Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended September 30, 2015.
HIGHLIGHTS
- RevPAR: 7.2% pro forma increase for
the hotel portfolio over the same period in 2014.
- Adjusted Hotel
EBITDA Margin: 110 basis point pro forma increase
to 35.2% for the hotel portfolio over the same period in 2014.
- Adjusted Hotel
EBITDA: $58.1 million.
- Adjusted
Corporate EBITDA: $54.1 million.
- Adjusted
FFO: $42.9 million or $0.73 per diluted common
share.
- Dividend: Increased third quarter
2015 dividend by 14% to $0.40 per common share (5.8% annualized
yield based on the closing price of the Trust’s common shares on
October 30, 2015).
- Share
Repurchase Program: Authorized to acquire up to
$100.0 million of its common shares.
CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial
results for the three and nine months ended September 30, 2015 and
2014 (in millions, except share and per share amounts):
Three months ended Nine months
ended September 30, September 30, 2015 2014
2015 2014 Total revenue $ 165.0 $ 130.8 $
436.4 $ 354.5 Net income available to common shareholders $
24.8 $ 26.3 $ 45.5 $ 44.8 Net income per diluted common share $
0.42 $ 0.52 $ 0.78 $ 0.89 Adjusted Hotel EBITDA $ 58.1 $
47.2 $ 142.8 $ 116.3 Adjusted Corporate EBITDA $ 54.1 $ 43.5
$ 129.7 $ 104.8 AFFO available to common shareholders $ 42.9
$ 32.8 $ 97.1 $ 76.4 AFFO per diluted common share $ 0.73 $ 0.65 $
1.69 $ 1.53
Weighted-average number of diluted common
shares outstanding
58,991,087 50,567,849 57,536,971 49,758,044
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 September 30, 2015, the Trust owned 22 hotels.
Since two of its hotels owned as of September 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 nine months ended September 30, 2015 and 2014.
Included in the following table are comparisons of the key
operating metrics for the hotel portfolio for the three and
nine months ended September 30,
2015 and 2014 (in thousands, except for ADR and
RevPAR):
Three months ended
September 30, Nine months ended September 30, 2015
2014(1)
Change
2015(1)
2014(1)
Change Pro forma Occupancy 87.9 % 83.5 % 440
bps 82.0 % 80.8 % 120 bps Pro forma ADR $ 237.33 $ 233.06 1.8 % $
230.75 $ 220.30 4.7 % Pro forma RevPAR $ 208.58 $ 194.50 7.2 % $
189.32 $ 178.09 6.3 % Pro forma Adjusted Hotel EBITDA $
58,087 $ 52,989 9.6 % $ 149,630 $ 137,445 8.9 % Pro forma Adjusted
Hotel EBITDA Margin 35.2 % 34.1 % 110 bps 32.8 % 31.8 % 100 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.
CAPITAL MARKETS ACTIVITY
On September 29, 2015, the Trust's board of trustees authorized
a share repurchase program pursuant to which the Trust may acquire
up to $100.0 million of its common shares using cash on hand and
borrowings under its revolving credit facility. The timing and
volume of repurchases will be determined by the Trust's management
based on its ongoing assessments of the capital needs of the
business, prevailing market prices, general economic and market
conditions and other considerations. The repurchase program
authorizes the Trust to repurchase its common shares from time to
time through open market purchases, negotiated transactions or
other means, including Rule 10b5-1 trading plans, in accordance
with applicable securities laws and other restrictions. The
repurchase program expires in September 2018, but may be suspended
or discontinued at any time, and does not obligate the Trust to
acquire any particular amount of its shares. As of November 2,
2015, $100.0 million remained available for the repurchase of
common shares.
The Trust has not sold any common shares under its continuous
at-the-market (ATM) program during 2015.
DIVIDENDS
On July 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 June 30, 2015.
On July 30, 2015, the Trust declared dividends in the amounts of
$0.40 per share payable to its common shareholders and $0.484375
per share payable to its preferred shareholders, both of record as
of September 30, 2015. Both dividends were paid on October 15,
2015.
