CNL Lifestyle Properties Inc. was formed in 2003. It has a slogan that reflects its focus: “Owning America’s Lifestyle.”

The trust invests primarily in ski resorts, golf courses and marinas. As of November, it had a portfolio of 121 properties, including 22 ski and mountain resorts and 53 golf facilities.

Like any landlord, CNL depends heavily on timely rent payments. In the majority of cases, operators make their lease payments without incident. But the recession and other factors have led some lessees to run into trouble.

In recent financial documents, CNL discloses that 18 leases for entertainment properties leased to PARC Management LLC of Jacksonville, Fla., will be terminated, following the company’s default on lease and loan obligations. The default led to a $38.5 million write-off by CNL, the documents show.

In another instance, one of CNL’s major operators, Dallas-based Eagle Golf, deferred lease payment in 2008, citing bad weather and economic conditions.

CNL also has disclosed the financial exposure it has to major operators, and it mentions Boyne USA Resorts by name.

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The disclosure reads: “We continue to have concentrations of credit risk with our PARC, Eagle and Boyne tenants, which each accounted for 10 percent or more of our total revenues in 2009. Failure of any of these tenants to pay contractual lease payments could significantly impact our results of operations and cash flow from operations.”

Boyne operates six of CNL’s 14 ski resorts and accounts for more than 16 percent of the overall revenue, so the performance of Sugarloaf and Sunday River is important.

Both Boyne and CNL executives say Boyne hasn’t missed any lease payments, although it has entered into unspecified loan agreements that CNL says are being paid on time.

Staff Writer Tux Turkel can be contacted at 791-6462 or at:

tturkel@pressherald.com

 


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