Pro Forma RevPAR Increased 8.4 Percent; Pro Forma Hotel EBITDA Rose
29.0 Percent
BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today reported
results for the quarter ended March 31, 2012. The Company’s results
include the following:
|
| |
| |
| | First Quarter |
| | 2012 |
| 2011 |
| |
($ in millions except per share, RevPAR and margin data)
|
| | | |
|
|
Net income (loss) to common shareholders
| | ($7.2) | | ($3.6) |
|
Net income (loss) per diluted share
| | ($0.14) | | ($0.09) |
| | | |
|
|
Pro forma RevPAR
| | $142.34 | | $131.25 |
|
Pro forma Hotel EBITDA(1) | | $17.1 | | $13.3 |
|
Pro forma Hotel EBITDA Margin | |
18.4%
| |
15.3%
|
| | | |
|
|
Adjusted EBITDA(1) | | $14.0 | | $6.4 |
| | | |
|
|
Adjusted FFO(1) | | $5.5 | | $3.4 |
|
Adjusted FFO per diluted share(1) | | $0.11 | | $0.08 |
| | | |
|
(1) See tables later in this press release for a
description of pro forma information and reconciliations from net income
(loss) to non-GAAP financial measures, including earnings before
interest, taxes, depreciation and amortization ("EBITDA"), Adjusted
EBITDA, Funds from Operations ("FFO"), FFO per share, Adjusted FFO and
Adjusted FFO per share.
“First quarter operating results for our portfolio greatly benefitted
from the continued strength in business and leisure transient travel, as
well as growing inbound international travel, despite concerns with the
global economy,” said Jon E. Bortz, Chairman, President and Chief
Executive Officer of Pebblebrook Hotel Trust. “We’re very pleased with
the performance of our portfolio, especially given the significant
amount of capital renovation projects that were in progress during the
quarter, which negatively impacted our operating results even more than
we had expected. This demonstrates the strength of our markets and our
properties, and we remain very encouraged that these healthy trends will
continue throughout 2012.”
First Quarter Highlights
- Pro forma RevPAR, ADR and Occupancy: Pro forma room revenue per
available room (“Pro forma RevPAR”) in the first quarter of 2012
increased 8.4 percent over the same period of 2011 to $142.34. Pro
forma average daily rate (“Pro forma ADR”) grew 2.3 percent from the
first quarter of 2011 to $191.90. Pro forma Occupancy rose 6.0 percent
to 74.2 percent.
- Pro forma Hotel EBITDA: The hotels generated $17.1 million of
Pro forma Hotel EBITDA for the quarter ended March 31, 2012, climbing
29.0 percent compared to the same period of 2011. Pro forma Hotel
Revenues increased 7.0 percent, while Pro forma Hotel Expenses rose
just 3.1 percent. As a result, Pro forma Hotel EBITDA Margin grew to
18.4 percent for the quarter ended March 31, 2012, representing an
increase of 314 basis points as compared to the same period last year.
- Adjusted EBITDA: The Company’s Adjusted EBITDA increased to
$14.0 million from $6.4 million in the prior year period, an increase
of $7.6 million, or 118 percent.
- Adjusted FFO: The Company’s Adjusted FFO climbed to $5.5
million from $3.4 million in the prior year period, an increase of 63
percent.
- Capital Investments: During the first quarter of 2012, the
Company invested $17.4 million of capital throughout its portfolio,
including $5.5 million at the Westin Gaslamp Quarter, $2.7 million at
the Sheraton Delfina and $1.9 million at the Hotel Monaco Seattle.
- Dividends: On March 15, 2012, the Company declared a $0.12 per
share quarterly dividend on its common shares, a $0.4921875 per share
quarterly dividend on its 7.875% Series A Cumulative Redeemable
Preferred Shares and a $0.50 per share quarterly dividend on its 8.0%
Series B Cumulative Redeemable Preferred Shares.
“We were able to increase Hotel EBITDA 29 percent over the prior year
and improve operating margins by 314 basis points during the quarter
despite significant negative impact from renovations at several hotels,”
noted Mr. Bortz. “This is a direct result of the hard work by our asset
managers and our hotel operators, who work collaboratively to implement
our best practices and improve our operating strategies and
efficiencies. We expect significant improvements to our operating
profitability as we implement our best practices and identify new areas
of opportunity throughout 2012 and over the next several years.”
Capital Reinvestment
During the first quarter, the Company reinvested $17.4 million in
capital improvements throughout the Company’s portfolio. The Company’s
capital investments included $5.5 million at the Westin Gaslamp Quarter,
$2.7 million at the Sheraton Delfina, $1.9 million at the Hotel Monaco
Seattle and $0.8 million at the Argonaut Hotel.
The comprehensive three-year renovation and redevelopment of the Westin
Gaslamp Quarter is now in its third and final phase, which involves the
hotel’s ground floor and includes the exterior, porte cochère, lobby,
lounge and restaurant. This stage of the renovation commenced in October
2011 and is expected to be completed in May 2012.
In January, the Company commenced a comprehensive $8.8 million
renovation of the Sheraton Delfina, which includes the hotel’s guest
rooms, corridors, meeting rooms, lobby and public space. This project is
also expected to be completed in May 2012.
Comprehensive renovation and refurbishment projects were also underway
at two of the Company’s other hotels: the $5.0 million renovation at the
Hotel Monaco Seattle and the $3.3 million renovation at the Argonaut
Hotel. Both renovations involved renovating the guest rooms, corridors,
lobby and meeting space of each hotel. The Argonaut Hotel’s renovation
was completed in February 2012 and the Hotel Monaco Seattle’s
improvements will be complete in early May 2012.
“The capital investment programs at the Westin Gaslamp Quarter, Sheraton
Delfina, Monaco Seattle and Argonaut Hotel, and the renovations recently
completed at the Grand Minneapolis, Sir Francis Drake, DoubleTree
Bethesda and InterContinental Buckhead present a substantial opportunity
to increase RevPAR penetration and generate higher room rates, which
should produce substantially improved profitability and cash flow at
these properties,” continued Mr. Bortz. “Early guest reviews and results
at all of the properties have been very encouraging.”
Acquisitions
On April 4, 2012, the Company acquired the Hotel Milano for $29.8
million. The 108-room, full-service hotel is located in the South of
Market and Convention Center submarket of San Francisco, California. The
Company plans to invest between $8.0 and $10.0 million to completely
renovate and reposition the hotel, including all guest rooms, bathrooms,
the lobby, meeting space, the fitness facility, lounge and the
restaurant. The hotel’s improvement program is expected to commence in
the fourth quarter of 2012 and be complete by the second quarter of 2013.
“We’re thrilled with the acquisition of the Hotel Milano in the highly
desirable and resurgent San Francisco market,” commented Mr. Bortz.
“We’re confident that the comprehensive renovation and repositioning of
the hotel will allow us to take advantage of its fantastic location in
this growing area of San Francisco, just two blocks from the convention
center, adjacent to the Westfield San Francisco Centre and immediately
south of Market Street.”
Balance Sheet
As of March 31, 2012, the Company had $211.1 million in consolidated
debt and $280.6 million in unconsolidated, non-recourse debt at weighted
average interest rates of 4.8 percent and 3.2 percent, respectively. The
Company had no outstanding balance on its $200.0 million senior
unsecured credit facility. As of March 31, 2012, the Company had $45.2
million of consolidated cash, cash equivalents and restricted cash and
$17.3 million of unconsolidated cash, cash equivalents and restricted
cash. The unconsolidated debt, cash, cash equivalents and restricted
cash amounts represent the Company’s 49 percent pro rata interest in the
Manhattan Collection, a joint venture with affiliates of Denihan
Hospitality Group that owns six upper upscale hotels in Manhattan, New
York. The weighted average number of fully diluted common shares and
units outstanding for the quarter ended March 31, 2012 was 52.0 million.
On March 31, 2012, as defined by the Company’s credit agreement, the
Company’s fixed charge coverage ratio was 2.1 times, total net debt to
trailing 12 month Corporate EBITDA was 4.7 times and total debt to total
assets ratio was 28 percent. Excluding the Manhattan Collection, the
Company’s fixed charge coverage ratio was 2.0 times, net debt to
trailing 12 month Corporate EBITDA was 2.6 times and total debt to total
assets ratio was 17 percent.
Capital Markets
During the first quarter of 2012, the Company completed several capital
transactions to help fund strategic growth and maintain its strong
balance sheet.
-
On January 11, 2012, the Company executed a $46.0 million
non-recourse, secured loan at a fixed annual interest rate of 4.36
percent and a term of five years. The loan is collateralized by a
first mortgage on the 183-room Hotel Monaco Washington, DC.
-
On February 1, 2012, the Company repaid the $56.1 million loan secured
by the 306-room Sofitel Philadelphia with proceeds from the Company’s
unsecured credit facility and available cash on its balance sheet.
-
On February 15, 2012, the Company executed a $47.0 million
non-recourse, secured loan at a fixed annual interest rate of 4.25
percent and a term of five years. The loan is collateralized by a
first mortgage on the 252-room Argonaut Hotel in San Francisco, CA.
-
During the first quarter of 2012, the Company issued 1,407,079 common
shares under its ATM offering program at an average net price of
$23.04 per share, for total net proceeds of $31.9 million.
