LaSalle Hotel Properties (NYSE: LHO) today announced results for
the quarter ended September 30, 2016. The Company’s results include
the following:
Third Quarter Year-to-Date
2016 2015 % Var. 2016
2015 % Var. ($'s in millions except per
share/unit data) Net income attributable to common
shareholders $ 152.1 $ 44.4 242.6 % $ 213.3 $ 99.9 113.5 % Net
income attributable to common shareholders per diluted share $ 1.34
$ 0.39 243.6 % $ 1.88 $ 0.88 113.6 % RevPAR(1) $
224.98 $ 215.77 4.3 % $ 207.72 $ 202.79 2.4 % Hotel EBITDA
Margin(1) 36.8 % 36.5 % 34.5 % 34.1 % Hotel EBITDA Margin Growth(1)
29 bps 35 bps Total Revenue $ 326.9 $ 329.7 -0.8 % $
938.1 $ 921.9 1.8 % EBITDA(1) $ 219.1 $ 106.5 105.7 % $ 409.6 $
285.3 43.6 % Adjusted EBITDA(1) $ 115.3 $ 114.6 0.6 % $ 310.8 $
297.0 4.6 % FFO(1) $ 95.7 $ 90.7 5.5 % $ 253.4 $ 235.0 7.8 %
Adjusted FFO(1) $ 96.4 $ 98.8 -2.4 % $ 259.1 $ 246.7 5.0 % FFO per
diluted share/unit(1) $ 0.84 $ 0.80 5.0 % $ 2.24 $ 2.07 8.2 %
Adjusted FFO per diluted share/unit(1) $ 0.85 $ 0.87 -2.3 % $ 2.29
$ 2.18 5.0 % (1) See tables later in this press release,
which list adjustments that reconcile net income attributable to
common shareholders to earnings before interest, taxes,
depreciation and amortization (“EBITDA”), adjusted EBITDA, funds
from operations attributable to common shareholders and unitholders
(“FFO”), FFO per share/unit, adjusted FFO, adjusted FFO per
share/unit and pro forma hotel EBITDA. EBITDA, adjusted EBITDA,
FFO, FFO per share/unit, adjusted FFO, adjusted FFO per share/unit
and hotel EBITDA are non-GAAP financial measures. See further
discussion of these non-GAAP measures and reconciliations to net
income later in this press release. Room revenue per available room
("RevPAR") is presented on a pro forma basis to reflect hotels in
the Company's current portfolio. See "Statistical Data for the
Hotels - Pro Forma" later in this press release.
“Our portfolio performed well in a slow growth operating
environment, with softening demand and increasing hotel supply. We
benefited from the recovery of business at Park Central Hotel New
York and WestHouse Hotel New York, and we are proud that our teams
continue to operate with best-in-class efficiency across the
portfolio, as evidenced by expense growth being limited to less
than one percent year-to-date, excluding Park Central Hotel New
York and WestHouse Hotel New York,” said Michael D. Barnello,
President and Chief Executive Officer of LaSalle Hotel
Properties.
“Following the disposition of two non-core assets during the
third quarter, the Company now has an even stronger balance sheet,
with a low debt-to-EBITDA ratio, an excellent quality portfolio
primarily in core locations, and a well-covered dividend providing
a high yield,” added Mr. Barnello.
Park Central Hotel New York and WestHouse Hotel New York
Recovery
Excluding Park Central Hotel New York and WestHouse Hotel New
York from the third quarter 2016 and the comparable period in 2015,
the Company’s third quarter RevPAR grew by 1.5 percent and its
hotel EBITDA margin decreased by 50 basis points to 37.6 percent.
During the third quarter, the Company regained $5.6 million of the
$7.2 million of lost EBITDA from the comparable prior year
period.
Third Quarter Results
- Net Income: The Company’s net
income attributable to common shareholders increased 242.6 percent
to $152.1 million, due in part to a $104.8 million gain relating to
the sale of the Indianapolis Marriott Downtown.
- RevPAR: The Company’s RevPAR
increased 4.3 percent to $224.98, primarily driven by a 3.9 percent
growth in occupancy to 89.5 percent. Average daily rate (“ADR”)
rose by 0.4 percent to $251.26.
- Hotel EBITDA Margin: The
Company’s hotel EBITDA margin expanded by 29 basis points from the
comparable prior year period to 36.8 percent.
