Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended December 31, 2016.
HIGHLIGHTS
- RevPAR: 0.6% decrease for the hotel
portfolio over the same period in 2015.
- Adjusted Hotel
EBITDA Margin: 230 basis point decrease to 30.4%
for the hotel portfolio over the same period in 2015.
- Adjusted Hotel
EBITDA: $44.1 million.
- Adjusted
Corporate EBITDA: $39.0 million.
- Net income
available to common shareholders: $9.7 million or
$0.16 per diluted common share.
- Adjusted
FFO: $28.4 million or $0.48 per diluted common
share.
CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial results
for the three months and year ended December 31, 2016 and 2015
(in millions, except share and per share amounts):
Three Months Ended December 31, Year Ended
December 31, 2016 2015 2016 2015 Total revenue $ 145.1 $ 146.2 $
619.7 $ 582.6 Net income available to common shareholders $
9.7 $ 12.3 $ 67.0 $ 57.8 Net income per diluted common share $ 0.16
$ 0.21 $ 1.13 $ 0.99 Adjusted Hotel EBITDA $ 44.1 $ 47.8 $
203.7 $ 190.6 Adjusted Corporate EBITDA $ 39.0 $ 42.8 $
184.5 $ 172.5 AFFO available to common shareholders $ 28.4 $
30.7 $ 140.4 $ 127.8 AFFO per diluted common share $ 0.48 $ 0.52 $
2.39 $ 2.21 Weighted-average number of diluted common shares
outstanding 58,737,275 59,027,852 58,717,647 57,926,399
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 December 31, 2016, the Trust owned 22 hotels.
Since two of its hotels owned as of December 31, 2016 were acquired
during 2015, the key operating metrics below reflect the pro forma
operating results for those hotels for the year ended December 31,
2015.
Included in the following table are comparisons of the key
operating metrics for the hotel portfolio for the three months
and year ended December 31, 2016 and 2015 (in thousands,
except for ADR and RevPAR):
Three Months Ended December 31, Year Ended December 31, 2016 2015
Change 2016
2015(1)
Change Occupancy 79.8 % 79.0 % 80 bps 83.9 % 81.3 % 260 bps ADR $
218.68 $ 222.41 (1.7)% $ 226.68 $ 228.70 (0.9)% RevPAR $ 174.56 $
175.68 (0.6)% $ 190.12 $ 185.88 2.3% Adjusted Hotel EBITDA $
44,050 $ 47,763 (7.8)% $ 203,681 $ 197,393 3.2% Adjusted Hotel
EBITDA Margin 30.4 % 32.7 % (230) bps 32.9 % 32.7 % 20 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
The Trust has not sold any common shares under its continuous
at-the-market (ATM) program or repurchased any common shares under
its share repurchase program during 2016 and through February 22,
2017.
DIVIDENDS
On October 14, 2016, the Trust paid 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,
2016. On December 15, 2016, 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 December 30, 2016. Both dividends were paid on January
13, 2017.
2017 OUTLOOK
The Trust's 2017 outlook is as follows (in millions, except
RevPAR and per share amounts):
First Quarter Full Year 2017 Outlook 2017
Outlook Low High Low High
CONSOLIDATED: Net income
available to common shareholders $ 1.3 $ 3.1 $ 42.9 $ 48.9 Net
income per diluted common share $ 0.02 $ 0.05 $ 0.73 $ 0.83
Adjusted Corporate EBITDA $ 27.3 $ 28.9 $ 169.3 $ 176.3 AFFO
available to common shareholders $ 20.7 $ 22.5 $ 124.2 $ 130.2 AFFO
per diluted common share $ 0.35 $ 0.38 $ 2.10 $ 2.20
Corporate cash general and administrative expense $ 2.9 $ 3.1 $
10.3 $ 11.3 Corporate non-cash general and administrative expense $
2.1 $ 2.1 $ 7.5 $ 7.5 Weighted-average number of diluted
common shares outstanding 59.0 59.0 59.1 59.1
HOTEL
PORTFOLIO:
22-Hotel
Portfolio
RevPAR $ 159.00 $ 163.00 $ 183.00 $ 187.00 RevPAR change as
compared to 2016 (6.5 )% (4.5 )% (3.5 )% (1.5 )% Adjusted Hotel
EBITDA $ 32.3 $ 34.0 $ 187.0 $ 195.0 Adjusted Hotel EBITDA Margin
24.7 % 25.5 % 31.2 % 31.9 % Adjusted Hotel EBITDA Margin change as
compared to 2016 (375) bps (300) bps (170) bps (100) bps
15-Hotel
Portfolio(1)
RevPAR $ 154.00 $ 157.00 $ 185.00 $ 189.00 RevPAR change as
compared to 2016 (4.0 )% (2.0 )% (1.0 )% 1.0 % Adjusted Hotel
EBITDA $ 19.4 $ 20.4 $ 121.4 $ 126.6 Adjusted Hotel EBITDA Margin
26.4 % 27.2 % 34.3 % 35.0 % Adjusted Hotel EBITDA Margin change as
compared to 2016 (325) bps (250) bps (115) bps (40) bps
__________
(1) Excludes the following seven hotels located in San Francisco
and/or undergoing significant guestroom renovations during 2017: Le
Meridien San Francisco, JW Marriott San Francisco Union Square,
Hyatt Centric Fisherman’s Wharf, Hotel Adagio San Francisco,
Autograph Collection, Boston Marriott Newton, Denver Marriott City
Center, and Hyatt Regency Mission Bay Spa and Marina.
“Although we are cautiously optimistic for the U.S. lodging
industry given the current pro-growth political agenda and the
potential for it to lead to a reacceleration in lodging demand
growth, we expect 2017 to be a challenging year for our hotel
portfolio as a result of actions we are taking to invest in our
hotel portfolio for the longer-term along with market specific
factors that are expected to negatively impact certain of our
hotels,” said James L. Francis, Chesapeake Lodging Trust’s
President and Chief Executive Officer. “We are investing in and
undergoing guestroom renovations at four of our hotels that we
expect will position them for outperformance in the future,
however, in the short-term, we expect operational displacement as
work is performed. Furthermore, our hotel portfolio is expected to
be negatively impacted in 2017 as a result of the planned temporary
closure and expansion of the Moscone Center in San Francisco, where
we have our largest concentration of portfolio rooms and EBITDA. We
are excited for the expansion of the Moscone Center as it will
allow the city to attract larger city wide events and groups in the
future, however, with the near-term closure we expect lodging
demand in the city to be negatively impacted, particularly from
April 2017 to September 2017. Despite the revenue pressures we
expect to face as we proceed through 2017, we and our hotel
operators are intensely focused on cost containment and reduction
measures to minimize the impact to the extent possible.”
The Trust’s 2017 outlook assumes, among other things, balanced
U.S. lodging fundamentals with moderate supply growth offset by
moderate demand growth resulting from a continuation of U.S.
economic growth and trends, including moderate growth in GDP, low
levels of unemployment, and stable levels of consumer confidence
and corporate profits. The Trust’s 2017 outlook assumes no
acquisitions, dispositions, or financing transactions beyond the
refinance of the Royal Palm South Beach Miami term loan, which
matures on March 9, 2017.
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, and gain
(losses) from sales of real estate, which is a non-recurring item.