“We’re very pleased with our ongoing ability to access the debt and
equity markets,” commented Raymond D. Martz, Chief Financial Officer of
Pebblebrook Hotel Trust. “The continued support from our investors and
banking relationships has allowed us to further strengthen our balance
sheet, maintain our targeted leverage levels and lower our overall cost
of capital while also providing capacity for acquisitions.”
2012 Outlook
The Company is amending its 2012 outlook to the following:
|
| |
| |
| | 2012 Outlook |
| | Low | | High |
| |
($ in millions except per share and RevPAR data)
|
| | | |
|
|
Net income (loss) to common shareholders
| | $5.5 | | $9.5 |
|
Net income (loss) per diluted share
| | $0.10 | | $0.18 |
| | | |
|
|
Adjusted EBITDA
| | $111.0 | | $115.0 |
| | | |
|
|
Adjusted FFO
| | $63.0 | | $67.0 |
|
Adjusted FFO per diluted share
| | $1.18 | | $1.26 |
| | | |
|
This 2012 outlook is based on the following estimates and
assumptions:
| | | | |
| | | |
|
|
U.S. GDP Growth
| |
2.0%
| |
2.5%
|
| U.S. Hotel Industry RevPAR Growth | |
6.0%
| |
8.0%
|
| | | |
|
|
Portfolio RevPAR
| | $173 | | $176 |
|
Portfolio RevPAR Growth
| |
8.0%
| |
10.0%
|
| | | |
|
| Portfolio Hotel EBITDA | | $123.0 | | $127.0 |
| Portfolio Hotel EBITDA Margin | |
27.5%
| |
28.0%
|
| Portfolio Hotel EBITDA Margin Growth | |
250 bps
| |
300 bps
|
| | | |
|
|
Corporate cash general and administrative expenses
| | $10.0 | | $10.5 |
|
Corporate non-cash general and administrative expenses
| | $3.5 | | $3.7 |
| | | |
|
|
Total capital investments related to renovations, capital
maintenance and return on investment projects
| | $50.0 | | $60.0 |
| | | |
|
|
Weighted average fully diluted shares and units
| |
53.2
| |
53.2
|
| | | |
|
| | | |
|
|
The Company’s 2012 outlook includes the effects of its 49 percent
pro rata interest in the Manhattan Collection.
|
|
|
|
The Company’s outlook for the second quarter 2012 is as follows:
|
| | | |
|
| | Second Quarter 2012 Outlook |
| | Low | | High |
| |
($ in millions except per share and RevPAR data)
|
| | | |
|
|
Portfolio RevPAR
| | $181 | | $184 |
|
Portfolio RevPAR Growth
| |
10.0%
| |
12.0%
|
| | | |
|
| Portfolio Hotel EBITDA | | $32.5 | | $34.5 |
| Portfolio Hotel EBITDA Margin | |
29.4%
| |
29.9%
|
| Portfolio Hotel EBITDA Margin Growth | |
300 bps
| |
350 bps
|
| | | |
|
|
Adjusted EBITDA
| | $28.8 | | $30.8 |
| | | |
|
Earnings Call
The Company will conduct its quarterly analyst and investor conference
call on Friday, April 27, 2012, at 9:00 AM EDT. To participate in the
conference call, please dial (888) 233-7992 approximately ten minutes
before the call begins. 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 publicly traded real estate investment
trust (“REIT”) organized to opportunistically acquire and invest
primarily in upper upscale, full service hotels located in urban markets
in major gateway cities. The Company owns 21 hotels, comprised of 15
wholly owned hotels, with a total of 3,920 guest rooms and a 49 percent
joint venture interest in six hotels with 1,733 guest rooms. The Company
owns, or has an ownership interest in, hotels located in nine states and
the District of Columbia, including 14 markets: San Diego, California;
San Francisco, California; Santa Monica, California; West Hollywood,
California; Washington, DC; Miami, Florida; Buckhead, Georgia; Bethesda,
Maryland; Boston, Massachusetts; Minneapolis, Minnesota; New York, New
York; Philadelphia, Pennsylvania; Columbia River Gorge, Washington; and
Seattle, Washington. For more information, please visit www.pebblebrookhotels.com.
