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Dividends/Distributions
9 Months Ended
Sep. 30, 2012
Dividends/Distributions [Abstract]  
Dividends/Distributions
Dividends/Distributions

In January 2011, FelCor reinstated its current quarterly preferred dividend and has paid current quarterly preferred dividends each quarter since January 2011. At December 31, 2011, we had $76.3 million of aggregate accrued dividends (of which $67.7 million related to dividends in arrears) payable to holders of our Series A and Series C preferred stock.

In July 2012, FelCor paid quarterly dividends of $0.4875 per share to holders of its Series A preferred stock and $0.50 per depositary share to holders of its Series C preferred stock. In addition, FelCor paid $1.51 per share and $1.55 per depositary share to its Series A preferred stockholders and Series C preferred stockholders, respectively, for dividends in arrears. Proceeds received from the sale of six hotels in May 2012 were used to fund a $30.0 million dividend in arrears payment.

At September 30, 2012, FelCor had $46.3 million of aggregate accrued dividends (of which $37.7 million related to dividends in arrears). On October 31, FelCor paid dividends of $2.39 per share to holders of its Series A preferred stock and $2.45 per depositary share to holders of its Series C preferred stock. The dividend payment included dividends in arrears of $1.9025 per share and $1.95 per depositary share for holders of Series A and Series C preferred stock, respectively. FelCor has now paid all of the outstanding accrued preferred dividends.

FelCor obtains funds from FelCor LP to pay common or preferred dividends. We are restricted from paying any common dividends unless and until all accrued and current preferred dividends are paid. FelCor’s Board of Directors will determine whether and when to declare future dividends based upon various factors, including operating results, economic conditions, other operation trends, our financial condition (and related debt covenant compliance) and capital requirements, as well as minimum REIT distribution requirements.