||||||||||||||
| Debt |
$ | 3,636,809 | $ | — | $ | (1,450,791 | )(n)(r) | $ | 2,186,018 | |||||||
| Accounts payable and accrued expenses |
182,724 | — | (75,619 | )(n) | 107,105 | |||||||||||
| Distributions payable |
35,909 | — | — | 35,909 | ||||||||||||
| Intangible liabilities, net |
47,760 | — | (4,295 | )(n) | 43,465 | |||||||||||
| Other liabilities |
52,251 | — | (24,814 | )(n) | 27,437 | |||||||||||
| Liabilities held for sale |
533,080 | (533,080 | )(g) | — | — | |||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total liabilities |
4,488,533 | (533,080 | ) | (1,555,519 | ) | 2,399,934 | ||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Stockholders’ Equity |
||||||||||||||||
| Preferred stock, $.001 par value |
— | — | — | — | ||||||||||||
| Common stock, $.001 par value |
861 | — | — | 861 | ||||||||||||
| Additional paid in capital |
7,755,486 | — | (1,675,130 | )(p) | 6,080,356 | |||||||||||
| Accumulated distributions in excess of net loss |
(4,007,270 | ) | 75,724 | (h) | (95 | )(n) | (3,931,641 | ) | ||||||||
| Accumulated other comprehensive income |
40,909 | — | — | 40,909 | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total Company stockholders’ equity |
3,789,986 | 75,724 | (1,675,225 | ) | 2,190,485 | |||||||||||
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|
|
|
|
|
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|
|||||||||
| Noncontrolling interests |
3,254 | — | (3,129 | ) | 125 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total equity |
3,793,240 | 75,724 | (1,678,354 | ) | 2,190,610 | |||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total liabilities and equity |
$ | 8,281,773 | $ | (457,356 | ) | $ | (3,233,873 | ) | $ | 4,590,544 | ||||||
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|
|
|
|
|
|
|
|
|||||||||
See accompanying notes to the pro forma consolidated financial statements
INLAND AMERICAN REAL ESTATE TRUST, INC.
(A Maryland Corporation)
Pro Forma Consolidated Statement of Operations
Nine months ended September 30, 2014
(Dollar amounts in thousands, except per share data)
| Consolidated Company September 30, 2014 (b) |
Select Service Pro Forma Adjustments (i) |
Xenia Pro Forma Adjustments |
Pro Forma Consolidated Company September 30, 2014 |
|||||||||||||
| Income: |
||||||||||||||||
| Rental income |
$ | 286,300 | $ | — | $ | — | $ | 286,300 | ||||||||
| Tenant recovery income |
50,396 | — | — | 50,396 | ||||||||||||
| Other property income |
6,766 | — | — | 6,766 | ||||||||||||
| Lodging income |
696,587 | — | (696,587 | )(s) | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total income |
$ | 1,040,049 | $ | — | $ | (696,587 | ) | $ | 343,462 | |||||||
| Expenses: |
||||||||||||||||
| General and administrative expenses |
62,603 | — | (11,570 | )(t) | 51,033 | |||||||||||
| Property operating expenses |
69,127 | — | — | 69,127 | ||||||||||||
| Lodging operating expenses |
454,386 | — | (454,386 | )(u) | — | |||||||||||
| Real estate taxes |
61,880 | — | (26,609 | )(u) | 35,271 | |||||||||||
| Depreciation and amortization |
222,795 | — | (106,231 | )(u) | 116,564 | |||||||||||
| Business management fee |
2,605 | — | — | 2,605 | ||||||||||||
| Provision for asset impairment |
80,281 | — | (4,665 | )(v) | 75,616 | |||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
953,677 | — | (603,461 | ) | 350,216 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
$ | 86,372 | $ | — | $ | (93,126 | ) | $ | (6,754 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Interest and dividend income |
10,621 | — | 3,715 | (w) | 14,336 | |||||||||||
| Gain on sale of investment properties |
19,118 | — | (865 | )(w) | 18,253 | |||||||||||
| Other income |
15,464 | — | 1,177 | (w) | 16,641 | |||||||||||
| Interest expense |
(138,597 | ) | — | 42,065 | (x) | (96,532 | ) | |||||||||
| Equity in earnings of unconsolidated entities |
334 | — | 293 | (y) | 627 | |||||||||||
| Gain, (loss) and (impairment) of investment in unconsolidated entities, net |
4,509 | — | (4,509 | )(y) | — | |||||||||||
| Realized gain, (loss) and (impairment) on securities, net |
42,998 | — | — | 42,998 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
40,819 | — | (51,250 | ) | (10,431 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income tax expense |
(6,857 | ) | — | 5,786 | (z) | (1,071 | ) | |||||||||
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|
|
|
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|
|
|||||||||
| Net income from continuing operations |
$ | 33,962 | $ | — | $ | 45,464 | $ | (11,502 | ) | |||||||
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|
|||||||||
| Net income (loss) per common share, from continuing operations, basic and diluted |
$ | 0.04 | $ | (0.01 | ) | |||||||||||
| Weighted average number of common shares outstanding, basic and diluted |
883,537,865 | 883,537,865 | ||||||||||||||
See accompanying notes to the pro forma consolidated financial statements
INLAND AMERICAN REAL ESTATE TRUST, INC.