This press release contains certain “forward-looking statements” made
pursuant to the safe harbor provisions of the Private Securities Reform
Act of 1995.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,” “assume,” “plan,” references to “outlook” 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 and
forecasts and other forward-looking information and estimates.Examples
of forward-looking statements include the following: projections and
forecasts of U.S. GDP growth, U.S. hotel industry RevPAR growth, the
Company’s net income, FFO, EBITDA, Adjusted FFO, Adjusted EBITDA,
RevPAR, EBITDA Margin and EBITDA Margin Growth, and 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; forecasts of hotel industry performance; and
descriptions of assumptions underlying or relating to any of the
foregoing expectations including assumptions 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 Annual Report on Form 10-K
for the year ended December 31, 2011.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 April 26, 2012.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 Balance Sheets |
| (In thousands, except share and per-share data) |
| | | |
|
| | March 31, 2012 | | December 31, 2011 |
| | (Unaudited) | | |
| ASSETS | | | | |
|
Assets:
| | | | |
|
Investment in hotel properties, net
| |
$
|
1,133,851
| | |
$
|
1,127,484
| |
|
Investment in joint venture
| | |
168,170
| | | |
171,765
| |
|
Ground lease asset, net
| | |
10,448
| | | |
10,502
| |
|
Cash and cash equivalents
| | |
36,364
| | | |
65,684
| |
|
Restricted cash
| | |
8,815
| | | |
9,469
| |
|
Hotel receivables (net of allowance for doubtful accounts of $60 and
$71, respectively)
| | |
15,199
| | | |
11,312
| |
|
Deferred financing costs, net
| | |
3,660
| | | |
3,487
| |
|
Prepaid expenses and other assets
| |
|
18,869
|
| |
|
16,929
|
|
|
Total assets
| | $ | 1,395,376 |
| | $ | 1,416,632 |
|
| | | |
|
| | | |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| | | |
|
|
Liabilities:
| | | | |
|
Senior unsecured revolving credit facility
| |
$
|
-
| | |
$
|
-
| |
|
Mortgage debt
| | |
211,062
| | | |
251,539
| |
|
Accounts payable and accrued expenses
| | |
31,770
| | | |
33,333
| |
|
Advance deposits
| | |
6,142
| | | |
4,380
| |
|
Accrued interest
| | |
929
| | | |
1,000
| |
|
Distribution payable
| |
|
10,206
|
| |
|
10,032
|
|
|
Total liabilities
| | |
260,109
| | | |
300,284
| |
|
Commitments and contingencies
| | | | |
|
Shareholders' equity:
| | | | |
Preferred shares of beneficial interest, $.01 value (liquidation
preference of $225,000 at March 31, 2012 and December 31, 2011),
100,000,000 shares authorized; 9,000,000 shares issued and
outstanding at March 31, 2012 and at December 31, 2011 | | |
90
| | | |
90
| |
Common shares of beneficial interest, $.01 par value, 500,000,000
shares authorized; 52,219,193 issued and outstanding at March 31,
2012 and 50,769,024 issued and outstanding at December 31, 2011,
respectively
| | |
522
| | | |
508
| |
|
Additional paid-in capital
| | |
1,175,102
| | | |
1,142,905
| |
|
Accumulated deficit and distributions
| |
|
(43,781
|
)
| |
|
(30,252
|
)
|
|
Total shareholders' equity
| | |
1,131,933
| | | |
1,113,251
| |
|
Non-controlling interests
| |
|
3,334
|
| |
|
3,097
|
|
|
Total equity
| |
|
1,135,267
|
| |
|
1,116,348
|
|
|
Total liabilities and equity
| | $ | 1,395,376 |
| | $ | 1,416,632 |
|
| | | |
|
|
| |
| |
| Pebblebrook Hotel Trust |
| Consolidated Statements of Operations |
| (In thousands, except share and per-share data) |
| | | |
|
| | | |
|
| | Three months ended March 31, |
| | 2012 | | 2011 |
| | (Unaudited) |
| REVENUES: | | | | |
|
Hotel operating revenues:
| | | | |
|
Room
| |
$
|
46,855
| | |
$
|
25,559
| |
|
Food and beverage
| | |
25,524
| | | |
14,787
| |
|
Other operating
| |
|
5,095
|
| |
|
2,319
|
|
|
Total revenues
| |
|
77,474
|
| |
|
42,665
|
|
| | | |
|
| EXPENSES: | | | | |
|
Hotel operating expenses:
| | | | |
|
Room
| | |
13,493
| | | |
7,641
| |
|
Food and beverage
| | |
19,703
| | | |
10,860
| |
|
Other direct
| | |
2,751
| | | |
1,161
| |
|
Other indirect
| |
|
22,146
|
| |
|
13,076
|
|
|
Total hotel operating expenses
| | |
58,093
| | | |
32,738
| |
|
Depreciation and amortization
| | |
9,689
| | | |
4,797
| |
|
Real estate taxes, personal property taxes and property insurance
| | |
4,007
| | | |
1,923
| |
|
Ground rent
| | |
420
| | | |
246
| |
|
General and administrative
| | |
3,600
| | | |
2,286
| |
|
Hotel acquisition costs
| |
|
238
|
| |
|
1,726
|
|
|
Total operating expenses
| | |
76,047
| | | |
43,716
| |
|
Operating income (loss)
| | |
1,427
| | | |
(1,051
|
)
|
|
Interest income
| | |
6
| | | |
473
| |
|
Interest expense
| | |
(3,257
|
)
| | |
(2,856
|
)
|
|
Equity in earnings (loss) of joint venture
| |
|
(3,596
|
)
| |
|
-
|
|
|
Net income (loss) before income taxes
| | |
(5,420
|
)
| | |
(3,434
|
)
|
|
Income tax (expense) benefit
| |
|
2,583
|
| |
|
390
|
|
|
Net income (loss)
| | |
(2,837
|
)
| | |
(3,044
|
)
|
|
Net income (loss) attributable to non-controlling interests
| |
|
(46
|
)
| |
|
-
|
|
|
Net income (loss) attributable to the Company
| | |
(2,791
|
)
| | |
(3,044
|
)
|
|
Distributions to preferred shareholders
| |
|
(4,456
|
)
| |
|
(547
|
)
|
|
Net income (loss) attributable to common shareholders
| | $ | (7,247 | ) | | $ | (3,591 | ) |
| | | |
|
| | | |
|
|
Net income (loss) per share available to common shareholders, basic
and diluted
| |
$
|
(0.14
|
)
| |
$
|
(0.09
|
)
|
| | | |
|
|
Weighted-average number of common shares, basic
| | |
51,009,904
| | | |
39,827,551
| |
|
Weighted-average number of common shares, diluted
| | |
51,009,904
| | | |
39,827,551
| |
| | | |
|
|
| |
| |
| Pebblebrook Hotel Trust |
| Reconciliation of Net Income (Loss) Attributable to Common |
| Shareholders to FFO, EBITDA, Adjusted FFO and Adjusted EBITDA |
| (In thousands, except share and per-share data) |
| (Unaudited) |
| | | |
|
| | Three months ended March 31, |
| | 2012 | | 2011 |
| | | |
|
|
Net income (loss) attributable to common shareholders
| |
$
|
(7,247
|
)
| |
$
|
(3,591
|
)
|
|
Depreciation and amortization
| | |
9,651
| | | |
4,767
| |
|
Depreciation and amortization from joint venture
| | |
2,427
| | | |
-
| |
|
Non-controlling interests
| |
|
(46
|
)
| |
|
-
|
|
| FFO | | $ | 4,785 |
| | $ | 1,176 |
|
|
Hotel acquisition costs
| | |
238
| | | |
1,726
| |
|
Ground lease amortization
| | |
54
| | | |
55
| |
|
Amortization of LTIP units
| |
|
395
|
| |
|
395
|
|
| Adjusted FFO | | $ | 5,472 |
| | $ | 3,352 |
|
| | | |
|
| FFO per common share - basic | |
$
|
0.09
| | |
$
|
0.03
| |
| FFO per common share - diluted | |
$
|
0.09
| | |
$
|
0.03
| |
| Adjusted FFO per common share - basic | |
$
|
0.11
| | |
$
|
0.08
| |
| Adjusted FFO per common share - diluted | |
$
|
0.11
| | |
$
|
0.08
| |
| | | |
|
|
Weighted-average number of basic common shares and units
| | |
51,939,003
| | | |
39,827,551
| |
|
Weighted-average number of fully diluted common shares and units
| | |
51,994,380
| | | |
39,862,746
| |
| | | |
|
| | | |
|
| | Three months ended March 31, |
| | 2012 | | 2011 |
| | | |
|
|
Net income (loss) attributable to common shareholders
| |
$
|
(7,247
|
)
| |
$
|
(3,591
|
)
|
|
Interest expense
| | |
3,257
| | | |
2,856
| |
|
Interest expense from joint venture
| | |
3,313
| | | |
-
| |
|
Income tax expense (benefit)
| | |
(2,583
|
)
| | |
(390
|
)
|
|
Depreciation and amortization
| | |
9,689
| | | |
4,797
| |
|
Depreciation and amortization from joint venture
| | |
2,427
| | | |
-
| |
|
Non-controlling interests
| | |
(46
|
)
| | |
-
| |
|
Distributions to preferred shareholders
| |
|
4,456
|
| |
|
547
|
|
| EBITDA | | $ | 13,266 |
|
| $ | 4,219 |
|
|
Hotel acquisition costs
| | |
238
| | | |
1,726
| |
|
Ground lease amortization
| | |
54
| | | |
55
| |
|
Amortization of LTIP units
| |
|
395
|
| |
|
395
|
|
| Adjusted EBITDA | | $ | 13,953 |
| | $ | 6,395 |
|
| | | |
|
|
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
("GAAP").
|
|
|
|
These measures are not in accordance with, or an alternative to,
measures prepared in accordance with GAAP and may be different from
similarly titled 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.
|
|
|
|
Earnings before Interest, Taxes, and Depreciation and Amortization
("EBITDA") - The Company believes that EBITDA provides investors a
useful financial measure to evaluate its operating performance,
excluding the impact of our capital structure (primarily interest
expense) and our asset base (primarily depreciation and
amortization).
|
|
|
|
The Company’s presentation of FFO in accordance with the NAREIT
white paper and EBITDA, 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 and EBITDA calculations to net
income in accordance with GAAP.
|
|
|
|
The Company also evaluates its performance by reviewing Adjusted
EBITDA and Adjusted FFO, because it believes that adjusting EBITDA
and FFO to exclude certain recurring and non-recurring items
described below provides useful supplemental information regarding
the Company's ongoing operating performance and that the
presentation of Adjusted EBITDA and Adjusted FFO, when combined with
the primary GAAP presentation of net income (loss), more completely
describes the Company's operating performance. The Company adjusts
EBITDA and FFO for the following items, which may occur in any
period, and refers to these measures as Adjusted EBITDA and Adjusted
FFO:
|
|
|
|
- Non-Cash Ground Rent: The Company excludes the non-cash
amortization expense of the Company's ground lease asset.
|
|
- Acquisition Costs: The Company excludes acquisition transaction
costs expensed during the period because it believes that including
these costs in EBITDA and FFO does not reflect the underlying
financial performance of the Company and its hotels.
|
|
- Amortization of LTIP Units: The Company excludes the non-cash
amortization of LTIP Units expensed during the period.
|
|
|
|
| |
| |
| Pebblebrook Hotel Trust |
| Manhattan Collection Statements of Operations |
| (Represents the Company's 49% ownership interest in the
Manhattan Collection) |
| (In thousands, except share and per share data) |
| (Unaudited) |
| | | |
|
| | Three months ended March 31, |
| | 2012 | | 2011 |
| | | |
|
| REVENUES: | | | | |
|
Hotel operating revenues:
| | | | |
|
Room
| |
$
|
13,520
| | |
$
|
-
| |
|
Food and beverage
| | |
1,574
| | | |
-
| |
|
Other operating
| |
|
684
|
| |
|
-
|
|
|
Total revenues
| |
|
15,778
|
| |
|
-
|
|
| | | |
|
| EXPENSES: | | | | |
|
Total hotel expenses
| | |
13,639
| | | |
-
| |
|
Depreciation and amortization
| |
|
2,427
|
| |
|
-
|
|
|
Total operating expenses
| |
|
16,066
|
| |
|
-
|
|
|
Operating income (loss)
| | |
(288
|
)
| | |
-
| |
|
Interest income
| | |
35
| | | |
-
| |
|
Interest expense
| | |
(3,313
|
)
| | |
-
| |
|
Other Expenses
| |
|
(30
|
)
| |
|
| Equity in earnings of joint venture | | $ | (3,596 | ) | | $ | - |
|
| | | |
|
|
|
|
|
|
|
| | | |
|
| DEBT: | | Spread over 30-day LIBOR | | Loan Amount |
|
Mortgage and mezzanine
| |
300 bps (a)
| |
$
|
280,566
| |
|
Cash and cash equivalents
| | | |
|
(2,307
|
)
|
|
Net Debt
| | | | |
278,259
| |
|
Restricted cash
| | | |
|
(14,966
|
)
|
| Net Debt including restricted cash | | | | $ | 263,293 |
|
| | | |
|
|
(a)
|
|
Represents the estimated weighted average spread of the mortgage and
the mezzanine debt outstanding.
|
| |
|
Notes: |
|
These hotel operating results represent the Company's period of
ownership for the Company's Manhattan Collection. The Manhattan
Collection consists of the following six hotels: Affinia Manhattan,
Affinia 50, Affinia Dumont, Affinia Shelburne, Affinia Gardens and
The Benjamin. The hotel operating results for the Manhattan
Collection only include 49% of the results for the six properties to
reflect the Company's 49% ownership interest in the hotels.
|
|
|
|
The information above has not been audited and has been presented
only for informational purposes.
|
|
|
|
|
|
|
|
| |
| |
| Pebblebrook Hotel Trust |
| Pro Forma Hotel Statistical Data |
| (Unaudited) |
| | | | | | | |
|
| | | | | | Three months ended March 31, |
| | | | | | 2012 | | 2011 |
| Total Portfolio | | | | | | | | |
|
Pro forma Occupancy
| | | | | | |
74.2
|
%
| | |
70.0
|
%
|
|
Increase/(Decrease)
| | | | | | |
6.0
|
%
| | |
|
Pro forma ADR
| | | | | |
$
|
191.90
| | |
$
|
187.55
| |
|
Increase/(Decrease)
| | | | | | |
2.3
|
%
| | |
| Pro forma RevPAR | | | | | | $ | 142.34 | | | $ | 131.25 | |
| Increase/(Decrease) | | | | | | | 8.4 | % | | |
| | | | | | | | | |
|
Notes: |
This schedule of hotel results for the three months ended March
31, includes information from all of the hotels the Company owned
as of March 31, 2012 . Results for the Manhattan Collection
reflect Pebblebrook's 49% ownership interest. These hotel results
for the respective periods may include information reflecting
operational performance prior to the Company's ownership of the
hotels. Any differences are a result of rounding.
|
|
|
The information above has not been audited and has been presented
only for comparison purposes.
|
|
|
|
|
|
| |
| |
| Pebblebrook Hotel Trust |
| Manhattan Collection Pro Forma Hotel Statistical Data |
| (Unaudited) |
| | | | | |
|
| | | | Three months ended March 31, |
| | | | 2012 | | 2011 |
| Total Portfolio | | | | | | |
|
Pro forma Occupancy
| | | | |
86.9
|
%
| | |
81.2
|
%
|
|
Increase/(Decrease)
| | | | |
7.0
|
%
| | |
|
Pro forma ADR
| | | |
$
|
201.42
| | |
$
|
194.38
| |
|
Increase/(Decrease)
| | | | |
3.6
|
%
| | |
| Pro forma RevPAR | | | | $ | 174.97 | | | $ | 157.86 | |
| Increase/(Decrease) | | | | | 10.8 | % | | |
| | | | | |
|
Notes: |
This schedule of hotel results for the three months ended March
31, includes information for the six hotels that make up the
Manhattan Collection as of March 31, 2012. These hotel results for
the respective periods may include information reflecting
operational performance prior to the Company's ownership of the
hotels. Any differences are a result of rounding.
|
|
|
The information above has not been audited and has been presented
only for comparison purposes.
|
|
|
|
|
| |
| |
| Pebblebrook Hotel Trust |
| Hotel Operational Data |
| Schedule of Pro Forma Hotel Results |
| (In thousands) |
| (Unaudited) |
| | | | |
|
| | | Three months ended March 31, |
| | | 2012 | | 2011 |
| | | | |
|
| Pro Forma Hotel Revenues: | | | | | |
|
Rooms
| | |
$
|
60,376
| | |
$
|
54,681
| |
|
Food and beverage
| | | |
25,800
| | | |
25,604
| |
|
Other
| | |
|
7,076
|
| |
|
6,845
|
|
|
Total hotel revenues
| | |
|
93,252
|
| |
|
87,130
|
|
| | | | |
|
| Pro Forma Hotel Expenses: | | | | | |
|
Rooms
| | | |
18,883
| | | |
17,425
| |
|
Food and beverage
| | | |
20,038
| | | |
19,193
| |
|
Other direct
| | | |
4,133
| | | |
3,923
| |
|
General and administrative
| | | |
9,249
| | | |
9,265
| |
|
Sales and marketing
| | | |
7,439
| | | |
7,063
| |
|
Management fees
| | | |
2,498
| | | |
2,745
| |
|
Property operations and maintenance
| | | |
3,522
| | | |
3,546
| |
|
Energy and utilities
| | | |
3,159
| | | |
3,561
| |
|
Property taxes
| | | |
4,846
| | | |
3,970
| |
|
Other fixed expenses
| | |
|
2,338
|
| |
|
3,151
|
|
|
Total hotel expenses
| | |
|
76,105
|
| |
|
73,842
|
|
| | |
| |
|
| Pro Forma Hotel EBITDA | | | $ | 17,147 |
| | $ | 13,288 |
|
| | | | |
|
| Pro Forma Hotel EBITDA Margin | | | |
18.4
|
%
| | |
15.3
|
%
|
| | | | |
|
Notes: |
This schedule of hotel results for the three months ended March 31
includes information from all of the hotels the Company owned as
of March 31, 2012. Results for the Manhattan Collection reflect
Pebblebrook's 49% ownership interest. These hotel results for the
respective periods may include information reflecting operational
performance prior to the Company's ownership of the hotels. In
addition, the information above does not reflect the Company's
corporate general and administrative expense, interest expense,
property acquisition costs, depreciation and amortization, taxes
and other expenses. Any differences are a result of rounding.
|
|
|
The information above has not been audited and has been presented
only for comparison purposes.
