Académique Documents
Professionnel Documents
Culture Documents
Year
Operating revenues
EBITDA
7.50%
29.00%
0.96%
2%
7%
6.12%
300,000,000
0.40%
0.20%
1997
322,317
93,472
22,562
12,408
58,502
3,412
580
54,510
4,583
49,927
479
49,447
4,539
12,408
66,394
0
66,394
1,069,204
300,000
769,204
59200
12.99
1998
343,555
99,631
24,049
13,040
62,542
3,485
575
58,482
18,373
40,110
385
39,725
18,196
13,040
70,961
1
70,961
64,495
1999
369,322
107,103
25,853
13,040
68,211
3,000
739
64,472
18,373
46,100
443
45,657
18,196
13,040
76,893
2
76,893
63,518
2000
397,021
115,136
27,791
13,040
74,305
3,000
794
70,511
18,373
52,138
501
51,637
18,196
13,040
82,874
3
82,874
62,220
CAPM
Cost Of Equity
Cost Of Debt
Cost Of Debt
Cost Of Equity
WACC(Unadjusted)
Add: Business Risk Premium
WACC
Net Asset Value
Purchase price
Rquired Capital
2001
426,797
123,771
29,876
13,040
80,855
3,000
854
77,002
14,225
62,777
603
62,174
14,088
13,040
89,303
4
89,303
60,938
2002
458,807
133,054
CHIP REIT (HOT.IR)
32,116
Legacy Hotel
13,040
87,898
3,000
918
83,980
14,225
69,755
670
69,085
14,088
13,040
96,214 Perpetual
5
5
96,214
1,222,782
59,671
758,362
Rf
5.74%
10.46%
6.12%
Return
6.12%
10.46%
Equity Beta
0.90
After Tax
6.07%
750,000
835,600
920,900
Equity Beta
0.86
0.90
D/E
41%
48%
Risk Premium
Market Return
5.22%
10.96%
Weight
32.58%
67.42%
Assets Beta
0.61
0.61
Total
1.98%
7.05%
9.03%
1.00%
10.03%
Tax Rate
0.96%
0.96%
Year
Net Income
Add: Depreciation
Less: capital replacement reserve
Distributable Income
Distributable income per Unit
Trailing Distributable Imcome per unit
Leading Distributable Imcome per unit
REIT prospective yield
Trailing Price per unit
Leading Price per unit
Average
30.89%
59200
1997
49,447
12,408
15,274
46,581
0.79
0.79
0.85
8.00%
9.84
10.58
10.21
1998
39,725
13,040
12,271
40,494
0.68
1999
45,657
13,040
14,103
44,594
0.75
2000
51,637
13,040
15,951
48,727
0.82
2001
62,174
13,040
19,206
56,009
0.95
2002
69,085
13,040
21,340
60,785
1.03
No of Unit
59200
1998E
39,725
18,373
385
13,040
71,522
1.21
10.50
12.69
13.46
1997E
58,502
0.99
26.70
26.39
1998E
62,542
1.06
11.70
12.36
19.37
300,000.00
5
14.31
NAV Approach
Net Asset Value for Hotel Portfolio
less: Debt Issue
Net Asset Value for RIET
Number of Unit
Per unit Value
750,000
300,000
450,000
59,200
7.60
Average price
Underpricing
Unit Price per share
Number of Unit
Procced from Issue
Less: Issue Cost (2%)
Net Procced from Issue
Required procced
Excess procced
654800
180800
60600
14500
10200
920900
300000
620900
7.60
12.99
10.21
13.46
14.31
11.71
20%
14.06
9.37
10.50-14.00
CP Hotel
11.71
10%
10.5
19536
205128
Public Issue
11.71
6%
11
39,664
436304
Total
59,200
641,432
14500
626,932
620900
6,032
Series
Years to maturity
1A
1B
1C
1D
Series
1A
1B
1C
1D
Amount
3
5
7
10
Years to maturity
75000
100000
75000
50000
Amount
3
5
7
10
Coupon rate
75
100
75
50
300
INTEREST
1998
4147.5
5930
4755
3540
18373
Weight
5.53%
5.93%
6.34%
7.08%
6.22%
1999
4147.5
5930
4755
3540
18373
total
25%
33%
25%
17%
1.382500%
1.976667%
1.585000%
1.180000%
6.124167%
INTEREST
2000
4147.5
5930
4755
3540
18373
2001
0
5930
4755
3540
14225
2002
0
