Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended June 30, 2015.
HIGHLIGHTS
- RevPAR: 7.0% pro forma increase for
the 22-hotel portfolio over the same period in 2014.
- Adjusted Hotel
EBITDA Margin: 140 basis point pro forma increase
to 36.4% for the 22-hotel portfolio over the same period in
2014.
- Adjusted Hotel
EBITDA: $59.4 million.
- Adjusted
Corporate EBITDA: $54.9 million.
- Adjusted
FFO: $39.8 million or $0.68 per diluted common
share.
- Acquisition: Acquired the 182-room
Ace Hotel and Theater Downtown Los Angeles for a purchase price of
$103.0 million.
- Dividend: Increased third quarter
2015 dividend by 14% to $0.40 per common share (5.1% annualized
yield based on the closing price of the Trust’s common shares on
July 29, 2015).
“We are pleased with our second quarter results, which exceeded
the high end of our outlook range and were driven by both strong
revenue growth and margin improvement for our hotel portfolio,”
said James L. Francis, Chesapeake Lodging Trust’s President and
Chief Executive Officer.
Mr. Francis continued, “Our hotel portfolio today is in
excellent shape and poised to outperform the industry the remainder
of the year and into 2016 with the guestroom renovation projects
undertaken this year now complete and coupled with the
comprehensive repositionings completed in 2014. We also continue to
be pleased with the initial results at our two recent acquisitions,
the Royal Palm and the Ace Hotel and Theater, which further give us
confidence to increase our quarterly common share dividend by
14%.”
CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial results
for the three and six months ended June 30, 2015 and 2014 (in
millions, except share and per share amounts):
Three months ended June 30, Six months ended
June 30, 2015 2014 2015 2014 Total revenue $ 162.1 $ 128.9 $ 271.4
$ 223.6 Net income available to common shareholders $ 21.6 $
18.8 $ 20.8 $ 18.6 Net income per diluted common share $ 0.36 $
0.38 $ 0.36 $ 0.37 Adjusted Hotel EBITDA $ 59.4 $ 47.1 $
84.7 $ 69.0 Adjusted Corporate EBITDA $ 54.9 $ 43.2 $ 75.6 $
61.2 AFFO available to common shareholders $ 39.8 $ 31.2 $
54.2 $ 43.5 AFFO per diluted common share $ 0.68 $ 0.64 $ 0.95 $
0.89 Weighted-average number of diluted common shares
outstanding 58,956,483 48,977,876 56,783,872 48,969,761
HOTEL OPERATING RESULTS
Management assesses the operating performance of its hotels
irrespective of the hotel owner during the periods compared using
the following key operating metrics: occupancy, ADR, RevPAR,
Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA Margin. The Trust
uses the term "pro forma" to refer to metrics that include, or
comparisons of metrics that are based on, the operating results of
hotels under previous ownership for either a portion of or the
entire period. As of June 30, 2015, the Trust owned 22 hotels.
Since two of its hotels owned as of June 30, 2015 were acquired
during 2015 and another one was acquired in October 2014, the key
operating metrics below reflect the pro forma operating results for
those hotels for all, or a certain period, of the three and six
months ended June 30, 2015 and 2014.
Included in the following table are comparisons of the key
operating metrics for the 22-hotel portfolio for the three and
six months ended June 30,
2015 and 2014 (in thousands, except for ADR and
RevPAR):
Three months ended June
30, Six months ended June 30,
2015(1)
2014(1)
Change
2015(1)
2014(1)
Change Pro forma Occupancy 86.0 % 84.5 % 150
bps 79.1 % 79.5 % (40) bps Pro forma ADR $ 237.11 $ 225.64 5.1% $
227.03 $ 213.48 6.3% Pro forma RevPAR $ 203.99 $ 190.65 7.0% $
179.52 $ 169.74 5.8% Pro forma Adjusted Hotel EBITDA $
59,875 $ 54,391 10.1% $ 91,543 $ 84,456 8.4% Pro forma Adjusted
Hotel EBITDA Margin 36.4 % 35.0 % 140 bps 31.4 % 30.5 % 90 bps
__________
(1) Includes results of operations for
certain hotels prior to their acquisition by the Trust.
Hotel EBITDA, Adjusted Hotel EBITDA, Adjusted Hotel EBITDA
Margin, Corporate EBITDA, Adjusted Corporate EBITDA, FFO, FFO
available to common shareholders and AFFO available to common
shareholders 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.
ACQUISITION ACTIVITY
On April 30, 2015, the Trust acquired the 182-room Ace Hotel and
Theater Downtown Los Angeles located in Los Angeles, California for
$101.7 million, including acquired working capital. The Trust
entered into a management agreement with Ace Hotel Group to
continue managing the hotel.
CAPITAL MARKETS ACTIVITY
The Trust has not sold any common shares under its continuous
at-the-market (ATM) program during 2015.
DIVIDENDS
On April 15, 2015, the Trust paid dividends in the amounts of
$0.35 per share to its common shareholders and $0.484375 per share
to its preferred shareholders, both of record as of March 31, 2015.
On May 20, 2015, the Trust declared dividends in the amounts of
$0.35 per share payable to its common shareholders and $0.484375
per share payable to its preferred shareholders, both of record as
of June 30, 2015. Both dividends were paid on July 15, 2015.
On July 30, 2015, the Trust declared dividends in the amounts of
$0.40 per share to its common shareholders and $0.484375 per share
to its preferred shareholders, both of record as of September 30,
2015. The dividends will be paid on October 15, 2015.
2015 OUTLOOK
The Trust is updating its 2015 outlook to incorporate its second
quarter results and recent operating trends and fundamentals. The
updated outlook assumes no additional acquisitions, dispositions,
or financing transactions (in millions, except RevPAR and per share
amounts):
Third Quarter
2015
Outlook Low High
CONSOLIDATED: Net income available
to common shareholders $ 25.3 $ 27.4 Net income per diluted common
share $ 0.43 $ 0.46 Adjusted Corporate EBITDA $ 54.7 $ 57.0
AFFO available to common shareholders $ 43.2 $ 45.2 AFFO per
diluted common share $ 0.73 $ 0.77 Corporate cash general
and administrative expense $ 2.2 $ 2.4 Corporate non-cash general
and administrative expense $ 2.0 $ 2.0 Weighted-average
number of diluted common shares outstanding 59.0 59.0
22-HOTEL PORTFOLIO: RevPAR $ 207.00 $ 211.00 Pro
forma RevPAR increase over 2014(1) 6.5 % 8.5 % Adjusted Hotel
EBITDA $ 58.9 $ 61.4 Adjusted Hotel EBITDA Margin 35.8 % 36.6 % Pro
forma Adjusted Hotel EBITDA Margin increase over 2014(1) 175 bps
250 bps
_____________
(1) The comparable 2014 period includes
results of operations for certain hotels prior to their acquisition
by the Trust.
Full Year
2015
Updated Outlook Previous Outlook Low High Low High
CONSOLIDATED: Net income available to common
shareholders $ 61.7 $ 66.9 $ 63.2 $ 68.9 Net income per diluted
common share $ 1.07 $ 1.15 $ 1.09 $ 1.19 Adjusted Corporate
EBITDA $ 175.9 $ 181.6 $ 174.9 $ 181.2 AFFO available to
common shareholders $ 131.2 $ 136.4 $ 130.3 $ 136.0 AFFO per
diluted common share $ 2.27 $ 2.35 $ 2.25 $ 2.35 Corporate
cash general and administrative expense $ 9.8 $ 10.3 $ 9.8 $ 10.3
Corporate non-cash general and administrative expense $ 7.6 $ 7.6 $
7.6 $ 7.6 Weighted-average number of diluted common shares
outstanding 57.9 57.9 58.0 58.0
22-HOTEL PORTFOLIO:
Pro forma RevPAR $ 187.00 $ 191.00 $ 187.00 $ 191.00 Pro
forma RevPAR increase over 2014(1) 6.5 % 8.5 % 6.5 % 8.5 % Pro
forma Adjusted Hotel EBITDA $ 200.2 $ 206.4 $ 199.3 $ 206.0 Pro
forma Adjusted Hotel EBITDA Margin 32.8 % 33.3 % 32.7 % 33.2 % Pro
forma Adjusted Hotel EBITDA Margin increase over 2014(1) 140 bps
190 bps 125 bps 175 bps
___________
(1) The comparable 2014 period
includes results of operations for certain hotels prior to their
acquisition by the Trust.
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) Hotel EBITDA,
(2) Adjusted Hotel EBITDA, (3) Adjusted Hotel EBITDA
Margin, (4) Corporate EBITDA, (5) Adjusted Corporate
EBITDA, (6) FFO, (7) FFO available to common shareholders
and (8) AFFO available to common shareholders. Reconciliations
of these non-GAAP financial measures to the most comparable GAAP
measure are included in the accompanying financial tables.
