Earnings Call Excerpt
U-Store-It Trust (YSI)
Q4 2008 Earnings Call
February 27, 2009 11:00 am ET
Executives
Dean Jernigan – President, Chief Executive Officer
Chris Marr – Chief Financial Officer and Treasurer
Tim Martin – Senior Vice President and Chief Administrative Officer
Analysts
Jeff Donnelly – Wachovia Securities
Paul Adornato – BMO Capital Markets
Jordan Sadler – KeyBanc Capital Markets
David Toti – Citi
Michael Knott – Green Street Advisors
Paula Poskin – Robert W. Baird
[Conner Fennerty] – Deutsche Bank
Alan Calderone – European Advisors
Presentation
Operator
Good morning and welcome to the U-Store-It fourth quarter 2008 conference call. (Operator Instructions). Now I’d like to turn the conference owner to Mr. Dean Jernigan. Mr. Jernigan you may begin.
Dean Jernigan
Thanks. Good morning to everyone. I’ll read our little statement here. The company's remark will include certain forward-looking statements regarding earnings and strategies that involve risk and uncertainties and other factors that may cause the actual results to differ materially from these forward-looking statements.
The risk and factors that could cause our actual results to differ materially from forward-looking statements are provided in documents that the company files with SEC. In addition the company’s remarks include reference to non-GAAP measures. A reconciliation between GAAP and non-GAAP can be found on the company’s website.
Good morning to everyone. Thanks for joining us. We’re going to start today with Chris Marr our President and Chief Investment Officer who is going to talk about liquidity and following Chris will be our CFO, Tim Martin who will cover results and then I will wrap up. With that I’ll turn it over to Chris.
Chris Marr
Okay. Thanks Dean. Our team’s top priority for 2009 is liquidity. We completed our 2008 disposition program with the last of our 24 asset sales closing in mid-January of this year. In total we received approximately $65 million of proceeds from our 2008 disposition program with the assets being sold at a blended 7.39 Cap rate.
These net sale proceeds combined with our current dividend policy and available capacity under existing credit facilities will address our 2009 maturities. We anticipate exercising our right to extend our unsecured bank debt with a balance at year end of $372 million and our $57 million of secured bank debt to a maturity of November 2010.
The cost to extend each of these credit facilities is 15 basis points or approximately $760,000 in the aggregate. We further believe that projected 2010 cash flow after CapEx and dividends will allow us to substantially address the $24 million of debt that we have maturing in July, August and October of 2010 commonly known as YSI 4, YSI 26 and YSI 25.
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