5930
4755
3540
14225
Exhibit 7
LEGACY HOTELS INVESTMENT TRUST
FORECAST CONSOLIDATED STATEMENTS OF NET INCOME AND DISTRIBUTABLE INC
($000)
Dec. 31,
1997
Sept. 30,
1998
Operating revenues
77450
64403
93945
101153
55835
2324
58159
53624
1932
55556
60008
2818
62826
58940
3035
61975
19291
8847
31119
39178
5328
7%
3102
5509
9%
3272
5545
6%
3273
10861
66
22301
5609
6%
3272
750000
0.44%
30297
853
145
871
144
871
144
871
144
998
1015
1015
1015
9863
4583
-949
4497
21286
4498
29282
4497
-5446
107
16788
108
24785
107
5280
84
1.59%
5196
-5553
16680
24678
Add: depreciation
3102
3272
3223
3272
-3098
5200
-2576
-4857
-3758
16145
-4046
23904
Estimated distribution
5180
10958
10959
10959
.087
-.082
.273
.403
.087
.185
.185
.185
Note:
(1) Capital replacement reserve is a deduction in determining Distributable Income. Based on the Trust acquiring the Initial
Hotel Portfolio. Revenue and operating expenses are based on the current individual budgets of the hotels. The Trust
intends to distribute 100 per cent of the Distributable Income in the period covered by the Financial Forecast. See
\"Distribution Policy.\" Based on 59.2 million Units outstanding.
TRUST
E AND DISTRIBUTABLE INCOME
Dec. 31,
1998
84054
Annual
1998
343555
Annual Data
1994
343555
1995
252976
272965
7%
58464
2522
60986
231036
10307
241343
231036
10307
241343
23068
102212
102212
5492
7%
3273
22155
6%
13090
22155
6%
13090
14303
66967
66967
872
143
3485
575
3485
575
1015
4060
4060
13288
4498
62907
17990
62907
17990
12.66892
29%
8790
108
8682
44917
430
0.96%
44487
44917
430
0.96%
44487
3273
13040
13040
-3362
8593
-13742
43785
-13742
43785
10959
43785
43785
.146
.74
.74
.185
.74
.74
44912
18%
55233
20%
Annual Data
1996
1997
297175
8%
66200
22%
CS-
1998
322317
8%
83784
343555
6%
231036
10307
241343
102212
26%
30%
21312
22155
7%
6%
12408
13090
50064
66967
3412
580
0.18%
3992
3485
575
0.17%
4060
46072
62907
17990
18332
40%
27740
336
44917
430
7%
1.21%
1.21%
0.96%
27404
44487
12408
13040
-12392
-13742
20800
43785
20720
43785
0.35
0.74
59200
0.35
0.74
59200
0.96%
Company
American General Hospitality
Equity Inns, Inc.
FelCor Suite Hotels, Inc.
InnKeepers USA Trust
Patriot American Hospitality
RFS Hotel Investors Inc.
Starwood Lodging Trust (Westin)
Winston Hotels
AVERAGE
Exhibit 12
SELECTED DATA FOR U.S. REAL ESTATE INVESTMENT TRUSTS
Current
Funds From Operations
Price
Annualized
(FFO)/Unit
Ticker
9/30/1997 Dist.
Yield
1995
1996
AGT
28.69
$1.71
6.%
$1.84
$2.13
ENN
15.44
$1.16
7.5%
$1.23
$1.22
FCH
40.5
$2.2
5.4%
$2.31
$2.65
KPA
16.63
$1.04
6.3%
$1.03
$1.25
PAH
31.94
$1.06
3.3%
$1.11
$1.53
RFS
19.63
$1.44
7.3%
$1.65
$1.85
HOT
55.75
$1.92
3.4%
$1.61
$2.13
WXH
13.38
$.88
6.6%
$1.37
$1.5
$1.43
5.7%
TMENT TRUSTS
om Operations
(FFO)/Unit
1997
$2.43
$1.5
$3.3
$1.45
$1.8
$2.05
$2.95
$1.51
FFO Multiple
1998
$2.85
$1.65
$3.8
$1.67
$2.45
$2.24
$3.9
$1.72
1995
1996
1997
1998
15.59
13.47
11.81
10.07
12.55
12.66
10.29
9.36
17.53
15.28
12.27
10.66
16.15
13.30
11.47
9.96
28.77
20.88
17.74
13.04
11.90
10.61
9.58
8.76
34.63
26.17
18.90
14.29
9.77
8.92
8.86
7.78
18.4x
15.2x
12.6x
10.5x
Equity
Mkt Cap
(Mil)
$486.