Hotel EBITDA – Hotel EBITDA is defined as net income before
interest, income taxes, depreciation and amortization, air rights
amortization, corporate general and administrative, and hotel
acquisition costs. The Trust believes that Hotel EBITDA provides
investors a useful financial measure to evaluate the Trust’s hotel
operating performance, excluding the impact of the Trust’s capital
structure (primarily interest), the Trust’s asset base (primarily
depreciation and amortization), and the Trust’s corporate-level
expenses (corporate general and administrative and hotel
acquisition costs).
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, excluding the effect of these non-cash items.
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.
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, and gains (losses) from
sales of real estate, which is a non-recurring item. 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.
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 of depreciable real estate, 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.
CONFERENCE CALL
The Trust will host a conference call on Thursday, July 30, 2015
at 5:00 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 78949780. 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 6, 2015. To access the
replay, dial (855) 859-2056 (U.S./Canadian callers) or
(404) 537-3406 (International callers). The conference call ID
is 78949780. A webcast replay and transcript of the conference call
will be archived and available on the Trust’s website for 12
months.
INSTITUTIONAL INVESTOR AND SECURITY ANALYST
CONFERENCE
The Trust will host property tours of its San Francisco hotels
on Monday, September 28, 2015 and hold its Institutional Investor
and Security Analyst Conference on Tuesday, September 29, 2015 in
San Francisco, California. The investor conference will be held on
Tuesday, September 29, 2015 from 12:30 p.m. – 2:00 p.m. Pacific
Time.
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
22 hotels with an aggregate of 6,694 rooms in nine 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 third quarter and
full year 2015 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: U.S. economic conditions generally and the real
estate market and the lodging industry specifically; management and
performance of the Trust's hotels; supply and demand for hotel
rooms in the Trust's markets; the Trust's competition; 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 July 30, 2015,
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, 2015
December 31, 2014 (unaudited) ASSETS Property and equipment,
net $ 1,951,880 $ 1,580,427 Intangible assets, net 36,703 36,992
Cash and cash equivalents 47,914 29,326 Restricted cash 38,546
43,387 Accounts receivable, net 28,233 13,102 Prepaid expenses and
other assets 19,913 10,637 Deferred financing costs, net
7,427 6,064 Total assets $ 2,130,616 $
1,719,935 LIABILITIES AND SHAREHOLDERS’ EQUITY
Long-term debt $ 806,514 $ 551,723 Accounts payable and accrued
expenses 64,440 53,442 Other liabilities 43,562
32,788 Total liabilities 914,516
637,953 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;
59,664,367 shares and 54,818,064 shares
issued and outstanding, respectively
597 548 Additional paid-in capital 1,294,103 1,138,391 Cumulative
dividends in excess of net income (78,015 ) (57,007 ) Accumulated
other comprehensive loss (635 ) — Total
shareholders’ equity 1,216,100 1,081,982
Total liabilities and shareholders’ equity $ 2,130,616
$ 1,719,935 SUPPLEMENTAL CREDIT
INFORMATION: Fixed charge coverage ratio(1) 2.82 2.65 Leverage
ratio(1) 34.6 % 31.1 %
______________
(1) Calculated as defined under the
Trust’s revolving credit facility.