- Adjusted EBITDA: The Company’s
adjusted EBITDA was $115.3 million, an increase of $0.7 million
over the third quarter of 2015.
- Adjusted FFO: The Company
generated adjusted FFO of $96.4 million, or $0.85 per diluted
share/unit, compared to $98.8 million, or $0.87 per diluted
share/unit, for the comparable prior year period, a per share/unit
decrease of 2.3 percent. The Company’s income taxes increased by
$3.6 million, or $0.03 per diluted share/unit, from the comparable
prior year period.
Year-to-Date Results
- Net Income: The Company grew net
income attributable to common shareholders by 113.5 percent to
$213.3 million.
- RevPAR: RevPAR increased 2.4
percent to $207.72, primarily driven by a 2.4 percent growth in
occupancy to 85.0 percent. ADR was just above the prior year at
$244.36.
- Hotel EBITDA Margin: The
Company’s hotel EBITDA margin expanded by 35 basis points from the
comparable prior year period to 34.5 percent.
- Adjusted EBITDA: The Company’s
adjusted EBITDA was $310.8 million, an increase of 4.6 percent over
the first nine months of 2015.
- Adjusted FFO: The Company
generated adjusted FFO of $259.1 million, or $2.29 per diluted
share/unit, compared to $246.7 million, or $2.18 per diluted
share/unit, for the comparable prior year period, a per share/unit
increase of 5.0 percent.
Asset Sales
In July, the Company completed two non-core asset sales for
$245.0 million. Proceeds from both transactions were used to reduce
borrowings on the Company’s senior unsecured credit facility and
for general corporate purposes.
- On July 8, 2016, the Company sold its
junior mezzanine loan (the “Mezzanine Loan”) secured by equity
interests in two hotels: Shutters on the Beach and Casa Del Mar, in
Santa Monica, California. The Mezzanine Loan sold for $80.0
million, which was the principal amount.
- On July 14, 2016, the Company sold the
Indianapolis Marriott Downtown for $165.0 million, generating a
13.7 percent unleveraged IRR. The Company acquired the hotel in
February 2004 for $106.0 million.
Capital Investments
During the quarter, the Company invested $17.5 million of
capital in its hotels, which was primarily maintenance
expenditures. A portion of the capital investment during the
quarter was for deposits on upcoming room renovations at L’Auberge
Del Mar and Embassy Suites Philadelphia Center City.
Balance Sheet
As of September 30, 2016, the Company had total outstanding debt
of $1.1 billion. Total net debt to trailing 12 month Corporate
EBITDA (as defined in the financial covenant section of the
Company’s senior unsecured credit facility) was 2.8 times, as of
September 30, 2016 and its fixed charge coverage ratio was 5.8
times. For the third quarter, the Company’s weighted average
interest rate was 2.6 percent, compared to 3.0 percent during the
same prior year period. As of September 30, 2016, the Company had
$135.0 million of cash and cash equivalents on its balance sheet
and capacity of $772.5 million available on its credit
facilities.
The Company did not acquire any common shares during the third
quarter of 2016 or to date during the fourth quarter of 2016. The
Company has $69.8 million of capacity remaining in its share
repurchase program.
Dividend
On September 15, 2016, the Company declared a third quarter 2016
dividend of $0.45 per common share of beneficial interest. The
dividend represents an annual run rate of $1.80 per share and a 7.2
percent yield based on the closing share price on October 18,
2016.
Earnings Call
The Company will conduct its quarterly conference call on
Thursday, October 20, 2016 at 11:00 AM eastern time. To participate
in the conference call, please dial (800) 723-6604.
Additionally, a live webcast of the conference call will be
available through the Company’s website. A replay of the conference
call webcast will also be archived and available online through the
Investor Relations section of the Company’s website.
About LaSalle Hotel Properties
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 46 properties, which are
upscale, full-service hotels, totaling approximately 11,450 guest
rooms in 13 markets in nine states and the District of Columbia.
The Company focuses on owning, redeveloping and repositioning
upscale, full-service hotels located in urban, resort and
convention markets. LaSalle Hotel Properties seeks to grow through
strategic relationships with premier lodging groups, including
Hilton Hotels Corporation, Marriott International, Outrigger
Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, Two Roads Hospitality, Davidson
Hotel Company, Kimpton Hotel & Restaurant Group, LLC, Accor,
HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel
Group, Highgate Hotels and Access Hotels & Resorts.
