![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Hospitality Properties Trust - Hospitality Properties Trust Preferred Stock | NASDAQ:HPTRP | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 25.10 | 25.10 | 25.14 | 0 | 01:00:00 |
Second Quarter Net Income Available for Common Shareholders of $0.37 Per Share
Second Quarter Normalized FFO Available for Common Shareholders of $1.06 Per Share
Hospitality Properties Trust (Nasdaq: HPT) today announced its financial results for the quarter and six months ended June 30, 2017.
Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 ($ in thousands, except per share and RevPAR data) Net income available for common shareholders $ 60,699 $ 50,895 $ 86,542 $ 97,780 Net income available for common shareholders per share $ 0.37 $ 0.34 $ 0.53 $ 0.65 Adjusted EBITDA (1) $ 220,297 $ 215,608 $ 414,873 $ 403,311 Normalized FFO available for common shareholders (1) $ 173,604 $ 165,714 $ 322,411 $ 305,868 Normalized FFO available for common shareholders per share (1) $ 1.06 $ 1.09 $ 1.96 $ 2.02Portfolio Performance
Comparable hotel RevPAR $ 101.97 $ 102.30 $ 95.60 $ 95.28 Change in comparable hotel RevPAR (0.3 %) — 0.3 % — RevPAR (all hotels) $ 103.38 $ 103.59 $ 96.47 $ 96.11 Change in RevPAR (all hotels) (0.2 %) — 0.4 % — Coverage of HPT’s minimum returns and rents for hotels 1.26x 1.34x 1.07x 1.13x Coverage of HPT's minimum rents for travel centers 1.62x 1.64x 1.41x 1.50x(1) Reconciliations of net income determined in accordance with U.S. generally accepted accounting principles, or GAAP, to earnings before interest, taxes, depreciation and amortization, or EBITDA, and EBITDA as adjusted, or Adjusted EBITDA, and net income available for common shareholders determined in accordance with GAAP to funds from operations, or FFO, available for common shareholders, and Normalized FFO available for common shareholders, for the three and six months ended June 30, 2017 and 2016 appear later in this press release.
John Murray, President and Chief Operating Officer of HPT, made the following statement regarding today's announcement:
“HPT’s second quarter 2017 comparable hotel RevPAR declined by 0.3% compared to the same period last year due to various factors including a continued sluggish economy and room supply growth. Nonetheless, we had continued high occupancy, increases in average daily rate and solid coverage of our minimum returns. Also, our TA properties generated solid performance this quarter with both fuel and non-fuel margins increasing versus the same period last year and steady rent coverage despite rent increases of over 5%.”
Results for the Three and Six Months Ended June 30, 2017 and Recent Activities:
Conference Call:
On Wednesday, August 9, 2017, at 10:00 a.m. Eastern Time, John Murray, President and Chief Operating Officer, and Mark Kleifges, Chief Financial Officer and Treasurer, will host a conference call to discuss HPT's second quarter 2017 financial results. The conference call telephone number is (877) 329-3720. Participants calling from outside the United States and Canada should dial (412) 317-5434. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through Wednesday, August 16, 2017. To hear the replay, dial (412) 317-0088. The replay pass code is 10110424.
A live audio webcast of the conference call will also be available in a listen only mode on HPT’s website, which is located at www.hptreit.com. Participants wanting to access the webcast should visit HPT’s website about five minutes before the call. The archived webcast will be available for replay on HPT’s website for about one week after the call. The transcription, recording and retransmission in any way of HPT’s second quarter conference call is strictly prohibited without the prior written consent of HPT.
Supplemental Data:
A copy of HPT’s Second Quarter 2017 Supplemental Operating and Financial Data is available for download at HPT’s website, www.hptreit.com. HPT’s website is not incorporated as part of this press release.
Hospitality Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and travel centers located in 45 states, Puerto Rico and Canada. HPT’s properties are operated under long term management or lease agreements. HPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.
