Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate
investment trust (REIT), reported today its financial results for
the quarter ended December 31, 2015.
HIGHLIGHTS
- RevPAR: 3.8% pro forma increase for
the hotel portfolio over the same period in 2014.
- Adjusted Hotel
EBITDA Margin: 240 basis point pro forma increase
to 32.7% for the hotel portfolio over the same period in 2014.
- Adjusted Hotel
EBITDA: $47.8 million.
- Adjusted
Corporate EBITDA: $42.8 million.
- Adjusted
FFO: $30.7 million or $0.52 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, 2015 and 2014
(in millions, except share and per share amounts):
Three Months Ended
December 31, Year Ended December 31, 2015 2014
2015 2014 Total revenue $ 146.2 $ 123.5 $
582.6 $ 478.0 Net income available to common shareholders $
12.3 $ 6.4 $ 57.8 $ 51.3 Net income per diluted common share $ 0.21
$ 0.12 $ 0.99 $ 1.00 Adjusted Hotel EBITDA $ 47.8 $ 37.7 $
190.6 $ 154.0 Adjusted Corporate EBITDA $ 42.8 $ 33.7 $
172.5 $ 138.4 AFFO available to common shareholders $ 30.7 $
24.0 $ 127.8 $ 100.4 AFFO per diluted common share $ 0.52 $ 0.44 $
2.21 $ 1.97 Weighted-average number of diluted common shares
outstanding 59,027,852 54,262,749 57,926,399 50,890,861
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, 2015, the Trust owned 22 hotels.
Since two of its hotels owned as of December 31, 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 months and
year ended December 31, 2015 and 2014.
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, 2015 and 2014 (in thousands,
except for ADR and RevPAR):
Three Months Ended
December 31, Year Ended December 31, 2015
2014(1) Change 2015(1)
2014(1) Change Pro forma Occupancy 79.0 % 75.2
% 380 bps 81.3 % 79.4 % 190 bps Pro forma ADR $ 222.41 $ 225.11
(1.2)% $ 228.70 $ 221.44 3.3% Pro forma RevPAR $ 175.68 $ 169.29
3.8% $ 185.88 $ 175.87 5.7% Pro forma Adjusted Hotel EBITDA
$ 47,763 $ 42,668 11.9% $ 197,393 $ 180,113 9.6% Pro forma Adjusted
Hotel EBITDA Margin 32.7 % 30.3 % 240 bps 32.7 % 31.4 % 130 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 2015 and through February 18,
2016.
DIVIDENDS
On October 15, 2015, 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,
2015. On December 17, 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 December 31, 2015. Both dividends were paid on January
15, 2016.
2016 OUTLOOK
The Trust reaffirms its previously provided first quarter and
full year 2016 outlook as follows (in millions, except RevPAR and
per share amounts):
First Quarter2016 Outlook
Full Year2016 Outlook Low High Low
High
CONSOLIDATED: Net income available
to common shareholders $ 3.4 $ 5.1 $ 72.9 $ 78.6 Net income per
diluted common share $ 0.06 $ 0.09 $ 1.24 $ 1.34 Adjusted
Corporate EBITDA $ 31.2 $ 32.7 $ 193.6 $ 200.1 AFFO
available to common shareholders $ 21.8 $ 23.6 $ 147.1 $ 152.8 AFFO
per diluted common share $ 0.37 $ 0.40 $ 2.50 $ 2.60
Corporate cash general and administrative expense $ 2.8 $ 3.0 $
10.0 $ 10.8 Corporate non-cash general and administrative expense $
2.3 $ 2.3 $ 9.4 $ 9.4 Weighted-average number of diluted
common shares outstanding 59.2 59.2 58.9 58.9
HOTEL
PORTFOLIO: RevPAR $ 164.00 $ 167.00 $ 195.00 $ 199.00
Pro forma RevPAR increase over 2015(1) 6.0 % 8.0 % 5.0 % 7.0 %
Adjusted Hotel EBITDA $ 36.3 $ 38.0 $ 213.0 $ 220.3 Adjusted Hotel
EBITDA Margin 26.9 % 27.6 % 33.7 % 34.2 % Pro forma Adjusted Hotel
EBITDA Margin increase over 2015(1) 200 bps 275 bps 100 bps 150 bps
_____________
(1)
The comparable 2015 period includes
results of operations for certain hotels prior to their acquisition
by the Trust.