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 Wednesday, February 22,
2017 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 54121119. 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 March 1, 2017. To access the
replay, dial (855) 859-2056 (U.S./Canadian callers) or
(404) 537-3406 (International callers). The conference call ID
is 54121119. 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 6,694 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 first
quarter and full year 2017 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; the effects of any
acquisitions, dispositions or financing transactions the Trust may
undertake; 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 February 22, 2017, 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)
December 31, 2016
2015 ASSETS Property and equipment, net $ 1,882,869 $
1,926,944 Intangible assets, net 35,835 36,414 Cash and cash
equivalents 43,060 50,544 Restricted cash 36,128 40,361 Accounts
receivable, net 19,966 15,603 Prepaid expenses and other assets
17,516
17,900 Total assets $
2,035,374
$ 2,087,766 LIABILITIES AND SHAREHOLDERS’
EQUITY Long-term debt $ 737,310 $ 769,748 Accounts payable and
accrued expenses
64,581
62,683 Other liabilities 44,808 45,778
Total liabilities
846,699
878,209 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;59,671,964 shares and 59,659,522 shares issued
and outstanding, respectively
597 597 Additional paid-in capital 1,304,364 1,297,877 Cumulative
dividends in excess of net income (116,297 ) (88,675 ) Accumulated
other comprehensive loss (39 ) (292 ) Total
shareholders’ equity 1,188,675 1,209,557
Total liabilities and shareholders’ equity $
2,035,374
$ 2,087,766 SUPPLEMENTAL CREDIT
INFORMATION: Fixed charge coverage ratio(1) 3.24 3.04 Leverage
ratio(1) 31.9 % 32.6 %
______________
(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)
Three Months Ended December 31, Year Ended December
31, 2016 2015 2016 2015 (unaudited) REVENUE Rooms $ 107,505 $
108,193 $ 465,796 $ 441,141 Food and beverage 30,135 31,139 125,987
117,171 Other 7,488 6,848 27,916
24,312 Total revenue 145,128
146,180 619,699 582,624
EXPENSES Hotel operating expenses: Rooms 26,383 25,175
108,292 100,245 Food and beverage 22,662 22,895 92,075 87,625 Other
direct 1,438 1,809 6,275 7,109 Indirect 50,440
48,383 208,756 196,523 Total
hotel operating expenses 100,923 98,262 415,398 391,502
Depreciation and amortization 18,864 18,581 74,661 69,743 Air
rights contract amortization 130 130 520 520 Corporate general and
administrative 5,093 4,952 19,167 18,046 Hotel acquisition costs
— — — 854
Total operating expenses 125,010 121,925
509,746 480,665 Operating
income 20,118 24,255 109,953 101,959 Interest expense (7,954
) (8,222 ) (31,846 ) (31,856 ) Gain on sale of hotel —
— 598 —
Income before income taxes 12,164 16,033 78,705 70,103
Income tax expense (17 ) (1,302 ) (1,999 )
(2,595 ) Net income 12,147 14,731 76,706 67,508
Preferred share dividends (2,422 ) (2,422 )
(9,688 ) (9,688 ) Net income available to common
shareholders $ 9,725 $ 12,309 $ 67,018 $
57,820 Net income per common share: Basic $ 0.16 $
0.21 $ 1.13 $ 1.00 Diluted $ 0.16 $ 0.21 $ 1.13 $ 0.99
Weighted-average number of common
sharesoutstanding:
Basic 58,737,275 58,561,323 58,717,647 57,474,256 Diluted
58,737,275 59,027,852 58,717,647 57,926,399
CHESAPEAKE LODGING TRUST
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in thousands)
Year Ended December 31, 2016
2015 Cash flows from operating
activities: Net income $ 76,706 $ 67,508
Adjustments to reconcile net income to net
cash provided byoperating activities:
Depreciation and amortization 74,661 69,743 Air rights contract
amortization 520 520 Deferred financing costs amortization 1,850
