NEWTON, Mass.--(BUSINESS WIRE)--
Hospitality Properties Trust (NYSE: HPT) today announced its financial
results for the quarter ended March 31, 2012.
Results for the Quarter Ended March 31, 2012:
Normalized funds from operations, or Normalized FFO, for the quarter
ended March 31, 2012 were $96.4 million, or $0.78 per share, compared to
Normalized FFO for the quarter ended March 31, 2011 of $102.4 million,
or $0.83 per share.
Net income available for common shareholders was $28.8 million, or $0.23
per share, for the quarter ended March 31, 2012, compared to $45.6
million, or $0.37 per share, for the same quarter last year. Net income
available for common shareholders for the quarter ended March 31, 2012,
was reduced by $2.9 million, or $0.02 per share, due to the liquidation
preference for HPT's preferred shares that it redeemed during that
period exceeding the carrying value for those preferred shares and $1.1
million, or $0.01 per share, due to acquisition related costs.
The weighted average number of common shares outstanding was 123.5
million and 123.4 million for the quarters ended March 31, 2012 and
2011, respectively.
A reconciliation of net income available for common shareholders
determined according to U.S. generally accepted accounting principles,
or GAAP, to funds from operations, or FFO, and Normalized FFO for the
quarters ended March 31, 2012 and 2011 appears later in this press
release.
Hotel Portfolio Performance:
For the quarter ended March 31, 2012 compared to the same period in 2011
for HPT's 288 comparable hotels: average daily rate, or ADR, increased
5.2% to $98.62; occupancy decreased 3.7 percentage points to 64.0%; and,
as a result, revenue per available room, or RevPAR, decreased by 0.5% to
$63.12.
During the quarter ended March 31, 2012, HPT had 86 hotels under
renovation for all or part of the quarter. For the quarter ended March
31, 2012 compared to the same period in 2011 for HPT's 202 comparable
hotels not under renovation during the quarter: ADR increased 3.8% to
$102.22; occupancy increased 0.5 percentage points to 66.8%; and, as a
result, RevPAR increased by 4.5% to $68.28.
Tenants and Managers:
Marriott No. 234. During the three months ended March 31, 2012,
the payments HPT received under its management contract with Marriott
International, Inc. (NYSE: MAR), or Marriott, covering 71 hotels and
requiring minimum returns to HPT of $101.1 million/year (referred to as
the Marriott No. 234 agreement) were $9.2 million less than the minimum
amounts contractually required. During the three months ended March 31,
2012, Marriott provided $6.9 million of guaranty payments to HPT. At
March 31, 2012, there was $24.0 million remaining under Marriott's
guaranty to cover future payment shortfalls up to 90% of the minimum
returns due to HPT, and which guaranty expires on December 31, 2017.
InterContinental. During the three months ended March 31, 2012,
the payments HPT received under its management contract with
InterContinental Hotels Group, plc (LON: IHG; NYSE: IHG (ADRs)), or
InterContinental, covering 130 hotels and requiring minimum returns to
HPT of $159.0 million/year (referred to as the InterContinental
agreement) were $16.3 million less than the minimum amounts
contractually required. HPT applied the available security deposit to
cover these shortfalls. At March 31, 2012, the available security
deposit which HPT held to cover future payment shortfalls was $39.6
million.
As of March 31, 2012, all other payments due to HPT from its managers
and tenants under its operating agreements were current.
Acquisitions, Dispositions and Rebranding:
On January 31, 2012, HPT completed its previously announced acquisition
of the entities which own the Royal Sonesta Hotel Boston in Cambridge,
MA (400 rooms) and lease the Royal Sonesta Hotel New Orleans in New
Orleans, LA (483 rooms) for $150.5 million, excluding acquisition costs.
HPT funded these purchases with existing cash balances, including
proceeds from the offering of its Series D Preferred Shares described
below, and borrowings under its revolving credit facility. Simultaneous
with this acquisition, HPT entered into management agreements for these
hotels with Sonesta International Hotels Corporation, or Sonesta, an
affiliate of Reit Management & Research LLC, the manager of HPT.
HPT and Marriott previously identified 21 Marriott hotels included in
its Marriott No. 234 agreement for potential sale. In February 2012, HPT
entered an agreement to sell one of these 21 hotels, a full service
Marriott hotel in St. Louis, MO with a net book value of $18.4 million
at March 31, 2012, for $35.0 million, excluding closing costs. HPT will
retain the net proceeds from the sale and the amount of minimum returns
due from Marriott under the Marriott No. 234 agreement will be reduced
by 9% per annum of the net sale proceeds. HPT currently expects to
complete this sale in the second quarter of 2012. This pending sale is
subject to customary closing conditions; accordingly, HPT cannot provide
any assurance that it will sell this hotel. In March 2012, HPT withdrew
the remaining 20 hotels from sale consideration. HPT is in discussions
with Marriott about retaining these hotels in the Marriott No. 234
agreement and HPT funding certain improvements to these hotels. HPT
expects that the amount of minimum returns due from Marriott under the
Marriott No. 234 agreement will be increased by 9% per annum of the
amounts funded. Discussions with Marriott are ongoing, and HPT cannot
provide any assurance an agreement will be reached or what the final
amount HPT will invest in improvements to these hotels will be.
Under the InterContinental agreement, HPT has the option to sell or
rebrand up to 42 hotels included in the agreement. As of March 31, 2012,
the net book value of these 42 hotels was $360.4 million. In February
and April 2012, HPT provided notice to InterContinental that it plans to
remove four of these hotels, with a net book value of $112.8 million as
of March 31, 2012, from the InterContinental agreement. On April 23,
2012, HPT entered into a management agreement with Sonesta for one of
these hotels, which was converted to the Sonesta brand and management on
April 27, 2012. HPT currently expects to convert the other three hotels
to the Sonesta brand and management during the second quarter of 2012.
HPT's annual minimum returns under the InterContinental agreement will
decrease by a total of $9.9 million if and when all four of these hotels
are removed. In April 2012, HPT and InterContinental agreed to retain
three of the remaining 38 hotels, with a net book value of $4.2 million
as of March 31, 2012, in the InterContinental agreement. HPT continues
to evaluate plans to rebrand the remaining 35 hotels, including the
possible conversion of certain hotels to the Sonesta brand and
management. If these hotels are rebranded, the amount of the minimum
returns due from InterContinental will be reduced by agreed amounts per
hotel; and, if HPT determines to retain these hotels under
InterContinental management, HPT will invest certain amounts to improve
these hotels and the amount of minimum returns due from InterContinental
under the agreement will be increased by 8% per annum of the amounts
funded. Although HPT is in discussions about retaining and rebranding
certain of these 35 hotels, HPT cannot provide any assurance that it
will retain or rebrand any of these hotels.
Recent Financing Activities:
In January 2012, HPT sold 11.6 million shares of its 7.125% Series D
Cumulative Redeemable Preferred Shares at a price of $25.00 per share in
a public offering. Net proceeds from this offering ($280.1 million after
underwriting and other offering expenses) were used to repay amounts
outstanding under its revolving credit facility and for the Sonesta
acquisition described above.
On February 13, 2012, HPT redeemed all of its 3.5 million outstanding
shares of 8.875% Series B Cumulative Redeemable Preferred Shares for
$25.00 per share plus accrued and unpaid distributions ($86.3 million in
total). HPT funded this redemption with cash on hand and borrowings
under its revolving credit facility.
On March 12, 2012, HPT entered into a five year $400.0 million unsecured
term loan. The term loan matures on March 13, 2017, and is prepayable,
without penalty, at any time. The term loan bears interest at LIBOR plus
145 basis points, subject to adjustments based on changes to HPT's
senior unsecured debt ratings. HPT used the net proceeds of the term
loan to repay amounts outstanding under its revolving credit facility,
to repurchase certain of its 3.8% Convertible Senior Notes due 2027 as
described below, to redeem its 6.85% Senior Notes due 2012 as described
below, and for general business purposes.
On March 20, 2012, HPT repurchased at par plus accrued and unpaid
interest $70.6 million of its 3.8% Convertible Senior Notes due 2027
which were tendered by the holders thereof for repurchase by HPT. HPT
funded these repurchases with cash on hand, including the proceeds from
its $400 million term loan described above. As of March 31, 2012,
approximately $8.5 million of these notes remain outstanding.
On April 11, 2012, HPT redeemed at par plus accrued and unpaid interest
all of its outstanding 6.85% Senior Notes due 2012 (approximately $102.5
million in total) using cash on hand, including the proceeds from its
$400 million term loan described above.
Conference Call:
On Monday, May 7, 2012, at 1:00 p.m. Eastern Time, John Murray,
President and Chief Operating Officer, and Mark Kleifges, Treasurer and
Chief Financial Officer, will host a conference call to discuss the
results for the quarter ended March 31, 2012. The conference call
telephone number is (800) 230-1074. Participants calling from outside
the United States and Canada should dial (612) 234-9959. No passcode 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 beginning on Monday, May
7, 2012 and will run through Monday, May 14, 2012. To hear the replay,
dial (320) 365-3844. The replay passcode is 242636.
A live audio webcast of the conference call will also be available in a
listen only mode on our website, which is located at www.hptreit.com.
Participants wanting to access the webcast should visit our 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 recording and retransmission in any way of HPT's first quarter
conference call is strictly prohibited without the prior written consent
of HPT.
Supplemental Data:
A copy of HPT's First Quarter 2012 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 or leases 290 hotels and 185 travel centers located in 44
states, Puerto Rico and Canada. HPT is headquartered in Newton, MA.
Please see the following pages for a more detailed statement of HPT's
operating results and financial condition and for an explanation of our
calculation of FFO and Normalized FFO.
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Hospitality Properties Trust
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME, FUNDS FROM OPERATIONS
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AND NORMALIZED FUNDS FROM OPERATIONS
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(in thousands, except per share data)
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(Unaudited)
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Quarter Ended March 31,
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2012
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2011
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Revenues:
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Hotel operating revenues (1)
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$
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224,985
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$
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197,537
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Rental income (1)
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73,260
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79,533
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FF&E reserve income (2)
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3,175
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4,914
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Total revenues
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301,420
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281,984
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Expenses:
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Hotel operating expenses (1)
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150,021
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129,753
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Depreciation and amortization
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61,363
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56,314
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General and administrative
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10,522
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9,264
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Acquisition related costs (3)
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1,060
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-
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Loss on asset impairment (4)
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889
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-
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Total expenses
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223,855
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195,331
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Operating income
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77,565
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86,653
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Interest income
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66
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29
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Interest expense (including amortization of deferred
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financing costs and debt discounts of $1,578
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and $1,501, respectively)
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(34,092
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)
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(33,339
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)
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Equity in earnings of an investee
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45
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37
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Income before income taxes
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43,584
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53,380
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Income tax expense
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(636
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)
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(332
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)
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Net income
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42,948
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53,048
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Excess of liquidation preference over carrying value
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of preferred shares redeemed (5)
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(2,944
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)
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-
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Preferred distributions
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(11,188
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)
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(7,470
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)
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Net income available for common shareholders
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$
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28,816
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$
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45,578
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Calculation of Funds from Operations (FFO) and Normalized FFO:
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Net income available for common shareholders
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$
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28,816
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$
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45,578
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Add:
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Depreciation and amortization
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61,363
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56,314
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Loss on asset impairment (4)
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889
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-
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FFO (6)
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91,068
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101,892
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Add:
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Deferred percentage rent (7)
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1,309
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541
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Acquisition related costs (3)
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1,060
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-
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Excess of liquidation preference over carrying value
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of preferred shares redeemed (5)
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2,944
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-
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Normalized FFO (6)
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$
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96,381
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$
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102,433
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Weighted average common shares outstanding
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123,523
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123,444
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Per common share amounts:
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Net income available for common shareholders
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$
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0.23
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$
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0.37
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FFO (6)
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$
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0.74
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$
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0.83
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Normalized FFO (6)
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$
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0.78
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$
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0.83
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See Notes on page 6
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(1)
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At March 31, 2012, we owned or leased 290 hotels; 234 of these
hotels are leased by us to our taxable REIT subsidiaries and
managed by hotel operating companies, one hotel is leased by one
of our taxable REIT subsidiaries from a third party and managed by
a hotel operating company and 55 are leased to third parties. At
March 31, 2012, we also owned 185 travel centers that are leased
to a travel center operating company under two lease agreements.
Our Condensed Consolidated Statements of Income include hotel
operating revenues and expenses of managed hotels and rental
income from our leased hotels and travel centers. Certain of our
managed hotel portfolios had net operating results that were, in
the aggregate, $28,655 and $25,057, less than the minimum returns
due to us in the three months ended March 31, 2012 and 2011,
respectively. When the shortfalls are funded by the managers of
these hotels under the terms of our operating agreements, we
reflect such fundings (including security deposit applications) in
our Condensed Consolidated Statements of Income as a reduction of
hotel operating expenses. The reduction to operating expenses was
$24,594 and $25,057 in the three months ended March 31, 2012 and
2011, respectively. The $4,061 of shortfalls not funded by
managers during the three months ended March 31, 2012 represents
the unguaranteed portion of our minimum returns from Marriott and
from Sonesta.
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(2)
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Various percentages of total sales at certain of our hotels are
escrowed as reserves for future renovations or refurbishment, or
FF&E reserve escrows. We own all the FF&E reserve escrows for our
hotels. We report deposits by our third party tenants into the
escrow accounts as FF&E reserve income. We do not report the
amounts which are escrowed as FF&E reserves for our managed hotels
as FF&E reserve income.
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(3)
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Represents costs associated with our January 2012 acquisition of
the entities that own or lease two Royal Sonesta Hotels.
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(4)
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We recorded an $889 loss on asset impairment in the first quarter
of 2012 in connection with our decision to remove 20 Marriott
branded hotels from held for sale status.
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(5)
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On February 13, 2012, we redeemed all of our outstanding Series B
Preferred Shares at their liquidation preference of $25 per share,
plus accumulated and unpaid distributions. The liquidation
preference of the redeemed shares exceeded our carrying amount for
the redeemed shares as of the date of redemption by $2,944, and we
reduced net income available to common shareholders for the three
months ended March 31, 2012, by that excess amount.
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(6)
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We calculate FFO and Normalized FFO as shown above. FFO is
calculated on the basis defined by The National Association of
Real Estate Investment Trusts, or NAREIT, which is net income,
calculated in accordance with GAAP, excluding any gain or loss on
sale of properties and impairment of assets, plus real estate
depreciation and amortization. Our calculation of Normalized FFO
differs from NAREIT's definition of FFO because we include
estimated percentage rent in the period it relates to versus when
it is recognized as income in accordance with GAAP and exclude
acquisition related costs and excess of liquidation preference
over carrying value of preferred shares. We consider FFO and
Normalized FFO to be appropriate measures of performance for a
REIT, along with net income, operating income and cash flow from
operating, investing and financing activities. We believe that FFO
and Normalized FFO provides useful information to investors
because by excluding the effects of certain historical amounts,
such as depreciation expense, FFO and Normalized FFO can
facilitate a comparison of operating performances between periods.
FFO and Normalized FFO are among the factors considered by our
Board of Trustees when determining the amount of distributions to
our shareholders. Other factors include, but are not limited to,
requirements to maintain our status as a REIT, limitations in our
revolving credit facility, term loan and public debt covenants,
the availability of debt and equity capital to us and our
expectation of our future capital requirements and operating
performance. FFO and Normalized FFO do not represent cash
generated by operating activities in accordance with GAAP and
should not be considered as alternatives to net income, operating
income or cash flow from operating activities, determined in
accordance with GAAP, as indicators of our financial performance
or liquidity, nor are these measures necessarily indicative of
sufficient cash flow to fund all of our needs. We believe FFO and
Normalized FFO may facilitate an understanding of our consolidated
historical operating results. These measures should be considered
in conjunction with net income, operating income, net income
available to common shareholders and cash flow from operating
activities as presented in our Condensed Consolidated Statements
of Income and Condensed Consolidated Statements of Cash Flows.
Other REITs and real estate companies may calculate FFO and
Normalized FFO differently than us.
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(7)
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In calculating net income, we recognize percentage rental income
received for the first, second and third quarters in the fourth
quarter, which is when all contingencies are met and the income is
earned. Although we defer recognition of this revenue until the
fourth quarter for purposes of calculating net income, we include
these estimated amounts in the calculation of Normalized FFO for
each quarter of the year. The fourth quarter Normalized FFO
calculation excludes the amounts recognized during the first three
quarters.
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Hospitality Properties Trust
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except share data)
|
(Unaudited)
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March 31,
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December 31,
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2012
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2011
|
ASSETS
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Real estate properties:
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Land
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$
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1,415,880
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$
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1,360,773
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Buildings, improvements and equipment
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4,998,896
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4,879,908
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6,414,776
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6,240,681
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Accumulated depreciation
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(1,392,603)
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(1,367,868)
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5,022,173
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4,872,813
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Property held for sale
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18,440
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18,440
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Cash and cash equivalents
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148,211
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|
8,303
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Restricted cash (FF&E reserve escrow)
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59,644
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|
50,196
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Other assets, net
|
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229,556
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183,821
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$
|
5,478,024
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$
|
5,133,573
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LIABILITIES AND SHAREHOLDERS' EQUITY
|
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Unsecured revolving credit facility
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$
|
-
|
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$
|
149,000
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Unsecured term loan
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400,000
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-
|
Senior notes, net of discounts
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1,888,275
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1,887,891
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Convertible senior notes, net of discounts
|
|
|
|
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8,478
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|
|
78,823
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Security deposits
|
|
|
|
|
90,168
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|
106,422
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Accounts payable and other liabilities
|
|
|
|
|
104,629
|
|
|
103,668
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Due to related persons
|
|
|
|
|
3,121
|
|
|
3,713
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Dividends payable
|
|
|
|
|
7,833
|
|
|
4,754
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Total liabilities
|
|
|
|
|
2,502,504
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|
2,334,271
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|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
Preferred shares of beneficial interest; no par value; 100,000,000
|
|
|
|
|
|
|
|
|
shares authorized:
|
|
|
|
|
|
|
|
|
Series B preferred shares; 8 7/8% cumulative
|
|
|
|
|
|
|
|
|
redeemable; zero and 3,450,000 shares issued and
|
|
|
|
|
|
|
|
|
outstanding, respectively, aggregate liquidation preference $86,250
|
|
|
|
|
-
|
|
|
83,306
|
Series C preferred shares; 7% cumulative redeemable;
|
|
|
|
|
|
|
|
|
12,700,000 shares issued and outstanding, aggregate
|
|
|
|
|
|
|
|
|
liquidation preference $317,500
|
|
|
|
|
306,833
|
|
|
306,833
|
Series D preferred shares; 7 1/8% cumulative redeemable;
|
|
|
|
|
|
|
|
|
11,600,000 and zero shares issued and outstanding,
|
|
|
|
|
|
|
|
|
respectively, aggregate liquidation preference $290,000
|
|
|
|
|
280,108
|
|
|
-
|
Common shares of beneficial interest, $.01 par value;
|
|
|
|
|
|
|
|
|
200,000,000 shares authorized; 123,554,667 and
|
|
|
|
|
|
|
|
|
123,521,535 shares issued and outstanding, respectively
|
|
|
|
|
1,236
|
|
|
1,235
|
Additional paid in capital
|
|
|
|
|
3,464,411
|
|
|
3,463,534
|
Cumulative net income
|
|
|
|
|
2,272,957
|
|
|
2,232,953
|
Cumulative other comprehensive income
|
|
|
|
|
6,912
|
|
|
1,605
|
Cumulative preferred distributions
|
|
|
|
|
(224,469)
|
|
|
(213,281)
|
Cumulative common distributions
|
|
|
|
|
(3,132,468)
|
|
|
(3,076,883)
|
Total shareholders' equity
|
|
|
|
|
2,975,520
|
|
|
2,799,302
|
|
|
|
|
$
|
5,478,024
|
|
$
|
5,133,573
|
|
|
|
|
|
|
|
|
|
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS STATEMENTS WHICH 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" 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. HPT'S ACTUAL RESULTS MAY
DIFFER MATERIALLY FROM THOSE CONTAINED IN HPT'S FORWARD LOOKING
STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:
-
THIS PRESS RELEASE STATES THAT $24.0 MILLION REMAINED AS OF MARCH 31,
2012, TO PARTIALLY FUND MINIMUM PAYMENT SHORTFALLS UNDER THE TERMS OF
A LIMITED GUARANTY PROVIDED BY MARRIOTT. THIS STATEMENT MAY IMPLY THAT
MARRIOTT WILL BE ABLE OR WILLING TO FULFILL ITS OBLIGATION UNDER THIS
GUARANTY OR THAT FUTURE SHORTFALLS WILL NOT EXHAUST THE GUARANTY CAP.
FURTHER, THIS GUARANTY EXPIRES ON DECEMBER 31, 2017. HPT CAN PROVIDE
NO ASSURANCE WITH REGARD TO MARRIOTT'S FUTURE ACTIONS OR THE FUTURE
PERFORMANCE OF HPT'S HOTELS.
-
THIS PRESS RELEASE STATES THAT HPT IS HOLDING AND HAS APPLIED OR MAY
CONTINUE TO APPLY A SECURITY DEPOSIT TO COVER THE SHORTFALL OF THE
PAYMENTS IT HAS RECEIVED OR EXPECTS TO RECEIVE UNDER ITS
INTERCONTINENTAL CONTRACT COMPARED TO THE MINIMUM PAYMENTS DUE TO HPT
UNDER THIS CONTRACT. THE SECURITY DEPOSIT WHICH HPT IS HOLDING IS
LIMITED IN AMOUNT. THERE CAN BE NO ASSURANCE REGARDING THE AMOUNT OF
PAYMENTS HPT MAY RECEIVE IN THE FUTURE UNDER ITS CONTRACT AND FUTURE
SHORTFALLS MAY EXCEED THE AMOUNT OF THE SECURITY DEPOSIT HPT HOLDS.
MOREOVER, THE SECURITY DEPOSIT IS NOT ESCROWED OR OTHERWISE SEGREGATED
FROM HPT'S OTHER ASSETS AND LIABILITIES; ACCORDINGLY, WHEN HPT APPLIES
THIS SECURITY DEPOSIT TO COVER MINIMUM PAYMENTS DUE, IT WILL RECORD
INCOME BUT IT WILL NOT RECEIVE ANY ADDITIONAL CASH.
-
THIS PRESS RELEASE STATES THAT HPT HAS ENTERED INTO AN AGREEMENT TO
SELL ONE HOTEL THAT IS CURRENTLY MANAGED BY MARRIOTT IN ST. LOUIS, MO.
THIS TRANSACTION IS SUBJECT TO VARIOUS TERMS AND CONDITIONS TYPICAL OF
COMMERCIAL REAL ESTATE TRANSACTIONS. THESE TERMS AND CONDITIONS MAY
NOT BE MET. AS A RESULT, THIS TRANSACTION MAY BE DELAYED OR MAY NOT
OCCUR.
-
THIS PRESS RELEASE STATES THAT HPT PLANS TO RETAIN 20 HOTELS IT WAS
PREVIOUSLY MARKETING FOR SALE AND IS CURRENTLY IN DISCUSSIONS WITH
MARRIOTT ABOUT RETAINING THESE HOTELS IN ITS MARRIOTT NO. 234
AGREEMENT AND INVESTING AMOUNTS TO IMPROVE THESE HOTELS. HPT CAN
PROVIDE NO ASSURANCE THAT IT WILL COME TO TERMS WITH MARRIOTT
REGARDING THESE HOTELS OR WHAT THE FINAL AMOUNTS HPT WILL INVEST IN
THESE 20 HOTELS WILL BE, AND
-
THIS PRESS RELEASE STATES THAT HPT IS CURRENTLY EVALUATING WHICH, IF
ANY, OF 35 INTERCONTINENTAL BRANDED HOTELS MAY BE REBRANDED. IN FACT,
THE REBRANDING OF THESE HOTELS MAY BE DELAYED, HPT MAY BE UNABLE TO
REBRAND ANY OF THESE HOTELS OR MAY INCUR SIGNIFICANT COSTS TO REBRAND
THEM.
THE INFORMATION CONTAINED IN HPT'S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER "RISK FACTORS" IN HPT'S
PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT
FACTORS THAT COULD CAUSE HPT'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE STATED IN 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 HPT'S 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.
Hospitality Properties Trust
Timothy A. Bonang, Vice President,
Investor Relations
Carlynn Finn, Senior Manager, Investor Relations.
617-796-8232
www.hptreit.com