The Trust’s 2016 outlook assumes no acquisitions, dispositions,
or financing transactions beyond the refinance of the Hyatt Regency
Boston mortgage loan and the Courtyard Washington Capitol Hill/Navy
Yard mortgage loan, which are prepayable without penalty on April
6, 2016 and August 1, 2016, respectively. See the accompanying
financial tables for quarterly pro forma hotel operating results
for the hotel portfolio for 2015.
“We are off to a strong start in 2016 with RevPAR growth of over
9.0% in January. We continue to see solid trends on the group side
of our business, which in turn has helped compression with
transient booking thus far,” said James L. Francis, Chesapeake
Lodging Trust’s President and Chief Executive Officer. “We expect
the remainder of the quarter to exhibit continued strong growth and
as a result, we are reaffirming the first quarter and full year
outlook we provided earlier this year.”
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, February 18,
2016 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 32353126. 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 February 25, 2016. To access
the replay, dial (855) 859-2056 (U.S./Canadian callers) or
(404) 537-3406 (International callers). The conference call ID
is 32353126. 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 first
quarter and full year 2016 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 18, 2016, 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, 2015 2014
ASSETS Property and equipment, net $ 1,926,944 $ 1,580,427
Intangible assets, net 36,414 36,992 Cash and cash equivalents
50,544 29,326 Restricted cash 40,361 43,387 Accounts receivable,
net 15,603 13,102 Prepaid expenses and other assets 17,900 10,637
Deferred financing costs, net 6,493 6,064 Total
assets $ 2,094,259 $ 1,719,935 LIABILITIES AND
SHAREHOLDERS’ EQUITY Long-term debt $ 776,241 $ 551,723 Accounts
payable and accrued expenses 62,683 53,442 Other liabilities 45,778
32,788 Total liabilities 884,702 637,953
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;59,659,522 shares and 54,818,064 shares issued
and outstanding, respectively
597 548 Additional paid-in capital 1,297,877 1,138,391 Cumulative
dividends in excess of net income (88,675 ) (57,007 ) Accumulated
other comprehensive loss (292 ) — Total shareholders’ equity
1,209,557 1,081,982 Total liabilities and
shareholders’ equity $ 2,094,259 $ 1,719,935
SUPPLEMENTAL CREDIT INFORMATION: Fixed charge coverage
ratio(1) 3.04 2.65 Leverage ratio(1) 32.6 % 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)
Three Months Ended
December 31, Year Ended December 31, 2015 2014
2015 2014 (unaudited) REVENUE Rooms $ 108,193
$ 93,297 $ 441,141 $ 364,727 Food and beverage 31,139 25,093
117,171 94,307 Other 6,848 5,111 24,312 18,946
Total revenue 146,180 123,501 582,624
477,980 EXPENSES Hotel operating expenses: Rooms
25,175 22,515 100,245 84,445 Food and beverage 22,895 19,016 87,625
71,816 Other direct 1,809 2,019 7,109 8,032 Indirect 48,383
42,166 196,523 160,589 Total hotel operating
expenses 98,262 85,716 391,502 324,882 Depreciation and
amortization 18,581 14,079 69,743 51,567 Air rights contract
amortization 130 130 520 520 Corporate general and administrative
4,952 4,052 18,046 15,557 Hotel acquisition costs — 3,562