1,882 Gain on sale of hotel (598 ) — Share-based compensation 9,507
7,644 Other (796 ) (781 ) Changes in assets and liabilities:
Accounts receivable, net (4,363 ) (679 ) Prepaid expenses and other
assets
329
(4,154 ) Accounts payable and accrued expenses
1,801
4,069 Other liabilities (47 ) 5,961 Net cash
provided by operating activities 159,570
151,713 Cash flows from investing activities:
Acquisition of hotels, net of cash acquired — (255,249 )
Disposition of hotel, net of cash sold 2,028 — Improvements and
additions to hotels (32,015 ) (36,782 ) Change in restricted cash
4,233 3,026 Net cash used in investing
activities (25,754 ) (289,005 ) 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 — (284 ) Borrowings under revolving credit
facility 185,000 330,000 Repayments under revolving credit facility
(235,000 ) (220,000 ) Proceeds from issuance of mortgage debt
150,000 — Principal prepayments on mortgage debt (122,220 ) —
Scheduled principal payments on mortgage debt (10,940 ) (10,271 )
Payment of deferred financing costs (952 ) (2,311 ) Payment of
dividends to common shareholders (94,480 ) (81,111 ) Payment of
dividends to preferred shareholders (9,688 ) (9,688 ) Repurchase of
common shares (3,020 ) (1,787 ) Net cash provided by
(used in) financing activities (141,300 ) 158,510
Net increase (decrease) in cash (7,484 ) 21,218 Cash and
cash equivalents, beginning of period 50,544
29,326 Cash and cash equivalents, end of period $ 43,060
$ 50,544
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 Hotel EBITDA,
Adjusted Hotel EBITDA, pro forma Adjusted Hotel EBITDA, and pro
forma Adjusted Hotel EBITDA Margin for the three months and year
ended December 31, 2016 and 2015:
Three Months Ended December 31, Year Ended
December 31, 2016 2015 2016 2015 Net income $ 12,147 $ 14,731 $
76,706 $ 67,508
Add:
Interest expense
7,954 8,222 31,846 31,856 Income tax expense 17 1,302 1,999 2,595
Depreciation and amortization 18,864 18,581 74,661 69,743 Air
rights contract amortization 130 130 520 520 Corporate general and
administrative 5,093 4,952 19,167 18,046 Hotel acquisition costs
— — — 854
Hotel EBITDA 44,205 47,918 204,899 191,122
Less:
Non-cash amortization(1)
(155 ) (155 ) (620 ) (571 ) Gain on sale of hotel —
— (598 ) — Adjusted Hotel EBITDA
44,050 47,763 203,681 190,551
Add:
Prior owner Hotel EBITDA(2)
— — — 6,842
Pro forma Adjusted Hotel EBITDA $ 44,050 $ 47,763 $
203,681 $ 197,393 Total revenue $ 145,128 $
146,180 $ 619,699 $ 582,624
Add:
Prior owner total revenue(2)
— — — 20,286
Pro forma total revenue $ 145,128 $ 146,180 $
619,699 $ 602,910 Pro forma Adjusted Hotel
EBITDA Margin 30.4 % 32.7 % 32.9 % 32.7 %
_____________
(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 net income to Corporate EBITDA
and Adjusted Corporate EBITDA for the three months and year ended
December 31, 2016 and 2015:
Three Months Ended December 31, Year Ended
December 31, 2016 2015 2016 2015 Net income $ 12,147 $ 14,731 $
76,706 $ 67,508
Add:
Interest expense
7,954 8,222 31,846 31,856 Income tax expense 17 1,302 1,999 2,595
Depreciation and amortization 18,864 18,581
74,661 69,743 Corporate EBITDA
38,982 42,836 185,212 171,702
Add:
Hotel acquisition costs
— — — 854
Less:
Non-cash amortization(1)
(25 ) (25 ) (101 ) (51 ) Gain on sale of hotel —
— (598 ) — Adjusted Corporate
EBITDA $ 38,957 $ 42,811 $ 184,513 $ 172,505
____________
(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 months and year ended December 31, 2016 and
2015:
Three Months Ended December 31, Year Ended
December 31, 2016 2015 2016 2015 Net income $ 12,147 $ 14,731 $
76,706 $ 67,508
Add:
Depreciation and amortization
18,864 18,581 74,661 69,743
Less:
Gain on sale of hotel
— — (598 ) — FFO
31,011 33,312 150,769 137,251
Less:
Preferred share dividends
(2,422 ) (2,422 ) (9,688 ) (9,688 ) Dividends declared on unvested
time-based awards (126 ) (134 ) (561 ) (560 ) Undistributed
earnings allocated to unvested time-based awards —
— — — FFO available to
common shareholders 28,463 30,756 140,520 127,003
Add:
Hotel acquisition costs
— — — 854
Less:
Non-cash amortization(1)
(25 ) (25 ) (101 ) (51 ) AFFO available
to common shareholders $ 28,438 $ 30,731 $ 140,419
$ 127,806 FFO per common share: Basic $ 0.48 $
0.53 $ 2.39 $ 2.21 Diluted $ 0.48 $ 0.52 $ 2.39 $ 2.19 AFFO
per common share: Basic $ 0.48 $ 0.52 $ 2.39 $ 2.22 Diluted $ 0.48
$ 0.52 $ 2.39 $ 2.21
____________
(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, and Adjusted Hotel EBITDA Margin for
the 22-hotel portfolio for the three months ending March 31,
2017 and year ending December 31, 2017:
Three Months Ending
March 31, 2017
Year Ending
December 31, 2017
Low High Low High Net income $ 3,850 $ 5,600 $ 53,100 $ 59,100
Add:
Interest expense
7,940 7,940 32,900 32,900 Income tax expense (benefit) (3,900 )
(4,100 ) 2,000 3,000 Depreciation and amortization 19,440 19,440
81,350 81,350 Air rights contract amortization 130 130 520 520
Corporate general and administrative 4,950
5,150 17,750 18,750 Hotel EBITDA
32,410 34,160 187,620 195,620
Less:
Non-cash amortization(1)
(160 ) (160 ) (620 ) (620 ) Adjusted
Hotel EBITDA $ 32,250 $ 34,000 $ 187,000 $
195,000 Total revenue $ 130,400 $ 133,400 $ 600,000 $
612,000 Adjusted Hotel EBITDA Margin 24.7 % 25.5 % 31.2 %
31.9 %
_____________
(1) Reflects 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
Corporate EBITDA and Adjusted Corporate EBITDA for the three months
ending March 31, 2017 and year ending December 31,
2017:
Three Months Ending
March 31, 2017
Year Ending
December 31, 2017
Low High Low High Net income $ 3,850 $ 5,600 $ 53,100 $ 59,100
Add:
Interest expense
7,940 7,940 32,900 32,900 Income tax expense (benefit) (3,900 )
(4,100 ) 2,000 3,000 Depreciation and amortization 19,440
19,440 81,350 81,350
Corporate EBITDA 27,330 28,880 169,350 176,350
Less:
Non-cash amortization(1)
(30 ) (30 ) (100 ) (100 ) Adjusted
Corporate EBITDA $ 27,300 $ 28,850 $ 169,250 $
176,250
____________
(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 March 31, 2017 and
year ending December 31, 2017:
Three Months Ending
March 31, 2017
Year Ending
December 31, 2017
Low High Low High Net income $ 3,850 $ 5,600 $ 53,100 $ 59,100
Add:
Depreciation and amortization
19,440 19,440 81,350
81,350 FFO 23,290 25,040 134,450 140,450
Less:
Preferred share dividends
(2,420 ) (2,420 ) (9,690 ) (9,690 ) Dividends declared on unvested
time-based awards (120 ) (120 ) (490 ) (490 ) Undistributed
earnings allocated to unvested time-based awards —
— — — FFO available to
common shareholders 20,750 22,500 124,270 130,270
Less:
Non-cash amortization(1)
(30 ) (30 ) (100 ) (100 ) AFFO
available to common shareholders $ 20,720 $ 22,470 $
124,170 $ 130,170 FFO per common share: Basic
$ 0.35 $ 0.38 $ 2.11 $ 2.21 Diluted $ 0.35 $ 0.38 $ 2.10 $ 2.20
AFFO per common share: Basic $ 0.35 $ 0.38 $ 2.10 $ 2.21
Diluted $ 0.35 $ 0.38 $ 2.10 $ 2.20 Weighted-average number
of common shares outstanding: Basic 58,992 58,992 59,024 59,024
Diluted 59,031 59,031 59,093 59,093
____________
(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 Centric
Fisherman’s Wharf San Francisco, CA 316 May 31, 2013 19 Hyatt
Centric 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/20170222006474/en/
Chesapeake Lodging TrustDouglas W. Vicari (410) 972-4142
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From Aug 2024 to Sep 2024
Chesapeake Lodging (NYSE:CHSP)
Historical Stock Chart
From Sep 2023 to Sep 2024