Chatham Lodging Trust(CLDT) - 2025 Q3 - Quarterly Results

Financial Performance - Net income applicable to common shareholders for Q3 2025 was $1.5 million, down from $2.3 million in Q3 2024, with diluted net income per share decreasing to $0.03 from $0.05[4] - Total revenue for the three months ended September 30, 2025, was $78,409,000, a decrease of 10.2% compared to $87,177,000 for the same period in 2024[39] - Room revenue decreased to $71,923,000 for the three months ended September 30, 2025, down 10.4% from $80,236,000 in 2024[39] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $1,544,000, compared to $2,264,000 in 2024, reflecting a decline of 31.7%[40] - Funds From Operations (FFO) attributable to common share and unit holders for the three months ended September 30, 2025, was $15,762,000, down from $17,169,000 in 2024, a decrease of 8.1%[42] - Adjusted EBITDA for the nine months ended September 30, 2025, was $72,646,000, compared to $79,795,000 in 2024, representing a decline of 9.0%[42] - The company reported an operating income of $9,933,000 for the three months ended September 30, 2025, down from $12,504,000 in 2024, a decrease of 20.5%[39] - For the three months ended September 30, 2025, net income was $3,587,000, compared to $4,339,000 for the same period in 2024, representing a decrease of approximately 17.3%[44] - Adjusted Hotel EBITDA for the three months ended September 30, 2025, was $28,759,000, down from $32,200,000 in the same period of 2024, a decline of about 10.8%[44] Revenue and Occupancy Metrics - RevPAR for the 34 comparable hotels declined 2.5% to $151 in Q3 2025 compared to $155 in Q3 2024, with average daily rate (ADR) decreasing 1.8% to $192 and occupancy slipping 60 basis points to 79%[5] - The company’s guidance for Q4 2025 projects RevPAR between $128 and $130, reflecting a decline of 3.5% to 2.5% compared to the previous year[21] - RevPAR is expected to decline by 2.5% to 3.5%[22] - Hotel EBITDA margins are expected to range from 29% to 31%, down from 34%[23] - Hotel EBITDA margin for the three months ended September 30, 2025, was 29.0%, compared to 31.0% in the same period of 2024, reflecting a decline of 2 percentage points[47] Debt and Financial Flexibility - Total debt outstanding as of September 30, 2025, was $343 million at an average interest rate of 6.3%, with net debt reduced to $330 million from $389 million at the end of 2024[18] - The leverage ratio was approximately 21% as of September 30, 2025, down from 23% at the end of 2024[19] - The company executed a new $500 million credit facility, up from the previous $400 million, enhancing financial flexibility[6] - Interest expense (excluding fee amortization) is anticipated to be $5.6 million, compared to $24.1 million previously[23] - Interest expense, including amortization of deferred fees, was $6,243,000 for the three months ended September 30, 2025, compared to $8,262,000 in the same period of 2024, a decrease of approximately 24.5%[44] Shareholder Returns and Capital Expenditures - Chatham repurchased approximately 255,213 common shares at an average price of $7.18 during Q3 2025, totaling about $1.8 million[14] - The board declared a common dividend of $0.09 per share, payable on October 15, 2025[20] - Capital expenditures for Q3 2025 were approximately $4 million, with a total budget of $26 million for the year, including renovations at three hotels[13] Assets and Liabilities - Total assets decreased to $1,182,540,000 as of September 30, 2025, from $1,254,681,000 as of December 31, 2024, a reduction of 5.7%[37] - Total liabilities decreased to $397,057,000 as of September 30, 2025, compared to $462,684,000 as of December 31, 2024, a decrease of 14.1%[37] Future Projections and Risks - Adjusted EBITDA is projected to be between $16.7 million and $18.3 million for the current period, with a prior period of $89.2 million to $90.8 million[23] - Adjusted FFO per diluted share is estimated to be between $0.14 and $0.17, compared to $0.96 to $0.99 in the previous period[23] - Corporate cash administrative expenses are projected at $2.5 million, with non-cash administrative expenses at $1.5 million[23] - The company will not pursue additional acquisitions, dispositions, debt, or equity issuance[22] - Forward-looking statements indicate potential risks including economic conditions, operating risks, and competition in the lodging industry[35] - The company emphasizes the importance of non-GAAP financial measures for evaluating operating performance, including FFO, Adjusted FFO, and EBITDA[26] Distributions and Share Count - The company declared distributions of $0.09 per common share for the three months ended September 30, 2025, up from $0.07 in 2024[40] - The weighted average number of common shares outstanding for the three months ended September 30, 2025, was 48,910,697, compared to 48,904,179 in 2024[40] Losses and Other Expenses - The company reported a loss on sale of hotel properties amounting to $14,000 for the three months ended September 30, 2025[44] - Corporate general and administrative expenses for the three months ended September 30, 2025, were $4,142,000, down from $4,395,000 in the same period of 2024, a reduction of about 5.8%[44] - The company anticipates a net loss attributable to common shares and common units between $3,005,000 and $1,376,000 for the year ended December 31, 2025[46]