854 3,622 Total operating expenses 121,925
107,539 480,665 396,148
Operating income 24,255 15,962 101,959 81,832 Interest
income — — — 8 Interest expense (8,222 ) (6,880 ) (31,856 ) (27,357
) Gain on sale of hotel — — — 7,006
Income before income taxes 16,033 9,082 70,103 61,489
Income tax expense (1,302 ) (243 ) (2,595 ) (535 ) Net
income 14,731 8,839 67,508 60,954 Preferred share dividends
(2,422 ) (2,422 ) (9,688 ) (9,688 ) Net income available to common
shareholders $ 12,309 $ 6,417 $ 57,820 $
51,266 Net income per common share: Basic $ 0.21 $
0.12 $ 1.00 $ 1.01 Diluted $ 0.21 $ 0.12 $ 0.99 $ 1.00
Weighted-average number of common
sharesoutstanding:
Basic 58,561,323 53,821,483 57,474,256 50,488,007 Diluted
59,027,852 54,262,749 57,926,399 50,890,861
CHESAPEAKE LODGING TRUST CONSOLIDATED STATEMENTS OF CASH
FLOWS (in thousands)
Year Ended December 31, 2015 2014 Cash
flows from operating activities: Net income $ 67,508 $ 60,954
Adjustments to reconcile net income to net
cash provided byoperating activities:
Depreciation and amortization 69,743 51,567 Air rights contract
amortization 520 520 Deferred financing costs amortization 1,882
2,448 Gain on sale of hotel — (7,006 ) Share-based compensation
7,644 5,803 Other (834 ) 625 Changes in assets and liabilities:
Accounts receivable, net (679 ) 1,277 Prepaid expenses and other
assets (4,101 ) (290 ) Accounts payable and accrued expenses 4,069
3,766 Other liabilities 5,961 (30 ) Net cash provided by
operating activities 151,713 119,634 Cash
flows from investing activities: Acquisition of hotels, net of cash
acquired (255,249 ) (152,292 ) Disposition of hotel, net of cash
sold — 31,822 Improvements and additions to hotels (36,782 )
(87,182 ) Change in restricted cash 3,026 (2,164 ) Net cash
used in investing activities (289,005 ) (209,816 ) 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 (284 ) (392 )
Borrowings under revolving credit facility 330,000 100,000
Repayments under revolving credit facility (220,000 ) (100,000 )
Proceeds from issuance of mortgage debt — 90,000 Scheduled
principal payments on mortgage debt (10,271 ) (69,837 ) Payment of
deferred financing costs (2,311 ) (2,011 ) Payment of dividends to
common shareholders (81,111 ) (58,892 ) Payment of dividends to
preferred shareholders (9,688 ) (9,688 ) Repurchase of common
shares (1,787 ) (2,705 ) Net cash provided by financing activities
158,510 90,795 Net increase in cash 21,218 613 Cash
and cash equivalents, beginning of period 29,326 28,713
Cash and cash equivalents, end of period $ 50,544 $
29,326
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, 2015 and 2014:
Three Months Ended December 31, Year Ended
December 31, 2015 2014 2015
2014 Net income $ 14,731 $ 8,839 $ 67,508 $ 60,954
Add:
Interest expense
8,222 6,880 31,856 27,357 Income tax expense 1,302 243 2,595 535
Depreciation and amortization 18,581 14,079 69,743 51,567 Air
rights contract amortization 130 130 520 520 Corporate general and
administrative 4,952 4,052 18,046 15,557 Hotel acquisition costs —
3,562 854 3,622
Less:
Interest income
— — — (8 ) Hotel EBITDA 47,918 37,785 191,122
160,104
Less:
Non-cash amortization(1)
(155 ) (81 ) (571 ) 889 Gain on sale of hotel — — —
(7,006 ) Adjusted Hotel EBITDA 47,763 37,704 190,551 153,987
Add:
Prior owner Hotel EBITDA(2)
— 4,964 6,842 28,219
Less:
Hotel EBITDA of hotel sold(3)
— — — (2,093 ) Pro forma Adjusted Hotel EBITDA
$ 47,763 $ 42,668 $ 197,393 $ 180,113
Total revenue $ 146,180 $ 123,501 $ 582,624 $ 477,980
Add:
Prior owner total revenue(2)
— 17,341 20,286 100,311
Less:
Total revenue of hotel sold(3)
— — — (5,166 ) Pro forma total revenue $
146,180 $ 140,842 $ 602,910 $ 573,125
Pro forma Adjusted Hotel EBITDA Margin 32.7 % 30.3 % 32.7 %
31.4 % _____________ (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 months
and year ended December 31, 2015 and 2014:
Three Months Ended December 31, Year Ended December 31, 2015
2014 2015 2014 Net income $ 14,731 $ 8,839 $ 67,508 $ 60,954
Add:
Interest expense
8,222 6,880 31,856 27,357 Income tax expense 1,302 243 2,595 535
Depreciation and amortization 18,581 14,079 69,743 51,567
Less:
Interest income
— — — (8 ) Corporate EBITDA 42,836 30,041
171,702 140,405
Add:
Hotel acquisition costs
— 3,562 854 3,622
Less:
Non-cash amortization(1)
(25 ) 49 (51 ) 1,408 Gain on sale of hotel — — —
(7,006 ) Adjusted Corporate EBITDA $ 42,811 $ 33,652
$ 172,505 $ 138,429 ____________ (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, 2015 and 2014:
Three Months Ended
December 31, Year Ended December 31, 2015 2014
2015 2014 Net income $ 14,731 $ 8,839 $ 67,508
$ 60,954
Add:
Depreciation and amortization
18,581 14,079 69,743 51,567
Less:
Gain on sale of hotel
— — — (7,006 ) FFO 33,312 22,918 137,251
105,515
Less:
Preferred share dividends
(2,422 ) (2,422 ) (9,688 ) (9,688 ) Dividends declared on unvested
time-based awards (134 ) (114 ) (560 ) (499 ) Undistributed
earnings allocated to unvested time-based awards — —
— — FFO available to common shareholders 30,756
20,382 127,003 95,328
Add:
Hotel acquisition costs
— 3,562 854 3,622 Non-cash amortization(1) (25 ) 49 (51 )
1,408 AFFO available to common shareholders $ 30,731
$ 23,993 $ 127,806 $ 100,358 FFO per
common share: Basic $ 0.53 $ 0.38 $ 2.21 $ 1.89 Diluted $ 0.52 $
0.38 $ 2.19 $ 1.87 AFFO per common share: Basic $ 0.52 $
0.45 $ 2.22 $ 1.99 Diluted $ 0.52 $ 0.44 $ 2.21 $ 1.97
____________ (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 three months ending March 31, 2016 and year ending
December 31, 2016:
Three Months EndingMarch 31, 2016
Year EndingDecember 31, 2016
Low High Low
High
Net income $ 5,950 $ 7,700 $ 83,130 $ 88,880
Add:
Interest expense
8,260 8,260 33,510 33,510 Income tax expense (benefit) (1,500 )
(1,700 ) 2,750 3,500 Depreciation and amortization 18,470 18,470
74,290 74,290 Air rights contract amortization 130 130 520 520
Corporate general and administrative 5,100 5,300
19,420 20,170 Hotel EBITDA 36,410 38,160 213,620
220,870
Less:
Non-cash amortization(1)
(160 ) (160 ) (620 ) (620 ) Adjusted Hotel EBITDA $ 36,250 $
38,000 $ 213,000 $ 220,250 Total
revenue $ 134,900 $ 137,600 $ 631,500 $ 643,500 Adjusted
Hotel EBITDA Margin 26.9 % 27.6 % 33.7 % 34.2 %
_____________ (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, 2016 and
year ending December 31, 2016:
Three Months EndingMarch 31, 2016
Year EndingDecember 31, 2016
Low High Low High Net
income $ 5,950 $ 7,700 $ 83,130 $ 88,880
Add:
Interest expense
8,260 8,260 33,510 33,510 Income tax expense (benefit) (1,500 )
(1,700 ) 2,750 3,500 Depreciation and amortization 18,470
18,470 74,290 74,290 Corporate EBITDA 31,180
32,730 193,680 200,180
Less:
Non-cash amortization(1)
(30 ) (30 ) (100 ) (100 ) Adjusted Corporate EBITDA $ 31,150
$ 32,700 $ 193,580 $ 200,080
____________ (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, 2016 and year
ending December 31, 2016:
Three Months EndingMarch 31, 2016
Year EndingDecember 31, 2016
Low High Low High Net
income $ 5,950 $ 7,700 $ 83,130 $ 88,880
Add:
Depreciation and amortization
18,470 18,470 74,290 74,290
FFO
24,420 26,170 157,420 163,170
Less:
Preferred share dividends
(2,420 ) (2,420 ) (9,690 ) (9,690 )
Dividends declared on unvested time-based
awards
(140 ) (140 ) (560 ) (560 ) Undistributed earnings allocated to
unvested time-based awards — — — — FFO
available to common shareholders 21,860 23,610 147,170 152,920
Less:
Non-cash amortization(1)
(30 ) (30 ) (100 ) (100 ) AFFO available to common shareholders $
21,830 $ 23,580 $ 147,070 $ 152,820
FFO per common share – basic and diluted $ 0.37 $ 0.40 $
2.50 $ 2.60 AFFO per common share – basic and diluted $ 0.37
$ 0.40 $ 2.50 $ 2.60 Weighted-average number of common
shares outstanding: Basic 58,693 58,693 58,765 58,765 Diluted
59,196 59,196 58,860 58,860 ____________
(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
SUPPLEMENTAL HOTEL OPERATING
RESULTS
(in thousands, except ADR and
RevPAR)
(unaudited)
The following table includes the Trust's
2015 hotel operating results for the hotel portfolio:
Three Months Ended
Year Ended
March 31,2015
June 30,2015
September 30,2015
December 31,2015
December 31,2015
HOTEL PORTFOLIO(1): Occupancy 72.0 % 86.0 %
87.9 % 79.0 % 81.3 % ADR $ 214.86 $ 237.11 $ 237.33 $ 222.41 $
228.70 RevPAR $ 154.78 $ 203.99 $ 208.58 $ 175.68 $ 185.88
Net income $ 1,552 $ 24,045 $ 27,180 $ 14,731 $ 67,508
Add:
Interest expense
7,179 8,168 8,287 8,222 31,856 Income tax expense (benefit) (3,348
) 4,340 301 1,302 2,595 Depreciation and amortization 14,927 17,929
18,306 18,581 69,743 Air rights contract amortization 130 130 130
130 520 Corporate general and administrative 4,577 4,498 4,019
4,952 18,046 Hotel acquisition costs 369 466 19
— 854 Hotel EBITDA 25,386 59,576 58,242 47,918
191,122
Less:
Non-cash amortization(2)
(81 ) (180 ) (155 ) (155 ) (571 ) Adjusted Hotel EBITDA 25,305
59,396 58,087 47,763 190,551
Add:
Prior owner Hotel EBITDA(1)
6,363 479 — — 6,842 Pro forma
Adjusted Hotel EBITDA $ 31,668 $ 59,875 $ 58,087
$ 47,763 $ 197,393 Total revenue $
109,290 $ 162,145 $ 165,009 $ 146,180 $ 582,624
Add:
Prior owner total revenue(1)
18,044 2,242 — — 20,286 Pro
forma total revenue $ 127,334 $ 164,387 $ 165,009
$ 146,180 $ 602,910 Pro forma Adjusted
Hotel EBITDA Margin 24.9 % 36.4 % 35.2 % 32.7 % 32.7 %
_____________ (1) The hotel operating results for the three
months ended March 31, 2015 and June 30, 2015, and for the year
ended December 31, 2015, reflect results of operations for certain
hotel(s) prior to their acquisition by the Trust. (2) Reflects
non-cash amortization of ground lease asset, deferred franchise
costs, deferred key money, and unfavorable contract liability.
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
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version on businesswire.com: http://www.businesswire.com/news/home/20160218006611/en/
Chesapeake Lodging TrustDouglas W. Vicari, 410-972-4142
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