2015 OUTLOOK
The Trust is updating its 2015 outlook previously provided on
September 29, 2015 to incorporate its third 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):
Fourth Quarter
2015
Outlook
Low High
CONSOLIDATED: Net
income available to common shareholders $ 13.6 $ 15.2 Net income
per diluted common share $ 0.23 $ 0.26 Adjusted Corporate
EBITDA $ 43.4 $ 45.2 AFFO available to common shareholders $
31.5 $ 33.1 AFFO per diluted common share $ 0.53 $ 0.56
Corporate cash general and administrative expense $ 2.1 $ 2.3
Corporate non-cash general and administrative expense $ 2.0 $ 2.0
Weighted-average number of diluted common shares outstanding
59.0 59.0
HOTEL PORTFOLIO: RevPAR $ 179.00 $
182.00 Pro forma RevPAR increase over 2014(1) 5.5 % 7.5 % Adjusted
Hotel EBITDA $ 47.5 $ 49.5 Adjusted Hotel EBITDA Margin 32.1 % 32.9
% Pro forma Adjusted Hotel EBITDA Margin increase over 2014(1) 185
bps 260 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 $ 58.7 $ 60.3 $ 60.2 $ 62.4 Net income per diluted
common share $ 1.01 $ 1.04 $ 1.04 $ 1.08 Adjusted Corporate
EBITDA $ 173.1 $ 174.9 $ 173.9 $ 176.5 AFFO available to
common shareholders $ 128.6 $ 130.2 $ 129.8 $ 132.0 AFFO per
diluted common share $ 2.22 $ 2.25 $ 2.24 $ 2.28 Corporate
cash general and administrative expense $ 9.6 $ 9.8 $ 9.3 $ 9.7
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 57.9 57.9
HOTEL PORTFOLIO:
Pro forma RevPAR $ 186.00 $ 187.00 $ 187.00 $ 189.00 Pro
forma RevPAR increase over 2014(1) 6.1 % 6.6 % 6.5 % 7.25 % Pro
forma Adjusted Hotel EBITDA $ 197.1 $ 199.1 $ 197.7 $ 200.7 Pro
forma Adjusted Hotel EBITDA Margin 32.6 % 32.8 % 32.6 % 32.8 % Pro
forma Adjusted Hotel EBITDA Margin increase over 2014(1) 120 bps
140 bps 115 bps 140 bps ___________
(1)
The comparable 2014 period includes
results of operations for certain hotels prior to their acquisition
by the Trust.
"We are adjusting our full year outlook to reflect more
conservative growth expectations for November and December given
weaker than expected business transient demand in October
predominantly at our hotels located in the San Francisco and New
York markets,” said James L. Francis, Chesapeake Lodging
Trust’s President and Chief Executive Officer. "We continue to
believe positive fundamentals for the U.S. lodging industry and for
the majority of our markets remain intact as we look into 2016
based on favorable convention calendars, our group pace, and the
continued expectation that lodging demand growth will exceed
lodging supply growth.”
