LaSalle Hotel Properties Reports Third Quarter Results
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LaSalle Hotel Properties Reports Third Quarter Results
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2007-10-18
FFO per Share Increases 15.5 Percent; Corporate EBITDA Improves 13.1 Percent
LaSalle Hotel Properties (NYSE:LHO) today reported net income to common shareholders of $20.2 million, or $0.50 per diluted share for the quarter ended September 30, 2007, compared to net income of $17.3 million, or $0.43 per diluted share for the prior year period.
For the quarter ended September 30, 2007, the Company generated funds from operations ("FFO") of $43.7 million versus $37.8 million for the same period of 2006. On a per diluted share basis, FFO for the third quarter was $1.09 versus $0.94 for the same period last year. The Company's earnings before interest, taxes, depreciation and amortization ("EBITDA") for the third quarter increased to $65.5 million from $57.9 million during the prior year period, an increase of 13.1 percent.
Room revenue per available room ("RevPAR") for the quarter ended September 30, 2007 versus the same period in 2006 increased 6.0 percent to $168.09. Average daily rate ("ADR") rose to $206.07, a 3.0 percent improvement, while occupancy also increased 3.0 percent to 81.6 percent from the prior year period.
"The fundamentals for the lodging industry remain favorable and we continue to see strong demand in the major urban markets," said Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "As the repositionings at our properties are completed later this year and in the early part of next year, we anticipate their performance to not only benefit from continuing favorable market conditions, but also reap the benefits from our extensive capital investments."
The Company's hotels generated $67.0 million of EBITDA for the third quarter compared with $62.1 million for the same period last year. Third quarter portfolio-wide EBITDA margin was 35.5%, an improvement of 121 basis points from the prior year.
As of the end of the third quarter 2007, the Company had total outstanding debt of $844.7 million. The Company's $300.0 million credit facility had an outstanding balance of $28.0 million as of September 30, 2007. Total debt to trailing 12 month Corporate EBITDA (as defined by our senior unsecured credit facility) equaled 4.2 times as of September 30, 2007.
For the nine months ended September 30, 2007, net income to common shareholders decreased to $55.3 million from $69.0 million for the prior year period. EBITDA year to date through the end of September increased to $189.3 million from $179.4 million for the prior year period. Net income and EBITDA include the $30.3 million gain on sale of the LaGuardia Marriott and $3.9 million write-off of the non-cash costs associated with the initial issuance of the Company's Series A Preferred Shares for the nine months ended September 30, 2007, and $38.4 million gain in joint venture equity pick-up related to the sale of the Chicago Marriott and the $0.8 million contingent litigation expense for the nine months ended September 30, 2006. For the first nine months of 2007, FFO rose to $93.6 million from $88.0 million in the prior year period or $2.33 per diluted share from $2.22 per diluted share. FFO for the nine months ended September 30, 2007 includes the negative impact from the $3.9 million non-cash write-off of the initial issuance costs of the Series A Preferred Shares due to their redemption in March 2007. In addition, FFO for the nine months ended September 30, 2006 includes the $0.8 million contingent litigation expense associated with our previously disclosed legal dispute with Meridien.
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