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, 2015
2014 2015 2014 REVENUE Rooms $ 122,966
$ 98,118 $ 204,560 $ 168,957 Food and beverage 33,014 26,063 56,412
46,331 Other 6,165 4,684 10,463
8,351 Total revenue 162,145
128,865 271,435 223,639
EXPENSES Hotel operating expenses: Rooms 26,144 21,326
47,244 39,945 Food and beverage 23,495 18,730 41,961 34,940 Other
direct 1,906 1,998 3,239 3,779 Indirect 51,024
39,633 94,029 75,782 Total hotel
operating expenses 102,569 81,687 186,473 154,446 Depreciation and
amortization 17,929 12,524 32,856 25,022 Air rights contract
amortization 130 130 260 260 Corporate general and administrative
4,498 3,891 9,075 7,811 Hotel acquisition costs 466
— 835 — Total operating
expenses 125,592 98,232 229,499
187,539 Operating income 36,553 30,633
41,936 36,100 Interest expense (8,168 ) (6,828
) (15,347 ) (13,514 ) Income before income
taxes 28,385 23,805 26,589 22,586 Income tax benefit
(expense) (4,340 ) (2,556 ) (992 ) 841
Net income 24,045 21,249 25,597 23,427
Preferred share dividends (2,422 ) (2,422 )
(4,844 ) (4,844 ) Net income available to common
shareholders $ 21,623 $ 18,827 $ 20,753 $
18,583 Net income per common share: Basic $ 0.37 $
0.38 $ 0.36 $ 0.37 Diluted $ 0.36 $ 0.38 $ 0.36 $ 0.37
Weighted-average number of common shares outstanding: Basic
58,544,392 48,977,876 56,373,504 48,969,761 Diluted 58,956,483
48,977,876 56,783,872 48,969,761
CHESAPEAKE LODGING TRUST
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
(unaudited)
Six Months Ended June 30, 2015
2014 Cash flows from operating activities: Net
income $ 25,597 $ 23,427
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 32,856 25,022 Air rights contract
amortization 260 260 Deferred financing costs amortization 939
1,446 Share-based compensation 3,743 2,819 Other (392 ) (282 )
Changes in assets and liabilities: Accounts receivable, net (13,309
) (8,112 ) Prepaid expenses and other assets (6,584 ) (2,769 )
Accounts payable and accrued expenses 6,403 5,078 Other liabilities
5,981 (14 ) Net cash provided by operating
activities 55,494 46,875 Cash
flows from investing activities: Acquisition of hotels, net of cash
acquired (255,249 ) — Improvements and additions to hotels (24,361
) (43,431 ) Change in restricted cash 4,841
(2,078 ) Net cash used in investing activities (274,769 )
(45,509 ) Cash flows from financing activities:
Proceeds from sale of common shares, net of underwriting fees
153,962 — Payment of offering costs related to sale of common
shares (254 ) — Borrowings under revolving credit facility 310,000
50,000 Repayments under revolving credit facility (175,000 ) —
Scheduled principal payments on mortgage debt (5,103 ) (4,889 )
Payment of deferred financing costs (2,302 ) (123 ) Deposits on
loan applications — (2,115 ) Payment of dividends to common
shareholders (36,906 ) (27,631 ) Payment of dividends to preferred
shareholders (4,844 ) (4,844 ) Repurchase of common shares
(1,690 ) (430 ) Net cash provided by financing activities
237,863 9,968 Net increase in cash
18,588 11,334 Cash and cash equivalents, beginning of period
29,326 28,713 Cash and cash equivalents, end
of period $ 47,914 $ 40,047
CHESAPEAKE LODGING TRUSTRECONCILIATION
OF NON-GAAP FINANCIAL MEASURES(in thousands, except per share
data)(unaudited)
The following table reconciles net income to Hotel EBITDA,
Adjusted Hotel EBITDA, pro forma Adjusted Hotel EBITDA, and pro
forma Adjusted Hotel EBITDA Margin for the three and six months
ended June 30, 2015 and 2014:
Three Months Ended June 30, Six Months Ended
June 30, 2015 2014 2015 2014 Net income $ 24,045 $ 21,249 $ 25,597
$ 23,427
Add:
Interest expense
8,168 6,828 15,347 13,514 Income tax expense (benefit) 4,340 2,556
992 (841 ) Depreciation and amortization 17,929 12,524 32,856
25,022 Air rights contract amortization 130 130 260 260 Corporate
general and administrative 4,498 3,891 9,075 7,811 Hotel
acquisition costs 466 — 835
— Hotel EBITDA 59,576 47,178 84,962 69,193
Less:
Non-cash amortization(1)
(180 ) (74 ) (261 ) (149 ) Adjusted
Hotel EBITDA 59,396 47,104 84,701 69,044
Add:
Prior owner Hotel EBITDA(2)
479 7,928 6,842 16,755
Less:
Hotel EBITDA of hotel sold(3)
— (641 ) — (1,343 ) Pro
forma Adjusted Hotel EBITDA $ 59,875 $ 54,391 $
91,543 $ 84,456 Total revenue $ 162,145 $
128,865 $ 271,435 $ 223,639
Add:
Prior owner total revenue(2)
2,242 28,198 20,286 56,531
Less:
Total revenue of hotel sold(3)
— (1,614 ) — (3,363 ) Pro
forma total revenue $ 164,387 $ 155,449 $ 291,721
$ 276,807 Pro forma Adjusted Hotel EBITDA
Margin 36.4 % 35.0 % 31.4 % 30.5 % _____________ (1)
Reflects non-cash amortization of ground lease asset, deferred
franchise costs, deferred key money, and unfavorable contract
liability. (2) Reflects results of operations for certain hotels
prior to our acquisition. (3) Reflects results of operations for
the Courtyard Anaheim at Disneyland Resort which was sold on
September 30, 2014.