Please see the following pages for a more detailed statement of HPT’s operating results and financial condition and for an explanation of HPT’s calculation of FFO available for common shareholders and Normalized FFO available for common shareholders, EBITDA and Adjusted EBITDA and a reconciliation of those amounts to amounts determined according to GAAP.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER HPT USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, HPT IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON HPT’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY HPT’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
THE INFORMATION CONTAINED IN HPT’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER THE CAPTION “RISK FACTORS” IN HPT’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM HPT’S FORWARD LOOKING STATEMENTS. HPT’S FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, HPT DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
HOSPITALITY PROPERTIES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues: Hotel operating revenues (1) $ 488,477 $ 471,910 $ 896,064 $ 868,413 Rental income (2) 80,971 77,293 160,759 153,552 FF&E reserve income (3) 1,155 1,096 2,382 2,452 Total revenues 570,603 550,299 1,059,205 1,024,417 Expenses: Hotel operating expenses (1) 339,549 324,922 622,272 601,227 Depreciation and amortization 95,155 88,782 188,606 176,053 General and administrative (4) 30,347 37,365 62,693 53,388 Acquisition related costs (5) — 117 — 729 Total expenses 465,051 451,186 873,571 831,397 Operating income 105,552 99,113 185,634 193,020 Dividend income 626 749 1,252 749 Interest income 122 40 379 138 Interest expense (including amortization of debt issuance costs and debt discounts and premiums of $2,194, $2,127, $4,346 and $3,993, respectively) (45,189 ) (41,698 ) (88,755 ) (83,284 ) Loss on early extinguishment of debt (6) — — — (70 ) Income before income taxes and equity in earnings of an investee 61,111 58,204 98,510 110,553 Income tax expense (786 ) (2,160 ) (1,142 ) (2,535 ) Equity in earnings of an investee 374 17 502 94 Net income 60,699 56,061 97,870 108,112 Preferred distributions — (5,166 ) (1,435 ) (10,332 ) Excess of liquidation preference over carrying value of preferred shares redeemed (7) — — (9,893 ) — Net income available for common shareholders $ 60,699 $ 50,895 $ 86,542 $ 97,780 Weighted average common shares outstanding (basic) 164,123 151,408 164,121 151,405 Weighted average common shares outstanding (diluted) 164,165 151,442 164,157 151,428 Net income available for common shareholders per common share (basic and diluted) $ 0.37 $ 0.34 $ 0.53 $ 0.65See Notes on pages 11 and 12
HOSPITALITY PROPERTIES TRUST
RECONCILIATIONS OF FUNDS FROM OPERATIONS,
NORMALIZED FUNDS FROM OPERATIONS, EBITDA AND ADJUSTED EBITDA
(amounts in thousands, except share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Calculation of Funds from Operations (FFO) and Normalized FFO available for common shareholders: (8) Net income available for common shareholders $ 60,699 $ 50,895 $ 86,542 $ 97,780Add:
Depreciation and amortization
95,155 88,782 188,606 176,053 FFO available for common shareholders 155,854 139,677 275,148 273,833Add:
Acquisition related costs (5)
— 117 — 729 Estimated business management incentive fees (4) 17,750 25,920 37,370 31,236 Loss on early extinguishment of debt (6) — — — 70 Excess of liquidation preference over carrying value of preferred shares redeemed (7) — — 9,893 — Normalized FFO available for common shareholders $ 173,604 $ 165,714 $ 322,411 $ 305,868 Weighted average common shares outstanding (basic) 164,123 151,408 164,121 151,405 Weighted average common shares outstanding (diluted) 164,165 151,442 164,157 151,428 Basic and diluted per common share amounts: FFO available for common shareholders $ 0.95 $ 0.92 $ 1.68 $ 1.81 Normalized FFO available for common shareholders $ 1.06 $ 1.09 $ 1.96 $ 2.02 Distributions declared per share $ 0.52 $ 0.51 $ 1.03 $ 1.01 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Calculation of EBITDA and Adjusted EBITDA: (9) Net income $ 60,699 $ 56,061 $ 97,870 $ 108,112Add:
Interest expense
45,189 41,698 88,755 83,284 Income tax expense 786 2,160 1,142 2,535 Depreciation and amortization 95,155 88,782 188,606 176,053 EBITDA 201,829 188,701 376,373 369,984Add:
Acquisition related costs (5)
— 117 — 729 General and administrative expense paid in common shares (10) 718 870 1,130 1,292 Estimated business management incentive fees (4) 17,750 25,920 37,370 31,236 Loss on early extinguishment of debt (6) — — — 70 Adjusted EBITDA $ 220,297 $ 215,608 $ 414,873 $ 403,311See Notes on pages 11 and 12
