Pebblebrook Hotel Trust(US:PEB)2025-11-05 21:12Financial Performance - For the three months ended September 30, 2025, same-property occupancy increased to 79.9% from 78.0% in 2024, while same-property RevPAR decreased to $231.84 from $239.34[137] - For the nine months ended September 30, 2025, FFO available to common share and unit holders was $138.8 million, down from $188.2 million in 2024[143] - Adjusted FFO available to common share and unit holders for the three months ended September 30, 2025, was $60.2 million, compared to $71.7 million in 2024[143] - The company reported a net loss of $32.4 million for the three months ended September 30, 2025, compared to a net income of $45.1 million in 2024[143] - Same-property total RevPAR for the three months ended September 30, 2025, was $362.12, compared to $367.47 in 2024[137] - Same-property ADR for the three months ended September 30, 2025, was $290.25, down from $306.78 in 2024[137] Revenue and Expenses - For the three months ended September 30, 2025, total revenues decreased by $5.8 million primarily due to demand decreases at several properties, partially offset by increases at 1 Hotel San Francisco and Newport Harbor Island Resort[147] - For the nine months ended September 30, 2025, total revenues increased by $10.8 million, driven by increases at Newport Harbor Island Resort and LaPlaya Beach Resort & Club, with demand increases at 1 Hotel San Francisco and The Westin Copley Place, Boston[152] - Total hotel operating expenses for the nine months ended September 30, 2025, increased by $19.3 million, primarily due to increased operations at several properties and higher wages and benefits[153] - An impairment loss of $46.5 million was recognized in 2025 related to three hotels, compared to an impairment loss of $1.9 million in 2024 due to hurricane damage[148][155] Debt and Financing - The company issued $400.0 million of 1.625% Convertible Senior Notes due January 2030 and repurchased $400.0 million of 1.75% Convertible Senior Notes due December 2026 at a discount, resulting in a gain on debt extinguishment of $7.4 million[139] - Interest expense decreased by $7.7 million in 2025, primarily due to the repurchase of $400.0 million of 1.75% Convertible Senior Notes, resulting in a gain on debt extinguishment of $7.4 million[150][157] - As of September 30, 2025, total debt at face value was $2.3 billion, with $916.7 million in unsecured term loans and $750.0 million in convertible senior notes[165] - Future fixed minimum payments associated with long-term operating and finance leases total $1.8 billion as of September 30, 2025, with $23.3 million payable on or before September 30, 2026[170] Cash Flow and Investments - Net cash provided by operating activities was $218.5 million for the nine months ended September 30, 2025, compared to $205.8 million for the same period in 2024[174] - Net cash used in investing activities was $66.0 million for the nine months ended September 30, 2025, down from $79.9 million in the same period of 2024, primarily due to capital improvements[175] - Net cash used in financing activities was $138.0 million for the nine months ended September 30, 2025, compared to $175.3 million for the same period in 2024, reflecting changes in debt and equity securities[176] - Total capital investments amounted to $70.7 million for the nine months ended September 30, 2025, with $56.6 million excluding specific repairs, compared to $100.9 million in the same period of 2024[178][180] - The company plans to invest between $65.0 million and $75.0 million in capital investments in 2025, focusing on hotel refurbishments and repositioning projects[181] Share Repurchase and Dividends - The company repurchased 5,623,656 common shares for an aggregate purchase price of $64.3 million, averaging $11.44 per share[139] - During the nine months ended September 30, 2025, the company repurchased 5,623,656 common shares for $64.3 million, averaging approximately $11.44 per share, with $66.6 million remaining for future repurchases[183] - The company repurchased 57,843 preferred shares for an aggregate price of $1.1 million during the same period, with $83.1 million remaining available for repurchase[187] - The company expects to pay approximately $47.1 million in aggregate annual dividends and distributions on preferred shares and units on or before September 30, 2026[172] Insurance and Economic Outlook - The company remains cautious about the broader economic backdrop and expects temporary softness in travel demand due to the recent federal government shutdown[134] - The company continues to work on its Hurricane Milton insurance claim while finalizing a settlement for Hurricane Helene[139] - The company received $5.3 million in property insurance proceeds during the nine months ended September 30, 2025, down from $21.7 million in the same period of 2024[178] - The company expects to maintain all hotels in good repair and condition, with capital investments administered by hotel management companies but subject to company approval[177] Interest Rate Exposure - As of September 30, 2025, the company had interest rate swap agreements with a notional amount of $955.0 million to hedge variable interest rates on loans[192] - 4.5% of the company's aggregate indebtedness, or $101.7 million, was subject to variable interest rates as of September 30, 2025, indicating exposure to interest rate fluctuations[193]