(A Maryland Corporation)
Pro Forma Consolidated Statement of Operations
Twelve months ended December 31, 2013
(Dollar amounts in thousands, except per share data)
| Consolidated Company December 31, 2013 (c) |
Select Service Pro Forma Adjustments |
Xenia Pro Forma Adjustments |
Pro Forma Consolidated Company December 31, 2013 |
|||||||||||||
| Income: |
||||||||||||||||
| Rental income |
$ | 361,678 | $ | — | $ | — | $ | 361,678 | ||||||||
| Tenant recovery income |
71,207 | — | — | 71,207 | ||||||||||||
| Other property income |
7,202 | — | — | 7,202 | ||||||||||||
| Lodging income |
881,750 | (229,956 | )(j) | (651,794 | )(s) | — | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total income |
1,321,837 | (229,956 | ) | (651,794 | ) | 440,087 | ||||||||||
| Expenses: |
— | |||||||||||||||
| General and administrative expenses |
55,549 | — | (7,188 | )(t) | 48,361 | |||||||||||
| Property operating expenses |
84,107 | — | 84,107 | |||||||||||||
| Lodging operating expenses |
574,224 | (140,506 | )(k) | (433,718 | )(u) | — | ||||||||||
| Real estate taxes |
85,597 | (11,353 | )(k) | (23,863 | )(u) | 50,381 | ||||||||||
| Depreciation and amortization |
314,630 | (50,377 | )(k) | (103,316 | )(u) | 160,937 | ||||||||||
| Business management fee |
37,962 | — | — | 37,962 | ||||||||||||
| Provision for asset impairment |
242,896 | — | (47,215 | )(v) | 195,681 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
1,394,965 | (202,236 | ) | (615,300 | ) | 577,429 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating loss |
$ | (73,128 | ) | $ | (27,720 | ) | $ | (36,494 | ) | $ | (137,342 | ) | ||||
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|
|
|
|
|
|
|||||||||
| Interest and dividend income |
19,267 | — | 4,811 | (w) | 24,078 | |||||||||||
| Other income |
15,335 | — | 1,766 | (w) | 17,101 | |||||||||||
| Interest expense |
(212,263 | ) | 32,568 | (l) | 52,270 | (x) | (127,425 | ) | ||||||||
| Equity in earnings of unconsolidated entities |
11,958 | — | (483 | )(y) | 11,475 | |||||||||||
| Gain, (loss) and (impairment) of investment in unconsolidated entities, net |
(3,473 | ) | — | 516 | (y) | (2,957 | ) | |||||||||
| Realized gain, (loss) and (impairment) on securities, net |
31,539 | — | — | 31,539 | ||||||||||||
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|
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|
|||||||||
| Loss before income taxes |
(210,765 | ) | 4,848 | 22,386 | (183,531 | ) | ||||||||||
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|
|
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|
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|
|||||||||
| Income tax expense |
(4,759 | ) | — | 3,043 | (z) | (1,716 | ) | |||||||||
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|
|||||||||
| Net loss from continuing operations |
$ | (215,524 | ) | $ | 4,848 | $ | 25,429 | $ | (185,247 | ) | ||||||
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|||||||||
| Net income (loss) per common share, from continuing operations, basic and diluted |
$ | (0.24 | ) | $ | (0.21 | ) | ||||||||||
| Weighted average number of common shares outstanding, basic and diluted |
899,842,722 | 899,842,722 | ||||||||||||||
See accompanying notes to the pro forma consolidated financial statements
INLAND AMERICAN REAL ESTATE TRUST, INC.
