RLJ Lodging (RLJ) Beats Q3 FFO and Revenue Estimates

Core Insights - RLJ Lodging reported quarterly funds from operations (FFO) of $0.27 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, but down from $0.40 per share a year ago, indicating a FFO surprise of +3.85% [1] - The company generated revenues of $330.05 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.09%, although this is a decline from $345.74 million in the same quarter last year [2] - RLJ Lodging has consistently surpassed consensus FFO estimates over the last four quarters, achieving this four times [2] Financial Performance - The FFO for the previous quarter was $0.48 per share, which was higher than the expected $0.46 per share, resulting in a surprise of +4.35% [1] - The current consensus FFO estimate for the upcoming quarter is $0.32, with projected revenues of $335.3 million, and for the current fiscal year, the estimate is $1.37 on revenues of $1.35 billion [7] Market Position - RLJ Lodging shares have underperformed, losing approximately 33.4% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The Zacks Rank for RLJ Lodging is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Context - The REIT and Equity Trust - Other industry, to which RLJ Lodging belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [8]