The company said the amended terms include revisions to leverage ratio, fixed charge coverage
ratio, applicable rate as well as its annual excess cash flow.
The rating downgrade is a result of slower-than-anticipated improvement in UDR's credit profile, and Moody's expectation that future improvement could take several years as UDR's new management refocuses the company Moody's noted that the real estate investment trust's (REIT's) fixed charge coverage
measures remain at the low end of similarly rated peers, and that effective leverage and secured debt levels remain high.
In a stress case whereby same-store NOI declines are similar to those experienced by AEC in 2009, fixed charge coverage
would remain in the mid-2.
The Negative Outlook reflects that leverage, measured by net debt / recurring operating EBITDA, and fixed charge coverage
are likely to worsen given continued weakness in property-level fundamentals over the next 18 months.
Brandywine has maintained solid interest and fixed charge coverage
metrics over the past several years, even as the company has become larger and more diverse.
Simon has maintained solid interest and fixed charge coverage
metrics over the past several years, even as the company has increased materially in size and the portfolio has become more diverse, most notably as a result of the company's acquisition of Chelsea Property Group in 2004.
Likewise, the company's fixed charge coverage
for the nine months ended Sept.
ProLogis' interest and fixed charge coverage
metrics continue to be adequate for its rating level.
Best notes that while total leverageCoboth financial and operating leverageCohas increased in recent years, PFI has shown significant improvement in its historical fixed charge coverage
ratios and has significantly strengthened the liquidity of its balance sheet as measured by its strong cash and cash equivalent ratio to equity.
HCP's fixed charge coverage
ratio (earnings before interest, taxes depreciation and amortization less capital expenditures to interest expense plus capitalized interest expense plus preferred dividends) measured 2.
Fixed charge coverage
, measured by the ratio between earnings before interest and taxes and interest expense, was very strong at approximately 70 times during 2005 and the first half of 2006.
For the fiscal period, the fixed charge coverage
ratio was up by 20 basis points to 1.