Pebblebrook Hotel Trust(PEB) - 2025 Q3 - Quarterly Results

Financial Performance - Net loss for Q3 2025 was $32.4 million, a decrease of 171.7% compared to a net income of $45.1 million in Q3 2024[2] - Total revenues for the three months ended September 30, 2025, were $398.723 million, a decrease of 1.99% compared to $404.530 million for the same period in 2024[36] - Net income attributable to common shareholders for the three months ended September 30, 2025, was a loss of $43.366 million, compared to a profit of $33.026 million in the same period of 2024[36] - For the three months ended September 30, 2025, the net income was a loss of $32.353 million, compared to a profit of $45.145 million in the same period of 2024[53] - Operating income for the nine months ended September 30, 2025, was $34.943 million, down from $106.656 million for the same period in 2024[36] - Funds from Operations (FFO) for the three months ended September 30, 2025, was $71.688 million, down from $104.519 million in 2024, representing a decrease of 31.4%[53] - Adjusted FFO available to common share and unit holders for the three months ended September 30, 2025, was $60.160 million, compared to $71.671 million in 2024, a decrease of 16.1%[55] Revenue and Expenses - Same-Property Total RevPAR decreased by 1.5% year-over-year to $362, with occupancy increasing nearly 190 basis points and ADR declining by 5.4%[2] - Total hotel operating expenses for the three months ended September 30, 2025, were $259.052 million, an increase of 0.4% from $257.020 million in 2024[36] - Same-Property Total Expense variance for 2025 is projected to be between 2.0% and 2.7% against 2024[22] - Same-Property Total Revenue variance for 2025 is expected to range from (0.3%) to 0.8% compared to 2024[22] - Same-Property expenses totaled $292.261 million for the three months ended September 30, 2025, compared to $290.119 million in 2024[76] Outlook and Projections - The 2025 outlook for Adjusted EBITDAre is revised to a range of $332.5 to $341.5 million, with a midpoint reduction of $3.0 million[2] - For Q4 2025, the company anticipates a net loss between ($22.2 million) and ($13.2 million), with Adjusted EBITDAre expected to be between $59.7 million and $68.7 million[23] - The company expects Same-Property Hotel EBITDA for Q4 2025 to be between $59.4 million and $68.4 million, with a variance against 2024 of (6.7%) to 7.4%[24] - The company expects a net loss of between $67 million and $58 million for the year ending December 31, 2025[59] - The projected FFO for the year ending December 31, 2025, is between $202 million and $211 million[59] - Adjusted EBITDAre for the year ending December 31, 2025, is projected to be between $333 million and $342 million[61] Capital and Investments - Capital investments in Q3 totaled $14.2 million, with a full-year expectation of $65 to $75 million[2] - The company completed a $400 million private offering of 1.625% Convertible Notes due 2030, enhancing liquidity and lowering borrowing costs[2] - The balance sheet ended Q3 with $232 million in cash and a sector-low 4.1% weighted average interest rate[2] - The company plans to utilize cash flow to address the remaining $350 million of Convertible Notes maturing in December 2026[2] Property and Market Performance - Same-Property Occupancy increased to 79.9% for the three months ended September 30, 2025, up from 78.0% in 2024, reflecting a 2.4% increase[64] - Same-Property Average Daily Rate (ADR) decreased by 5.4% to $290.25 for the three months ended September 30, 2025, compared to $306.78 in 2024[64] - Same-Property Revenue Per Available Room (RevPAR) decreased by 3.1% to $231.84 for the three months ended September 30, 2025, compared to $239.34 in 2024[64] - Same-Property RevPAR for Q4 2025 is projected to be between $188 and $194, with a variance against 2024 expected to range from (1.25%) to 2.0%[24] - For the three months ended September 30, 2025, Same-Property RevPAR increased by 8.3% in San Francisco and 8.1% in Other Resort Markets compared to 2024[70] Impairment and Other Expenses - Impairment expenses for the three months ended September 30, 2025, were $46.497 million, significantly higher than $1.908 million in the same period of 2024[36] - The company reported an impairment of $46.497 million for the three months ended September 30, 2025, compared to $1.908 million in 2024[55] Assets and Liabilities - Total assets as of September 30, 2025, are reported at $5,554.25 million, a decrease from $5,693.34 million as of December 31, 2024[34] - Total liabilities as of September 30, 2025, amount to $2,946.66 million, compared to $2,905.46 million at the end of 2024[34] Other Information - The company owns 46 hotels and resorts, totaling approximately 12,000 guest rooms across 13 urban and resort markets[26] - The company anticipates an estimated $2.0 million from an expected initial business interruption insurance income settlement related to LaPlaya due to Hurricane Milton[24] - The company excluded Newport Harbor Island Resort from Q1 and Q2 2025 due to its redevelopment[71] - The company anticipates growth in Same-Property RevPAR and Total Revenue for 2025, excluding certain properties from the calculations[86]