Chatham Lodging Trust (CLDT) Q3 2023 Earnings: Net Income Drops to $7.5M
Chatham Lodging Trust (NYSE:CLDT) reported a decrease in net income to $7.5 million in Q3 2023, compared to $12.4 million in Q3 2022.
Adjusted FFO was $20.2 million in Q3 2023, down from $25.2 million in the same period last year.
Despite the decrease in net income, the company's Adjusted FFO per share beat estimates.
Chatham Lodging Trust (NYSE:CLDT) repaid in full $60 million of maturing mortgage debt and issued $83 million of fixed-rate debt during Q3 2023.
Chatham Lodging Trust (NYSE:CLDT), a lodging real estate investment trust (REIT), announced its Q3 2023 results on November 2, 2023. The company's net income for the quarter was $7.5 million, a decrease from $12.4 million in Q3 2022. Despite the decrease in net income, the company's Adjusted FFO per share surpassed estimates.
Financial Highlights
Chatham Lodging Trust (NYSE:CLDT) reported a decrease in Portfolio Revenue Per Available Room (RevPAR) by 2.6% to $147 compared to Q3 2022. The company's net income per diluted common share was $0.11, down from $0.21 in Q3 2022. The company generated margins of 37.9% in Q3 2023, compared to 43.6% in Q3 2022. Adjusted EBITDA declined by $4.5 million to $30.6 million from $35.1 million in Q3 2022.
During the quarter, Chatham Lodging Trust (NYSE:CLDT) repaid in full $60 million of maturing mortgage debt and issued $83 million of fixed-rate debt. The company's net debt to hotel investment ratio of 25% is the lowest level in a decade, positioning it well for future acquisitions or developments.
Company's Commentary
Jeffrey H. Fisher, Chathams president and chief executive officer, stated, We were pleased to beat consensus estimates for the third quarter. It was an unusual quarter for us given the loss of 2022 intern related room revenue and operating profit of approximately $8 million and $5 million, respectively, as tech companies earlier this year significantly cut expenses amid massive layoffs, hiring freezes and cost cutting initiatives."
Future Outlook
Despite the challenges faced in Q3 2023, Chatham Lodging Trust (NYSE:CLDT) remains optimistic about the future. The company is well-positioned to repay all debt due through 2025 and is poised for potential acquisitions or developments. However, due to the uncertainty surrounding the hotel industry, the company is not providing guidance at this time.
Explore the complete 8-K earnings release (here) from Chatham Lodging Trust for further details.
This article first appeared on GuruFocus.
