BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today provided an
update on its first quarter 2018 performance as compared to its outlook
provided on February 22, 2018.
Based upon a preliminary review of operating and financial results, the
Company has updated its first quarter 2018 outlook as follows:
|
| New First Quarter
2018 Outlook
as of
April 12, 2018 |
|
Prior Outlook
as of February 22, 2018
|
| Variance to
Prior Outlook |
| | Low |
| High |
| Low |
| High |
| Low |
| High |
| |
($ in millions, except per share data)
|
| | |
| |
| |
| |
| |
| |
Net income
| | $22.2 | | $23.7 | | $14.5 | | $17.5 | | $7.7 | | $6.2 |
| | | | | | | | | | | |
|
|
Same-Property RevPAR(1) growth rate
| |
(0.50%)
| |
(0.25%)
| |
(3.50%)
| |
(1.50%)
| | 3.00% | | 1.25% |
|
Same-Property EBITDA(1) | | $53.3 | | $54.8 | | $48.5 | | $51.5 | | $4.8 | | $3.3 |
| | | | | | | | | | | |
|
|
Adjusted EBITDA(1) | | $57.0 | | $58.5 | | $47.1 | | $50.1 | | $9.9 | | $8.4 |
|
Adjusted FFO per diluted share(1) | | $0.63 | | $0.65 | | $0.51 | | $0.55 | | $0.12 | | $0.10 |
(1) See tables later in this press release for a
description of same-property information and reconciliations from net
income (loss) to non-GAAP financial measures, including Earnings Before
Interest, Taxes, Depreciation and Amortization ("EBITDA"), Adjusted
EBITDA, Adjusted Funds from Operations ("FFO") and Adjusted FFO per
share.
For the details as to which hotels are included in Same-Property
Revenue Per Available Room (“RevPAR”) and Same-Property EBITDA appearing
in the table above and elsewhere in this press release, refer to the
Same-Property Inclusion Reference Table later in this press release.
“We are encouraged by the improved business travel demand that we
experienced during the first quarter, which was much stronger than
expected,” said Jon E. Bortz, Chairman, President and Chief Executive
Officer of Pebblebrook Hotel Trust. “These positive business travel
trends include increased short-term group and transient bookings, fewer
cancellations, better group attendance and increased overall group
spend, as well as solid demand from the leisure segment. These trends
seem to be continuing into the second quarter.”
If any of the foregoing estimates and assumptions prove to be
inaccurate, actual results may vary, and could vary significantly, from
the outlook estimates shown above. This update is based upon information
available to the Company as of today and has not been audited.
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 28 hotels, with a total of
6,973 guest rooms. The Company owns hotels located in 9 states and the
District of Columbia, including: Los Angeles, California (Beverly Hills,
Santa Monica and West Hollywood); San Diego, California; San Francisco,
California; Washington, DC; Coral Gables, Florida; Naples, Florida;
Buckhead, Georgia; Boston, Massachusetts; Minneapolis, Minnesota;
Portland, Oregon; Philadelphia, Pennsylvania; Nashville, Tennessee;
Columbia River Gorge, Washington; and Seattle, Washington. For more
information, please visit us at www.pebblebrookhotels.com
and follow us on Twitter at @PebblebrookPEB.
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 the Company’s net income, EBITDA, Adjusted FFO, Adjusted
EBITDA and RevPAR, 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; 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, 2017.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 press release is as of April 12, 2018.The
Company undertakes no duty to update the statements in this press
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 |
| Reconciliation of Outlook of Net Income (Loss) to FFO and
Adjusted FFO |
| ($ in millions, except per share data) |
| (Unaudited) |
| | | | | |
|
| | | | Three months ending March 31, 2018 |
| | | | Low | | High |
| | | | | |
|
| Net income (loss) | | $ | 22 | | $ | 24 |
|
Adjustments:
| | | | |
|
Depreciation and amortization
| |
|
25
| |
|
25
|
| FFO | | $ | 47 | | $ | 49 |
|
Distribution to preferred shareholders
| |
|
(4)
| |
|
(4)
|
| FFO available to common share and unit holders | | $ | 43 | | $ | 45 |
|
Non-cash ground rent
| | |
1
| | |
1
|
|
Gain on insurance settlements
| | |
(5)
| | |
(5)
|
|
Business interruption proceeds
| | |
3
| | |
3
|
|
Other
| | |
|
2
| |
|
2
|
| Adjusted FFO available to common share and unit holders | | $ | 44 | | $ | 45 |
| | | | | |
|
| FFO per common share - diluted | |
$
|
0.62
| |
$
|
0.64
|
| Adjusted FFO per common share - diluted | |
$
|
0.63
| |
$
|
0.65
|
| | | | | |
|
|
Weighted-average number of fully diluted common shares and units
| | |
69.4
| | |
69.4
|
To supplement the Company’s consolidated financial statements presented
in accordance with U.S. generally accepted accounting principles
("GAAP"), this press release includes certain non-GAAP financial
measures as defined under Securities and Exchange Commission ("SEC")
rules.
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 financial measures used by other companies. In
addition, these non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles. Non-GAAP financial
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 (“FFO”) - FFO represents net income (computed in
accordance with GAAP), excluding gains or losses from sales of
properties, 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 Company's operating performance
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 also evaluates its performance by reviewing Adjusted FFO
because it believes that adjusting 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 FFO, when combined with the primary
GAAP presentation of net income (loss), more completely describes the
Company's operating performance. The Company adjusts FFO for the
following items, which may occur in any period, and refers to this
measure as Adjusted FFO:
- Non-cash ground rent: The Company excludes the non-cash ground rent
expense, which is primarily made up of the straight-line rent impact
from a ground lease.
- Gain on insurance settlements: The Company excludes the gain on
insurance settlements because the Company believes that including these
non-cash adjustments in FFO does not reflect the underlying financial
performance of the Company and its hotels.
- Business interruption proceeds: The Company includes business
interruption proceeds because the Company believes that including these
proceeds reflects the underlying financial performance of the Company
and its hotels.
- Other: The Company excludes other expenses, which include hotel
acquisition and disposition costs, management/franchise contract
transition costs, interest expense adjustment for acquired liabilities,
capital lease adjustment, non-cash amortization of acquired intangibles
and estimated hurricane related repairs and cleanup costs, because the
Company believes that including these non-cash adjustments in FFO does
not reflect the underlying financial performance of the Company and its
hotels.
The Company’s presentation of FFO in accordance with the NAREIT White
Paper, and 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.
Any differences are a result of rounding.
| Pebblebrook Hotel Trust |
| Reconciliation of Outlook of Net Income (Loss) to EBITDA and
Adjusted EBITDA |
| ($ in millions) |
| (Unaudited) |
|
| | |
| |
| |
| | | | Three months ending March 31, 2018 |
| | | | Low | | High |
| | | | | |
|
| Net income (loss) | | $ | 22 | | $ | 24 |
|
Adjustments:
| | | | |
|
Interest expense and income tax expense
| | |
9
| | |
9
|
|
Depreciation and amortization
| |
|
25
| |
|
25
|
| EBITDA | | $ | 56 | | $ | 58 |
|
Non-cash ground rent
| | |
1
| | |
1
|
|
Gain on insurance settlements
| | |
(5)
| | |
(5)
|
|
Business interruption proceeds
| | |
3
| | |
3
|
|
Other
| | |
|
2
| |
|
2
|
| Adjusted EBITDA | | $ | 57 | | $ | 59 |
To supplement the Company’s consolidated financial statements presented
in accordance with U.S. generally accepted accounting principles
("GAAP"), this press release includes certain non-GAAP financial
measures as defined under Securities and Exchange Commission ("SEC")
rules.
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 financial measures used by other companies. In
addition, these non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles. Non-GAAP financial
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.
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 also evaluates its performance by reviewing Adjusted EBITDA
because it believes that adjusting EBITDA 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, when combined with the primary
GAAP presentation of net income (loss), more completely describes the
Company's operating performance. The Company adjusts EBITDA for the
following items, which may occur in any period, and refers to this
measure as Adjusted EBITDA:
- Non-cash ground rent: The Company excludes the non-cash ground rent
expense, which is primarily made up of the straight-line rent impact
from a ground lease.
- Gain on insurance settlements: The Company excludes the gain on
insurance settlements because the Company believes that including these
non-cash adjustments in FFO does not reflect the underlying financial
performance of the Company and its hotels.
- Business interruption proceeds: The Company includes business
interruption proceeds because the Company believes that including these
proceeds reflects the underlying financial performance of the Company
and its hotels.
- Other: The Company excludes other expenses, which include hotel
acquisition and disposition costs, management/franchise contract
transition costs, non-cash amortization of acquired intangibles and
estimated hurricane related repairs and cleanup costs, because the
Company believes that including these non-cash adjustments in EBITDA
does not reflect the underlying financial performance of the Company and
its hotels.
The Company’s presentation of EBITDA, and 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.
Any differences are a result of rounding.
|
|
| | |
| |
| |
| |
| |
| Pebblebrook Hotel Trust |
| Same-Property Inclusion Reference Table |
| | | | | | | | | | |
|
| Hotels |
| | Q1 | | Q2 | | Q3 | | Q4 |
| | | | | | | | | | |
|
|
Sir Francis Drake | |
X
| |
X
| |
X
| |
X
|
| InterContinental Buckhead Atlanta | |
X
| |
X
| |
X
| |
X
|
| Hotel Monaco Washington DC | |
X
| |
X
| |
X
| |
X
|
| The Grand Hotel Minneapolis | |
X
| |
X
| |
X
| |
X
|
| Skamania Lodge | |
X
| |
X
| |
X
| |
X
|
|
Le Méridien Delfina Santa Monica
| |
X
| |
X
| |
X
| |
X
|
|
Sofitel Philadelphia
| |
X
| |
X
| |
X
| |
X
|
| Argonaut Hotel | |
X
| |
X
| |
X
| |
X
|
| The Westin San Diego Gaslamp Quarter | |
X
| |
X
| |
X
| |
X
|
| Hotel Monaco Seattle | |
X
| |
X
| |
X
| |
X
|
|
Mondrian Los Angeles | |
X
| |
X
| |
X
| |
X
|
| W Boston | | |
X
| |
X
| |
X
| |
X
|
| Hotel Zetta San Francisco | |
X
| |
X
| |
X
| |
X
|
| Hotel Vintage Seattle | |
X
| |
X
| |
X
| |
X
|
| Hotel Vintage Portland | |
X
| |
X
| |
X
| |
X
|
| W Los Angeles - West Beverly Hills | |
X
| |
X
| |
X
| |
X
|
| Hotel Zelos San Francisco | |
X
| |
X
| |
X
| |
X
|
| Embassy Suites San Diego Bay - Downtown
| |
X
| |
X
| |
X
| |
X
|
| Hotel Modera | |
X
| |
X
| |
X
| |
X
|
| Hotel Zephyr Fisherman's Wharf | |
X
| |
X
| |
X
| |
X
|
| Hotel Zeppelin San Francisco | |
X
| |
X
| |
X
| |
X
|
|
The Nines, a Luxury Collection Hotel, Portland | |
X
| |
X
| |
X
| |
X
|
| Hotel Colonnade Coral Gables, a Tribute Portfolio Hotel | |
X
| |
X
| |
X
| |
X
|
| Hotel Palomar Los Angeles Beverly Hills | |
X
| |
X
| |
X
| |
X
|
| Union Station Hotel Nashville, Autograph Collection
| |
X
| |
X
| |
X
| |
X
|
| Revere Hotel Boston Common | |
X
| |
X
| |
X
| |
X
|
| LaPlaya Beach Resort & Club | |
X
| |
X
| | | | |
| Hotel Zoe Fisherman's Wharf | |
X
| |
X
| |
X
| |
X
|
Notes:
A property marked with an "X" in a specific quarter denotes that the
same-property operating results of that property are included in the
Same-Property information provided elsewhere in this news release.
The Company’s first quarter Same-Property RevPAR Growth and
Same-Property EBITDA include all of the hotels the Company owned as of
March 31, 2018. Operating statistics and financial results may include
periods prior to the Company’s ownership of the hotels.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180412005847/en/
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial Officer
240-507-1330
Source: Pebblebrook Hotel Trust