BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE:PEB) (the “Company”) today reported
operating results for the first quarter 2010.
The Company’s net income (loss) to common shareholders was ($0.6)
million, or ($0.03) per diluted share for the quarter ended March 31,
2010. Net interest income from cash balances and investments was $1.0
million for the quarter. For the quarter ended March 31, 2010, the
Company generated funds from operations (“FFO”) of ($0.6) million. On a
diluted share basis, FFO for the quarter was ($0.03).
Net loss and FFO for the first quarter 2010 included $0.1 million of
costs related to the pursuit of potential acquisitions and $0.4 million
of non-cash corporate general and administrative expenses.
As of March 31, 2010, the Company had no outstanding debt and $387.9
million of cash and cash equivalents and investments on its balance
sheet. The weighted average number of common shares outstanding for the
first quarter 2010 was 20.3 million shares.
“The recovery in corporate travel appears to be underway, with healthy
gains in demand demonstrated in the first four months of 2010,” noted
Jon Bortz, Chairman, President and Chief Executive Officer of
Pebblebrook Hotel Trust. “While we are encouraged by the improvements in
economic fundamentals, the unprecedented declines in operating
performance experienced by the hotel industry since the recession began
will continue to make it a challenging environment for owners and
lenders.”
The Company believes it is well positioned to take advantage of
opportunities created by this difficult operating environment by
acquiring hotels in the early years of an economic and lodging industry
recovery at attractive historical valuations.
Subsequent Events
On May 6, 2010, the Company executed a purchase and sale agreement to
acquire an upscale full-service hotel in the Washington, D.C. /
Baltimore metropolitan area for $67.1 million. This transaction is
expected to close within the next 45 days.
“We continue to see an incremental increase in the volume of acquisition
opportunities and remain encouraged by the increasing number of
conversations we are having with potential sellers,” advised Mr. Bortz.
“We remain confident that we can acquire high-quality hotels in our
targeted urban markets at favorable pricing.”
2010 Outlook
The Company anticipates US Industry RevPAR in 2010 to be up 1% to 3%
compared with 2009. This represents an improvement compared with the
Company’s outlook provided in late March.
The Company currently forecasts the following for 2010:
- Cash corporate general and administrative expenses: $5.0 million to
$5.5 million
- Non-cash corporate general and administrative expenses: $2.1
million to $2.4 million
- Weighted average number of common shares outstanding, basic and
diluted: 20.3 million
The Company’s 2010 forecast for cash and non-cash general and
administrative expenses and the weighted average number of common shares
outstanding, basic and diluted, remains unchanged from late March. This
outlook does not include any costs related to acquisitions, such as due
diligence, transfer taxes, and legal and accounting fees, which are
required to be expensed when incurred.
Earnings Call
The Company will conduct its quarterly analyst and investor conference
call on May 7, 2010 at 9:00 AM EDT. To participate in the conference
call, please dial (800) 946-0708 approximately ten minutes before the
call begins (8:50 AM EDT). Additionally, a live webcast of the
conference call will be available through the Company’s website. To
access the webcast, log on to http://www.pebblebrookhotels.com
ten minutes prior to the conference call. A replay of the conference
call webcast will be archived and available online through the Investor
Relations section of http://www.pebblebrookhotels.com.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is a real estate investment trust (“REIT”)
organized to opportunistically acquire and invest primarily in
upper-upscale full-service hotels located in large urban and resort
markets with an emphasis on the major coastal cities.
This press release contains certain “forward-looking” statements
relating to, among other things, potential property acquisitions and
projected expenses.Forward-looking statements are generally
identifiable by use of forward-looking terminology such as “may,”
“will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,”
“estimate,” “approximately,” “believe,” “could,” “project,” “predict,”
“forecast,” “continue,” “plan” or other similar words or expressions.
Forward-looking statements are based on certain assumptions and can
include future expectations, future plans and strategies, financial and
operating projections or other forward-looking information. Examples of
forward-looking statements include the following: projections of the
Company’s expenses, share count or other financial items; descriptions
of the Company’s plans or objectives for future operations, acquisitions
or services; forecasts of the Company’s future economic performance and
its share of future markets; and descriptions of assumptions underlying
or relating to any of the foregoing expectations regarding the timing of
their occurrence.These forward-looking statements are subject to
various risks and uncertainties, many of which are beyond the Company’s
control, which could cause actual results to differ materially from such
statements. These risks and uncertainties include, but are not limited
to, the state of the U.S. economy and the supply of hotel properties,
and other factors as are described in greater detail in the Company’s
filings with the Securities and Exchange Commission, including, without
limitation, the Company’s Prospectus on Form 424(b)(1) filed on December
9, 2009.Unless legally required, the Company disclaims any
obligation to update any forward-looking statements, whether as a result
of new information, future events or otherwise.
For further information about the Company’s business and financial
results, please refer to the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors”
sections of the Company’s SEC filings, including, but not limited to,
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
copies of which may be obtained at the Investor Relations section of the
Company’s website at www.pebblebrookhotels.com.
All information in this release is as of May 6, 2010. The Company
undertakes no duty to update the statements in this release to conform
the statements to actual results or changes in the Company’s
expectations.
