Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended June 30, 2013.
HIGHLIGHTS
- Pro Forma
RevPAR: 7.7% increase for comparable 19-hotel
portfolio over the same period in 2012.
- Pro Forma
Adjusted Hotel EBITDA Margin: 170 basis point
increase for comparable 19-hotel portfolio over the same period in
2012.
- Acquisitions: Acquired the 410-room
W New Orleans for $65.0 million, the 313-room Hyatt Fisherman’s
Wharf for $103.5 million, and the 200-room Hyatt Santa Barbara for
$61.0 million.
- Financings: Closed on a $60.0
million, seven-year loan at 3.63%. Subsequent to quarter end,
refinanced an existing $130.0 million loan, replacing it with a
$92.5 million, seven-year loan at 3.50% and a $93.0 million,
10-year loan at 4.25%.
- Dividends: Increased third quarter
2013 dividend by 8.3% to $0.26 per common share (4.5% annualized
yield based on the closing price of the Trust’s common shares on
August 2, 2013).
“We are excited about our accomplishments in the second quarter.
We were able to prudently deploy proceeds from our February common
share offering by acquiring three hotels, all with significant
upside potential,” said James L. Francis, Chesapeake Lodging
Trust’s President and Chief Executive Officer. “Furthermore, we
also successfully completed a refinancing that further strengthened
our balance sheet by both lowering our cost of debt and extending
our debt maturities.”
Mr. Francis continued, “Our hotel portfolio also turned in an
outstanding quarter, reaching a second quarter occupancy level of
over 85% which allowed our operators to continue pushing daily
rates. We are very proud of our hotel margin expansion of 170 basis
points which was a result of our continued focus on asset
management initiatives to reduce or limit increases in
expenses.”
CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial results
for the three and six months ended June 30, 2013 (in millions,
except share and per share amounts):
Three months ended Six months ended
June 30, June 30,
2013(1)
2012(2)
2013(3)
2012(4)
Total revenue $ 115.6 $ 67.0 $ 186.2 $ 117.3 Net
income available to common shareholders $ 14.6 $ 9.1 $ 9.7 $ 8.3
Net income per diluted common share $ 0.30 $ 0.28 $ 0.21 $ 0.26
FFO available to common shareholders $ 25.4 $ 15.7 $ 29.2 $
21.4 FFO per diluted common share $ 0.53 $ 0.49 $ 0.63 $ 0.67
AFFO available to common shareholders $ 26.6 $ 15.9 $ 33.5 $
22.0 AFFO per diluted common share $ 0.56 $ 0.50 $ 0.72 $ 0.69
Corporate EBITDA $ 37.2 $ 22.3 $ 46.5 $ 31.5 Adjusted
Corporate EBITDA $ 38.5 $ 22.5 $ 50.7 $ 32.1
Weighted-average number of common shares
outstanding - basic and diluted
47,862,652 31,910,921 46,187,216 31,892,431
__________
(1) Includes results of operations of 17 hotels for the full
period and three hotels for part of the period. (2) Includes
results of operations of 12 hotels for the full period. (3)
Includes results of operations of 15 hotels for the full period and
five hotels for part of the period. (4) Includes results of
operations of 11 hotels for the full period and one hotel for part
of the period.
HOTEL OPERATING RESULTS
Management assesses the operating performance of its hotels
irrespective of the hotel owner during the periods compared.
Included in the following table are comparisons, on a pro forma
basis, of occupancy, average daily rate (ADR), room revenue per
available room (RevPAR), Adjusted Hotel EBITDA, and Adjusted Hotel
EBITDA Margin, the key operating metrics that management uses to
assess the performance of its hotels. The key operating metrics
include the hotel operating results of 19 of the Trust’s 20 hotels
owned as of June 30, 2013. The key operating metrics do not include
operating results for the Hyatt Place New York Midtown South, as
the hotel does not have comparable prior year operating results
given it was newly developed in 2013. The following is a summary of
the key operating metrics for the three and six months ended June
30, 2013 (in thousands, except pro forma ADR and pro forma
RevPAR):
Three months ended Six months
ended June 30, June 30, 2013 2012
Change 2013 2012
Change Pro forma occupancy 85.3 % 82.0 % 330 bps 78.9
% 77.0 % 190 bps Pro forma ADR $ 203.20 $ 196.06 3.6% $ 188.04 $
182.36 3.1% Pro forma RevPAR $ 173.25 $ 160.84 7.7% $ 148.45 $
140.39 5.7% Pro forma Adjusted Hotel EBITDA $ 41,500 $
36,061 15.1% $ 59,676 $ 52,612 13.4%
Pro forma Adjusted Hotel EBITDA Margin
34.2 % 32.5 % 170 bps 28.5 % 26.9 % 160 bps
Funds from operations (FFO), FFO available to common
shareholders, Adjusted FFO (AFFO) available to common shareholders,
net income before interest, income taxes, and depreciation and
amortization (Corporate EBITDA), Adjusted Corporate EBITDA, Hotel
EBITDA, Adjusted Hotel EBITDA and Adjusted Hotel EBITDA Margin are
non-GAAP financial measures within the meaning of the rules of the
Securities and Exchange Commission. See the discussion included in
this press release for information regarding these non-GAAP
financial measures.
INVESTING ACTIVITY
On April 25, 2013, the Trust acquired the 410-room W New Orleans
located in New Orleans, Louisiana for approximately $65.7 million,
including acquired working capital. The Trust funded the
acquisition with available cash on hand. The Trust entered into a
management agreement with Starwood Hotels & Resorts to continue
managing the hotel.
On May 31, 2013, the Trust acquired the 313-room Hyatt
Fisherman’s Wharf located in San Francisco, California for
approximately $102.4 million, including acquired working capital.
The Trust funded the acquisition with available cash on hand and a
borrowing under its revolving credit facility. The Trust entered
into a management agreement with Evolution Hospitality to manage
the hotel under a franchise agreement with Hyatt Hotels
Corporation.
On June 27, 2013, the Trust acquired the 200-room Hyatt Santa
Barbara located in Santa Barbara, California for approximately
$60.9 million, including acquired working capital. The Trust funded
the acquisition with available cash on hand and a borrowing under
its revolving credit facility. The Trust entered into a management
agreement with HEI Hotels and Resorts to manage the hotel under a
franchise agreement with Hyatt Hotels Corporation.
FINANCING ACTIVITY
On May 3, 2013, the Trust closed on a $60.0 million, seven-year,
fixed-rate mortgage loan secured by the Boston Marriott Newton. The
loan carries a fixed interest rate of 3.63% per annum, with
principal and interest payments based on a 25-year principal
amortization.
DIVIDENDS
On April 15, 2013, the Trust paid dividends in the amounts of
$0.24 per share to its common shareholders and $0.484375 per share
to its preferred shareholders, both of record as of March 29, 2013.
On May 21, 2013, the Trust declared dividends in the amounts of
$0.24 per share payable to its common shareholders and $0.484375
per share payable to its preferred shareholders, both of record as
of June 28, 2013. Both dividends were paid on July 15, 2013.
POST-QUARTER ACTIVITY
On July 11, 2013, the Trust completed the refinancing of its
$130.0 million term secured by the Le Meridien San Francisco and
the W Chicago – City Center, which was scheduled to
mature on July 8, 2014. The term loan was refinanced with two
individual fixed-rate mortgage loans with an aggregate principal
amount of $185.5 million. The first new loan is a $92.5 million,
seven-year, fixed-rate mortgage loan secured by the Le
Meridien San Francisco. The loan carries a fixed interest rate of
3.50% per annum, with principal and interest payments based on a
25-year principal amortization. The second new loan is a $93.0
million, 10-year, fixed-rate mortgage loan secured by the
W Chicago – City Center. The loan carries a fixed interest
rate of 4.25% per annum, with principal and interest payments based
on a 25-year principal amortization.
