RLJ Lodging Trust(US:RLJ)2025-11-06 20:35Revenue Performance - Total revenues decreased by $15.7 million to $330.0 million for the three months ended September 30, 2025, compared to $345.7 million for the same period in 2024[129]. - Total revenues decreased by $18.2 million to $1,021.3 million for the nine months ended September 30, 2025, compared to $1,039.5 million for the same period in 2024[143]. - Room revenue decreased by $16.2 million to $267.4 million for the three months ended September 30, 2025, primarily due to a $14.3 million decrease from comparable properties[130]. - Room revenue decreased by $22.8 million to $831.1 million for the nine months ended September 30, 2025, primarily due to a $19.0 million decrease from comparable properties[144]. Occupancy and Rates - Occupancy rate for comparable properties was 73.0% for the three months ended September 30, 2025, down from 75.4% in 2024[131]. - Occupancy rate for comparable properties was 72.6% for the nine months ended September 30, 2025, down from 73.9% in 2024[145]. - Average Daily Rate (ADR) decreased to $189.45 for the three months ended September 30, 2025, from $193.43 in 2024[131]. - Revenue per Available Room (RevPAR) decreased to $138.29 for the three months ended September 30, 2025, compared to $145.77 in 2024[131]. Expenses and Losses - Operating expenses increased by $3.3 million to $308.9 million for the three months ended September 30, 2025, from $305.6 million in 2024[128]. - Property operating expenses increased by $4.6 million to $666.5 million for the nine months ended September 30, 2025, from $661.9 million for the same period in 2024[148]. - Depreciation and amortization expense increased by $5.1 million to $139.1 million for the nine months ended September 30, 2025, primarily related to recently renovated hotels[150]. - General and administrative expense decreased by $6.3 million to $35.6 million for the nine months ended September 30, 2025, due to a decrease in non-cash compensation expense[152]. - Interest income decreased by $3.1 million to $10.1 million for the nine months ended September 30, 2025, attributed to lower interest rates and reduced cash holdings[154]. - Interest expense increased by $0.6 million to $83.7 million for the nine months ended September 30, 2025, compared to $83.2 million for the same period in 2024[155]. - Net loss attributable to common shareholders was $10.0 million for the three months ended September 30, 2025, compared to net income of $14.3 million in 2024[128]. - For the three months ended September 30, 2025, the net loss was $3.798 million compared to a net income of $20.643 million for the same period in 2024[161]. - The company recorded a net income of $28.0 million for the nine months ended September 30, 2025, a decrease of $34.7 million from $62.7 million in 2024[142]. - Funds From Operations (FFO) for the three months ended September 30, 2025, was $37.245 million, a decrease of 32% from $54.689 million in 2024[161]. - Adjusted FFO for the nine months ended September 30, 2025, was $160.684 million, down 16% from $191.634 million in 2024[161]. - EBITDA for the three months ended September 30, 2025, was $68.728 million, a decrease of 24% from $90.602 million in 2024[166]. Cash Flow and Investments - As of September 30, 2025, the company had $404.1 million in cash and cash equivalents, down from $433.3 million at December 31, 2024[168]. - Net cash flow provided by operating activities for the nine months ended September 30, 2025, was $180.9 million, a decrease from $214.4 million in 2024[170]. - The net cash flow used in investing activities for the nine months ended September 30, 2025, was $88.1 million, primarily due to $111.7 million in capital improvements[171]. - The net cash flow used in financing activities for the nine months ended September 30, 2025, totaled $122.1 million, mainly due to $100.0 million in repayment of the Revolver[173]. - Approximately $29.2 million was held in FF&E reserve accounts for future capital expenditures as of September 30, 2025[177]. Debt and Interest Rate Management - As of September 30, 2025, the company had approximately $1.2 billion of total variable rate debt outstanding, representing 54.1% of total indebtedness, with a weighted-average interest rate of 5.30% per annum[178]. - The total debt obligations as of September 30, 2025, amounted to $2.231 billion, with fixed rate debt totaling $1.025 billion and variable rate debt totaling $1.206 billion[180]. - The weighted-average interest rates for fixed rate debt are 3.90% and for variable rate debt are 5.30%[180]. - If market interest rates on variable rate debt increase by 1.00%, interest expense would decrease future earnings and cash flows by approximately $7.3 million annually[178]. - The estimated fair value of the company's fixed rate debt as of September 30, 2025, was $991.9 million, with a potential decrease of approximately $21.8 million if interest rates rise by 1.00%[182]. - The company has entered into derivative financial instruments such as interest rate swaps to mitigate interest rate risk, effectively locking the interest rate on a portion of its variable rate debt[179]. - 67.2% of the company's total indebtedness was fixed or effectively fixed after considering interest rate swaps[178]. - The company aims to limit the impact of interest rate fluctuations on earnings and cash flows while lowering overall borrowing costs[179]. - The company does not engage in derivative or interest rate transactions for speculative purposes[179]. - The principal repayments for variable rate debt include $406 million due in 2026, $500 million in 2027, and $300 million in 2028[180]. Asset Sales and Share Repurchase - The company sold one hotel property for a sales price of $24.3 million in 2025[117]. - The company sold one hotel property for $24.3 million during the nine months ended September 30, 2025, recording a net gain of $0.8 million[156]. - A new share repurchase program was approved to acquire up to $250.0 million of common and preferred shares from May 9, 2025, to May 8, 2026[117]. - The company refinanced a term loan to increase it to $300.0 million and extended the maturity to April 2028[117].