(A Maryland Corporation)
Pro Forma Consolidated Statement of Operations
Twelve months ended December 31, 2012
(Dollar amounts in thousands, except per share data)
| Consolidated Company December 31, 2012 (d) |
Select Service Pro Forma Adjustments |
Xenia Pro Forma Adjustments |
Pro Forma Consolidated Company December 31, 2012 |
|||||||||||||
| Income: |
||||||||||||||||
| Rental income |
$ | 347,647 | $ | — | $ | — | $ | 347,647 | ||||||||
| Tenant recovery income |
73,214 | — | — | 73,214 | ||||||||||||
| Other property income |
5,714 | — | — | 5,714 | ||||||||||||
| Lodging income |
692,448 | (225,603 | )(j) | (466,845 | )(s) | — | ||||||||||
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|
|
|
|
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|
|
|||||||||
| Total income |
1,119,023 | (225,603 | ) | (466,845 | ) | 426,575 | ||||||||||
| Expenses: |
— | |||||||||||||||
| General and administrative expenses |
36,815 | — | (4,103 | )(t) | 32,712 | |||||||||||
| Property operating expenses |
77,694 | — | — | 77,694 | ||||||||||||
| Lodging operating expenses |
449,397 | (137,250 | )(k) | (312,147 | )(u) | — | ||||||||||
| Real estate taxes |
78,348 | (10,799 | )(k) | (19,993 | )(u) | 47,556 | ||||||||||
| Depreciation and amortization |
311,752 | (61,905 | )(k) | (89,629 | )(u) | 160,218 | ||||||||||
| Business management fee |
39,892 | — | — | 39,892 | ||||||||||||
| Provision for asset impairment |
37,830 | — | — | 37,830 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
1,031,728 | (209,954 | ) | (425,872 | ) | 395,902 | ||||||||||
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|
|
|
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|
|
|||||||||
| Operating income (loss) |
$ | 87,295 | $ | (15,649 | ) | $ | (40,973 | ) | $ | 30,673 | ||||||
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|
|
|
|
|
|
|||||||||
| Interest and dividend income |
23,386 | — | 4,822 | (w) | 28,208 | |||||||||||
| Other income (loss) |
2,010 | — | 404 | (w) | 2,414 | |||||||||||
| Interest expense |
(209,353 | ) | 34,373 | (l) | 45,061 | (x) | (129,919 | ) | ||||||||
| Equity in earnings of unconsolidated entities |
1,998 | — | (147 | )(y) | 1,851 | |||||||||||
| Gain, (loss) and (impairment) of investment in unconsolidated entities, net |
(12,322 | ) | — | 3,866 | (y) | (8,456 | ) | |||||||||
| Realized gain, (loss) and (impairment) on securities, net |
4,319 | — | — | 4,319 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before income taxes |
(102,667 | ) | 18,724 | 13,033 | (70,910 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income tax expense |
(7,762 | ) | — | 5,717 | (z) | (2,045 | ) | |||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Net loss from continuing operations |
$ | (110,429 | ) | $ | 18,724 | $ | 18,750 | $ | (72,955 | ) | ||||||
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|
|
|
|
|
|
|
|||||||||
| Net income (loss) per common share, from continuing operations, basic and diluted |
(0.13 | ) | $ | (0.08 | ) | |||||||||||
| Weighted average number of common shares outstanding, basic and diluted |
879,685,949 | 879,685,949 | ||||||||||||||
See accompanying notes to the pro forma consolidated financial statements
INLAND AMERICAN REAL ESTATE TRUST, INC.
