ANNAPOLIS, Md.--(BUSINESS WIRE)--Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate investment trust (REIT), reported today its financial results for the quarter ended June 30, 2016.
HIGHLIGHTS
- RevPAR: 2.2% pro forma increase for the hotel portfolio over the same period in 2015.
- Adjusted Hotel EBITDA Margin: 50 basis point pro forma increase to 36.9% for the hotel portfolio over the same period in 2015.
- Adjusted Hotel EBITDA: $62.6 million.
- Adjusted Corporate EBITDA: $57.9 million.
- Net income available to common shareholders: $26.1 million or $0.44 per diluted common share.
- Adjusted FFO: $43.9 million or $0.75 per diluted common share.
- Financings: Prepaid without penalty its previous Hyatt Regency Boston loan and entered into a new $150.0 million, 10-year loan at 4.25%.
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 June 30, 2016, the Trust owned 22 hotels. Since two of its hotels owned as of June 30, 2016 were acquired during 2015, the key operating metrics below reflect the pro forma operating results for those hotels for all, or a certain period, of the three and six months ended June 30, 2015.
FINANCING ACTIVITY
On April 6, 2016, the Trust prepaid without penalty its previous mortgage loan secured by the Hyatt Regency Boston, which had an outstanding principal balance at the time of $88.2 million, with a borrowing under its revolving credit facility. On June 23, 2016, the Trust entered into a new 10-year, $150.0 million, fixed-rate mortgage loan secured by the Hyatt Regency Boston. The loan carries a fixed interest rate of 4.25% per annum, with principal and interest payments based on a 30-year principal amortization. The Trust used the proceeds from the new loan to repay outstanding borrowings under its revolving credit facility.
DISPOSITION ACTIVITY
On April 14, 2016, the Trust sold the separate, five-room villa building and related land parcel at the Hyatt Centric Santa Barbara for a sale price of $2.1 million. The Trust recognized a $0.6 million gain on sale.
CAPITAL MARKETS ACTIVITY
The Trust has not sold any common shares under its continuous at-the-market (ATM) program or repurchased any common shares under its share repurchase program during 2016.
DIVIDENDS
On April 15, 2016, the Trust paid dividends in the amounts of $0.40 per share to its common shareholders and $0.484375 per share to its preferred shareholders, both of record as of March 31, 2016. On May 17, 2016, the Trust declared dividends in the amounts of $0.40 per share payable to its common shareholders and $0.484375 per share payable to its preferred shareholders, both of record as of June 30, 2016. Both dividends were paid on July 15, 2016.
2016 OUTLOOK
The Trust is updating its 2016 outlook to incorporate its second quarter results and recent operating trends and fundamentals.
ABOUT CHESAPEAKE LODGING TRUST
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. The Trust owns 22 hotels with an aggregate of 6,694 rooms in nine states and the District of Columbia. Additional information can be found on the Trust’s website atwww.chesapeakelodgingtrust.com.