On August 5, 2013, the Trust declared dividends in the
amounts of $0.26 per share payable to its common
shareholders and $0.484375 per share payable to its
preferred shareholders, both of record as of September 30,
2013. The dividends will be paid on October 15, 2013.
2013 OUTLOOK
The Trust is updating its 2013 outlook to incorporate its second
quarter results, recent operating trends and fundamentals, the
acquisitions of the Hyatt Fisherman’s Wharf and the Hyatt Santa
Barbara, and the refinancing of the $130.0 million term loan. The
revised outlook assumes no additional financing transactions or
acquisitions beyond those described above (in millions, except per
share amounts):
Third Quarter
2013
Guidance Low High Pro forma RevPAR increase over 2012(1) 3.0 % 4.0
% Adjusted Hotel EBITDA $ 41.6 $ 42.9 AFFO per diluted share $ 0.57
$ 0.60
Full Year
2013
Updated Guidance Previous Guidance Low High Low High
Pro forma RevPAR increase over 2012(1) 5.0 % 6.0 % 5.0 % 7.0 %
Adjusted Hotel EBITDA $ 132.8 $ 136.0 $ 126.3 $ 130.3 AFFO per
diluted share $ 1.74 $ 1.80 $ 1.64 $ 1.72
__________
(1) For updated guidance, based on comparable 19-hotel
portfolio. For previous guidance, based on a 15-hotel portfolio as
described in the Trust’s Q1 2013 earnings release.
NON-GAAP FINANCIAL MEASURES
The Trust reports the following eight non-GAAP financial
measures that it believes are useful to investors as key measures
of its operating performance: (1) FFO, (2) FFO available to
common shareholders, (3) AFFO available to common
shareholders, (4) Corporate EBITDA, (5) Adjusted Corporate
EBITDA, (6) Hotel EBITDA, (7) Adjusted Hotel EBITDA and (8)
Adjusted Hotel EBITDA Margin. Reconciliations of these non-GAAP
financial measures to the most comparable GAAP measure are included
in the accompanying financial tables.
FFO – The Trust calculates FFO in accordance with standards
established by the National Association of Real Estate Investment
Trusts (NAREIT), which defines FFO as net income (calculated in
accordance with GAAP), excluding depreciation and amortization,
impairment charges, gains (losses) from sales of real estate, the
cumulative effect of changes in accounting principles, and
adjustments for unconsolidated partnerships and joint ventures.
Historical cost accounting for real estate assets implicitly
assumes that the value of real estate assets diminishes predictably
over time. Since real estate values instead have historically risen
or fallen with market conditions, most industry investors consider
presentations of operating results for real estate companies that
use historical cost accounting to be insufficient by themselves. By
excluding the effect of depreciation and amortization and gains
(losses) from sales of real estate, both of which are based on
historical cost accounting and which may be of lesser significance
in evaluating current performance, the Trust believes that FFO
provides investors a useful financial measure to evaluate the
Trust’s operating performance.
FFO available to common shareholders – The Trust reduces FFO for
preferred share dividends and dividends declared on and earnings
allocated to unvested time-based awards (consistent with
adjustments required by GAAP in reporting net income available to
common shareholders and related per share amounts). FFO available
to common shareholders provides investors another financial measure
to evaluate the Trust’s operating performance after taking into
account the interests of holders of the Trust’s preferred shares
and unvested time-based awards.
AFFO available to common shareholders – The Trust further
adjusts FFO available to common shareholders for certain additional
recurring and non-recurring items that are not in NAREIT’s
definition of FFO. Specifically, the Trust adjusts for hotel
acquisition costs and non-cash amortization of intangible assets
and liabilities, including air rights contracts, ground lease
assets and unfavorable contract liabilities, deferred franchise
costs, and deferred key money, all of which are recurring items.
The Trust believes that AFFO available to common shareholders
provides investors with another financial measure of its operating
performance that provides for greater comparability of its core
operating results between periods.
Corporate EBITDA – Corporate EBITDA is defined as net income
before interest, income taxes, and depreciation and amortization.
The Trust believes that Corporate EBITDA provides investors a
useful financial measure to evaluate the Trust’s operating
performance, excluding the impact of the Trust’s capital structure
(primarily interest expense) and the Trust’s asset base (primarily
depreciation and amortization).
Adjusted Corporate EBITDA – The Trust further adjusts Corporate
EBITDA for certain additional recurring and non-recurring items.
Specifically, the Trust adjusts for hotel acquisition costs and
non-cash amortization of intangible assets and liabilities,
including air rights contracts, ground lease assets and unfavorable
contract liabilities, deferred franchise costs, and deferred key
money, all of which are recurring items. The Trust believes that
Adjusted Corporate EBITDA provides investors with another financial
measure of its operating performance that provides for greater
comparability of its core operating results between periods.