(A Maryland Corporation)
Pro Forma Consolidated Statement of Operations
Twelve months ended December 31, 2011
(Dollar amounts in thousands, except per share data)
| Consolidated Company December 31, 2011 (e) |
Select Service Pro Forma Adjustments |
Xenia Pro Forma Adjustments |
Pro Forma Consolidated Company December 31, 2011 |
|||||||||||||
| Income: |
||||||||||||||||
| Rental income |
$ | 327,052 | $ | — | $ | — | $ | 327,052 | ||||||||
| Tenant recovery income |
66,655 | — | — | 66,655 | ||||||||||||
| Other property income |
8,838 | — | — | 8,838 | ||||||||||||
| Lodging income |
517,840 | (212,626 | )(j) | (305,214 | )(s) | — | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total income |
920,385 | (212,626 | ) | (305,214 | ) | 402,545 | ||||||||||
| Expenses: |
||||||||||||||||
| General and administrative expenses |
31,026 | — | (3,186 | )(t) | 27,840 | |||||||||||
| Property operating expenses |
77,691 | — | — | 77,691 | ||||||||||||
| Lodging operating expenses |
330,185 | (132,005 | )(k) | (198,180 | )(u) | — | ||||||||||
| Real estate taxes |
68,255 | (10,025 | )(k) | (13,237 | )(u) | 44,993 | ||||||||||
| Depreciation and amortization |
311,573 | (62,794 | )(k) | (68,600 | )(u) | 180,179 | ||||||||||
| Business management fee |
40,000 | — | — | 40,000 | ||||||||||||
| Provision for asset impairment |
24,051 | (2,886 | )(m) | — | 21,165 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
882,781 | (207,710 | ) | (283,203 | ) | 391,868 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income (loss) |
$ | 37,604 | $ | (4,916 | ) | $ | (22,011 | ) | $ | 10,677 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Interest and dividend income |
22,860 | — | 4,564 | (w) | 27,424 | |||||||||||
| Other income (loss) |
19,694 | — | (228 | )(w) | 19,466 | |||||||||||
| Interest expense |
(215,790 | ) | 35,004 | (l) | 28,884 | (x) | (151,902 | ) | ||||||||
| Equity in earnings of unconsolidated entities |
(12,802 | ) | — | (6 | )(y) | (12,808 | ) | |||||||||
| Gain, (loss) and (impairment) of investment in unconsolidated entities, net |
(106,023 | ) | — | (53 | )(y) | (106,076 | ) | |||||||||
| Realized gain, (loss) and (impairment) on securities, net |
(16,219 | ) | — | — | (16,219 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before income taxes |
(270,676 | ) | 30,088 | 11,150 | (229,438 | ) | ||||||||||
| Income tax benefit |
3,387 | — | (3,207 | )(z) | 180 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss from continuing operations |
$ | (267,289 | ) | $ | 30,088 | $ | 7,943 | $ | (229,258 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income (loss) per common share, from continuing operations, basic and diluted |
$ | (0.32 | ) | $ | (0.27 | ) | ||||||||||
| Weighted average number of common shares outstanding, basic and diluted |
858,637,707 | 858,637,707 | ||||||||||||||
See accompanying notes to the pro forma consolidated financial statements
INLAND AMERICAN REAL ESTATE TRUST, INC.
Notes to Pro Forma Consolidated Financial Statements (Unaudited)
1) Basis of Presentation
The unaudited pro forma financial information is presented to illustrate the effect of the Spin-off and Disposition on the Company’s historical financial position and operating results. The unaudited pro forma consolidated balance sheet is as of September 30, 2014 and is based upon our historical statements after giving effect to the Spin-off and Disposition as if they had occurred on September 30, 2014. The unaudited pro forma consolidated statement of operations for the nine months ended September 30, 2014 and the unaudited pro forma consolidated statement of operations for the years ended December 31, 2013, December 31, 2012 and December 31, 2011 are based upon our historical statements for such periods after giving effect to the Spin-off and Disposition as if they had occurred on January 1 of the earliest period presented. The unaudited pro forma financial information should be read in conjunction with the historical consolidated financial statements and notes thereto of the Company contained in the Annual Report on Form 10-K for the year ended December 31, 2013 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2014.