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 Monday, November 2,
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 53678101. 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 November 9, 2015. To access
the replay, dial (855) 859-2056 (U.S./Canadian callers) or
(404) 537-3406 (International callers). The conference call ID
is 53678101. 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
22 hotels with an aggregate of 6,699 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 fourth 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 November 2,
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)
September 30, 2015 December 31, 2014
(unaudited) ASSETS Property and equipment, net $ 1,939,257 $
1,580,427 Intangible assets, net 36,558 36,992 Cash and cash
equivalents 45,735 29,326 Restricted cash 42,548 43,387 Accounts
receivable, net 26,514 13,102 Prepaid expenses and other assets
18,150 10,637 Deferred financing costs, net 6,965 6,064
Total assets $ 2,115,727 $ 1,719,935
LIABILITIES AND SHAREHOLDERS’ EQUITY Long-term debt $ 783,915 $
551,723 Accounts payable and accrued expenses 66,636 53,442 Other
liabilities 46,475 32,788 Total liabilities 897,026
637,953 Commitments and contingencies
Preferred shares, $.01 par value;
100,000,000 shares authorized;Series A Cumulative Redeemable
Preferred Shares; 5,000,000 sharesissued and outstanding ($127,422
liquidation preference)
50 50
Common shares, $.01 par value; 400,000,000
shares authorized;59,658,985 shares and 54,818,064 shares issued
and outstanding, respectively
597 548 Additional paid-in capital 1,295,970 1,138,391 Cumulative
dividends in excess of net income (77,120 ) (57,007 ) Accumulated
other comprehensive loss (796 ) — Total shareholders’ equity
1,218,701 1,081,982 Total liabilities and
shareholders’ equity $ 2,115,727 $ 1,719,935
SUPPLEMENTAL CREDIT INFORMATION: Fixed charge coverage
ratio(1) 2.95 2.65 Leverage ratio(1) 33.1 % 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 September 30, Nine Months
Ended September 30, 2015 2014 2015
2014 REVENUE Rooms $ 128,388 $ 102,473 $ 332,948 $
271,430 Food and beverage 29,620 22,883 86,032 69,214 Other 7,001
5,484 17,464 13,835 Total revenue
165,009 130,840 436,444 354,479
EXPENSES Hotel operating expenses: Rooms 27,826 21,985 75,070
61,930 Food and beverage 22,769 17,860 64,730 52,800 Other direct
2,061 2,234 5,300 6,013 Indirect 54,111 42,641
148,140 118,423 Total hotel operating expenses
106,767 84,720 293,240 239,166 Depreciation and amortization 18,306
12,466 51,162 37,488 Air rights contract amortization 130 130 390
390 Corporate general and administrative 4,019 3,694 13,094 11,505
Hotel acquisition costs 19 60 854 60
Total operating expenses 129,241 101,070 358,740
288,609 Operating income 35,768 29,770 77,704
65,870 Interest income
—
8 — 8 Interest expense (8,287 ) (6,963 ) (23,634 ) (20,477 ) Gain
on sale of hotel
—
7,006 — 7,006 Income before income
taxes 27,481 29,821 54,070 52,407 Income tax expense (301 )
(1,133 ) (1,293 ) (292 ) Net income 27,180 28,688 52,777
52,115 Preferred share dividends (2,422 ) (2,422 ) (7,266 )
(7,266 ) Net income available to common shareholders $ 24,758
$ 26,266 $ 45,511 $ 44,849 Net
income per common share: Basic $ 0.42 $ 0.52 $ 0.79 $ 0.90 Diluted
$ 0.42 $ 0.52 $ 0.78 $ 0.89 Weighted-average number of
common shares outstanding: Basic 58,552,800 50,141,513 57,107,919
49,364,637 Diluted 58,991,087 50,567,849 57,536,971 49,758,044
CHESAPEAKE LODGING TRUST CONSOLIDATED
STATEMENTS OF CASH FLOWS (in thousands)
(unaudited) Nine Months Ended
September 30, 2015 2014 Cash flows from
operating activities: Net income $ 52,777 $ 52,115
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 51,162 37,488 Air rights contract
amortization 390 390 Deferred financing costs amortization 1,410