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words
“will,” "believe," "expect," "intend," "anticipate," "estimate,"
"project," “may,” “plan,” “seek,” “should,” or similar expressions.
Forward-looking statements in this press release include, among
others, statements about the Company’s asset management strategies,
use of sale proceeds and capital expenditure program. You should
not rely on forward-looking statements since they involve known and
unknown risks, uncertainties and other factors that are, in some
cases, beyond the Company's control and which could materially
affect actual results, performances or achievements. Factors that
may cause actual results to differ materially from current
expectations include, but are not limited to, (i) risks associated
with the hotel industry, including competition for guests and
meetings from other hotels and alternative lodging companies,
increases in wages, energy costs and other operating costs,
potential unionization or union disruption, actual or threatened
terrorist attacks, any type of flu or disease-related pandemic and
downturns in general and local economic conditions, (ii) the
availability and terms of financing and capital and the general
volatility of securities markets, (iii) the Company’s dependence on
third-party managers of its hotels, including its inability to
implement strategic business decisions directly, (iv) risks
associated with the real estate industry, including environmental
contamination and costs of complying with the Americans with
Disabilities Act of 1990, as amended, and similar laws, (v)
interest rate increases, (vi) the possible failure of the Company
to maintain its qualification as a REIT and the risk of changes in
laws affecting REITs, (vii) the possibility of uninsured losses,
(viii) risks associated with redevelopment and repositioning
projects, including delays and cost overruns, (ix) the risk of a
material failure, inadequacy, interruption or security failure of
the Company’s or the hotel managers’ information technology
networks and systems, and (x) the risk factors discussed in the
Company’s Annual Report on Form 10-K as updated in its Quarterly
Reports. Accordingly, there is no assurance that the Company's
expectations will be realized. Except as otherwise required by the
federal securities laws, the Company disclaims any obligation or
undertaking to publicly release any updates or revisions to any
forward-looking statement contained herein (or elsewhere) to
reflect any change in the Company’s expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statement is based.
For additional information or to receive press releases via
e-mail, please visit our website at www.lasallehotels.com.
LASALLE HOTEL PROPERTIES Consolidated Statements
of Operations and Comprehensive Income
(in thousands, except share data)
(unaudited)
For the three months ended For the
nine months ended September 30, September 30,
2016 2015 2016 2015
Revenues: Hotel operating revenues: Room $ 237,757 $ 233,993
$ 664,463 $ 647,031 Food and beverage 61,718 68,688 197,090 205,083
Other operating department 25,892 24,472 70,992
64,049 Total hotel operating revenues 325,367 327,153
932,545 916,163 Other income 1,569 2,557 5,582
5,736 Total revenues 326,936 329,710 938,127
921,899
Expenses: Hotel operating expenses:
Room 59,342 56,283 170,596 161,002 Food and beverage 44,307 48,268
137,209 142,455 Other direct 4,562 4,960 13,218 13,807 Other
indirect 78,734 78,070 230,932 226,949
Total hotel operating expenses 186,945 187,581 551,955 544,213
Depreciation and amortization 48,022 46,208 144,491 135,002 Real
estate taxes, personal property taxes and insurance 13,913 17,045
47,023 49,331 Ground rent 4,570 4,491 12,491 12,164 General and
administrative 6,076 6,173 19,549 18,941 Acquisition transaction
costs 0 55 0 499 Other expenses 1,007 9,149 5,512
12,753 Total operating expenses 260,533
270,702 781,021 772,903 Operating income
66,403 59,008 157,106 148,996 Interest income 167 1,294 3,497 1,301
Interest expense (10,332 ) (13,250 ) (33,681 ) (40,790 ) Income
before income tax (expense) benefit 56,238 47,052 126,922 109,507
Income tax (expense) benefit (3,109 ) 490 (5,099 ) (216 )
Income before net gain on sale of property and sale of note
receivable 53,129 47,542 121,823 109,291 Net gain on sale of
property and sale of note receivable 104,549 0
104,549 0 Net income 157,678 47,542
226,372 109,291 Net income attributable to
noncontrolling interests: Noncontrolling interests in consolidated
entities 0 0 (8 ) (8 ) Noncontrolling interests of common units in
Operating Partnership (203 ) (75 ) (299 ) (229 ) Net income
attributable to noncontrolling interests (203 ) (75 ) (307 ) (237 )
Net income attributable to the Company 157,475 47,467 226,065
109,054 Distributions to preferred shareholders (5,405 ) (3,043 )
(12,802 ) (9,127 ) Net income attributable to common shareholders $
152,070 $ 44,424 $ 213,263 $ 99,927
LASALLE HOTEL PROPERTIES Consolidated
Statements of Operations and Comprehensive Income - Continued
(in thousands, except share data)
(unaudited)
For the three months ended For the
nine months ended September 30, September 30,
2016 2015 2016 2015
Earnings per Common Share - Basic: Net income attributable
to common shareholders excluding amounts attributable to unvested
restricted shares $ 1.34 $ 0.39 $ 1.89 $ 0.88
Earnings per Common Share - Diluted: Net income
attributable to common shareholders excluding amounts attributable
to unvested restricted shares $ 1.34 $ 0.39 $ 1.88
$ 0.88
Weighted average number of common shares
outstanding: Basic 112,811,403 112,731,358 112,781,732
112,702,693 Diluted 113,159,844 113,137,284 113,138,897 113,113,859
Comprehensive Income: Net income $ 157,678 $ 47,542 $
226,372 $ 109,291 Other comprehensive income: Unrealized gain
(loss) on interest rate derivative instruments 3,172 (4,245 )
(17,051 ) (8,617 ) Reclassification adjustment for amounts
recognized in net income 1,637 1,071 5,147
3,210 162,487 44,368 214,468 103,884 Comprehensive income
attributable to noncontrolling interests: Noncontrolling interests
in consolidated entities 0 0 (8 ) (8 ) Noncontrolling interests of
common units in Operating Partnership (209 ) (71 ) (284 ) (221 )
Comprehensive income attributable to noncontrolling interests (209
) (71 ) (292 ) (229 ) Comprehensive income attributable to the
Company $ 162,278 $ 44,297 $ 214,176 $ 103,655
LASALLE HOTEL PROPERTIES FFO and
EBITDA
(in thousands, except share/unit data)
(unaudited)
For the three months ended For the
nine months ended September 30, September 30,
2016 2015 2016 2015 Net
income attributable to common shareholders $ 152,070 $ 44,424 $
213,263 $ 99,927 Depreciation 47,888 46,080 144,088 134,622
Amortization of deferred lease costs 82 72 244 219 Noncontrolling
interests: Noncontrolling interests in consolidated entities 0 0 8
8 Noncontrolling interests of common units in Operating Partnership
203 75 299 229 Less: Gain on sale of property less costs associated
with sale of note receivable (104,549 ) 0 (104,549 ) 0
FFO attributable to common shareholders and
unitholders $ 95,694 $ 90,651
$ 253,353 $ 235,005 Pre-opening,
management transition and severance expenses 231 7,562 4,295 9,712
Acquisition transaction costs 0 55 0 499 Non-cash ground rent 472
483 1,420 1,463
Adjusted FFO
attributable to common shareholders and unitholders $
96,397 $ 98,751 $
259,068 $ 246,679 Weighted
average number of common shares and units outstanding: Basic
112,956,626 112,876,581 112,926,955 112,920,964 Diluted 113,305,067
113,282,507 113,284,120 113,332,130
FFO attributable to common
shareholders and unitholders per diluted share/unit $ 0.84 $
0.80 $ 2.24 $ 2.07
Adjusted FFO attributable to common
shareholders and unitholders per diluted share/unit $ 0.85 $
0.87 $ 2.29 $ 2.18
For the three months ended
For the nine months ended September 30, September
30, 2016 2015 2016 2015 Net income
attributable to common shareholders $ 152,070 $ 44,424 $ 213,263 $
99,927 Interest expense 10,332 13,250 33,681 40,790 Income tax
expense (benefit) 3,109 (490 ) 5,099 216 Depreciation and
amortization 48,022 46,208 144,491 135,002 Noncontrolling
interests: Noncontrolling interests in consolidated entities 0 0 8
8 Noncontrolling interests of common units in Operating Partnership
203 75 299 229 Distributions to preferred shareholders 5,405
3,043 12,802 9,127
EBITDA $
219,141 $ 106,510 $ 409,643
$ 285,299 Pre-opening, management transition and
severance expenses 231 7,562 4,295 9,712 Acquisition transaction
costs 0 55 0 499 Gain on sale of property less costs associated
with sale of note receivable (104,549 ) 0 (104,549 ) 0 Non-cash
ground rent 472 483 1,420 1,463
Adjusted EBITDA $ 115,295 $
114,610 $ 310,809 $ 296,973
Corporate expense 6,949 7,969 21,358 22,617 Interest and other
income (1,736 ) (3,849 ) (8,862 ) (7,035 ) Pro forma hotel level
adjustments, net(1) (1,495 ) (4,136 ) (11,750 ) (10,375 )
Hotel
EBITDA $ 119,013 $ 114,594
$ 311,555 $ 302,180
(1) Pro forma to include the results of operations of
the Park Central San Francisco and The Marker Waterfront Resort
under previous ownership for the comparable period in 2015, and
exclude the Mason & Rook Hotel for the period the hotel was
closed for renovation in 2016 and the comparable period in 2015.