The Unaudited Pro Forma Consolidated Financial Statements are presented for illustrative purposes only and are not intended to represent or be indicative of our consolidated results of operations or financial position that would have been reported had the Spin-off and Disposition been completed as of the dates presented, and should not be taken as representation of our future consolidated results of operations or financial condition. The pro forma adjustments are based upon available information and certain assumptions that management believes are reasonable under the circumstances; however, actual amounts could differ.
2) Pro Forma Adjustments
| (a) | Reflects the Company’s unaudited consolidated balance sheet as of September 30, 2014 as reported in our Form 10-Q as of September 30, 2014. |
| (b) | Reflects the Company’s historical consolidated statement of operations for the nine months ended September 30, 2014. |
| (c) | Reflects the Company’s historical consolidated statement of operations for the year ended December 31, 2013. |
| (d) | Reflects the Company’s historical consolidated statement of operations for the year ended December 31, 2012. |
| (e) | Reflects the Company’s historical consolidated statement of operations for the year ended December 31, 2011. |
For references (f) through (m)—On November 17, 2014, the Company completed the sale of the Select Service Portfolio. The following pro forma adjustments reflect the Disposition.
| (f) | Reflects the receipt of net proceeds of the Select Service Portfolio sale. We expect to use the net proceeds from the transaction to advance the growth strategy of our student housing and retail portfolios, which includes, among other things, acquisitions, debt reduction and general corporate purposes. |
| (g) | Reflects the elimination of the assets and liabilities held for sale associated with the Select Service Portfolio. |
| (h) | Reflects the estimated gain and net proration credits arising from the sale of the Select Service Portfolio. |
| (i) | There are no pro forma adjustments as the Select Service Portfolio was included in discontinued operations for the nine months ended September 30, 2014. |
| (j) | Reflects the elimination of lodging income of the Select Service Portfolio. |
| (k) | Reflects the elimination of expenses of the Select Service Portfolio that are necessary for and associated with revenue producing activities, such as room expense and food and beverage expense. This adjustment does not reflect any one-time non-reoccurring costs, primarily transactions costs and prepayment penalties, directly related to the closing of sale of the Select Service Portfolio which will be included in the statement of operations of the Company with the twelve months following the closing. |
| (l) | Reflects the elimination of interest expense incurred on debt directly attributable to investment properties of the Select Service Portfolio. |
| (m) | Reflects the elimination of asset impairment charges of the Select Service Portfolio. |
For references (n) through (x)—On the Distribution Date, the Company completed the previously announced Spin-off.
| (n) | Reflects the elimination of assets and liabilities of Xenia as of September 30, 2014. |
| (o) | The Company made a capital contribution to Xenia of $125 million and funded the pay down of Xenia debt of $100 million. Xenia also maintained cash on hand and reimbursed the Company for certain transaction costs. |
| (p) | Reflects the pro forma recapitalization of our equity. As of the Distribution Date, we distributed the net assets of our investment in Xenia through the distribution of shares of Xenia common stock. Each holder of record of the Company’s common stock received one share of Xenia’s common stock for every eight shares of the Company’s common stock held at the close of business on the Record Date. |
| (q) | Reflects the Company’s 5% investment of Xenia common stock as of the Distribution Date. |
| (r) | In connection with the Spin-off, Inland American repaid the $200 million unsecured term loan and entered into an amended and restated credit agreement for a $300 million secured revolving credit facility, of which zero was drawn at September 30, 2014. |
| (s) | Reflects the elimination of rental income, primarily net market lease income and lodging income of Xenia. |
| (t) | Reflects the elimination of general and administrative expense of Xenia related to the Xenia corporate office. |
| (u) | Reflects the elimination of expenses of Xenia that are necessary for and associated with revenue producing activities, such as room expense and food and beverage expense. |
| (v) | Reflects the elimination of asset impairment charges of investment properties of Xenia. |
| (w) | Reflects the elimination of interest income and other income (loss) associated with Xenia, such as gain (loss) on sale of properties, offset by dividend income related to the Company’s investment in Xenia. |
| (x) | Reflects the elimination of interest expense incurred on debt directly attributable to investment properties of Xenia. |
| (y) | Reflects the elimination of the equity in earnings of unconsolidated entities and the gain (loss), and impairment of investment of unconsolidated entities. |
| (z) | Reflects the elimination of income tax expense directly attributable to Xenia. |