Fourth Quarter Net Income Available for Common Shareholders of
$0.19 Per Share
Fourth Quarter Normalized FFO Available for Common Shareholders of
$0.54 Per Share
NEWTON, Mass.--(BUSINESS WIRE)--
Hospitality Properties Trust (Nasdaq: HPT) today announced its financial
results for the quarter and year ended December 31, 2017:
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Three Months Ended
December 31,
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Year Ended
December 31,
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2017
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2016
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2017
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2016
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($ in thousands, except per share and RevPAR data)
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Net income available for common shareholders
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$
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31,545
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$
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58,020
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$
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203,815
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$
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202,446
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Net income available for common shareholders per share
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$
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0.19
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$
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0.35
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$
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1.24
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$
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1.30
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Adjusted EBITDA (1)
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$
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135,312
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$
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136,989
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$
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773,654
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$
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750,814
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Normalized FFO available for common shareholders (1)
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$
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87,865
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$
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93,380
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$
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585,734
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$
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561,383
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Normalized FFO available for common shareholders per share (1)
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$
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0.54
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$
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0.57
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$
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3.57
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$
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3.60
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Portfolio Performance
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Comparable hotel RevPAR
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$
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88.79
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$
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85.41
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$
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95.55
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$
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94.50
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Change in comparable hotel RevPAR
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4.0
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%
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—
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1.1
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%
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—
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RevPAR (all hotels)
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$
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87.70
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$
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86.01
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$
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95.59
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$
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95.27
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Change in RevPAR (all hotels)
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2.0
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%
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—
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0.3
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%
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—
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Coverage of HPT’s minimum returns and rents for hotels
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0.91x
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0.88x
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1.06x
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1.10x
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Coverage of HPT's minimum rents for travel centers
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1.46x
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1.51x
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1.50x
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1.57x
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(1) Reconciliations of net income determined in accordance with U.S.
generally accepted accounting principles, or GAAP, to earnings before
interest, taxes, depreciation and amortization, or EBITDA, and EBITDA as
adjusted, or Adjusted EBITDA, and net income available for common
shareholders determined in accordance with GAAP to funds from
operations, or FFO, available for common shareholders, and Normalized
FFO available for common shareholders, for the quarters and years ended
December 31, 2017 and 2016 appear later in this press release.
John Murray, President and Chief Operating Officer of HPT, made the
following statement regarding today's announcement:
“HPT’s comparable hotel RevPAR grew 4.0% during the fourth quarter of
2017 compared to the prior year period, reflecting increases in both
rate and occupancy especially at hotels affected by relief efforts and
displaced residents caused by hurricanes and wildfires. For the year
ended December 31, 2017, aggregate coverage of our annual hotel minimum
returns and rents was 1.06 times.
Our TA properties generated steady performance this quarter. Total gross
margin was flat versus the same period last year as a decline in fuel
gross margin was offset by higher non-fuel margins and TA's efforts to
control operating expenses. For the year ended December 31, 2017, our
travel centers' rent coverage was 1.50 times."
Results for the Quarter and Year Ended December 31, 2017 and
Recent Activities:
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Net Income Available for Common Shareholders: Net income
available for common shareholders for the quarter ended December 31,
2017 was $31.5 million, or $0.19 per diluted share, compared to net
income available for common shareholders of $58.0 million, or $0.35
per diluted share, for the quarter ended December 31, 2016. Net income
available for common shareholders for the quarter ended December 31,
2017 includes $36.3 million, or $0.22 per diluted share, of business
management incentive fee expense and a $5.4 million, or $0.03 per
diluted share, tax benefit related to the new federal tax legislation
referred to as the Tax Cuts and Jobs Act, or the Tax Act. Net income
available for common shareholders for the quarter ended December 31,
2016 includes the reversal of $3.9 million, or $0.02 per diluted
share, of previously accrued business management incentive fee
expense. The weighted average number of diluted common shares
outstanding was 164.2 million and 164.1 million for the quarters ended
December 31, 2017 and 2016, respectively.
Net income
available for common shareholders for the year ended December 31, 2017
was $203.8 million, or $1.24 per diluted share, compared to net income
available for common shareholders of $202.4 million, or $1.30 per
diluted share, for the year ended December 31, 2016. Net income
available for common shareholders includes $74.6 million, or $0.45 per
diluted share, and $52.4 million, or $0.34 per diluted share, of
business management incentive fee expense for the years ended
December 31, 2017 and 2016, respectively. Net income available for
common shareholders for the year ended December 31, 2017 also includes
a $9.3 million, or $0.06 per diluted share, gain on sale of real
estate, and a $5.4 million, or $0.03 per diluted share, tax benefit
related to the Tax Act, and was reduced by $9.9 million, or $0.06 per
diluted share, for the amount by which the liquidation preference for
HPT's 7.125% Series D cumulative redeemable preferred shares that were
redeemed during the year exceeded the carrying value of those
preferred shares at the time of redemption. The weighted average
number of diluted common shares outstanding was 164.2 million and
156.1 million for the years ended December 31, 2017 and 2016,
respectively.
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Adjusted EBITDA: Adjusted EBITDA for the quarter ended
December 31, 2017 compared to the same period in 2016 decreased 1.2%
to $135.3 million.
Adjusted EBITDA for the year ended
December 31, 2017 compared to the same period in 2016 increased 3.0%
to $773.7 million.
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Normalized FFO Available for Common Shareholders: Normalized
FFO available for common shareholders for the quarter ended
December 31, 2017 were $87.9 million, or $0.54 per diluted share,
compared to Normalized FFO available for common shareholders of $93.4
million, or $0.57 per diluted share, for the quarter ended
December 31, 2016. Normalized FFO available for common shareholders
includes $74.6 million, or $0.45 per diluted share, and $52.4 million,
or $0.34 per diluted share, of business management incentive fee
expense for the quarters ended December 31, 2017 and 2016,
respectively.