$510.7
$1,599.5
$649.4
$2,370.1
$532.6
$3.255.6
$229.3
$1,204.1
Debt
Mkt Cap
(Mil)
$207.2
$207.8
$504.9
$100.4
$734.5
$144.8
$1,350.4
$63.1
$414.1
TEV
(Mil)
$693.2
$718.5
$2,104.4
$749.8
$3,104.6
$677.4
$4,606.
$292.4
$1,618.3
Debt
to
5-year
FFO Growth Rate
TEV
Beta
96/95
97/96
98/97
29.9%
.7
15.8%
14.1%
17.3%
28.9%
.48 (0.8)%
23.%
10.%
16.8%
.6
14.7%
24.5%
15.2%
13.4%
.63
21.4%
16.%
15.2%
23.7%
.68
37.8%
17.6%
36.1%
21.4%
.39
12.1%
10.8%
9.3%
29.3%
.66
32.3%
38.5%
32.2%
21.6%
.46
9.5%
.7%
13.9%
23.1%
.57 17.8% 18.1%
18.6%
1998E
60.0%
67.1%
57.9%
62.7%
47.1%
64.3%
49.2%
61.4%
58.7%
Assumption
Revenue Growht rate
EBITDA Margin
Tax for Hotel Business
Tax for Trust
Terminal GR
Property taxes, rent and insurance
Management Fees
Year
Operating revenues
EBITDA
7.50%
27%
1%
0.96%
3%
7%
3%
1997
322,317
83,784
22,562
12,408
48,814
3,412
580
44,822
18,332
26,490
254
26,236
252
12,408
38,895
0
38,895
800,013
300,000
500,013
59200
8.45
1997
1998
25%
29%
1998
343,555
102,212
24,049
13,040
65,123
3,485
575
61,063
17,990
43,073
414
42,660
410
13,040
56,109 Perpetual
1
1
56,109
824,013
51,002
749,010
750,000,000
835,600,000
920,900,000
CAPM
Cost Of Equity
Cost Of Debt
Cost Of Debt
Cost Of Equity
WACC
Add: Premium
WACC
Rf
5.74%
10.44%
6.12%
Return
6.12%
10.44%
Proxy Beta
0.9
After Tax
6.07%
Risk Premium
Market Return
5.22%
10.96%
Weight
32.58%
67.42%
Total
1.98%
7.04%
9.01%
1%
10.01%
Principal
Property
Type
Exhibit 11
SELECTED DATA FOR CANADIAN REAL ESTATE INVESTM
ADJ.
Equity
52 Week
Forward
Mkt
Price
High/Low
Yield
Cap
9/30/1997
($)
(%)
Units
($Mil)
Company
Avista REIT (AVS.IR)
CAP REIT (CAR.IR)
CHIP REIT (HOT.IR)
CPL (CPL.IR)
CREIT (REF.U)
H&R REIT (HR.U)
RealFund (RFN.U)
RioCan (RIO.U)
Summit REIT (SMU.U)
AVERAGE
Diversified
Apartment
Hotel
Healthcare
Diversified
Office
Retail
Retail
Diversified
Legacy
Hotel
10.488176
Ticker
Current
Price
Annualized
9/30/1997 Dist.
Company
7.05
7.40
9.85
13.35
14.40
7.50
15.65
19.90
17.25
12.48
7.25/6.55
7.40/5.90
10.40/6.75
13.65/5.95
15.25/10.40
8.15/6.20
18.25/14.05
21.00/13.70
18.50/13.55
7.40%
8.40%
8.20%
7.80%
7.60%
8.10%
8.40%
8.40%
8.40%
8.08%
18.16
7.97
26.90
12.28
19.79
16.53
17.76
19.15
7.25
128
59
265
164
285
124
278
381
125
59.2
620.9
Legacy
10.488176
0.35
3%
1996
ibit 11
REAL ESTATE INVESTMENT TRUSTS
Debt
Total Ent.