|
|
|
|
|
| |
| |
| Pebblebrook Hotel Trust |
| Hotel Operational Data |
| Schedule of Pro Forma Manhattan Collection Hotel Results |
| (In thousands) |
| (Unaudited) |
| | | | |
|
| | | Three months ended March 31, |
| | | 2012 | | 2011 |
| | | | |
|
| Pro Forma Hotel Revenues: | | | | | |
|
Rooms
| | |
$
|
13,520
| | |
$
|
11,417
| |
|
Food and beverage
| | | |
1,574
| | | |
1,190
| |
|
Other
| | |
|
684
|
| |
|
675
|
|
|
Total hotel revenues
| | |
|
15,778
|
| |
|
13,282
|
|
| | | | |
|
| Pro Forma Hotel Expenses: | | | | | |
|
Rooms
| | | |
5,390
| | | |
4,652
| |
|
Food and beverage
| | | |
1,527
| | | |
1,355
| |
|
Other direct
| | | |
109
| | | |
112
| |
|
General and administrative
| | | |
1,824
| | | |
1,688
| |
|
Sales and marketing
| | | |
1,145
| | | |
1,070
| |
|
Management fees
| | | |
492
| | | |
415
| |
|
Property operations and maintenance
| | | |
701
| | | |
667
| |
|
Energy and utilities
| | | |
726
| | | |
659
| |
|
Property taxes
| | | |
1,630
| | | |
1,453
| |
|
Other fixed expenses
| | |
|
95
|
| |
|
259
|
|
|
Total hotel expenses
| | |
|
13,639
|
| |
|
12,330
|
|
| | |
| |
|
| Pro Forma Hotel EBITDA | | | $ | 2,139 |
| | $ | 952 |
|
| | | | |
|
| Pro Forma Hotel EBITDA Margin | | | |
13.6
|
%
| | |
7.2
|
%
|
| | | | |
|
Notes: |
This schedule of hotel results for the three months ended March 31
reflects the Company's 49% pro rata interest and includes
information for the six hotels that make up the Manhattan
Collection as of March 31, 2012. These hotel results may reflect
the operational performance prior to the Company's ownership of
the hotels. In addition, the information above does not reflect
the Company's corporate general and administrative expense,
interest expense, property acquisition costs, depreciation and
amortization, taxes and other expenses. Any differences are a
result of rounding.
|
|
|
The information above has not been audited and has been presented
only for comparison purposes.
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
| |
| Pebblebrook Hotel Trust | | |
| Pro Forma 2012 Property Inclusion Reference Table | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Hotels | |
|
| Q1 |
|
| |
|
| Q2 |
|
| |
|
| Q3 |
|
| |
|
| Q4 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
DoubleTree by Hilton Bethesda | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
|
Sir Francis Drake | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| InterContinental Buckhead | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| Hotel Monaco Washington, DC
| | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| Grand Hotel Minneapolis | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| Skamania Lodge | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
|
Sheraton Delfina Santa Monica
| | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
|
Sofitel Philadelphia
| | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| Argonaut Hotel | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| Hotel Monaco Seattle | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| Westin Gaslamp Quarter San Diego | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
|
Mondrian Los Angeles | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
|
Viceroy Miami | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| W Boston | | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
|
Manhattan Collection
| | | |
X
| | | | | |
X
| | | | | |
X
| | | | | |
X
| | |
| Hotel Milano | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
Notes: |
A property marked with an "X" in a specific quarter denotes that
the pro forma operating results of that property are included in
the Pro Forma Hotel Statistical Data, Schedule of Pro Forma Hotel
Results and the 2012 Outlook for the respective calendar quarter
in 2012 and 2011.
|
|
|
The Company’s first quarter Pro forma RevPAR, RevPAR Growth, ADR,
Occupancy, Hotel Revenues, Hotel Expenses, Hotel EBITDA and Hotel
EBITDA Margin include all of the hotels the Company owned as of
March 31, 2012. Results for the Manhattan Collection reflect
Pebblebrook's 49% ownership interest. This schedule does not
reflect the Hotel Milano. The Company expects to include
historical operating results for the Hotel Milano after the
Company has owned the hotel for one year. These operating
statistics and financial results include periods prior to the
Company’s ownership of the hotels.
|
|
|
The Company's estimates and assumptions for Pro forma RevPAR,
RevPAR Growth, ADR, Occupancy, Hotel Revenues, Hotel Expenses,
Hotel EBITDA and Hotel EBITDA Margin for the Company's 2012
Outlook include the hotels owned as of March 31, 2012. These
operating statistics and financial results include periods prior
to the Company’s ownership of the hotels. The hotel operating
estimates and assumptions for the Manhattan Collection included in
the Company's 2012 Outlook only reflect the Company's 49%
ownership interest in the hotels.
|
|
|
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial Officer
240-507-1330
Source: Pebblebrook Hotel Trust