Normalized FFO available for common
shareholders for the year ended December 31, 2017 were $585.7 million,
or $3.57 per diluted share, compared to Normalized FFO available for
common shareholders of $561.4 million, or $3.60 per diluted share, for
the year ended December 31, 2016. Normalized FFO available for common
shareholders includes $74.6 million, or $0.45 per diluted share, and
$52.4 million, or $0.34 per diluted share, of business management
incentive fee expense for the years ended December 31, 2017 and 2016,
respectively.
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Hotel RevPAR (comparable hotels): For the quarter ended
December 31, 2017 compared to the same period in 2016 for HPT’s 302
hotels that were owned continuously since October 1, 2016: average
daily rate, or ADR, increased 2.4% to $124.53; occupancy increased 1.1
percentage points to 71.3%; and revenue per available room, or RevPAR,
increased 4.0% to $88.79.
For the year ended December 31,
2017 compared to 2016 for HPT’s 299 hotels that were owned
continuously since January 1, 2016: ADR increased 1.0% to $126.05;
occupancy increased 0.1 percentage points to 75.8%; and RevPAR
increased 1.1% to $95.55.
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Hotel RevPAR (all hotels): For the quarter ended December 31,
2017 compared to the same period in 2016 for HPT’s 323 hotels: ADR
increased 2.3% to $125.47; occupancy decreased 0.2 percentage points
to 69.9%; and RevPAR increased 2.0% to $87.70.
For the year
ended December 31, 2017 compared to 2016 for HPT’s 323 hotels: ADR
increased 0.9% to $127.29; occupancy decreased 0.4 percentage points
to 75.1%; and RevPAR increased 0.3% to $95.59.
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Coverage of Minimum Returns and Rents: For the quarter ended
December 31, 2017, the aggregate coverage ratio of (x) total hotel
revenues minus all hotel expenses and FF&E reserve escrows which are
not subordinated to minimum returns and minimum rent payments to HPT
to (y) HPT’s minimum returns and rents due from hotels increased to
0.91x from 0.88x for the quarter ended December 31, 2016.
For
the year ended December 31, 2017, the aggregate coverage ratio of (x)
total hotel revenues minus all hotel expenses and FF&E reserve escrows
which are not subordinated to minimum returns and minimum rent
payments to HPT to (y) HPT’s minimum returns and rents due from hotels
decreased to 1.06x from 1.10x for the year ended December 31, 2016.
For
the quarter ended December 31, 2017, the aggregate coverage ratio of
(x) total travel center revenues less travel center expenses to (y)
HPT’s minimum rent due from leased travel centers decreased to 1.46x
from 1.51x for the quarter ended December 31, 2016.
For
the year ended December 31, 2017, the aggregate coverage ratio of (x)
total travel center revenues less travel center expenses to (y) HPT’s
minimum rent due from leased travel centers decreased to 1.50x from
1.57x for the year ended December 31, 2016.
As of
December 31, 2017, approximately 74% of HPT’s aggregate annual minimum
returns and rents were secured by guarantees or security deposits from
HPT’s managers and tenants pursuant to the terms of HPT’s operating
agreements.
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Financing Activities: In October 2017, HPT issued $400.0
million principal amount of 3.950% senior notes due 2028 in an
underwritten public offering. The proceeds from this offering of
$388.2 million after discounts and offering expenses were used to
repay amounts outstanding under HPT's revolving credit facility and
for general business purposes.
Also in October 2017, HPT
redeemed at par plus accrued interest all $350.0 million of its 6.70%
senior notes due 2018.
In February 2018, HPT issued $400.0
million principal amount of 4.375% senior notes due 2030 in an
underwritten public offering. The proceeds from this offering of
$386.5 million after discounts and offering expenses were used to
repay amounts outstanding under HPT's revolving credit facility and
for general business purposes.
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Tenants and Managers: As of December 31, 2017, HPT had
nine operating agreements with seven hotel operating companies for 323
hotels with 49,903 rooms, which represented 68% of HPT’s total annual
minimum returns and rents, and five lease agreements with one travel
center operating company for 199 travel centers, which represented 32%
of HPT’s total annual minimum returns and rents.
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Marriott Agreements: As of December 31, 2017, 122 of HPT’s
hotels were operated by subsidiaries of Marriott International, Inc.
(Nasdaq: MAR), or Marriott, under three agreements. HPT’s Marriott No.
1 agreement includes 53 hotels, and provides for annual minimum return
payments to HPT of $69.2 million as of December 31, 2017
(approximately $17.3 million per quarter). During the three months
ended December 31, 2017, HPT realized returns under its Marriott No. 1
agreement of $16.7 million. Because there is no guarantee or security
deposit for this agreement, the minimum returns HPT receives under
this agreement are limited to available hotel cash flows after payment
of operating expenses and funding of a FF&E reserve. HPT’s Marriott
No. 234 agreement includes 68 hotels and requires annual minimum
returns to HPT of $106.5 million as of December 31, 2017
(approximately $26.6 million per quarter). During the three months
ended December 31, 2017, HPT realized returns under its Marriott No.
234 agreement of $26.6 million. HPT’s Marriott No. 234 agreement is
partially secured by a security deposit and a limited guarantee from
Marriott; during the three months ended December 31, 2017, HPT reduced
the available security deposit by $0.5 million to cover shortfalls in
hotel cash flows available to pay the minimum returns due to HPT
during the period. At December 31, 2017, the available security
deposit from Marriott for the Marriott No. 234 agreement was $26.0
million and there was $30.7 million remaining under Marriott’s
guaranty for up to 90% of the minimum returns due to HPT to cover
future payment shortfalls if and after the available security deposit
is depleted. HPT's Marriott No. 5 agreement includes one resort hotel
in Kauai, HI which is leased to Marriott on a full recourse basis. The
contractual rent due to HPT for this hotel for the three months ended
December 31, 2017 of $2.5 million was paid to HPT.
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InterContinental Agreement: As of December 31, 2017, 99 of
HPT’s hotels were operated by subsidiaries of InterContinental Hotels
Group, plc, or InterContinental, under one agreement requiring annual
minimum returns and rents to HPT of $189.3 million (approximately
$47.3 million per quarter). During the three months ended December 31,
2017, HPT realized returns and rents under its InterContinental
agreement of $47.2 million, of which $0.4 million represents HPT's
share of hotel cash flows in excess of the minimum returns due to HPT
for the period. HPT’s InterContinental agreement is partially secured
by a security deposit. At December 31, 2017, the available
InterContinental security deposit which HPT held to pay future payment
shortfalls was at the contractually capped amount of $100.0 million.