Pro forma excludes Indianapolis Marriott Downtown due to its sale
in July 2016.
LASALLE HOTEL PROPERTIES
Hotel Operational Data
Schedule of Property Level Results -
Pro Forma(1)
(in thousands)
(unaudited)
For the three months ended For the
nine months ended September 30, September 30,
2016 2015 2016 2015
Revenues: Room $ 237,183 $ 227,371 $ 648,721 $ 630,588 Food
and beverage 61,246 64,145 186,262 193,240 Other 25,387
22,741 68,213 61,166 Total hotel revenues
323,816 314,257 903,196 884,994
Expenses: Room 59,083 55,522 167,444 158,594 Food and
beverage 43,997 45,491 131,559 136,341 Other direct 4,450 4,451
12,454 12,611 General and administrative 21,986 20,711 63,619
61,164 Information and telecommunications systems 4,237 4,232
12,792 12,363 Sales and marketing 20,885 19,646 61,828 59,460
Management fees 11,389 10,164 28,893 28,675 Property operations and
maintenance 9,863 9,735 28,926 28,780 Energy and utilities 7,733
7,821 21,197 21,881 Property taxes 13,895 14,889 42,471 42,946
Other fixed expenses 7,285 7,001 20,458 19,999
Total hotel expenses 204,803 199,663 591,641
582,814
Hotel EBITDA $
119,013 $ 114,594 $
311,555 $ 302,180
Hotel EBITDA Margin 36.8 % 36.5
% 34.5 % 34.1 % (1) This
schedule includes the operating data for the three and nine months
ended September 30, 2016 for all properties owned by the Company as
of September 30, 2016. Park Central San Francisco and The Marker
Waterfront Resort are included for the full first quarter in both
2015 and 2016. Mason & Rook Hotel is excluded from the first
quarter in both 2015 and 2016 because the hotel was closed for
renovation during the entire first quarter of 2016. Indianapolis
Marriott Downtown is excluded from all periods presented due to its
sale in July 2016.
LASALLE HOTEL PROPERTIES
Statistical Data for the Hotels - Pro
Forma(1)
(unaudited)
For the three months ended For the
nine months ended September 30, September 30,
2016 2015 2016 2015 Total
Portfolio Occupancy 89.5 % 86.2 % 85.0 % 83.0 % Increase 3.9 % 2.4
% ADR $ 251.26 $ 250.29 $ 244.36 $ 244.20 Increase 0.4 % 0.1 %
RevPAR $ 224.98 $ 215.77
$ 207.72 $ 202.79 Increase
4.3 % 2.4 % For
the three months For the nine months ended September
30, ended September 30, 2016 2016
Market Detail RevPAR Variance % Boston 3.6% 0.3%
Chicago 1.9% 0.5% Key West 9.0% 5.1% Los Angeles 7.8% 14.2% New
York 29.9% 7.6% Other(2)
-1.4%
-4.1%
Philadelphia 16.5% 5.9%
San Diego Downtown
8.1%
1.2%
San Francisco -7.7% 0.4% Seattle -7.1% -3.6% Washington, DC(3) 5.9%
2.9% (1) Pro forma to include the results of operations of
the Park Central San Francisco and The Marker Waterfront Resort
under previous ownership for the comparable period in 2015, and
exclude the Mason & Rook Hotel for the period the hotel was
closed for renovation in 2016 and the comparable period in 2015.
Pro forma to exclude results of operations of the Indianapolis
Marriott Downtown due to its sale in July 2016.
(2) Other includes The Heathman
Hotel in Portland, OR, Chaminade Resort in Santa Cruz, CA,
Lansdowne Resort in Lansdowne, VA, L’Auberge Del Mar in Del Mar,
CA, and Hilton San Diego Resort and Paradise Point Resort in San
Diego, CA.