Mkt
Value
Debt
Cap
(TEV)
to
($Mil)
($Mil)
TEV
1997
EBITDA
73
32
109
98
143
74
134
208
91
201
91
374
262
428
198
412
589
216
36.3%
35.2%
29.1%
37.4%
33.4%
37.4%
32.5%
35.3%
42.1%
35.42%
300
920.9
33%
m Operations
(FFO)/Unit
11
8
14
15
45
35
42
60
23
TEV/
TEV/
1997
1998
1998
EBITDA EBITDA EBITDA
Times
18.3
25
8.0
11.4
14
6.5
26.7
32
11.7
17.5
33
7.9
9.5
47
9.1
5.7
45
4.4
9.8
41
10.0
9.8
72
8.2
9.4
39
5.5
13
8
81
11
99
1998
1.21
1995
0.35
Equity
Debt
Mkt Cap Mkt Cap
(Mil)
(Mil)
FFO Multiple
1997
1.13
1997
Dist.
($)
N/A
N/A
N/A
1.03
1.04
0.97
1.32
1.53
1.38
1996
1997
1998
9.278556 8.681233
620.9
300
1998
Dist.
($)
0.81
0.95
1.13
1.34
1.09
0.93
1.32
1.68
1.45
Est. 1997
Dist. Tax
Deferred
(%)
68
100
N/A
90
65
95
70
60
65
Est. 1997
Dist. Tax
Deferred
(%)
85
100
80
70
65
65
70
70
55
Debt
to
TEV
5-year
Beta
BETA
0.48
0.87
0.86
0.94
0.67
0.27
0.55
0.64
0.54
MM/
YY
Est.
07/97
05/97
06/97
05/97
06/96
12/95
12/95
12/95
01/96
Occupancy
(%)
94
97
61
97
94
98
95
93
94
91
0.74
TEV
(Mil)
920.9
33%
98/97
1998E
Exhibit 10
FINANCIAL MARKET DATA
SEPTEMBER 30, 1997
Canadian Yields
U. S. Yields
Bank Rate
Prime Rate
Call Loan Average
3.5
4.75
3.35
Discount Rate
Prime Rate
Fed. Funds
5
8.5
5.69
2.72
3.05
3.59
4.13
T-Bills:
1 Month
3 Month
6 Month
1 Year
4.55
4.86
4.96
5.16
T-Bills:
1 Month
3 Month
6 Month
1 Year
5.78
5.99
6.07
6.09
6.38
Canadian Equity Market Annual Risk Premiums January 1950 to December 1996
Estimated Long-Term Canadian Market Risk Premium, Arithmetic Means
= 12.20 7.21
Estimated Long-Term Canadian Market Risk Premium, Geometric Means
= 10.96 6.72
Estimated Medium-Term Canadian Market Risk Premium, Arithmetic Means
= 12.20 7.31
Estimated Medium-Term Canadian Market Risk Premium, Geometric Means
= 10.96 6.98
Estimated Short-Term Canadian Market Risk Premium, Arithmetic Means
= 12.20 6.49
Estimated Short-Term Canadian Market Risk Premium, Geometric Means
= 10.96 6.32
Source: TSE Common Equities CD-ROM.
Volatility
20%
ember 1996
4.99
4.24
4.41
3.98
5.81
4.64
Exhibit 7
LEGACY HOTELS INVESTMENT TRUST
FORECAST CONSOLIDATED STATEMENTS OF NET INCOME AND DISTRIBUTABLE INC
($000)
Dec. 31,
1997
Sept. 30,
1998
Operating revenues
77450
64403
93945
101153
55835
2324
58159
53624
1932
55556
60008
2818
62826
58940
3035
61975
19291
8847
31119
39178
5328
3102
10861
5509
3272
66
5545
3273
22301
5609
3272
30297
853
145
998
871
144
1015
871
144
1015
871
144
1015
Operating income
Interest expense, net
9863
4583
-949
4497
21286
4498
29282
4497
5280
84
5196
-5446
107
-5553
16788
108
16680
24785
107
24678
Add: depreciation
3102
Advisory fee
Other Trust expenses
Total Trust expenses
0.249077
3272
3223
3272
0.463893
-0.2253
-0.16395
-3098
5200
-2576
-4857
-3758
16145
-4046
23904
Estimated distribution
5180
10958
10959
10959
.087
-.082
.273
.403
.087
.185
.185
.185
Note:
(1) Capital replacement reserve is a deduction in determining Distributable Income. Based on the Trust acquiring the Initial
Hotel Portfolio. Revenue and operating expenses are based on the current individual budgets of the hotels. The Trust
intends to distribute 100 per cent of the Distributable Income in the period covered by the Financial Forecast. See
\"Distribution Policy.\" Based on 59.2 million Units outstanding.