1,950 Gain on sale of hotel — (7,006 ) Share-based compensation
5,640 4,311 Other (613 ) 771 Changes in assets and liabilities:
Accounts receivable, net (11,590 ) (8,958 ) Prepaid expenses and
other assets (4,821 ) 26 Accounts payable and accrued expenses
8,311 4,629 Other liabilities 5,972 (22 ) Net cash provided
by operating activities 108,638 85,694 Cash
flows from investing activities: Acquisition of hotels, net of cash
acquired (255,249 ) — Disposition of hotel, net of cash sold —
31,933 Deposit on hotel acquisition — (42,142 ) Improvements and
additions to hotels (30,044 ) (67,500 ) Change in restricted cash
839 (5,680 ) Net cash used in investing activities (284,454
) (83,389 ) Cash flows from financing activities: Proceeds
from sale of common shares, net of underwriting fees 153,962
144,320 Payment of offering costs related to sale of common shares
(276 ) (378 ) Borrowings under revolving credit facility 315,000
85,000 Repayments under revolving credit facility (200,000 )
(50,000 ) Proceeds from issuance of mortgage debt — 90,000
Scheduled principal payments on mortgage debt (7,650 ) (67,326 )
Payment of deferred financing costs (2,311 ) (1,980 ) Payment of
dividends to common shareholders (57,536 ) (42,455 ) Payment of
dividends to preferred shareholders (7,266 ) (7,266 ) Repurchase of
common shares (1,698 ) (438 ) Net cash provided by financing
activities 192,225 149,477 Net increase in cash
16,409 151,782 Cash and cash equivalents, beginning of period
29,326 28,713 Cash and cash equivalents, end of
period $ 45,735 $ 180,495
CHESAPEAKE LODGING TRUST
RECONCILIATION 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 nine
months ended September 30, 2015 and 2014:
Three Months Ended September 30, Nine Months
Ended September 30, 2015 2014 2015
2014 Net income $ 27,180 $ 28,688 $ 52,777 $ 52,115
Add:
Interest expense
8,287 6,963 23,634 20,477 Income tax expense 301 1,133 1,293 292
Depreciation and amortization 18,306 12,466 51,162 37,488 Air
rights contract amortization 130 130 390 390 Corporate general and
administrative 4,019 3,694 13,094 11,505 Hotel acquisition costs 19
60 854 60
Less:
Interest income
— (8 ) — (8 ) Hotel EBITDA 58,242 53,126 143,204
122,319
Less:
Non-cash amortization(1)
(155 ) 1,119 (416 ) 970 Gain on sale of hotel — (7,006 ) —
(7,006 ) Adjusted Hotel EBITDA 58,087 47,239 142,788 116,283
Add:
Prior owner Hotel EBITDA(2)
— 6,500 6,842 23,255
Less:
Hotel EBITDA of hotel sold(3)
— (750 ) — (2,093 ) Pro forma Adjusted Hotel EBITDA $
58,087 $ 52,989 $ 149,630 $ 137,445
Total revenue $ 165,009 $ 130,840 $ 436,444 $ 354,479
Add:
Prior owner total revenue(2)
— 26,439 20,286 82,970
Less:
Total revenue of hotel sold(3)
— (1,803 ) — (5,166 ) Pro forma total revenue $
165,009 $ 155,476 $ 456,730 $ 432,283
Pro forma Adjusted Hotel EBITDA Margin 35.2 % 34.1 % 32.8 %
31.8 % _____________
(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
nine months ended September 30, 2015 and 2014:
Three Months Ended September 30, Nine Months
Ended September 30, 2015 2014 2015
2014 Net income $ 27,180 $ 28,688 $ 52,777 $ 52,115
Add:
Interest expense
8,287 6,963 23,634 20,477 Income tax expense 301 1,133 1,293 292
Depreciation and amortization 18,306 12,466 51,162 37,488
Less:
Interest income
— (8 ) — (8 ) Corporate EBITDA 54,074 49,242 128,866
110,364
Add:
Hotel acquisition costs
19 60 854 60
Less:
Non-cash amortization(1)
(25 ) 1,248 (26 ) 1,359 Gain on sale of hotel — (7,006 ) —
(7,006 ) Adjusted Corporate EBITDA $ 54,068 $ 43,544
$ 129,694 $ 104,777 ____________ (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 nine months ended September 30, 2015 and 2014:
Three Months Ended September 30,
Nine Months Ended September 30,
2015 2014 2015 2014 Net
income $ 27,180 $ 28,688 $ 52,777 $ 52,115
Add:
Depreciation and amortization
18,306 12,466 51,162 37,488
Less:
Gain on sale of hotel
— (7,006 ) — (7,006 ) FFO 45,486 34,148 103,939
82,597
Less:
Preferred share dividends
(2,422 ) (2,422 ) (7,266 ) (7,266 ) Dividends declared on unvested
time-based awards (153 ) (128 ) (426 ) (385 )
Undistributed earnings allocated to
unvested time-based awards
(8 ) (84 ) — — FFO available to common shareholders
42,903 31,514 96,247 74,946
Add:
Hotel acquisition costs
19 60 854 60
Less:
Non-cash amortization(1)
(25 ) 1,248 (26 ) 1,359 AFFO available to common
shareholders $ 42,897 $ 32,822 $ 97,075 $
76,365 FFO per common share: Basic $ 0.73 $ 0.63 $
1.69 $ 1.52 Diluted $ 0.73 $ 0.62 $ 1.67 $ 1.51 AFFO per
common share: Basic $ 0.73 $ 0.65 $ 1.70 $ 1.55 Diluted $ 0.73 $
0.65 $ 1.69 $ 1.53 ___________ (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 and year ending December 31, 2015:
Three Months EndingDecember 31, 2015
Year EndingDecember 31, 2015
Low High Low High Net
income $ 16,160 $ 17,760 $ 68,960 $ 70,560
Add:
Interest expense
8,220 8,220 31,850 31,850 Income tax expense 1,100 1,300 2,390
2,590 Depreciation and amortization 17,940 17,940 69,100 69,100 Air
rights contract amortization 130 130 520 520 Corporate general and
administrative 4,100 4,300 17,190 17,390 Hotel acquisition costs —
— 860 860 Hotel EBITDA 47,650 49,650
190,870 192,870
Less:
Non-cash amortization(1)
(150 ) (150 ) (580 ) (580 ) Adjusted Hotel EBITDA 47,500 49,500
190,290 192,290
Add:
Prior owner Hotel EBITDA(2)
— — 6,840 6,840 Pro forma Adjusted
Hotel EBITDA $ 47,500 $ 49,500 $ 197,130 $
199,130 Total revenue $ 147,750 $ 150,500 $ 584,190 $
586,940
Add:
Prior owner total revenue(2)
— — 20,290 20,290 Pro forma total
revenue $ 147,750 $ 150,500 $ 604,480 $
607,230 Pro forma Adjusted Hotel EBITDA Margin 32.1 %
32.9 % 32.6 % 32.8 % _____________ (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 and year ending December 31, 2015:
Three Months EndingDecember 31, 2015
Year EndingDecember 31, 2015
Low High Low High Net
income $ 16,160 $ 17,760 $ 68,960 $ 70,560
Add:
Interest expense
8,220 8,220 31,850 31,850 Income tax expense 1,100 1,300 2,390
2,590 Depreciation and amortization 17,940 17,940
69,100 69,100 Corporate EBITDA 43,420 45,220 172,300
174,100
Add:
Hotel acquisition costs
— — 860 860
Less:
Non-cash amortization(1)
(20 ) (20 ) (60 ) (60 ) Adjusted Corporate EBITDA $ 43,400 $
45,200 $ 173,100 $ 174,900 ____________ (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 and year ending December 31, 2015:
Three Months EndingDecember 31, 2015
Year EndingDecember 31, 2015
Low High Low High Net
income $ 16,160 $ 17,760 $ 68,960 $ 70,560
Add:
Depreciation and amortization
17,940 17,940 69,100 69,100 FFO 34,100
35,700 138,060 139,660
Less:
Preferred share dividends
(2,420 ) (2,420 ) (9,690 ) (9,690 )
Dividends declared on unvested time-based
awards
(130 ) (130 ) (560 ) (560 )
Undistributed earnings allocated to
unvested time-based awards
— — — — FFO available to common
shareholders 31,550 33,150 127,810 129,410
Add:
Hotel acquisition costs
— — 860 860
Less:
Non-cash amortization(1)
(20 ) (20 ) (60 ) (60 ) AFFO available to common shareholders $
31,530 $ 33,130 $ 128,610 $ 130,210
FFO per common share: Basic $ 0.54 $ 0.57 $ 2.22 $ 2.25
Diluted $ 0.53 $ 0.56 $ 2.21 $ 2.23 AFFO per common share:
Basic $ 0.54 $ 0.57 $ 2.24 $ 2.27 Diluted $ 0.53 $ 0.56 $ 2.22 $
2.25
Weighted-average number of common shares
outstanding:
Basic 58,559 58,559 57,474 57,474 Diluted 59,019 59,019 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 205 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 6,699
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151102006703/en/
Chesapeake Lodging TrustDouglas W. Vicari, 410-972-4142
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