(3) For the three months ended September
30, 2016 and 2015, Washington, DC RevPAR includes the Mason &
Rook Hotel. However, for the nine months ended September 30, 2016
and 2015, the Mason & Rook Hotel is excluded from the three
months ended March 31, 2016 and 2015, due to the hotel closure and
renovation in 2016.
Non-GAAP Financial Measures
FFO, EBITDA and Hotel EBITDA
The Company considers the non-GAAP measures of FFO (including
FFO per share/unit), EBITDA and hotel EBITDA to be key supplemental
measures of the Company's performance and should be considered
along with, but not as alternatives to, net income or loss as a
measure of the Company's operating performance. 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 real estate industry investors consider FFO,
EBITDA and hotel EBITDA to be helpful in evaluating a real estate
company's operations.
The White Paper on FFO approved by NAREIT in April 2002, as
revised in 2011, defines FFO as net income or loss (computed in
accordance with GAAP), excluding gains or losses from sales of
properties and items classified by GAAP as extraordinary, plus real
estate-related depreciation and amortization and impairment
writedowns, and after comparable adjustments for the Company's
portion of these items related to unconsolidated entities and joint
ventures. The Company computes FFO consistent with standards
established by NAREIT, which may not be comparable to FFO reported
by other REITs that do not define the term in accordance with the
current NAREIT definition or that interpret the current NAREIT
definition differently than the Company.
With respect to FFO, the Company believes that excluding the
effect of extraordinary items, real estate-related depreciation and
amortization and impairments, and the portion of these items
related to unconsolidated entities, all of which are based on
historical cost accounting and which may be of limited significance
in evaluating current performance, can facilitate comparisons of
operating performance between periods and between REITs, even
though FFO does not represent an amount that accrues directly to
common shareholders. However, FFO may not be helpful when comparing
the Company to non-REITs.
With respect to EBITDA, the Company believes that excluding the
effect of non-operating expenses and non-cash charges, and the
portion of these items related to unconsolidated entities, all of
which are also based on historical cost accounting and may be of
limited significance in evaluating current performance, can help
eliminate the accounting effects of depreciation and amortization,
and financing decisions and facilitate comparisons of core
operating profitability between periods and between REITs, even
though EBITDA also does not represent an amount that accrues
directly to common shareholders.
With respect to hotel EBITDA, the Company believes that
excluding the effect of corporate-level expenses, non-cash items,
and the portion of these items related to unconsolidated entities,
provides a more complete understanding of the operating results
over which individual hotels and operators have direct control. The
Company believes property-level results provide investors with
supplemental information on the ongoing operational performance of
its hotels and effectiveness of the third-party management
companies operating its business on a property-level basis.
FFO, EBITDA and hotel EBITDA do not represent cash generated
from operating activities as determined by GAAP and should not be
considered as alternatives to net income or loss, cash flows from
operations or any other operating performance measure prescribed by
GAAP. FFO, EBITDA and hotel EBITDA are not measures of the
Company's liquidity, nor are FFO, EBITDA and hotel EBITDA
indicative of funds available to fund the Company's cash needs,
including its ability to make cash distributions. These
measurements do not reflect cash expenditures for long-term assets
and other items that have been and will be incurred. FFO, EBITDA
and hotel EBITDA may include funds that may not be available for
management's discretionary use due to functional requirements to
conserve funds for capital expenditures, property acquisitions, and
other commitments and uncertainties. To compensate for this,
management considers the impact of these excluded items to the
extent they are material to operating decisions or the evaluation
of the Company's operating performance.
Adjusted FFO and Adjusted EBITDA
The Company presents adjusted FFO (including adjusted FFO per
share/unit) and adjusted EBITDA, which adjusts for certain
additional items including gains on sale of property and impairment
losses (to the extent included in EBITDA), acquisition transaction
costs, costs associated with the departure of executive officers,
costs associated with the recognition of issuance costs related to
the calling of preferred shares and certain other items. The
Company excludes these items as it believes it allows for
meaningful comparisons with other REITs and between periods and is
more indicative of the ongoing performance of its assets. As with
FFO, EBITDA, and hotel EBITDA, the Company’s calculation of
adjusted FFO and adjusted EBITDA may be different from similar
adjusted measures calculated by other REITs.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161019006444/en/
LaSalle Hotel PropertiesKenneth G. Fuller or Max D. Leinweber ,
301-941-1500
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