The following table reconciles net income to Corporate EBITDA
and Adjusted Corporate EBITDA for the three and six months ended
June 30, 2015 and 2014:
Three Months Ended June 30, Six Months Ended
June 30, 2015 2014 2015 2014 Net income $ 24,045 $ 21,249 $ 25,597
$ 23,427
Add:
Interest expense
8,168 6,828 15,347 13,514 Income tax expense (benefit) 4,340 2,556
992 (841 ) Depreciation and amortization 17,929
12,524 32,856 25,022 Corporate
EBITDA 54,482 43,157 74,792 61,122
Add:
Hotel acquisition costs
466 — 835 —
Less:
Non-cash amortization(1)
(50 ) 56 (1 ) 111 Adjusted
Corporate EBITDA $ 54,898 $ 43,213 $ 75,626 $ 61,233
____________ (1) Reflects 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 FFO, FFO available
to common shareholders, and AFFO available to common shareholders
for the three and six months ended June 30, 2015 and 2014:
Three Months Ended June 30,
Six Months Ended June 30,
2015 2014 2015 2014 Net income $ 24,045 $ 21,249 $ 25,597 $ 23,427
Add:
Depreciation and amortization
17,929 12,524 32,856
25,022 FFO 41,974 33,773 58,453 48,449
Less:
Preferred share dividends
(2,422 ) (2,422 ) (4,844 ) (4,844 ) Dividends declared on unvested
time-based awards (136 ) (128 ) (273 ) (257 ) Undistributed
earnings allocated to unvested time-based awards (7 )
(35 ) — — FFO available to common
shareholders 39,409 31,188 53,336 43,348
Add:
Hotel acquisition costs
466 — 835 —
Less:
Non-cash amortization(1)
(50 ) 56 (1 ) 111 AFFO
available to common shareholders $ 39,825 $ 31,244 $
54,170 $ 43,459 FFO per common share: Basic $
0.67 $ 0.64 $ 0.95 $ 0.89 Diluted $ 0.67 $ 0.64 $ 0.94 $ 0.89
AFFO per common share: Basic $ 0.68 $ 0.64 $ 0.96 $ 0.89
Diluted $ 0.68 $ 0.64 $ 0.95 $ 0.89 ___________ (1)
Reflects non-cash amortization of ground lease asset, deferred
franchise costs, deferred key money, unfavorable contract
liability, and air rights contract.
The following table reconciles forecasted net income to Hotel
EBITDA, Adjusted Hotel EBITDA, pro forma Adjusted Hotel EBITDA, and
pro forma Adjusted Hotel EBITDA Margin for the three months ending
September 30, 2015 and year ending December 31, 2015:
Three Months Ending
September 30, 2015
Year Ending
December 31, 2015
Low High Low High Net income $ 27,930 $ 29,980 $ 71,970 $ 77,120
Add:
Interest expense
8,320 8,320 31,950 31,950 Income tax expense 650 850 2,500 3,000
Depreciation and amortization 17,840 17,840 68,710 68,710 Air
rights contract amortization 130 130 520 520 Corporate general and
administrative 4,180 4,380 17,390 17,890 Hotel acquisition costs
— — 830 830
Hotel EBITDA 59,050 61,500 193,870 200,020
Less:
Non-cash amortization(1)
(150 ) (150 ) (570 ) (570 ) Adjusted
Hotel EBITDA 58,900 61,350 193,300 199,450
Add:
Prior owner Hotel EBITDA(2)
— — 6,900 6,900
Pro forma Adjusted Hotel EBITDA $ 58,900 $ 61,350
$ 200,200 $ 206,350 Total revenue $
164,400 $ 167,700 $ 589,500 $ 598,900
Add:
Prior owner total revenue(2)
— — 20,300 20,300
Pro forma total revenue $ 164,400 $ 167,700 $
609,800 $ 619,200 Pro forma Adjusted Hotel
EBITDA Margin 35.8 % 36.6 % 32.8 % 33.3 % _____________ (1)
Reflects non-cash amortization of ground lease asset,
deferred franchise costs, deferred key money, and unfavorable
contract liability. (2) Reflects results of operations for certain
hotels prior to our acquisition.