Hotel EBITDA – Hotel EBITDA is defined as total revenues less
total hotel operating expenses. The Trust believes that Hotel
EBITDA provides investors a useful financial measure to evaluate
the Trust’s hotel operating performance.
Adjusted Hotel EBITDA – The Trust further adjusts Hotel EBITDA
for certain additional recurring and non-recurring items.
Specifically, the Trust adjusts for non-cash amortization of
intangible assets and liabilities, including ground lease assets
and unfavorable contract liabilities, deferred franchise costs, and
deferred key money, all of which are recurring items. The Trust
believes that Adjusted Hotel EBITDA provides investors with another
useful financial measure to evaluate the Trust’s hotel operating
performance.
Adjusted Hotel EBITDA Margin – Adjusted Hotel EBITDA Margin is
defined as Adjusted Hotel EBITDA as a percentage of total revenues.
The Trust believes that Adjusted Hotel EBITDA Margin provides
investors another useful financial measure to evaluate the Trust’s
hotel operating performance.
CONFERENCE CALL
The Trust will host a conference call on Monday, August 5, 2013
at 5:30 p.m. Eastern Time to discuss its financial results.
Interested individuals are invited to listen to the call by dialing
(877) 683-0303 (U.S./Canadian callers) or (706) 643-5037
(International callers). The conference call ID is 17429337. A
simultaneous webcast of the call will be available on the Trust’s
website at www.chesapeakelodgingtrust.com. It is recommended that
participants call or log on 10 minutes ahead of the scheduled start
time to ensure proper connection.
A replay of the conference call will be available two hours
after the live call until midnight on August 12, 2013. To access
the replay, dial (855) 859-2056 (U.S./Canadian callers) or (404)
537-3406 (International callers). The conference call ID is
17429337. A webcast replay and transcript of the conference call
will be archived and available on the Trust’s website for 12
months.
ABOUT CHESAPEAKE LODGING TRUST
Chesapeake Lodging Trust is a self-advised lodging real estate
investment trust (REIT) focused on investments primarily in
upper-upscale hotels in major business and convention markets and,
on a selective basis, premium select-service hotels in urban
settings or unique locations in the United States. The Trust owns
20 hotels with an aggregate of 5,932 rooms in eight states and the
District of Columbia. Additional information can be found on the
Trust’s website at www.chesapeakelodgingtrust.com.
Note: This press release contains forward-looking statements
within the meaning of federal securities regulations. These
forward-looking statements are identified by their use of terms and
phrases such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,”
“will,” “continue” and other similar terms and phrases, including
references to assumptions and forecasts, such as the Trust’s
expectations regarding the future Hotel EBITDA and Adjusted Hotel
EBITDA of its existing hotels and the Trust’s 2013 outlook.
Forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results to differ materially
from those anticipated at the time the forward-looking statements
are made. These risks include, but are not limited to: the Trust’s
ability to complete acquisitions; the Trust’s ability to continue
to satisfy complex rules in order for it to remain a REIT for
federal income tax purposes; and other risks and uncertainties
associated with the Trust’s business described in its filings with
the SEC. Although the Trust believes the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that the expectations will be
attained or that any deviation will not be material. All
information in this release is as of August 5, 2013, and the Trust
undertakes no obligation to update any forward-looking statement to
conform the statement to actual results or changes in the Trust’s
expectations, except as required by law.
CHESAPEAKE LODGING TRUST
CONSOLIDATED BALANCE SHEETS (in thousands, except share
data)
June 30,
December 31, 2013 2012 (unaudited) ASSETS Property and
equipment, net $ 1,428,975 $ 1,107,722 Intangible assets, net
39,081 39,382 Cash and cash equivalents 42,760 33,194 Restricted
cash 27,332 23,460 Accounts receivable, net 22,926 8,384 Prepaid
expenses and other assets 11,865 14,056 Deferred financing costs,
net
7,027 6,630
Total assets
$ 1,579,966
$ 1,232,828
LIABILITIES AND SHAREHOLDERS' EQUITY Long-term debt $ 580,401 $
405,208 Accounts payable and accrued expenses 49,966 34,868 Other
liabilities
28,866
25,944 Total liabilities
659,233 466,020
Commitments and contingencies
Preferred shares, $.01 par value;
100,000,000 shares authorized; Series A Cumulative Redeemable
Preferred Shares; 5,000,000 shares issued and outstanding ($127,422
liquidation preference)
50 50
Common shares, $.01 par value; 400,000,000
shares authorized; 48,587,425 shares and 39,763,930 shares issued
and outstanding, respectively
486 398 Additional paid-in capital 966,247 799,278 Cumulative
dividends in excess of net income (45,703 ) (32,089 ) Accumulated
other comprehensive loss
(347 )
(829 ) Total shareholders' equity
920,733 766,808
Total liabilities and shareholders' equity
$ 1,579,966 $
1,232,828 CHESAPEAKE LODGING
TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except share and per share data) (unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2013 2012 2013 2012 REVENUE Rooms $ 86,946 $ 51,626 $
138,490 $ 89,762 Food and beverage 24,313 13,344 40,225 23,811
Other
4,311 2,076
7,456 3,743
Total revenue
115,570
67,046 186,171
117,316 EXPENSES Hotel operating
expenses: Rooms 19,167 10,953 33,186 20,677 Food and beverage
17,142 9,199 29,734 17,382 Other direct 1,936 930 3,707 1,836
Indirect
35,125
20,607 61,705
39,600 Total hotel operating expenses 73,370
41,689 128,332 79,495 Depreciation and amortization 10,838 6,677
19,677 13,207 Air rights contract amortization 130 130 260 260
Corporate general and administrative 3,643 2,790 6,985 5,596 Hotel
acquisition costs
1,237
134 4,136
443 Total operating expenses
89,218 51,420
159,390 99,001
Operating income 26,352 15,626 26,781 18,315 Interest
income 25 19 243 22 Interest expense
(6,346
) (5,106 )
(11,787 ) (10,190
) Income before income taxes 20,031 10,539
15,237 8,147 Income tax benefit (expense)
(2,974 ) (1,486
) (690 )
110 Net income 17,057 9,053 14,547 8,257
Preferred share dividends
(2,422
) -
(4,844 ) -
Net income available to common shareholders
$
14,635 $ 9,053
$ 9,703 $
8,257 Net income per common share -
basic and diluted $ 0.30 $ 0.28 $ 0.21 $ 0.26
Weighted-average number of common shares
outstanding - basic and diluted
47,862,652 31,910,921 46,187,216 31,892,431
CHESAPEAKE LODGING TRUST CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands) (unaudited)
Six Months Ended June 30, 2013 2012
Cash flows from operating activities: Net income $ 14,547 $ 8,257
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 19,677 13,207 Air rights contract
amortization 260 260 Deferred financing costs amortization 1,372
882 Share-based compensation 2,277 1,565 Other (275 ) (261 )
Changes in assets and liabilities: Accounts receivable, net (12,458
) (5,514 ) Prepaid expenses and other assets (1,658 ) (714 )
Accounts payable and accrued expenses 11,323 5,939 Other
liabilities
788 23
Net cash provided by operating activities
35,853 23,644
Cash flows from investing activities: Acquisition of hotels, net of
cash acquired (331,058 ) - Deposit on hotel acquisition - (2,000 )
Receipt of deposit on hotel acquisition 700 - Improvements and
additions to hotels (9,979 ) (11,679 ) Repayment of (investment in)
hotel construction loan 7,810 (4,823 ) Change in restricted cash
(3,872 )
(2,631 ) Net cash used in investing
activities
(336,399 )
(21,133 ) Cash flows from
financing activities: Proceeds from sale of common shares, net of
underwriting fees 166,083 - Payment of offering costs related to
sale of common shares (215 ) - Borrowings under revolving credit
facility 105,000 13,000 Repayments under revolving credit facility
(55,000 ) - Proceeds from issuance of mortgage debt 127,000 -
Scheduled principal payments on mortgage debt (1,701 ) (973 )
Payment of deferred financing costs (1,769 ) (95 ) Deposits on loan
applications (3,032 ) (1,400 ) Payment of dividends to common
shareholders (20,322 ) (13,474 ) Payment of dividends to preferred
shareholders (4,844 ) - Repurchase of common shares
(1,088 ) (621
) Net cash provided by (used in) financing activities
310,112 (3,563
) Net increase (decrease) in cash 9,566 (1,052 ) Cash
and cash equivalents, beginning of period
33,194 20,960 Cash
and cash equivalents, end of period
$
42,760 $ 19,908
CHESAPEAKE LODGING TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in
thousands, except share and per share data) (unaudited)
The following table reconciles net income
to FFO, FFO available to common shareholders, and AFFO available to
common shareholders for the three and six months ended June 30,
2013 and 2012:
Three Months Ended June 30, Six
Months Ended June 30, 2013 2012 2013
2012 Net income $ 17,057 $ 9,053 $ 14,547 $
8,257 Add: Depreciation and amortization
10,838
6,677 19,677
13,207 FFO 27,895 15,730 34,224
21,464 Less: Preferred share dividends (2,422 ) - (4,844 ) -
Dividends declared on unvested time-based awards (90 ) (34 ) (178 )
(68 )
Undistributed earnings allocated to
unvested time-based awards
(23 ) (10
) - -
FFO available to common shareholders 25,360 15,686 29,202
21,396 Add: Hotel acquisition costs 1,237 134 4,136 443
Non-cash amortization(1)
50
60 112
120 AFFO available to common shareholders
$ 26,647 $
15,880 $ 33,450
$ 21,959 FFO per
common share - basic and diluted $ 0.53 $ 0.49 $ 0.63 $ 0.67
AFFO per common share - basic and diluted $ 0.56 $ 0.50 $ 0.72 $
0.69
__________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, and air rights contract. The following table
reconciles net income to Corporate EBITDA and Adjusted Corporate
EBITDA for the three and six months ended June 30, 2013 and 2012:
Three Months Ended June
30, Six Months Ended June 30, 2013 2012 2013
2012 Net income $ 17,057 $ 9,053 $
14,547 $ 8,257 Add: Depreciation and amortization 10,838 6,677
19,677 13,207 Interest expense 6,346 5,106 11,787 10,190 Income tax
expense (benefit) 2,974 1,486 690 (110 ) Less: Interest income
(25 ) (19
) (243 )
(22 ) Corporate EBITDA 37,190 22,303
46,458 31,522 Add: Hotel acquisition costs 1,237 134 4,136
443 Non-cash amortization(1)
50
60 112
120 Adjusted Corporate EBITDA
$
38,477 $ 22,497
$ 50,706 $
32,085
__________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, and air rights contract.
The following table calculates pro forma
Hotel EBITDA, Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA
Margin for the Trust's comparable 19-hotel portfolio for the three
and six months ended June 30, 2013 and 2012:
Three Months Ended June 30, Six Months
Ended June 30, 2013 2012 2013
2012 Total revenue $ 121,487 $ 110,919 $ 209,315 $
195,849 Less: Total hotel operating expenses
79,907 74,788
149,491 143,097
Hotel EBITDA 41,580 36,131 59,824 52,752
Less: Non-cash amortization(1)
(80 ) (70
) (148 )
(140 ) Adjusted Hotel EBITDA
$ 41,500 $
36,061 $ 59,676
$ 52,612 Adjusted
Hotel EBITDA Margin 34.2 % 32.5 % 28.5 % 26.9 %
__________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, and unfavorable
contract liability. The following table calculates
forecasted Hotel EBITDA and Adjusted Hotel EBITDA for the three
months ending September 30, 2013: Three Months Ending
September 30, 2013 Low High Total
revenue $ 122,400 $ 124,400 Less: Total hotel operating expenses
80,720 81,420
Hotel EBITDA 41,680 42,980
Less: Non-cash amortization(1)
(80 ) (80
) Adjusted Hotel EBITDA
$
41,600 $ 42,900
__________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, and unfavorable
contract liability.