TRUST
E AND DISTRIBUTABLE INCOME
Dec. 31,
1998
84054
Annual
1998
343555
Annual Data
1994
343555
1995
252976
272965
7%
58464
2522
60986
231036
10307
241343
231036
10307
241343
23068
102212
102212
5492
3273
14303
22155
13090
66967
22155
13090
66967
872
143
1015
3485
575
4060
3485
575
4060
13288
4498
62907
17990
62907
17990
8790
108
8682
44917
430
44487
44917
430
44487
3273
13040
13040
-0.38724
-0.3089
-0.308899229
-3362
8593
-13742
43785
-13742
43785
10959
43785
43785
.146
.74
.74
.185
.74
.74
44912
55233
43564.64
53576.01
Annual Data
1996
1997
CS-
1998
66200
83784
26%
343555
6%
231036
10307
241343
102212
30%
64214
81270.48
25%
1.37
99145.64
29%
1.67
21312
12408
22155
13090
50064
66967
3412
580
3992
3485
575
4060
46072
18332
62907
17990
27740
336
27404
44917
430
44487
12408
13040
-12392
-13742
20800
43785
20720
43785
0.35
0.74
59200
0.35
0.74
59200
297175
8%
322317
8%
7%
1.21%
0.96%
1
2
3
4
5
6
7
8
9
10
11
Vancouver, BC
Vancouver, BC
Calgary, AB
Calgary, AB
Edmonton, AB
Toronto, ON
Ottawa, ON
Montral, QC
Charlottetown, PEI
Halifax, NS
Moncton, NB
Property
Year Built
(Year of Major
Renovations)
Hotel Vancouver
Waterfront Centre Hotel
Calgary Airport Hotel 1979 (1989/1990)
The Palliser
Hotel Macdonald
Royal York
Chteau Laurier
The Queen Elizabeth
The Prince Edward
Hotel Halifax
Hotel Beausjour
1939 (1996)
1991
1979(1989/1990)
1914 (1990/1991)
1915 (1991)
1929 (1990/1991)
1912 (1991)
1958 (1990/1991)
1984 (1995)
1975 (1989/1990)
1972 (1996)
ADR,
1,996.
($)
Occupancy,
1,996.
(%)
550
489
296
405
198
1365
425
1020
211
300
310
Total
Revenues,
1,996.
($ millions)
38.2
32.6
13.1
22.7
11.5
75.3
28.9
48.3
8.4
8.8
9.4
146.32
156.41
99.25
125.65
114.36
117.5
124.2
115.74
107.87
86.33
80.52
80
81.5
78.7
70.4
70.6
75.1
75.5
66.7
57
65.5
63.3
5569
297
116
71
Exhibit 6
KEY FINANCIAL AND OPERATING STATISTICS FOR THE INITIAL HOTEL PORTFOLIO
Occupancy
ADR
RevPAR
Total Revenue (thousands)
Net operating income before depreciation, interest
and income and capital taxes (EBITDA) (thousands)
EBITDA Margin
Increase
Occupancy (percentage points)
ADR
RevPAR
Total Revenue
EBITDA
EBITDA Margin (percentage points)
1994
1995
1996
1997
69.3%
72.1%
72.3%
N/A
$103.27
$109.29
$120.71
N/A
$71.53
$78.82
$87.3
N/A
$252,976. $272,965.
$44,912. $55,233.
$297,175.
$66,200.
$244,867.
$64,492.
22.3%
26.3%
17.8%
1994 - 1995
2.8
5.8%
10.2%
7.9%
23.%
2.4
20.2%
1995 - 1996
.2
10.4%
10.8%
8.%
19.9%
2.1
Note:
(1) The Initial Hotel Portfolio was operated by Canadian Pacific Hotels as 100 per cent-owned or leased hotels and
accordingly the Portfolio EBITDA figures do not reflect the deduction of management fees.