Legacy Hotels Real Estate Investment Trust Reports First Quarter Results
|
Legacy Hotels Real Estate Investment Trust Reports First Quarter Results
|
Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2007-05-04
Legacy Hotels Real Estate Investment Trust ("Legacy" or the
“Trust”) (TSX: LGY.UN) today announced its financial results for the quarter ended March 31,
2007. All amounts are in Canadian dollars unless otherwise indicated.
“Building on the strength of our 2006 performance, first quarter operating results improved in
every measure of performance driven by a 7.5% improvement in comparable revenue per
available room (“RevPAR”). This top-line improvement contributed to a 50% growth in first
quarter hotel EBITDA, most notable given the strength of the prior year’s results,” said Neil J.
Labatte, Legacy’s President and Chief Executive Officer. “Our portfolio continues to show
strength across the leisure and business customer segments, contributing to a 2.0 point
improvement in occupancies during the quarter.”
First Quarter Highlights
First quarter comparable portfolio RevPAR1 increased 7.5% as a result of a 4.1%
improvement in average daily rate1 (“ADR”) and a 2.0- point increase in occupancy.
RevPAR for the Fairmont and Delta managed portfolios grew 6.8% and 9.5%,
respectively.
Revenues increased 10.1% driven by the RevPAR growth and the addition of the Delta
Bow Valley hotel.
Hotel EBITDA1 grew 51.1% to $19.8 million, benefiting from a 310 basis point margin
improvement.
Diluted distributable income (loss)1 improved over 50% to a loss of $0.08 per unit
compared to a loss of $0.17 per unit in the prior year.
Diluted funds from operations1 (“FFO”) improved 70% to a loss of $0.03 per unit
compared to a loss of $0.10 per unit in the prior period.
Over 95% of Legacy’s maturing convertible debentures were converted to equity during
the past six months, improving Legacy’s overall debt to asset leverage to 40.6%.
In February 2007, Legacy successfully refinanced a $115.0 million mortgage, resulting in
approximately $0.5 million in annual interest savings.
In March 2007, Legacy acquired the fee interest in the Delta Beausejour hotel for
approximately $21.9 million, inclusive of closing costs. The acquisition was financed by
a $25.0 million mortgage on the property. This transaction combines Legacy’s existing
leasehold interest in the property, improves the Trust’s long-term position in the asset and
is expected to be beneficial to cash flow and earnings.
In March 2007, Legacy announced that its Board of Trustees formed a Special
Committee to evaluate strategic alternatives to maximize value for unit holders.
|
|