The following table reconciles forecasted net income to
Corporate EBITDA and Adjusted Corporate EBITDA for the three months
ending September 30, 2015 and year ending December 31,
2015:
Three Months Ending
September 30, 2015
Year Ending
December 31, 2015
Low High Low High Net income $ 27,930 $ 29,980 $ 71,970 $ 77,120
Add:
Interest expense
8,320 8,320 31,950 31,950 Income tax expense 650 850 2,500 3,000
Depreciation and amortization 17,840 17,840
68,710 68,710 Corporate EBITDA
54,740 56,990 175,130 180,780
Add:
Hotel acquisition costs
— — 830 830
Less:
Non-cash amortization(1)
(20 ) (20 ) (50 ) (50 ) Adjusted
Corporate EBITDA $ 54,720 $ 56,970 $ 175,910 $
181,560 ____________ (1) Reflects non-cash
amortization of ground lease asset, deferred franchise costs,
deferred key money, unfavorable contract liability, and air rights
contract.
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, 2015 and
year ending December 31, 2015:
Three Months Ending
September 30, 2015
Year Ending
December 31, 2015
Low High Low High Net income $ 27,930 $ 29,980 $ 71,970 $ 77,120
Add:
Depreciation and amortization
17,840 17,840 68,710
68,710 FFO 45,770 47,820 140,680 145,830
Less:
Preferred share dividends
(2,420 ) (2,420 ) (9,690 ) (9,690 ) Dividends declared on unvested
time-based awards (150 ) (150 ) (560 ) (560 ) Undistributed
earnings allocated to unvested time-based awards (20 )
(20 ) — — FFO available to
common shareholders 43,180 45,230 130,430 135,580
Add:
Hotel acquisition costs
— — 830 830
Less:
Non-cash amortization(1)
(20 ) (20 ) (50 ) (50 ) AFFO available
to common shareholders $ 43,160 $ 45,210 $ 131,210
$ 136,360 FFO per common share: Basic $ 0.74 $
0.77 $ 2.27 $ 2.36 Diluted $ 0.73 $ 0.77 $ 2.25 $ 2.34 AFFO
per common share: Basic $ 0.74 $ 0.77 $ 2.28 $ 2.37 Diluted $ 0.73
$ 0.77 $ 2.27 $ 2.35 Weighted-average number of common
shares outstanding: Basic 58,553 58,553 57,474 57,474 Diluted
58,998 58,998 57,915 57,915 ____________ (1) Reflects
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
Hotel Location Rooms Acquisition Date 1
Hyatt Regency Boston Boston, MA 502 March 18, 2010 2
Hilton Checkers Los Angeles Los Angeles, CA 193 June 1, 2010 3
Boston Marriott Newton Newton, MA 430 July 30, 2010 4 Le Meridien
San Francisco San Francisco, CA 360 December 15, 2010 5 Homewood
Suites Seattle Convention Center Seattle, WA 195 May 2, 2011 6 W
Chicago – City Center Chicago, IL 403 May 10, 2011 7 Hotel Indigo
San Diego Gaslamp Quarter San Diego, CA 210 June 17, 2011 8
Courtyard Washington Capitol Hill/Navy Yard Washington, DC 204 June
30, 2011 9 Hotel Adagio San Francisco, Autograph Collection San
Francisco, CA 171 July 8, 2011 10 Denver Marriott City Center
Denver, CO 613 October 3, 2011 11 Hyatt Herald Square New York New
York, NY 122 December 22, 2011 12 W Chicago – Lakeshore Chicago, IL
520 August 21, 2012 13 Hyatt Regency Mission Bay Spa and Marina San
Diego, CA 429 September 7, 2012 14 The Hotel Minneapolis, Autograph
Collection Minneapolis, MN 222 October 30, 2012 15 Hyatt Place New
York Midtown South New York, NY 185 March 14, 2013 16 W New Orleans
– French Quarter New Orleans, LA 97 March 28, 2013 17 Le Meridien
New Orleans New Orleans, LA 410 April 25, 2013 18 Hyatt Fisherman’s
Wharf San Francisco, CA 316 May 31, 2013 19 Hyatt Santa Barbara
Santa Barbara, CA 200 June 27, 2013 20 JW Marriott San Francisco
Union Square San Francisco, CA 337 October 1, 2014 21 Royal Palm
South Beach Miami, a Tribute Portfolio Resort Miami Beach, FL 393
March 9, 2015 22 Ace Hotel and Theater Downtown Los Angeles Los
Angeles, CA 182 April 30, 2015 6,694
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150730006469/en/
Chesapeake Lodging TrustDouglas W. Vicari,
410-972-4142
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