(1) At June 30, 2017, HPT owned 310 hotels; 307 of these hotels were managed by hotel operating companies and three hotels were leased to hotel operating companies. At June 30, 2017, HPT also owned 199 travel centers; all 199 of these travel centers were leased to a travel center operating company under five lease agreements. HPT’s condensed consolidated statements of income include hotel operating revenues and expenses of managed hotels and rental income from its leased hotels and travel centers. The net operating results of HPT’s managed hotel portfolios exceeded the minimum returns due to HPT in both the three months ended June 30, 2017 and 2016. Certain of HPT's managed hotels had net operating results that were, in the aggregate, $14,299 and $11,544 less than the minimum returns due to HPT in the six months ended June 30, 2017 and 2016, respectively. When the managers of these hotels fund the shortfalls under the terms of HPT’s operating agreements or their guarantees, HPT reflects such fundings (including security deposit applications) in its condensed consolidated statements of income as a reduction of hotel operating expenses. There was no reduction to hotel operating expenses in the three months ended June 30, 2017 or 2016 and reductions of $3,716 and $1,766 in the six months ended June 30, 2017 and 2016, respectively, as a result of such fundings. HPT had shortfalls at certain of its managed hotel portfolios not funded by the managers of these hotels under the terms of its operating agreements of $10,583 and $9,778 in the six months ended June 30, 2017 and 2016, respectively, which represent the unguaranteed portions of HPT's minimum returns from Sonesta. Certain of HPT’s managed hotel portfolios had net operating results that were, in the aggregate, $36,559 and $43,440 more than the minimum returns due to HPT in the three months ended June 30, 2017 and 2016, respectively, and $36,724 and $46,918 more than the minimum returns due to HPT in the six months ended June 30, 2017 and 2016, respectively. Certain guarantees to HPT and security deposits held by HPT may be replenished by a share of these excess cash flows from the applicable hotel operations pursuant to the terms of the respective operating agreements or the guarantees. When these guarantees and security deposits are replenished by cash flows from hotel operations, HPT reflects such replenishments in its condensed consolidated statements of income as an increase to hotel operating expenses. Hotel operating expenses were increased by $14,682 and $20,057 in the three months ended June 30, 2017 and 2016, respectively, and $13,240 and $19,968 in the six months ended June 30, 2017 and 2016, respectively, as a result of such replenishments.
(2) Rental income includes $3,113 and $3,693 in the three months ended June 30, 2017 and 2016, respectively, and $6,121 and $7,445 in the six months ended June 30, 2017 and 2016, respectively, of adjustments necessary to record scheduled rent increases under certain of HPT’s leases, the deferred rent obligations under HPT’s travel center leases and the estimated future payments to HPT under its travel center leases for the cost of removing underground storage tanks on a straight line basis.
(3) Various percentages of total sales at certain of HPT’s hotels are escrowed as reserves for future renovations or refurbishment, or FF&E reserve escrows. HPT owns all the FF&E reserve escrows for its hotels. HPT reports deposits by its tenants into the escrow accounts under its hotel leases as FF&E reserve income. HPT does not report the amounts which are escrowed as FF&E reserves for its managed hotels as FF&E reserve income.
(4) Incentive fees under HPT’s business management agreement are payable after the end of each calendar year, are calculated based on common share total return, as defined, and are included in general and administrative expense in HPT’s condensed consolidated statements of income. In calculating net income in accordance with GAAP, HPT recognizes estimated business management incentive fee expense, if any, in the first, second and third quarters. Although HPT recognizes this expense, if any, in the first, second and third quarters for purposes of calculating net income, HPT does not include these amounts in the calculation of Normalized FFO available for common shareholders or Adjusted EBITDA until the fourth quarter, which is when the business management incentive fee expense amount for the year, if any, is determined. Net income includes $17,750 and $25,920 of estimated business management incentive fee expense in the three months ended June 30, 2017 and 2016, respectively, and $37,370 and $31,236 of estimated business management incentive fee expense in the six months ended June 30, 2017 and 2016, respectively.
(5) Represents costs associated with HPT’s acquisition activities. Acquisition costs incurred during the 2017 periods have been capitalized in purchase accounting pursuant to a change in GAAP.
(6) HPT recorded a loss on early extinguishment of debt of $70 in the six months ended June 30, 2016, in connection with the redemption of certain senior unsecured notes.
(7) On February 10, 2017, HPT redeemed all 11,600,000 of its outstanding 7.125% Series D cumulative redeemable preferred shares at the stated liquidation preference of $25.00 per share plus accrued and unpaid distributions to the date of redemption (an aggregate of $291,435). The liquidation preference of the redeemed shares exceeded the carrying amount for the redeemed shares as of the date of redemption by $9,893, or $0.06 per share, and HPT reduced net income available to common shareholders in the six months ended June 30, 2017 by that excess amount.
