Research Desk Line-up: Sunstone Hotel Investors Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Pebblebrook Hotel Trust (NYSE: PEB) ("Pebblebrook"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=PEB, following the Company's release of its third quarter fiscal 2017 operating results on October 23, 2017. The Bethesda, Maryland-based real estate investment trust (REIT) raised its guidance for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the REIT - Hotel/Motel industry. Pro-TD has currently selected Sunstone Hotel Investors, Inc. (NYSE: SHO) for due-diligence and potential coverage as the Company announced on October 30, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Sunstone Hotel Investors when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on PEB; also brushing on SHO. With the links below you can directly download the report of your stock of interest free of charge at:
For the quarter ended September 30, 2017, Pebblebrook generated revenue of $201.79 million compared to revenue of $208.96 million in Q3 2016. The Company's revenue numbers beat analysts' estimates of $197.6 million.
Pebblebrook's net income was $30.57 million, or $0.38 per diluted share, in Q3 2017 compared to net loss of $35.54 million, or $0.61, for Q3 2016, primarily a result of prior year impairment losses related to property dispositions.
For Q3 2017, Pebblebrook's adjusted funds from operations (FFO) declined 8.4% to $55.8 million from $60.9 million in Q3 2016. The Company's adjusted FFO (AFFO) per diluted share decreased 4.8% to $0.80 on a y-o-y basis, beating Wall Street's expectations of $0.73 per share.
During Q3 2017, Pebblebrook's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) declined to $70.1 million from $80.4 million in Q3 2016, reflecting a decrease of 12.8%.
During Q3 2017, Pebblebrook's Same-Property revenue per available room (RevPAR) declined 3.1% to $229.68 on a y-o-y basis. Excluding San Francisco, the Company's Same-Property RevPAR declined 2.2% from the prior year. For Q3 2017, Pebblebrook's Same-Property ADR declined 3.0% to $256.56 on a y-o-y basis, and Same-Property Occupancy decreased 0.2% to 89.5%. For Q3 2017, Pebblebrook's hotels generated $74.7 million of Same-Property EBITDA declining 4.4% on a y-o-y basis. Same-Property EBITDA margin declined 164 basis points to 37.8% for the reported quarter.
Update on LaPlaya Beach Resort & Club
Pebblebrook's 189-room LaPlaya Beach Resort & Club closed on September 09, 2017, following a mandatory hurricane evacuation order issued by Collier County in advance of the arrival of Hurricane Irma. The resort incurred primarily wind and water-related damage, which the Company estimates will cost approximately $12.0 million to $15.0 million including all repair, remediation, replacement, and cleanup work.
Pebblebrook expects the resort to reopen in mid to late November 2017. The Company estimates that due to the disruption caused by Hurricane Irma, LaPlaya's hotel EBITDA was reduced by $0.1 million in September 2017, and it anticipates approximately $5.0 million less of EBITDA during Q4 2017.
During Q3 2017, Pebblebrook recorded a $2.8 million net impairment charge for the estimated damage to LaPlaya's assets, less the amount expected to be received from property insurance proceeds. Pebblebrook stated that the business interruption proceeds and the Company's deductible will not be recorded until these losses are fully determined and the related insurance proceeds are received.
Share Repurchase Program
During Q3 2017, Pebblebrook repurchased 3,800 common shares at an average price of $31.40 per share, and year-to-date has repurchased 3.2 million common shares at an average price of $28.77 per share totaling $93.4 million. Under the $250.0 million common share repurchase program, the Company is authorized to repurchase an additional $156.6 million of common shares.
Capital Markets and Balance Sheet
As of September 30, 2017, Pebblebrook had $876.2 million in debt at an effective weighted-average interest rate of 3.3%. The Company had $675.0 million outstanding in the form of unsecured term loans and $30.0 million outstanding on its $450.0 million senior unsecured revolving credit facility. As of September 30, 2017, Pebblebrook had $20.7 million of cash, cash equivalents, and restricted cash.
On September 30, 2017, as defined in the Company's credit agreement, Pebblebrook's fixed charge coverage ratio was 3.6 times and total net debt to trailing 12-month corporate EBITDA was 3.6 times.
Outlook for 2017
For Q4 2017, Pebblebrook is forecasting its adjusted FFO to range from $0.39 to $0.43 per share. The Company is estimating Same-Property RevPAR in the band of $188 million to $192 million and adjusted EBITDA in the range of $41.7 to $44.7 million for the upcoming quarter.
For FY17, Pebblebrook is forecasting adjusted FFO to be in the range of $173.8 million and $176.8 million, slightly higher than the midpoint of its previous guidance range of $171.7 million to $177.7 million. Meanwhile, the Company is expecting AFFO per share for FY17 to be in the band of $2.48 to $2.52, slightly above at the midpoint than its prior guidance range of $2.45 to $2.53 per share.
On Tuesday, October 31, 2017, the stock closed the trading session at $35.66, rising 1.19% from its previous closing price of $35.24. A total volume of 640.11 thousand shares have exchanged hands. Pebblebrook Hotel Trust's stock price soared 8.26% in the last three months, 15.74% in the past six months, and 46.87% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 19.87%. The stock is trading at a PE ratio of 27.75 and has a dividend yield of 4.26%. At Tuesday's closing price, the stock's net capitalization stands at $2.45 billion.
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