The following table reconciles forecasted
net income to FFO, FFO available to common shareholders, and AFFO
available to common shareholders for the three months ending
September 30, 2013:
Three Months Ending September 30, 2013 Low
High Net income $ 18,630 $ 19,930 Add:
Depreciation and amortization
11,350
11,350 FFO 29,980 31,280 Less:
Preferred share dividends (2,420 ) (2,420 ) Dividends declared on
unvested time-based awards (100 ) (100 )
Undistributed earnings allocated to
unvested time-based awards
- -
FFO available to common shareholders 27,460 28,760 Add:
Hotel acquisition costs - - Non-cash amortization(1)
50 50 AFFO
available to common shareholders
$ 27,510
$ 28,810 FFO per
common share - basic and diluted $ 0.57 $ 0.60 AFFO per
common share - basic and diluted $ 0.57 $ 0.60
Weighted-average number of diluted common shares outstanding 47,867
47,867
__________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, and air rights contract. The following table
calculates forecasted Hotel EBITDA and Adjusted Hotel EBITDA for
the year ending December 31, 2013: Year
Ending December 31, 2013 Low High Total revenue $ 418,000 $
424,000 Less: Total hotel operating expenses
284,950 287,700
Hotel EBITDA 133,050 136,300 Less: Non-cash amortization(1)
(300 ) (300
) Adjusted Hotel EBITDA
$
132,750 $ 136,000
__________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, and unfavorable
contract liability.
The following table reconciles forecasted
net income to FFO, FFO available to common shareholders, and AFFO
available to common shareholders for the year ending December 31,
2013:
Year Ending December 31, 2013 Low
High Net income $ 44,600 $ 47,350 Add: Depreciation
and amortization
42,780
42,780 FFO 87,380 90,130 Less: Preferred
share dividends (9,690 ) (9,690 ) Dividends declared on unvested
time-based awards (360 ) (360 ) Undistributed earnings allocated to
unvested time-based awards
-
- FFO available to common shareholders
77,330 80,080 Add: Hotel acquisition costs 4,140 4,140
Non-cash amortization(1)
220
220 AFFO available to common
shareholders
$ 81,690
$ 84,440 FFO per common
share - basic and diluted $ 1.64 $ 1.70 AFFO per common
share - basic and diluted $ 1.74 $ 1.80 Weighted-average
number of diluted common shares outstanding 47,036 47,036
__________
(1) Includes non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, unfavorable contract
liability, and air rights contract.
CHESAPEAKE LODGING TRUST CURRENT HOTEL PORTFOLIO
Purchase Price Hotel Location Rooms (in millions)
Acquisition Date 1 Hyatt Regency Boston Boston, MA 502 $
112.00 March 18, 2010 2 Hilton Checkers Los Angeles Los Angeles, CA
193 46.00 June 1, 2010 3 Courtyard Anaheim at Disneyland Resort
Anaheim, CA 153 25.00 July 30, 2010 4 Boston Marriott Newton
Newton, MA 430 77.25 July 30, 2010 5 Le Meridien San Francisco San
Francisco, CA 360 143.00 December 15, 2010 6 Homewood Suites
Seattle Convention Center Seattle, WA 195 53.00 May 2, 2011 7 W
Chicago - City Center Chicago, IL 403 128.80 May 10, 2011 8 Hotel
Indigo San Diego Gaslamp Quarter San Diego, CA 210 55.50 June 17,
2011 9 Courtyard Washington Capitol Hill/Navy Yard Washington, DC
204 68.00 June 30, 2011 10 Hotel Adagio San Francisco, Autograph
Collection San Francisco, CA 171 42.25 July 8, 2011 11 Denver
Marriott City Center Denver, CO 613 119.00 October 3, 2011 12
Holiday Inn New York City Midtown - 31st Street New York, NY 122
52.20 December 22, 2011 13 W Chicago - Lakeshore Chicago, IL 520
126.00 August 21, 2012 14 Hyatt Regency Mission Bay Spa and Marina
San Diego, CA 429 62.00 September 7, 2012 15 The Hotel Minneapolis,
Autograph Collection Minneapolis, MN 222 46.00 October 30, 2012 16
Hyatt Place New York Midtown South New York, NY 185 76.25 March 14,
2013 17 W New Orleans - French Quarter New Orleans, LA 97 25.50
March 28, 2013 18 W New Orleans New Orleans, LA 410 65.00 April 25,
2013 19 Hyatt Fisherman's Wharf San Francisco, CA 313 103.50 May
31, 2013 20 Hyatt Santa Barbara Santa Barbara, CA 200 61.00
June 27, 2013 5,932 $ 1,487.25
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