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Wyndham Agreement: As of December 31, 2017, 22 of HPT’s hotels
were operated under a management agreement with a hotel subsidiary of
Wyndham Worldwide Corporation (NYSE: WYN), or Wyndham, requiring
annual minimum returns of $27.6 million as of December 31, 2017
(approximately $6.9 million per quarter). HPT also leases 48 vacation
units in one of the hotels to Wyndham Vacation Resorts, Inc., a
different subsidiary of Wyndham, which requires annual minimum rent of
$1.4 million (approximately $0.4 million per quarter). The guarantee
provided by Wyndham with respect to the lease is unlimited. The
guarantee provided by Wyndham with respect to the management agreement
is limited to $35.7 million. During the year ended December 31, 2017,
the hotels under the management agreement generated cash flows that
were less than the minimum returns due to HPT and this guaranty was
depleted. Nonetheless, during the year ended December 31, 2017, all
minimum amounts due to HPT under the management agreement and the
lease were paid to HPT.
HPT's agreement with the Wyndham
hotel subsidiary provides that if the hotels' cash flows available
after payment of hotel operating expenses are less than the minimum
returns due to HPT, to avoid default Wyndham is required to pay HPT
the greater of the available hotel cash flows and 85% of the
contractual minimum amount due. During January and February 2018,
Wyndham paid HPT 85% of the minimum returns due under the hotels'
management agreement, which payments were an aggregate of $689 less
than the minimum returns due for these months. The contractual rent
due to HPT under the lease for Wyndham's 48 vacation units for January
and February 2018 was paid to HPT.
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Morgans Agreement: As of December 31, 2017, HPT leases one
hotel to a subsidiary of Morgans Hotel Group Co., or Morgans,
requiring annual minimum rent to HPT of $7.6 million as of
December 31, 2017 (approximately $1.9 million per quarter). In
December 2016, HPT advised Morgans that the closing of its merger with
SBE Entertainment Group, LLC, or SBE, without HPT's consent was in
violation of the Morgans agreement, and HPT began a litigation in
California for unlawful detainer against Morgans and SBE. HPT is in
discussions with Morgans and SBE regarding this matter and is pursuing
remedies, which may include terminating the Morgans agreement. As of
February 28, 2018, all scheduled rent payments due to HPT under the
Morgans lease have been paid.
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Other Hotel Agreements: As of December 31, 2017, HPT’s
remaining 79 hotels were operated under three agreements: one
management agreement with Sonesta (49 hotels) requiring annual minimum
returns of $109.6 million as of December 31, 2017 (approximately $27.4
million per quarter) provided cash flows after payment of operating
expenses is sufficient to do so; one management agreement with a
subsidiary of Hyatt Hotels Corporation (NYSE: H), or Hyatt, (22
hotels) requiring annual minimum returns of $22.0 million as of
December 31, 2017 (approximately $5.5 million per quarter); and one
management agreement with a subsidiary of Carlson (eight hotels)
requiring annual minimum returns of $12.9 million as of December 31,
2017 (approximately $3.2 million per quarter). Minimum returns due to
HPT are partially guaranteed under the Hyatt and Carlson agreements.
There is no guarantee or security deposit for the Sonesta agreement.
The payments contractually due to HPT under these agreements for the
three months ended December 31, 2017 were paid to HPT.
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Travel Center Agreements: As of December 31, 2017, HPT’s 199
travel centers located along the U.S. Interstate Highway system were
leased to TravelCenters of America LLC (Nasdaq: TA), or TA, under five
lease agreements, which require aggregate annual minimum rents of
$284.4 million (approximately $71.1 million per quarter). As of
December 31, 2017, all payments due to HPT from TA under these leases
were current.
Conference Call:
On Thursday, March 1, 2018, at 10:00 a.m. Eastern Time, John Murray,
President and Chief Operating Officer, and Mark Kleifges, Chief
Financial Officer and Treasurer, will host a conference call to discuss
HPT's fourth quarter and full year 2017 financial results. The
conference call telephone number is (877) 329-3720. Participants calling
from outside the United States and Canada should dial (412) 317-5434. No
pass code is necessary to access the call from either number.
Participants should dial in about 15 minutes prior to the scheduled
start of the call. A replay of the conference call will be available
through Thursday, March 8, 2018. To hear the replay, dial (412)
317-0088. The replay pass code is 10115721.
A live audio webcast of the conference call will also be available in a
listen only mode on HPT’s website, which is located at www.hptreit.com.
Participants wanting to access the webcast should visit HPT’s website
about five minutes before the call. The archived webcast will be
available for replay on HPT’s website for about one week after the call. The
transcription, recording and retransmission in any way of HPT’s fourth
quarter conference call is strictly prohibited without the prior written
consent of HPT.
Supplemental Data:
A copy of HPT’s Fourth Quarter 2017 Supplemental Operating and Financial
Data is available for download at HPT’s website, www.hptreit.com.
HPT’s website is not incorporated as part of this press release.
Hospitality Properties Trust is a real estate investment trust, or REIT,
which owns a diverse portfolio of hotels and travel centers located in
45 states, Puerto Rico and Canada. HPT’s properties are operated under
long term management or lease agreements. HPT is managed by the
operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative
asset management company that is headquartered in Newton, Massachusetts.
Please see the following pages for a more detailed statement of HPT’s
operating results and financial condition and for an explanation of
HPT’s calculation of FFO available for common shareholders and
Normalized FFO available for common shareholders, EBITDA and Adjusted
EBITDA and a reconciliation of those amounts to amounts determined
according to GAAP.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER HPT USES
WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”,
“ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR
SIMILAR EXPRESSIONS, HPT IS MAKING FORWARD LOOKING STATEMENTS. THESE
FORWARD LOOKING STATEMENTS ARE BASED UPON HPT’S PRESENT INTENT, BELIEFS
OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO
OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
CONTAINED IN OR IMPLIED BY HPT’S FORWARD LOOKING STATEMENTS AS A RESULT
OF VARIOUS FACTORS. FOR EXAMPLE:
-
AS OF DECEMBER 31, 2017, APPROXIMATELY 74% OF HPT’S AGGREGATE ANNUAL
MINIMUM RETURNS AND RENTS WERE SECURED BY GUARANTEES OR SECURITY
DEPOSITS FROM HPT’S MANAGERS AND TENANTS. THIS MAY IMPLY THAT THESE
MINIMUM RETURNS AND RENTS WILL BE PAID. IN FACT, CERTAIN OF THESE
GUARANTEES AND SECURITY DEPOSITS ARE LIMITED IN AMOUNT AND DURATION
AND ALL THE GUARANTEES ARE SUBJECT TO THE GUARANTORS’ ABILITIES AND
WILLINGNESS TO PAY. HPT CANNOT BE SURE OF THE FUTURE FINANCIAL
PERFORMANCE OF HPT’S PROPERTIES AND WHETHER SUCH PERFORMANCE WILL
COVER HPT’S MINIMUM RETURNS AND RENTS, WHETHER THE GUARANTEES OR
SECURITY DEPOSITS WILL BE ADEQUATE TO COVER FUTURE SHORTFALLS IN THE
MINIMUM RETURNS OR RENTS DUE TO HPT WHICH THEY GUARANTY OR SECURE, OR
REGARDING HPT’S MANAGERS’, TENANTS’ OR GUARANTORS’ FUTURE ACTIONS IF
AND WHEN THE GUARANTEES AND SECURITY DEPOSITS EXPIRE OR ARE DEPLETED
OR THEIR ABILITIES OR WILLINGNESS TO PAY MINIMUM RETURNS AND RENTS
OWED TO HPT. MOREOVER, THE SECURITY DEPOSITS HPT HOLDS ARE NOT
SEGREGATED FROM HPT’S OTHER ASSETS AND THE APPLICATION OF SECURITY
DEPOSITS TO COVER PAYMENT SHORTFALLS WILL RESULT IN HPT RECORDING
INCOME, BUT WILL NOT RESULT IN HPT RECEIVING ADDITIONAL CASH. THE 26%
BALANCE OF HPT’S ANNUAL MINIMUM RETURNS AND RENTS AS OF DECEMBER 31,
2017 ARE NOT GUARANTEED.
-
WYNDHAM'S $35.7 MILLION LIMITED GUARANTY WAS DEPLETED DURING THE YEAR
ENDED DECEMBER 31, 2017. HPT DOES NOT HOLD A SECURITY DEPOSIT WITH
RESPECT TO AMOUNTS DUE UNDER THE WYNDHAM AGREEMENT. THIS PRESS RELEASE
STATES THAT WYNDHAM HAS PAID 85% OF THE MINIMUM RETURNS DUE TO HPT FOR
JANUARY AND FEBRUARY 2018. HPT CAN PROVIDE NO ASSURANCE AS TO WHETHER
WYNDHAM WILL CONTINUE TO PAY AT LEAST THE GREATER OF AVAILABLE HOTEL
CASH FLOWS AND 85% OF THE MINIMUM RETURNS DUE TO HPT OR IF WYNDHAM
WILL DEFAULT ON ITS PAYMENTS.
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HPT HAS NO GUARANTEES OR SECURITY DEPOSITS FOR THE MINIMUM RETURNS DUE
TO HPT FROM HPT'S MARRIOTT NO. 1 OR HPT'S SONESTA HOTEL AGREEMENTS.
ACCORDINGLY, WHEN HPT RECEIVES THE CONTRACTUAL AMOUNTS DUE TO HPT
UNDER THESE CONTRACTS, SUCH AMOUNTS MAY BE LESS THAN THE MINIMUM
RETURNS STATED IN THOSE MANAGEMENT CONTRACTS.
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HPT HAS ADVISED MORGANS THAT THE CLOSING OF ITS MERGER WITH SBE WAS A
VIOLATION OF HPT'S AGREEMENT WITH MORGANS, HPT BEGAN A LITIGATION FOR
UNLAWFUL DETAINER AGAINST MORGANS AND SBE TO COMPEL MORGANS AND SBE TO
SURRENDER POSSESSION OF THE SAN FRANCISCO HOTEL WHICH MORGANS LEASES
FROM HPT, AND HPT IS IN DISCUSSIONS WITH MORGANS AND SBE REGARDING
THIS MATTER. THE OUTCOME OF THIS PENDING LITIGATION AND OF THESE
DISCUSSIONS WITH MORGANS AND SBE IS NOT ASSURED BUT HPT BELIEVES THAT
MORGANS MAY SURRENDER POSSESSION OF THIS HOTEL OR THAT THE COURT WILL
DETERMINE THAT MORGANS AND SBE HAVE BREACHED THE LEASE. HPT ALSO
BELIEVES THAT THIS HOTEL MAY REQUIRE SUBSTANTIAL CAPITAL INVESTMENT TO
REMAIN COMPETITIVE IN ITS MARKET. THE CONTINUATION OF THIS DISPUTE
WITH MORGANS AND SBE REQUIRES HPT TO EXPEND LEGAL FEES AND THE RESULT
OF THIS DISPUTE MAY CAUSE HPT SOME LOSS OF RENT AT LEAST UNTIL THIS
HOTEL MAY BE RENOVATED AND OPERATIONS IMPROVE. LITIGATION AND DISPUTES
WITH TENANTS OFTEN PRODUCE UNEXPECTED RESULTS AND HPT CAN PROVIDE NO
ASSURANCE REGARDING THE RESULTS OF THIS DISPUTE. AND
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MR. MURRAY STATES IN THIS PRESS RELEASE THAT HPT'S COMPARABLE HOTEL
REVPAR GREW DURING THE FOURTH QUARTER OF 2017 COMPARED WITH THE PRIOR
YEAR PERIOD, THAT AGGREGATE COVERAGE OF HPT'S MINIMUM RETURNS AND
RENTS WAS 1.06X, THAT TA'S PROPERTY RESULTS WERE STEADY DURING THE
FOURTH QUARTER AND THAT COVERAGE OF HPT'S MINIMUM RENTS WAS 1.50X.
THESE STATEMENTS MAY IMPLY HOTEL REVPAR MAY CONTINUE TO GROW, TA'S
PROPERTY RESULTS WILL REMAIN STEADY OR COVERAGE OF MINIMUM RETURNS AND
RENTS WILL REMAIN ABOVE 1.0X FOR HPT'S HOTELS AND 1.50X FOR HPT'S
TRAVEL CENTERS. IN FACT, COVERAGE OF HPT'S MINIMUM RETURNS AND RENTS
MAY DECLINE IN FUTURE PERIODS IF REVPAR AT HPT'S HOTELS OR TA'S
OPERATING RESULTS DECLINE. FOR EXAMPLE, AS MR. MURRAY NOTED, HPT'S
HOTEL RESULTS WERE HELPED BY INCREASED ACTIVITY IN REGIONS AFFECTED BY
RELIEF EFFORTS AND DISPLACED RESIDENTS CAUSED BY HURRICANES AND
WILDFIRES. AS THOSE RELIEF EFFORTS ARE COMPLETED AND DISPLACED
RESIDENTS RETURN TO THEIR RESIDENCES, HPT'S HOTEL OCCUPANCY AND RATES
MAY DECLINE.
THE INFORMATION CONTAINED IN HPT’S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR THE SEC, INCLUDING UNDER THE CAPTION “RISK
FACTORS” IN HPT’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES
OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM HPT’S FORWARD
LOOKING STATEMENTS. HPT’S FILINGS WITH THE SEC ARE AVAILABLE ON THE
SEC’S WEBSITE AT WWW.SEC.GOV.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, HPT DOES NOT INTEND TO UPDATE OR CHANGE ANY
FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS
OR OTHERWISE.
(end)
|
|
|
HOSPITALITY PROPERTIES TRUST
CONSOLIDATED
STATEMENTS OF INCOME
(amounts in thousands, except share
data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating revenues (1)
|
|
|
$
|
450,506
|
|
|
|
$
|
398,446
|
|
|
|
$
|
1,843,501
|
|
|
|
$
|
1,733,103
|
|
|
Rental income (2)
|
|
|
83,490
|
|
|
|
79,841
|
|
|
|
323,764
|
|
|
|
309,600
|
|
|
FF&E reserve income (3)
|
|
|
1,146
|
|
|
|
991
|
|
|
|
4,670
|
|
|
|
4,508
|
|
|
Total revenues
|
|
|
535,142
|
|
|
|
479,278
|
|
|
|
2,171,935
|
|
|
|
2,047,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating expenses (1)
|
|
|
314,001
|
|
|
|
279,299
|
|
|
|
1,279,547
|
|
|
|
1,202,538
|
|
|
Depreciation and amortization
|
|
|
99,848
|
|
|
|
91,150
|
|
|
|
386,659
|
|
|
|
357,342
|
|
|
General and administrative (4)
|
|
|
49,305
|
|
|
|
7,978
|
|
|
|
125,402
|
|
|
|
99,105
|
|
|
Acquisition related costs (5)
|
|
|
—
|
|
|
|
482
|
|
|
|
—
|
|
|
|
1,367
|
|
|
Total expenses
|
|
|
463,154
|
|
|
|
378,909
|
|
|
|
1,791,608
|
|
|
|
1,660,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
71,988
|
|
|
|
100,369
|
|
|
|
380,327
|
|
|
|
386,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend income
|
|
|
626
|
|
|
|
626
|
|
|
|
2,504
|
|
|
|
2,001
|
|
|
Interest income
|
|
|
208
|
|
|
|
47
|
|
|
|
798
|
|
|
|
274
|
|
|
Interest expense (including amortization of debt issuance costs and
debt discounts and premiums of $2,331, $2,036, $8,871 and $8,151,
respectively)
|
|
|
(46,250
|
)
|
|
|
(37,349
|
)
|
|
|
(181,579
|
)
|
|
|
(161,913
|
)
|
|
Loss on early extinguishment of debt (6)
|
|
|
(146
|
)
|
|
|
—
|
|
|
|
(146
|
)
|
|
|
(228
|
)
|
|
Income before income taxes, equity in earnings of an investee and
gain on sale of real estate
|
|
|
26,426
|
|
|
|
63,693
|
|
|
|
201,904
|
|
|
|
226,993
|
|
|
Income tax benefit (expense) (7)
|
|
|
5,045
|
|
|
|
(537
|
)
|
|
|
3,284
|
|
|
|
(4,020
|
)
|
|
Equity in earnings of an investee
|
|
|
74
|
|
|
|
30
|
|
|
|
607
|
|
|
|
137
|
|
|
Income before gain on sale of real estate
|
|
|
31,545
|
|
|
|
63,186
|
|
|
|
205,795
|
|
|
|
223,110
|
|
|
Gain on sale of real estate (8)
|
|
|
—
|
|
|
|
—
|
|
|
|
9,348
|
|
|
|
—
|
|
|
Net income
|
|
|
31,545
|
|
|
|
63,186
|
|
|
|
215,143
|
|
|
|
223,110
|
|
|
Preferred distributions
|
|
|
—
|
|
|
|
(5,166
|
)
|
|
|
(1,435
|
)
|
|
|
(20,664
|
)
|
|
Excess of liquidation preference over carrying value of preferred
shares redeemed (9)
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,893
|
)
|
|
|
—
|
|
|
Net income available for common shareholders
|
|
|
$
|
31,545
|
|
|
|
$
|
58,020
|
|
|
|
$
|
203,815
|
|
|
|
$
|
202,446
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (basic)
|
|
|
164,192
|
|
|
|
164,120
|
|
|
|
164,146
|
|
|
|
156,062
|
|
|
Weighted average common shares outstanding (diluted)
|
|
|
164,205
|
|
|
|
164,128
|
|
|
|
164,175
|
|
|
|
156,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available for common shareholders per common share (basic
and diluted)
|
|
|
$
|
0.19
|
|
|
|
$
|
0.35
|
|
|
|
$
|
1.24
|
|
|
|
$
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes on pages 11 and 12
|
|
|
HOSPITALITY PROPERTIES TRUST
RECONCILIATIONS OF
FUNDS FROM OPERATIONS,
NORMALIZED FUNDS FROM
OPERATIONS, EBITDA AND ADJUSTED EBITDA
(amounts in
thousands, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Calculation of Funds from Operations (FFO) and Normalized FFO
available for common shareholders: (10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available for common shareholders
|
|
|
$
|
31,545
|
|
|
|
$
|
58,020
|
|
|
|
$
|
203,815
|
|
|
|
$
|
202,446
|
|
Add (less): Depreciation and amortization
|
|
|
99,848
|
|
|
|
91,150
|
|
|
|
386,659
|
|
|
|
357,342
|
|
Gain on sale of real estate (8)
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,348
|
)
|
|
|
—
|
|
FFO available for common shareholders
|
|
|
131,393
|
|
|
|
149,170
|
|
|
|
581,126
|
|
|
|
559,788
|
|
Add (less): Acquisition related costs (5)
|
|
|
—
|
|
|
|
482
|
|
|
|
—
|
|
|
|
1,367
|
|
Business management incentive fees (4)