(8) HPT calculates FFO available for common shareholders and Normalized FFO available for common shareholders as shown above. FFO available for common shareholders is calculated on the basis defined by The National Association of Real Estate Investment Trusts, or NAREIT, which is net income available for common shareholders calculated in accordance with GAAP, excluding any gain or loss on sale of properties and loss on impairment of real estate assets, if any, plus real estate depreciation and amortization, as well as certain other adjustments currently not applicable to HPT. HPT’s calculation of Normalized FFO available for common shareholders differs from NAREIT’s definition of FFO available for common shareholders because HPT includes business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of HPT’s core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year, and HPT excludes excess of liquidation preference over carrying value of preferred shares redeemed, acquisition related costs expensed under GAAP and loss on early extinguishment of debt. HPT considers FFO available for common shareholders and Normalized FFO available for common shareholders to be appropriate supplemental measures of operating performance for a REIT, along with net income, net income available for common shareholders and operating income. HPT believes that FFO available for common shareholders and Normalized FFO available for common shareholders provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense, FFO available for common shareholders and Normalized FFO available for common shareholders may facilitate a comparison of HPT’s operating performance between periods and with other REITs. FFO available for common shareholders and Normalized FFO available for common shareholders are among the factors considered by HPT’s Board of Trustees when determining the amount of distributions to shareholders. Other factors include, but are not limited to, requirements to maintain HPT’s qualification for taxation as a REIT, limitations in its credit agreement and public debt covenants, the availability to HPT of debt and equity capital, HPT’s expectation of its future capital requirements and operating performance and HPT’s expected needs for and availability of cash to pay its obligations. FFO available for common shareholders and Normalized FFO available for common shareholders do not represent cash generated by operating activities in accordance with GAAP and should not be considered as alternatives to net income, net income available for common shareholders or operating income as indicators of HPT’s operating performance or as measures of HPT’s liquidity. These measures should be considered in conjunction with net income, net income available for common shareholders and operating income as presented in HPT’s condensed consolidated statements of income. Other real estate companies and REITs may calculate FFO available for common shareholders and Normalized FFO available for common shareholders differently than HPT does.
(9) HPT calculates EBITDA and Adjusted EBITDA as shown above. HPT considers EBITDA and Adjusted EBITDA to be appropriate supplemental measures of its operating performance, along with net income, net income available for common shareholders and operating income. HPT believes that EBITDA and Adjusted EBITDA provide useful information to investors because by excluding the effects of certain historical amounts, such as interest, depreciation and amortization expense, EBITDA and Adjusted EBITDA may facilitate a comparison of current operating performance with HPT’s past operating performance. In calculating Adjusted EBITDA, HPT includes business management incentive fees only in the fourth quarter versus the quarter when they are recognized as expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of HPT’s core operating performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year. EBITDA and Adjusted EBITDA do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income, net income available for common shareholders or operating income as indicators of operating performance or as measures of HPT’s liquidity. These measures should be considered in conjunction with net income, net income available for common shareholders and operating income as presented in HPT’s condensed consolidated statements of income. Other real estate companies and REITs may calculate EBITDA and Adjusted EBITDA differently than HPT does.
(10) Amounts represent the equity compensation for HPT’s trustees, its officers and certain other employees of HPT’s manager.
HOSPITALITY PROPERTIES TRUST
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
(Unaudited)
June 30, December 31, 2017 2016 ASSETS Real estate properties: Land $ 1,627,010 $ 1,566,630 Buildings, improvements and equipment 7,487,816 7,156,759 Total real estate properties, gross 9,114,826 8,723,389 Accumulated depreciation (2,647,568 ) (2,513,996 ) Total real estate properties, net 6,467,258 6,209,393 Cash and cash equivalents 49,670 10,896 Restricted cash (FF&E reserve escrow) 58,911 60,456 Due from related persons 71,741 65,332 Other assets, net 325,868 288,151 Total assets $ 6,973,448 $ 6,634,228 LIABILITIES AND SHAREHOLDERS’ EQUITY Unsecured revolving credit facility $ 278,000 $ 191,000 Unsecured term loan, net 398,753 398,421 Senior unsecured notes, net 3,162,275 2,565,908 Convertible senior unsecured notes — 8,478 Security deposits 120,757 89,338 Accounts payable and other liabilities 190,017 188,053 Due to related persons 43,448 58,475 Dividends payable — 5,166 Total liabilities 4,193,250 3,504,839 Commitments and contingencies Shareholders’ equity: Preferred shares of beneficial interest, no par value; 100,000,000 shares authorized: Series D preferred shares; 7 1/8% cumulative redeemable; zero and 11,600,000 shares issued and outstanding, respectively, aggregate liquidation preference of zero and $290,000, respectively — 280,107 Common shares of beneficial interest, $.01 par value; 200,000,000 shares authorized; 164,282,700 and 164,268,199 shares issued and outstanding, respectively 1,643 1,643 Additional paid in capital 4,540,414 4,539,673 Cumulative net income 3,192,744 3,104,767 Cumulative other comprehensive income 52,412 39,583 Cumulative preferred distributions (343,412 ) (341,977 ) Cumulative common distributions (4,663,603 ) (4,494,407 ) Total shareholders’ equity 2,780,198 3,129,389 Total liabilities and shareholders’ equity $ 6,973,448 $ 6,634,228A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170809005275/en/
Hospitality Properties TrustKatie Strohacker, 617-796-8232Senior Director, Investor Relations
1 Year Hospitality Properties Trust Chart |
1 Month Hospitality Properties Trust Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions