REIT Cites New LOC, Change in FFO

U.S. Restaurant Properties Inc., Dallas, has reported commitments for a new credit facility and term loan, among other developments, and announced that it will modify its method of calculating funds from operations.The real estate investment trust said it has received a commitment letter for a new three-year, $50 million secured revolving credit facility bearing an interest rate of 300 basis points above the London interbank offered rate, with Bank of America as the lead lender. In addition, the REIT said it has received a nonbinding indication of interest from the First Hawaiian Bank for a $12 million secured term loan. Regarding the calculation of FFO, the REIT said it has been informed by the Securities and Exchange Commission that the SEC's application of the standard definition of FFO to the REIT differs from the company's calculation. "The SEC's interpretation is that recurring impairments taken on real estate property may not be added back to net income in the calculation of FFO," the REIT said, adding that it will modify its own calculations to conform with the SEC's interpretation. The company can be found online at http://www.usrp.com.