|
|
|
(38,243
|
)
|
|
|
(56,272
|
)
|
|
|
—
|
|
|
|
—
|
|
Loss on early extinguishment of debt (6)
|
|
|
146
|
|
|
|
—
|
|
|
|
146
|
|
|
|
228
|
|
Excess of liquidation preference over carrying value of preferred
shares redeemed (9)
|
|
|
—
|
|
|
|
—
|
|
|
|
9,893
|
|
|
|
—
|
|
Deferred tax benefit (7)
|
|
|
(5,431
|
)
|
|
|
|
|
|
(5,431
|
)
|
|
|
|
|
Normalized FFO available for common shareholders
|
|
|
$
|
87,865
|
|
|
|
$
|
93,380
|
|
|
|
$
|
585,734
|
|
|
|
$
|
561,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding (basic)
|
|
|
164,192
|
|
|
|
164,120
|
|
|
|
164,146
|
|
|
|
156,062
|
|
Weighted average common shares outstanding (diluted)
|
|
|
164,205
|
|
|
|
164,128
|
|
|
|
164,175
|
|
|
|
156,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted per common share amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO available for common shareholders
|
|
|
$
|
0.80
|
|
|
|
$
|
0.91
|
|
|
|
$
|
3.54
|
|
|
|
$
|
3.59
|
|
Normalized FFO available for common shareholders
|
|
|
$
|
0.54
|
|
|
|
$
|
0.57
|
|
|
|
$
|
3.57
|
|
|
|
$
|
3.60
|
|
Distributions declared per share
|
|
|
$
|
0.52
|
|
|
|
$
|
0.51
|
|
|
|
$
|
2.07
|
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Calculation of EBITDA and Adjusted EBITDA: (11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
31,545
|
|
|
|
$
|
63,186
|
|
|
|
$
|
215,143
|
|
|
|
$
|
223,110
|
|
Add: Interest expense
|
|
|
46,250
|
|
|
|
37,349
|
|
|
|
181,579
|
|
|
|
161,913
|
|
Income tax expense (benefit) (7)
|
|
|
(5,045
|
)
|
|
|
537
|
|
|
|
(3,284
|
)
|
|
|
4,020
|
|
Depreciation and amortization
|
|
|
99,848
|
|
|
|
91,150
|
|
|
|
386,659
|
|
|
|
357,342
|
|
EBITDA
|
|
|
172,598
|
|
|
|
192,222
|
|
|
|
780,097
|
|
|
|
746,385
|
|
Add (less): Acquisition related costs (5)
|
|
|
—
|
|
|
|
482
|
|
|
|
—
|
|
|
|
1,367
|
|
General and administrative expense paid in common shares (12)
|
|
|
811
|
|
|
|
557
|
|
|
|
2,759
|
|
|
|
2,834
|
|
Business management incentive fees (4)
|
|
|
(38,243
|
)
|
|
|
(56,272
|
)
|
|
|
—
|
|
|
|
—
|
|
Loss on early extinguishment of debt (6)
|
|
|
146
|
|
|
|
—
|
|
|
|
146
|
|
|
|
228
|
|
Gain on sale of real estate (8)
|
|
|
—
|
|
|
|
—
|
|
|
|
(9,348
|
)
|
|
|
—
|
|
Adjusted EBITDA
|
|
|
$
|
135,312
|
|
|
|
$
|
136,989
|
|
|
|
$
|
773,654
|
|
|
|
$
|
750,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes on pages 11 and 12
(1) At December 31, 2017, HPT owned 323 hotels; 320 of these hotels were
managed by hotel operating companies and three hotels were leased to
hotel operating companies. At December 31, 2017, HPT also owned 199
travel centers; all 199 of these travel centers were leased to a travel
center operating company under five lease agreements. HPT’s consolidated
statements of income include hotel operating revenues and expenses of
managed hotels and rental income from its leased hotels and travel
centers. Certain of HPT's managed hotels had net operating results that
were, in the aggregate, $14,138 and $17,751 less than the minimum
returns due to HPT in the three months ended December 31, 2017 and 2016,
respectively, and $31,477 and $28,421 less than the minimum returns due
to HPT in the years ended December 31, 2017 and 2016, respectively. When
the managers of these hotels fund the shortfalls under the terms of
HPT’s management agreements or their guarantees, HPT reflects such
fundings (including security deposit applications) in its consolidated
statements of income as a reduction of hotel operating expenses. Hotel
operating expenses were reduced by $2,885 and $3,860 in the three months
ended December 31, 2017 and 2016, respectively, and by $4,673 and $2,918
in the years ended December 31, 2017 and 2016, respectively, as a result
of such fundings. HPT had shortfalls at certain of its managed hotel
portfolios not funded by the managers of these hotels under the terms of
its management agreements of $10,522 and $13,476 in the three months
ended December 31, 2017 and 2016, respectively, and $26,804 and $25,503
in the years ended December 31, 2017 and 2016, respectively, which
represent the unguaranteed portions of HPT's minimum returns from
Sonesta. Certain of HPT’s managed hotel portfolios had net operating
results that were, in the aggregate, $2,918 and $2,309 more than the
minimum returns due to HPT in the three months ended December 31, 2017
and 2016, respectively, and $68,338 and $81,227 more than the minimum
returns due to HPT in the years ended December 31, 2017 and 2016,
respectively. Certain guarantees to HPT and security deposits held by
HPT may be replenished by a share of these excess cash flows from the
applicable hotel operations pursuant to the terms of the respective
operating agreements or the guarantees. When these guarantees and
security deposits are replenished by cash flows from hotel operations,
HPT reflects such replenishments in its consolidated statements of
income as an increase to hotel operating expenses. Hotel operating
expenses were increased by $1,784 in the three months ended December 31,
2016 and $25,419 and $34,148 in the years ended December 31, 2017 and
2016, respectively, as a result of such replenishments. There were no
replenishments in the three months ended December 31, 2017.
