Chatham Lodging Trust(CLDT) - 2025 Q1 - Quarterly Results

Financial Performance - Net loss applicable to common shareholders decreased to $1 million in Q1 2025 from $7 million in Q1 2024, with diluted net loss per share improving from $(0.15) to $(0.01) [4] - Total revenue for Q1 2025 was $68,635,000, a slight increase of 0.28% compared to $68,443,000 in Q1 2024 [45] - Operating income for Q1 2025 was $8,308,000, significantly up from $977,000 in Q1 2024 [45] - Net income attributable to Chatham Lodging Trust for Q1 2025 was $1,536,000, compared to a net loss of $5,225,000 in Q1 2024 [45] - Funds From Operations (FFO) attributable to common share and unit holders for Q1 2025 was $6,880,000, down from $7,877,000 in Q1 2024 [47] - Adjusted EBITDA for Q1 2025 was $17,899,000, a decrease from $18,884,000 in Q1 2024 [47] - Total assets decreased to $1,226,310,000 as of March 31, 2025, from $1,254,681,000 at the end of 2024 [43] - Total liabilities decreased to $437,430,000 as of March 31, 2025, from $462,684,000 at the end of 2024 [43] Revenue and Occupancy Metrics - RevPAR increased by 4% to $127 in Q1 2025 compared to $122 in Q1 2024, with occupancy rising to 72% from 69% [4] - RevPAR for Silicon Valley hotels increased by 8% in Q1 2025, while Los Angeles hotels saw a 14% increase [11] - April's RevPAR declined by 4% due to slowing demand and holiday impacts, but May is forecasted to trend positively [7] - For Q2 2025, RevPAR is projected to decline by 0.5% to 2%, with total hotel revenue expected between $79.0 million and $80.2 million [27][28] Dividends and Shareholder Returns - The quarterly common dividend was raised by 29% to $0.09 per share, up from $0.07 per share [4] - The board raised its quarterly common dividend by 29 percent to $0.09 per share, payable on April 15, 2025 [24] - The company declared distributions of $0.09 per common share in Q1 2025, up from $0.07 in Q1 2024 [45] Capital Expenditures and Investments - Capital expenditures in Q1 2025 were approximately $7 million, with a total capital expenditure budget of $26 million for 2025 [20] - The company completed the sale of five hotels for total proceeds of $83 million, with an average age of 23 years [4] - The sale of the Courtyard Houston, Texas, in April contributed to paying down borrowings on the credit facility [28] - The company completed renovations at the Residence Inn Bellevue and Hilton Garden Inn Portsmouth in April [28] Debt and Financial Ratios - As of March 31, 2025, the company had net debt of $365 million, down from $389 million as of December 31, 2024 [22] - The leverage ratio was approximately 22 percent, down from 23 percent on December 31, 2024 [23] - The average interest rate on total debt outstanding as of March 31, 2025, was 6.4 percent [22] Future Projections - Adjusted EBITDA for 2025 is projected to be between $89 million and $93 million, with Adjusted FFO expected between $49 million and $53 million [27] - For the three months ended June 30, 2025, net income was between $3,802 million and $5,818 million, while for the year ended December 31, 2025, it ranged from $4,634 million to $8,521 million [51] - Adjusted FFO attributable to common share and unit holders for the three months ended June 30, 2025, was between $16,643 million and $18,659 million, and for the year ended December 31, 2025, it was between $49,023 million and $52,910 million [51] - Total revenue for the three months was between $79,378 million and $80,478 million, and for the year, it ranged from $296,461 million to $299,129 million [52] - Hotel EBITDA margin for the three months ended June 30, 2025, was between 37.5% and 39.5%, while for the year, it was between 34.0% and 35.0% [52] - EBITDA for the three months ended June 30, 2025, was between $25,164 million and $27,180 million, and for the year, it ranged from $89,734 million to $93,621 million [51] - Adjusted EBITDA for the three months ended June 30, 2025, was between $26,764 million and $28,780 million, and for the year, it was between $88,923 million and $92,810 million [51] Other Information - Approximately 65% of the company's hotel EBITDA over the last twelve months was generated from extended-stay hotels, which represent 61% of its portfolio [12] - The company owns 34 hotels totaling 5,164 rooms/suites across 14 states and the District of Columbia [31] - The weighted average number of common shares outstanding for Q1 2025 was 48,960,924, compared to 48,891,994 in Q1 2024 [45] - The company reported a loss per common share of $0.01 in Q1 2025, an improvement from a loss of $0.15 in Q1 2024 [45] - The company does not anticipate any additional acquisitions, dispositions, or debt or equity issuance in the near term [28] - Interest expense, including amortization of deferred fees, was $6,469 million for the three months ended June 30, 2025, and $25,400 million for the year ended December 31, 2025 [51] - Depreciation and amortization for the three months ended June 30, 2025, was $14,893 million, and for the year, it was $59,700 million [51] - Preferred dividends for the three months and the year were consistently $2,000 million and $8,000 million, respectively [51] - Gain on sale of hotel properties was $0 for the three months ended June 30, 2025, and a loss of $7,118 million for the year ended December 31, 2025 [51]