LaSalle Hotel Properties (NYSE: LHO) today announced results for the quarter ended June 30, 2013. The Company’s results include the following:
|($'s in millions except per share/unit data)|
|Entire Portfolio (Including Park Central Hotel)|
|Adjusted EBITDA (1)||$||93.1||$||85.3||$||132.9||$||119.3|
|Adjusted FFO (1)||$||70.3||$||61.8||$||96.0||$||79.6|
|FFO per diluted share/unit (1)||$||0.72||$||0.65||$||0.99||$||0.82|
|Adjusted FFO per diluted share/unit (1)||$||0.73||$||0.72||$||1.00||$||0.93|
|Net income attributable to common shareholders||$||35.2||$||24.8||$||27.8||$||8.7|
|Net income attributable to common shareholders per diluted share||$||0.37||$||0.29||$||0.29||$||0.10|
|Portfolio excluding Park Central Hotel|
|Hotel EBITDA Margin||37.4%||31.4%|
|Hotel EBITDA Margin growth||99bps||81bps|
|Entire Portfolio (Including Park Central Hotel)|
|Hotel EBITDA Margin||36.8%||30.7%|
|Hotel EBITDA Margin growth||-17bps||-3bps|
|(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.|
Second Quarter Highlights
Results excluding Park Central Hotel (see Park Central and WestHouse Update below)
- RevPAR excluding Park Central Hotel: Room revenue per available room (“RevPAR”) for the quarter ended June 30, 2013 increased 6.7 percent to $191.00, as a result of a 4.9 percent increase in occupancy to 86.6 percent and a 1.8 percent increase in average daily rate (“ADR”) to $220.52.
- Hotel EBITDA Margin excluding Park Central Hotel: The Company’s hotel EBITDA margin for the second quarter was 37.4 percent, a 99 basis point improvement compared to the comparable prior year period.
Entire Portfolio Results
- RevPAR: RevPAR for the quarter ended June 30, 2013 increased 0.9 percent to $185.35, as a result of a 1.3 percent increase in ADR to $221.88 partially offset by a 0.4 percent decrease in occupancy to 83.5 percent.
- Hotel EBITDA Margin: The Company’s hotel EBITDA margin for the second quarter was 36.8 percent, a 17 basis point decrease compared to the comparable prior year period.
- Adjusted EBITDA: The Company’s adjusted EBITDA was $93.1 million, an increase of 9.1 percent over the second quarter of 2012 . During the second quarter of 2013, the Company’s financial results were impacted by $6.7 million of EBITDA displacement from the Park Central and WestHouse renovation project.
- Adjusted FFO: The Company generated second quarter adjusted FFO of $70.3 million, or $0.73 per diluted share/unit, compared to $61.8 million or $0.72 per diluted share/unit for the comparable prior year period.
Capital Markets: The Company completed the following capital
markets activities during the second quarter of 2013:
- On April 5, 2013, the Company redeemed 4,000,000 shares, or $100.0 million of the 6,348,888 outstanding 7.25% Series G Preferred Shares.
- On June 3, 2013, the Company retired the $59.8 million mortgage secured by Hotel Solamar. The mortgage carried an interest rate of 5.49 percent and the Company funded the mortgage payoff with proceeds from its senior unsecured credit facility, which has a current interest rate of 1.95 percent.
- During the quarter, the Company sold 721,706 common shares through its ATM program at an average net price of $27.29 per share for net proceeds of $19.7 million.
- Capital Investments: The Company invested $39.9 million of capital in its hotels, most of which pertained to the continuation of the Park Central Hotel and Westhouse renovation in New York City.
- Dividends: On June 14, 2013, the Company declared a second quarter 2013 dividend of $0.20 per common share of beneficial interest.
- The Company’s Board of Trustees has declared that it has increased the quarterly common dividend in the third quarter 2013 by 40 percent to $0.28 per share, an annualized rate of $1.12 per share.
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