Journalists do know how the get ones attention.No one seems to...

Journalists do know how the get ones attention.

No one seems to be giving CNP much attention on HC these days so I thought I would post here something I tripped over.

http://www.costar.com/News/Article.aspx?id=49A94B2EF23AAFF889436068FF14652A


By Mark Heschmeyer
April 22, 2009

ON THE BRINK: 15 Real Estate Firms Going, Going…
Frozen Credit Markets Put Survival in Doubt for More Than a Dozen Property Holding Companies

Just how tough a year 2008 was on property investment companies is evident in the fact that accountants for at least 15 firms issued "going concern" doubts in their year-end annual reports filed with the U.S. Securities & Exchange Commission.

The distressed companies' holdings include controlling or managing interests in at least 618 shopping centers with 230.5 million square feet of space, 282 hotels/resorts/casinos with more than 63,380 rooms, 45 office properties totaling 8.3 million square feet and 33 multifamily complexes with more than 2,280 units.

CoStar Group, Inc. has reported widely on the problems of many of the firms, including Centro Properties Group and General Growth Properties (NYSE: GGP). Others, such as Prime Group Realty (NYSE: PGE-PB), Meruelo Maddox Properties, Lodgian Inc. (AMEX: LGN) and Interstate Hotels & Resorts, have not received widespread media coverage.

Liquidity and debt issues are primary issues raising the most doubt about the companies' survival. The companies either do not have enough cash on hand or don't have the ability to raise new money to meet their debt obligations. Or, the companies are having trouble refinancing maturing debt.

Four of the companies have already sought respite from their most pressing problems through the U.S. bankruptcy courts: General Growth Properties, which filed just this past week, ILX Resorts, Meruelo Maddox Properties and Trump Entertainment Resorts. In the case of Trump Entertainment, the legendary and bombastic investor Donald Trump has even relinquished control over the Atlantic City casino operator.

The following summaries of the 15 firms' property holdings were compiled from the firms' annual reports, identifying their most pressing problems and the primary steps they are taking to address the issues.

Centro NP LLC

Centro NP, based in New York, NY, owns 203 retail properties in 28 states, and operates another 257 held through unconsolidated joint ventures. The 460 properties include 445 community and neighborhood shopping centers with 71.2 million square feet of space, and 15 related retail assets with approximately 1.3 million square feet.

There is substantial doubt about the company's ability to continue as a going concern given its liquidity issues, which includes its ability to negotiate extensions of credit; current prohibition upon its ability to take on more debt and restrictions on operations that increase the risk of default.

In addition, uncertainty also exists due to the liquidity issues currently experienced by the company's ultimate parent investors in Sydney, Australia, Centro Properties Ltd. and Centro Property Trust.

The company recently received an extension of its major debt facilities to Dec. 31, 2010, which it said provides more time to consider a range of different plans.

Still during 2009, Centro has $188.5 million of mortgage debt scheduled to mature, $19.3 million of scheduled mortgage amortization payments and a $9.4 million required loan paydown. If principal payments on debt due at maturity cannot be refinanced, extended or paid, it will be in default under its debt obligations and may be forced to dispose of properties on disadvantageous terms. Such defaults could in turn cause additional defaults.

In addition, Centro NP is no longer permitted to make draws under its primary lending agreements and may not be able to repay or refinance its short-term debt obligations coming due.

Management is working with its lenders to assess a number of options that address the company's ongoing liquidity issues.

As of Dec. 31, 2008, Centro NP's breakdown of properties is as follows.

State - # of Properties - SqFt
Alabama - 8 - 1,623,436
Arizona - 5 - 804,791
Arkansas - 1 - 129,897
California - 14 - 2,256,369
Colorado - 6 - 1,484,159
Connecticut - 14 - 2,156,605
Florida - 40 - 6,742,800
Georgia - 36 - 5,024,416
Illinois - 14 - 2,592,789
Indiana - 12 - 1,885,624
Iowa - 2 - 510,173
Kansas - 2 - 267,486
Kentucky - 15 - 2,930,637
Louisiana - 4 - 624,850
Maine - 2 - 274,026
Maryland - 2 - 243,568
Massachusetts - 6 - 739,334
Michigan - 23 - 3,669,205
Minnesota - 7 - 1,021,806
Mississippi - 3 - 279,869
Missouri - 3 - 446,948
Nevada - 5 - 826,513
New Hampshire - 3 - 369,385
New Jersey - 8 - 928,624
New Mexico - 2 - 176,712
New York - 24 - 4,164,067
North Carolina - 17 - 2,744,833
Ohio - 34 - 6,326,568
Oklahoma - 2 - 481,464
Pennsylvania - 14 - 2,841,358
Rhode Island - 1 - 148,126
South Carolina - 7 - 1,215,471
Tennessee - 19 - 3,486,817
Texas - 82 - 10,470,648
Virginia - 14 - 1,806,953
Vermont - 1 - 224,514
West Virginia - 3 - 357,606
Wisconsin - 4 - 646,244
Wyoming - 1 - 155,022