(2) Rental income includes $3,170 and $3,193 in the three months ended
December 31, 2017 and 2016, respectively, and $12,378 and $13,570 in the
years ended December 31, 2017 and 2016, respectively, of adjustments
necessary to record scheduled rent increases under certain of HPT’s
leases, the deferred rent obligations under HPT’s travel center leases
and the estimated future payments to HPT under its travel center leases
for the cost of removing underground storage tanks on a straight line
basis. Rental income also includes $2,106 and $1,303 in both the three
months and years ended December 31, 2017 and 2016, respectively, of
percentage rental income.
(3) Various percentages of total sales at certain of HPT’s hotels are
escrowed as reserves for future renovations or refurbishment, or FF&E
reserve escrows. HPT owns all the FF&E reserve escrows for its hotels.
HPT reports deposits by its tenants into the escrow accounts under its
hotel leases as FF&E reserve income. HPT does not report the amounts
which are escrowed as FF&E reserves for its managed hotels as FF&E
reserve income.
(4) Incentive fees under HPT’s business management agreement with The
RMR Group LLC are payable after the end of each calendar year, are
calculated based on common share total return, as defined, and are
included in general and administrative expense in HPT’s consolidated
statements of income. In calculating net income in accordance with GAAP,
HPT recognizes estimated business management incentive fee expense, if
any, in the first, second and third quarters. Although HPT recognizes
this expense, if any, in the first, second and third quarters for
purposes of calculating net income, HPT does not include these amounts
in the calculation of Normalized FFO available for common shareholders
or Adjusted EBITDA until the fourth quarter, which is when the business
management incentive fee expense amount for the year, if any, is
determined. Net income includes $36,330 of business management incentive
fee expense and the reversal of $3,865 of previously accrued business
management incentive fee expense in the three months ended December 31,
2017 and 2016, respectively, and $74,573 and $52,407 of business
management incentive fee expense in the years ended December 31, 2017
and 2016, respectively. Business management incentive fees for 2017 and
2016 were paid in January 2018 and 2017, respectively.
(5) Represents costs associated with HPT’s acquisition activities.
Acquisition costs incurred during the 2017 periods have been capitalized
in purchase accounting pursuant to a change in GAAP.
(6) HPT recorded losses of $146, $158 and $70 on early extinguishment of
debt in the three months ended December 31, 2017, September 30, 2016 and
March 31, 2016, respectively, in connection with the redemption of
certain senior unsecured notes.
(7) HPT realized a $5,431 tax benefit in the three months ended December
31, 2017 related to the enactment of the Tax Act.
(8) HPT recorded a $9,348 gain on sale of real estate in the three
months ended September 30, 2017 in connection with the sales of three
hotels.
(9) In February 2017, HPT redeemed all 11,600,000 of its outstanding
7.125% Series D cumulative redeemable preferred shares at the stated
liquidation preference of $25.00 per share plus accrued and unpaid
distributions to the date of redemption (an aggregate of $291,435). The
liquidation preference of the redeemed shares exceeded the carrying
amount for the redeemed shares as of the date of redemption by $9,893,
or $0.06 per share, and HPT reduced net income available to common
shareholders in the three months ended March 31, 2017 by that excess
amount.
(10) HPT calculates FFO available for common shareholders and Normalized
FFO available for common shareholders as shown above. FFO available for
common shareholders is calculated on the basis defined by The National
Association of Real Estate Investment Trusts, or Nareit, which is net
income available for common shareholders calculated in accordance with
GAAP, excluding any gain or loss on sale of properties and loss on
impairment of real estate assets, if any, plus real estate depreciation
and amortization, as well as certain other adjustments currently not
applicable to HPT. HPT’s calculation of Normalized FFO available for
common shareholders differs from Nareit’s definition of FFO available
for common shareholders because HPT includes business management
incentive fees, if any, only in the fourth quarter versus the quarter
when they are recognized as expense in accordance with GAAP due to their
quarterly volatility not necessarily being indicative of HPT’s core
operating performance and the uncertainty as to whether any such
business management incentive fees will be payable when all
contingencies for determining such fees are known at the end of the
calendar year, and HPT excludes the excess of liquidation preference
over carrying value of preferred shares redeemed, certain deferred tax
benefits, acquisition related costs expensed under GAAP and loss on
early extinguishment of debt. HPT considers FFO available for common
shareholders and Normalized FFO available for common shareholders to be
appropriate supplemental measures of operating performance for a REIT,
along with net income, net income available for common shareholders and
operating income. HPT believes that FFO available for common
shareholders and Normalized FFO available for common shareholders
provide useful information to investors because by excluding the effects
of certain historical amounts, such as depreciation expense, FFO
available for common shareholders and Normalized FFO available for
common shareholders may facilitate a comparison of HPT’s operating
performance between periods and with other REITs. FFO available for
common shareholders and Normalized FFO available for common shareholders
are among the factors considered by HPT’s Board of Trustees when
determining the amount of distributions to its shareholders. Other
factors include, but are not limited to, requirements to maintain HPT’s
qualification for taxation as a REIT, limitations in its credit
agreement and public debt covenants, the availability to HPT of debt and
equity capital, HPT’s expectation of its future capital requirements and
operating performance and HPT’s expected needs for and availability of
cash to pay its obligations. FFO available for common shareholders and
Normalized FFO available for common shareholders do not represent cash
generated by operating activities in accordance with GAAP and should not
be considered alternatives to net income, net income available for
common shareholders or operating income as indicators of HPT’s operating
performance or as measures of HPT’s liquidity. These measures should be
considered in conjunction with net income, net income available for
common shareholders and operating income as presented in HPT’s
consolidated statements of income. Other real estate companies and REITs
may calculate FFO available for common shareholders and Normalized FFO
available for common shareholders differently than HPT does.
