NEWTON, Mass.--(BUSINESS WIRE)--Jan. 29, 2002: Hospitality Properties Trust (NYSE: HPT) today announced its results of operations for the quarter and year-ended December 31, 2001, as follows:
(amounts in thousands, except per share amounts)
Quarter Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
Net income $37,166 $35,992 $131,956 $126,271
Net income available
for common shareholders $35,385 $34,211 $124,831 $119,146
Funds from
operations ("FFO") $58,319 $55,642 $230,581 $218,733
Cash available for
distribution ("CAD") $49,919 $45,857 $192,999 $180,763
Common distributions $44,386 $39,531 $168,447 $156,981
Per common share amounts:
Net income available
for common shareholders $0.57 $0.61 $2.12 $2.11
Funds from
operations ("FFO") $0.93 $0.99 $3.91 $3.87
Cash available for
distribution ("CAD") $0.80 $0.81 $3.27 $3.20
Weighted average common
shares outstanding 62,516 56,473 58,986 56,466
Hospitality Properties Trust is a REIT headquartered in Newton, Massachusetts which invests in hotels. HPT currently has investments of approximately $2.6 billion in 230 hotels located in 37 states.
Hospitality Properties Trust
STATEMENT OF INCOME, FUNDS FROM OPERATIONS
AND CASH AVAILABLE FOR DISTRIBUTION
(amounts in thousands, except per share data)
Quarter Quarter Year Year
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 2001 2000
Revenues:
Minimum rent $58,381 $58,765 $236,876 $228,733
Percentage rent 3,414 5,644 3,414 5,644
Hotel operating revenues (1) 17,338 -- 37,982 --
FF&E reserve income (2) 4,972 6,463 24,652 25,753
Interest income 272 511 953 2,893
Total revenues 84,377 71,383 303,877 263,023
Expenses:
Hotel operating expenses (1) 10,446 -- 24,375 --
Interest (including
amortization of deferred
financing costs of $605,
$523, $2,417 and $2,068,
respectively) 10,064 9,982 41,312 37,682
Depreciation and
amortization 23,370 21,795 91,395 84,303
General and administrative 3,331 3,614 14,839 14,767
Total expenses 47,211 35,391 171,921 136,752
Net income 37,166 35,992 131,956 126,271
Preferred dividends 1,781 1,781 7,125 7,125
Net income available
for common shareholders $35,385 $34,211 $124,831 $119,146
Net income $35,385 $34,211 $124,831 $119,146
Add: FF&E deposits not in
net income (2) 2,977 3,822 14,355 15,284
Depreciation and
amortization 23,370 21,795 91,395 84,303
Less: Previously recognized
percentage rent
in FFO (3) 3,413 4,186 -- --
Funds from
operations ("FFO") $58,319 $55,642 $230,581 $218,733
FFO $58,319 $55,642 $230,581 $218,733
Add: Non-cash expenses 419 500 3,313 3,067
Less: FF&E reserve
income (1) (2) 5,842 6,463 26,540 25,753
FF&E deposits not in
net income (2) 2,977 3,822 14,355 15,284
Cash available for
distribution ("CAD") $49,919 $45,857 $192,999 $180,763
Weighted average common
shares outstanding 62,516 56,473 58,986 56,466
Per common share amounts:
Net income available for
common shareholders $0.57 $0.61 $2.12 $2.11
FFO $0.93 $0.99 $3.91 $3.87
CAD $0.80 $0.81 $3.27 $3.20
Common dividends
declared $0.71 $0.70 $2.83 $2.78(1) As previously announced, HPT's second quarter acquisition of four hotels from Marriott International, Inc. ("Marriott") on June 15, 2001, involves the use, as allowed under the REIT Modernization Act effective January 1, 2001, of a tenant which is a 100% owned subsidiary of and consolidated with HPT. All four of these hotels, combined with 31 other hotels we own, are managed by Marriott. From time to time over the next year each of these 35 hotels will cease to be leased to a subsidiary of Marriott and begin to be leased to our subsidiary. This subsidiary tenant began to lease 10 hotels containing 1,626 rooms as of June 15, 2001 (including the four hotels acquired on June 15, 2001), and an additional six hotels containing 754 rooms as of September 7, 2001. The remaining 19 hotels will remain leased to a subsidiary of Marriott until a lease is begun by our subsidiary tenant. After a property begins to be leased to our subsidiary tenant, our consolidated revenues include hotel sales rather than rental income and our consolidated expenses include hotel operating expenses. The 16 hotels leased to HPT's subsidiary tenant, from June 15, 2001, through the end of the 2001 fourth quarter generated net revenues over expenses and FF&E escrows of:
Fourth Quarter YTD
Hotel operating revenues $ 17,338 $ 37,982
Less: Hotel operating expenses 10,446 24,375
Less: FF&E Reserve escrows 870 1,888
Net $ 6,022 $ 11,719
(2) Some of the HPT leases provide that FF&E Reserve escrows are owned by HPT. Other leases provide that FF&E Reserve escrows are owned by the tenant and the Company has a security and remainder interest in the escrow account. When HPT owns the escrow, generally accepted accounting principles require that payments into the escrow be reported as additional rent. When HPT has a security and remainder interest in the escrow account, deposits are not included in revenue but are included in FFO. CAD excludes all FF&E Reserves.
(3) The Securities and Exchange Commission Staff Accounting Bulletin No. 101 generally requires the Company to recognize percentage rental income received for the first, second and third quarters in the fourth quarter. Although recognition of revenue was deferred until the fourth quarter of each year presented for purposes of calculating net income, the calculations of FFO and CAD included these amounts during the first three quarters.
Hospitality Properties Trust
Key Property Statistics(1)
4th 4th
Quarter Quarter % Change
2001 2000
Hotel Statistics
(29,930 rooms and 220 hotels):
Average Daily Rate ("ADR") $83.36 $90.89 -8.3%
Occupancy 66.4% 73.5% -9.7% (-7.1 pts)
Revenue per Available
Room ("RevPAR") $55.35 $66.80 -17.1%
Year Ended Year Ended
Dec. 31, Dec. 31,
2001 2000 % Change
Hotel Statistics
(29,930 rooms and 220 hotels):
Average Daily Rate ("ADR") $88.43 $88.81 -0.4%
Occupancy 72.4% 77.0% -6.0% (-4.6 pts)
Revenue per Available
Room ("RevPAR") $64.02 $68.38 -6.4%
(1) Excludes 10 properties containing 1,761 rooms, not open for a
full year as of January 1, 2001.
Key Balance Sheet Statistics
December 31, December 31,
2001 2000
Cash $38,962,000 $24,601,000
Real Estate, at cost $2,629,153,000 $2,429,421,000
Debt
Fixed rate
- 8.25% Senior Notes, due 2005 $115,000,000 $115,000,000
Fixed rate
- 7.00% Senior Notes, due 2008 149,834,000 149,807,000
Fixed rate
- 8.50% Senior Notes, due 2009 150,000,000 150,000,000
Fixed rate
- 9.125% Senior Notes, due 2010 49,947,000 49,941,000
$464,781,000 $464,748,000
Book Equity
9.5% Preferred (3,000,000 shares
outstanding) $72,207,000 $72,207,000
Common (62,515,940 and 56,472,512
shares outstanding) 1,532,312,000 1,410,733,000
$1,604,519,000 $1,482,940,000