For additional information or to receive press releases via email,
please visit our website at www.pebblebrookhotels.com
|
| |
| Pebblebrook Hotel Trust |
| Consolidated Statement of Operations |
| (In thousands, except share data) |
| (unaudited) |
| | For the three months ended |
| | March 31, 2010 |
| |
|
|
Revenues
| |
$
|
-
| |
| |
|
|
Expenses
| | |
|
General and administrative
| |
|
1,576
|
|
| |
|
|
Total operating expenses
| |
|
1,576
|
|
| |
|
|
Operating loss
| | |
(1,576
|
)
|
|
Interest income
| |
|
977
|
|
| |
|
|
Net loss and net loss attributable to common shareholders
| |
$
|
(599
|
)
|
| |
|
|
Loss per common share, basic and diluted
| |
$
|
(0.03
|
)
|
| |
|
|
Weighted average number of common shares, basic and diluted
| |
|
20,260,046
|
|
| |
|
|
| | | |
| | | |
| Pebblebrook Hotel Trust |
| Consolidated Balance Sheets |
| (In thousands) |
| | | | | | | |
|
| | | | | | | |
|
| | March 31, 2010 | | December 31, 2009 |
| | (unaudited) | | | | |
| ASSETS |
| | | | | | | |
|
|
Cash and cash equivalents
| |
$
|
302,898
| | |
$
|
319,119
| |
|
Investments
| | |
85,000
| | | |
70,000
| |
|
Prepaid expenses and other assets
| |
|
409
|
| |
|
284
|
|
|
Total assets
| |
$
|
388,307
|
| |
$
|
389,403
|
|
| | | | | | | |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
| | | | | | | |
|
|
Accounts payable and accrued expenses
| |
$
|
1,367
| | |
$
|
1,927
| |
|
Accrued underwriter fees
| |
|
8,050
|
| |
|
8,050
|
|
|
Total Liabilities
| |
|
9,417
|
| |
|
9,977
|
|
|
Commitments and contingencies
| | | | | | | | |
|
Shareholders' equity
| | | | | | | | |
Common shares of beneficial interest, $.01 par value, 500,000,000
shares authorized; 20,260,590 issued and outstanding at March 31,
2010; 20,260,000 issued and outstanding at December 31, 2009
| | |
203
| | | |
203
| |
|
Additional paid-in capital, net of underwriting discounts and
offering costs
| | |
379,433
| | | |
379,370
| |
|
Retained deficit
| |
|
(746
|
)
| |
|
(147
|
)
|
| | | | | | | |
|
|
Total shareholders' equity
| |
|
378,890
|
| |
|
379,426
|
|
| | | | | | | |
|
|
Total liabilities and shareholders' equity
| |
$
|
388,307
|
| |
$
|
389,403
|
|
| | | | | | | |
|
|
| |
| Pebblebrook Hotel Trust |
| Reconciliation of Net Income (Loss) attributable to common
shareholders to Funds from Operations per Diluted Share |
| (Dollars in thousands, except per share amount) |
| (Unaudited) |
| |
|
| | For the three months ended |
| | March 31, 2010 |
| |
|
|
Net income (loss) attributable to common shareholders
| |
$
|
(599
|
)
|
| |
|
| |
|
|
Adjustments:
| | |
|
Depreciation and amortization
| | |
-
| |
| |
|
|
Non-controlling interest of common units in Operating Partnership
| |
|
-
|
|
| |
|
|
FFO
| |
$
|
(599
|
)
|
| |
|
|
Weighted average shares outstanding - basic and diluted
| | |
20,260,046
| |
| |
|
|
Diluted FFO per share
| |
$
|
(0.03
|
)
|
| |
|
This press release includes certain non-GAAP financial measures as
defined under Securities and Exchange Commission (SEC) Rules to
supplement the Company’s consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles, or GAAP.
These measures are not in accordance with, or an alternative to,
measures prepared in accordance with GAAP and may be different from
non-GAAP measures used by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules or
principles. Non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with the Company’s results of
operations determined in accordance with GAAP.
Funds from Operations - Funds from operations (“FFO”) represents net
income (computed in accordance with GAAP), plus real estate-related
depreciation and amortization and after adjustments for unconsolidated
partnerships. The Company considers FFO a useful measure of performance
for an equity REIT because it facilitates an understanding of the
operating performance of its properties without giving effect to real
estate depreciation and amortization, which assume that the value of
real estate assets diminishes predictably over time. Since real estate
values have historically risen or fallen with market conditions, the
Company believes that FFO provides a meaningful indication of its
performance. The Company also considers FFO an appropriate performance
measure given its wide use by investors and analysts. The Company
computes FFO in accordance with standards established by the Board of
Governors of NAREIT in its March 1995 White Paper (as amended in
November 1999 and April 2002), which may differ from the methodology for
calculating FFO utilized by other equity REITs and, accordingly, may not
be comparable to that of other REITs. Further, FFO does not represent
amounts available for management’s discretionary use because of needed
capital replacement or expansion, debt service obligations or other
commitments and uncertainties, nor is it indicative of funds available
to fund the Company’s cash needs, including its ability to make
distributions. The Company presents FFO per diluted share calculations
that are based on the outstanding dilutive common shares plus the
outstanding Operating Partnership units for the periods presented.
The Company’s presentation of FFO in accordance with the NAREIT white
paper, or as adjusted by the Company, should not be considered as an
alternative to net income (computed in accordance with GAAP) as an
indicator of the Company’s financial performance or to cash flow from
operating activities (computed in accordance with GAAP) as an indicator
of its liquidity. The table above is a reconciliation of the Company’s
FFO calculations to net income in accordance with GAAP.
Source: Pebblebrook Hotel Trust
Contact:
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial
Officer
240-507-1330