(11) HPT calculates EBITDA and Adjusted EBITDA as shown above. HPT
considers EBITDA and Adjusted EBITDA to be appropriate supplemental
measures of its operating performance, along with net income, net income
available for common shareholders and operating income. HPT believes
that EBITDA and Adjusted EBITDA provide useful information to investors
because by excluding the effects of certain historical amounts, such as
interest, depreciation and amortization expense, EBITDA and Adjusted
EBITDA may facilitate a comparison of current operating performance with
HPT’s past operating performance. In calculating Adjusted EBITDA, HPT
includes business management incentive fees only in the fourth quarter
versus the quarter when they are recognized as expense in accordance
with GAAP due to their quarterly volatility not necessarily being
indicative of HPT’s core operating performance and the uncertainty as to
whether any such business management incentive fees will be payable when
all contingencies for determining such fees are known at the end of the
calendar year. EBITDA and Adjusted EBITDA do not represent cash
generated by operating activities in accordance with GAAP and should not
be considered alternatives to net income, net income available for
common shareholders or operating income as indicators of operating
performance or as measures of HPT’s liquidity. These measures should be
considered in conjunction with net income, net income available for
common shareholders and operating income as presented in HPT’s
consolidated statements of income. Other real estate companies and REITs
may calculate EBITDA and Adjusted EBITDA differently than HPT does.
(12) Amounts represent the equity compensation for HPT’s trustees, its
officers and certain other employees of HPT’s manager.
|
|
|
HOSPITALITY PROPERTIES TRUST
CONSOLIDATED BALANCE
SHEETS
(amounts in thousands, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
|
Real estate properties:
|
|
|
|
|
|
|
|
Land
|
|
|
$
|
1,668,797
|
|
|
|
$
|
1,566,630
|
|
|
Buildings, improvements and equipment
|
|
|
7,758,862
|
|
|
|
7,156,759
|
|
|
Total real estate properties, gross
|
|
|
9,427,659
|
|
|
|
8,723,389
|
|
|
Accumulated depreciation
|
|
|
(2,784,478
|
)
|
|
|
(2,513,996
|
)
|
|
Total real estate properties, net
|
|
|
6,643,181
|
|
|
|
6,209,393
|
|
|
Cash and cash equivalents
|
|
|
24,139
|
|
|
|
10,896
|
|
|
Restricted cash (FF&E reserve escrow)
|
|
|
73,357
|
|
|
|
60,456
|
|
|
Due from related persons
|
|
|
78,513
|
|
|
|
65,332
|
|
|
Other assets, net
|
|
|
331,195
|
|
|
|
288,151
|
|
|
Total assets
|
|
|
$
|
7,150,385
|
|
|
|
$
|
6,634,228
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Unsecured revolving credit facility
|
|
|
$
|
398,000
|
|
|
|
$
|
191,000
|
|
|
Unsecured term loan, net
|
|
|
399,086
|
|
|
|
398,421
|
|
|
Senior unsecured notes, net
|
|
|
3,203,962
|
|
|
|
2,565,908
|
|
|
Convertible senior unsecured notes
|
|
|
—
|
|
|
|
8,478
|
|
|
Security deposits
|
|
|
126,078
|
|
|
|
89,338
|
|
|
Accounts payable and other liabilities
|
|
|
184,788
|
|
|
|
188,053
|
|
|
Due to related persons
|
|
|
83,049
|
|
|
|
58,475
|
|
|
Dividends payable
|
|
|
—
|
|
|
|
5,166
|
|
|
Total liabilities
|
|
|
4,394,963
|
|
|
|
3,504,839
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Preferred shares of beneficial interest, no par value; 100,000,000
shares authorized:
|
|
|
|
|
|
|
|
Series D preferred shares; 7 1/8% cumulative redeemable; zero and
11,600,000 shares issued and outstanding, respectively, aggregate
liquidation preference of zero and $290,000, respectively
|
|
|
—
|
|
|
|
280,107
|
|
|
Common shares of beneficial interest, $.01 par value; 200,000,000
shares authorized; 164,349,141 and 164,268,199 shares issued and
outstanding, respectively
|
|
|
1,643
|
|
|
|
1,643
|
|
|
Additional paid in capital
|
|
|
4,542,307
|
|
|
|
4,539,673
|
|
|
Cumulative net income
|
|
|
3,310,017
|
|
|
|
3,104,767
|
|
|
Cumulative other comprehensive income
|
|
|
79,358
|
|
|
|
39,583
|
|
|
Cumulative preferred distributions
|
|
|
(343,412
|
)
|
|
|
(341,977
|
)
|
|
Cumulative common distributions
|
|
|
(4,834,491
|
)
|
|
|
(4,494,407
|
)
|
|
Total shareholders’ equity
|
|
|
2,755,422
|
|
|
|
3,129,389
|
|
|
Total liabilities and shareholders’ equity
|
|
|
$
|
7,150,385
|
|
|
|
$
|
6,634,228
|
|
A Maryland Real Estate Investment Trust with transferable shares of
beneficial interest listed on the Nasdaq.
No shareholder,
Trustee or officer is personally liable for any act or obligation of the
Trust.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180301005309/en/
Source: Hospitality Properties Trust