This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

LaSalle Hotel Properties Reports Third Quarter 2012 Results

LaSalle Hotel Properties (NYSE: LHO) today announced results for the quarter ended September 30, 2012. The Company's results include the following:
   
Third Quarter Year-to-Date
2012   2011 2012   2011
($'s in millions except per share/unit data)
 
Total Revenue $ 237.0 $ 199.1 $ 651.4 $ 540.0
Net income to common shareholders $ 26.5 $ 14.9 $ 35.2 $ 12.4
Net income to common shareholders per diluted share $ 0.31 $ 0.18 $ 0.41 $ 0.15
EBITDA (1) $ 81.3 $ 63.3 $ 191.2 $ 153.8
Adjusted EBITDA (1) $ 81.7 $ 62.8 $ 201.1 $ 155.2
FFO (1) $ 58.1 $ 41.9 $ 128.2 $ 95.0
Adjusted FFO (1) $ 58.4 $ 42.4 $ 138.0 $ 97.4
FFO per diluted share/unit (1) $ 0.67 $ 0.49 $ 1.49 $ 1.18
Adjusted FFO per diluted share/unit (1) $ 0.68 $ 0.50 $ 1.61 $ 1.21
 
RevPAR $ 178.43 $ 169.80 $ 162.26 $ 154.80
RevPAR growth 5.1 % 4.8 %
Hotel EBITDA Margin 35.9 % 34.1 % 32.6 % 31.1 %
Hotel EBITDA Margin growth 180 bps 155 bps
(1) See tables later in press release, which list adjustments that reconcile net income to earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, funds from operations ("FFO"), FFO per share/unit, adjusted FFO, adjusted FFO per share/unit and hotel EBITDA. EBITDA, adjusted EBITDA, FFO, FFO per share/unit, adjusted FFO, adjusted FFO per share/unit and hotel EBITDA are non-GAAP financial measures. See further discussion of these non-GAAP measures and reconciliations to net income later in this press release.
 

Third Quarter Highlights
  • RevPAR: Room revenue per available room (“RevPAR”) for the quarter ended September 30, 2012 increased 5.1 percent to $178.43, as a result of a 3.3 percent increase in average daily rate (“ADR”) to $205.75 and a 1.7 percent improvement in occupancy to 86.7 percent.
  • Hotel EBITDA Margin: The Company's hotel EBITDA margin for the third quarter was 35.9 percent, a 180 basis point improvement compared to the comparable prior year period.
  • Adjusted EBITDA: The Company's adjusted EBITDA was $81.7 million, an increase of 30.1 percent over the third quarter of 2011.
  • Adjusted FFO: The Company generated third quarter adjusted FFO of $58.4 million, or $0.68 per diluted share/unit, compared to $42.4 million or $0.50 per diluted share/unit for the comparable prior year period, an increase of 36.0 percent in adjusted FFO per diluted share/unit.
  • Acquisitions: On July 13, 2012, the Company invested $67.4 million to acquire the performing mezzanine loan secured by the equity interests in the entities that own Shutters on the Beach and Hotel Casa Del Mar in Santa Monica, California. The Company purchased the debt instrument for 93.6 percent of the $72.0 million face value of the loan. The fixed-rate, interest only coupon on the mezzanine loan is 9.76 percent at par value, which translates to a 10.4 percent interest rate on the Company's investment. The mezzanine loan matures on May 11, 2014.
  • Capital Markets: On August 2, 2012, the Company entered into a new $300.0 million unsecured loan. The five-year term loan matures on August 2, 2017, including a one-year extension subject to certain conditions. The term loan was swapped to a fixed interest rate for the full five-year term. The term loan's interest rate will be 2.68 percent when the Company's leverage ratio (as defined by the term loan) is between 4.0 and 4.75 times. $200.0 million of the loan proceeds were funded at closing. The Company has the flexibility to draw the remaining $100.0 million any time during the 95 days following closing and expects to draw these funds toward the end of the 95-day period.
  • Capital Investments: The Company invested $13.7 million of capital in its hotels.
  • Dividends: On September 12, 2012, the Company declared a third quarter 2012 dividend of $0.20 per common share of beneficial interest.

“We are pleased with the performance of our portfolio during the quarter,” said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. “We continued to see the bulk of our revenue increases come through improved average rate. This, in conjunction with our diligent asset management practices led to outstanding hotel EBITDA margin growth of 180 basis points. On the capital markets front, we closed on a very favorable five-year term loan, which enabled us to further reduce the balance on our senior unsecured credit facility.”

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs