While Braemar Hotels & Resorts (NYSE: BHR ) 8.25% Series D Preferreds (NYSE: BHR.PR.D ) are up more than 6% since my last article rating them as a buy, the rally likely has more roomThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Dis ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter comparable RevPAR of $305, reflecting a 1.9% increase over the prior year quarter, and a comparable total hotel revenue increase of 5.3% [10][11] - For the full year, the company reported a net loss attributable to common stockholders of $50.9 million or $0.77 per diluted share, and AFFO per diluted share of $0.21 [27][28] - Adjusted EBITDAre for the quarter was $30.2 million and for the full year was $157.6 million [27] Business Line Data and Key Metrics Changes - Group revenue increased by 7% in the fourth quarter, indicating a resurgence in group bookings and events [11] - The luxury resort portfolio achieved a comparable RevPAR of $515, a 1.3% increase over the prior year period, with combined comparable hotel EBITDA of $31 million, a 4.1% increase [13] - Urban hotels achieved comparable RevPAR growth of 3.3% in the fourth quarter, with strong performance across all demand segments [13][14] Market Data and Key Metrics Changes - The company noted that January RevPAR was impressive, with growth over the prior year, and excluding the Capital Hilton, portfolio RevPAR growth was still over 9% [14] - The company experienced fluctuations in the Los Angeles market due to recent events, but February saw a return to stable group bookings [24][25] Company Strategy and Development Direction - The company is in active discussions for refinancing a $193 million loan maturing in June, which will eliminate remaining debt maturities in 2025 [10] - The company plans to invest between $75 million and $95 million in capital expenditures in 2025 to enhance its luxury portfolio [51] - The company is focusing on optimizing revenue opportunities and enhancing guest experiences through strategic renovations and operational efficiencies [16][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return of steady growth in resort markets, driven by historically low supply growth [71][72] - The company is encouraged by the positive performance in January and anticipates continued strength in group bookings and overall demand [68][69] - Management highlighted the favorable environment for hotel debt capital markets, which is becoming more attractive for borrowers [35] Other Important Information - The company redeemed approximately $80 million of non-traded preferred stock, representing about 17% of the original capital raise [22] - The company announced a quarterly stock dividend of $0.05 per share, equating to an annual yield of approximately 7.7% [33] Q&A Session Summary Question: Can you provide an update on capital expenditures in Tahoe and spending plans for 2025? - Management confirmed that Tahoe renovations are complete, with a small project planned for under $2 million in 2025 [58] Question: Is the company still restricted from repurchasing common stock? - Management confirmed that they are currently restricted from repurchasing common stock [61] Question: Can you elaborate on the RevPAR strength in January and its sustainability? - Management noted that January performance benefited from calendar shifts and capital investments, leading to broad-based demand [67][69] Question: What is the outlook for the transaction market regarding high-quality assets? - Management indicated strong interest from buyers and a positive reception for hotel sales, suggesting higher transaction volumes in the future [78][80]

Core Viewpoint - Braemar Hotels & Resorts reported a quarterly loss of $0.06 per share, missing the Zacks Consensus Estimate of $0.10, and showing a significant decline from the previous year's FFO of $0.04 per share, resulting in an FFO surprise of -160% [1] Financial Performance - The company posted revenues of $173.34 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 6.28%, but down from $177.53 million in the same quarter last year [2] - Over the last four quarters, Braemar Hotels & Resorts has surpassed consensus revenue estimates two times [2] Stock Performance - Shares of Braemar Hotels & Resorts have declined approximately 10.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.35 on revenues of $199.3 million, and for the current fiscal year, it is $0.54 on revenues of $687 million [7] - The outlook for the REIT and Equity Trust - Other industry is currently in the bottom 46% of Zacks industries, which may impact the stock's performance [8]

Financial Performance - Net loss attributable to common stockholders for Q4 2024 was $(31.1) million or $(0.47) per diluted share, with an AFFO of $(0.06) per diluted share[5]. - For the full year 2024, net loss attributable to common stockholders was $(50.9) million or $(0.77) per diluted share, with an AFFO of $0.21 per diluted share[12]. - The company reported a net loss of $21.8 million for the three months ended December 31, 2024, compared to a loss of $21.5 million in the same period of 2023[26]. - The company reported a net income loss of $21,767 million for the period[84]. - The company reported a net income of $2,914 million for the year ended December 31, 2024, compared to a net loss of $28,426 million in the previous year[113]. Revenue and Occupancy Metrics - Comparable RevPAR for all hotels increased 1.9% year-over-year to $305, while Comparable ADR increased 0.4% to $480 and Comparable Occupancy increased 1.5% to 63.5%[5]. - Total hotel revenue for the year ended December 31, 2024, was $728.4 million, a decrease of 1.4% from $739.3 million in 2023[26]. - Total hotel revenue for the three months ended December 31, 2024, was $145,972, a decrease of 5.42% compared to $154,334 in 2023[51]. - RevPAR for the year ended December 31, 2024, was $310.52, a slight increase of 1.25% from $306.69 in 2023[40]. - The occupancy rate for the three months ended December 31, 2024, was 63.54%, slightly down from 63.61% in 2023[39]. EBITDA and Financial Ratios - Adjusted EBITDAre for Q4 2024 was $30.2 million, and Comparable Hotel EBITDA was $41.1 million for the quarter[5]. - Adjusted EBITDAre for the full year 2024 was $157.6 million, and Comparable Hotel EBITDA was $179.0 million[12]. - Hotel EBITDA for the year ended December 31, 2024, was $188,137,000, down 8.87% from $206,439,000 in 2023[46]. - Total hotel EBITDA was $43,347 million, reflecting a significant recovery from the previous year's EBITDA of $30,054 million[113]. - The weighted average interest rate on total indebtedness was 7.23% as of December 31, 2024[32]. Cash and Debt Management - The Company ended Q4 2024 with cash and cash equivalents of $135.5 million and restricted cash of $49.6 million[5]. - The Company has a net debt to gross assets ratio of 40.8% at the end of Q4 2024[5]. - Indebtedness, net, rose to $1.210 billion as of December 31, 2024, compared to $1.162 billion in 2023, an increase of 4.1%[24]. - Total liabilities increased slightly to $1.414 billion as of December 31, 2024, from $1.408 billion in 2023[24]. - Interest expense totaled $24,591 million, indicating significant financial costs[84]. Capital Expenditures and Investments - The Company invested $15.8 million in Capex during Q4 2024 and $70.6 million for the full year[5][12]. - The company anticipates significant capital expenditures in 2024 and 2025, particularly for hotels with expected displacement[79]. - The company is focusing on expanding its hotel portfolio, with 15 properties included in operations as of December 31, 2024[100]. Dividends and Shareholder Returns - A quarterly cash dividend of $0.05 per diluted share was declared for Q1 2025, equating to an annual rate of $0.20 per share[9]. - The company declared dividends of $0.05 per common share for both the three months ended December 31, 2024, and 2023[26]. Market Expansion and Future Outlook - The company anticipates continued focus on market expansion and new product development in the upcoming quarters[69]. - Future guidance suggests continued growth in occupancy and revenue, driven by strategic marketing and operational improvements[87]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its geographic footprint[86]. - The company is committed to enhancing its brand presence through strategic marketing initiatives and partnerships[100]. Property-Specific Performance - Rooms revenue for Pier House Resort & Spa increased to $5,897, a 2.02% rise compared to $5,780 in 2023[56]. - Hotel net income for Pier House Resort & Spa surged to $3,021, marking a 142.07% increase from $1,248 in 2023[56]. - Rooms revenue for Hotel Yountville decreased to $2,862, down 5.61% from $3,032 in 2023[56]. - Hotel net income for The Notary Hotel increased to $2,739, a 64.50% rise from $1,665 in 2023[56]. - Total hotel revenue for The Ritz-Carlton Sarasota rose by 1.45% to $86,764 compared to $85,520 in 2023[66].

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Core Viewpoint - Braemar Hotels & Resorts Inc. has announced the tax reporting information for its 2024 distributions on common and preferred shares, detailing the income tax treatment applicable to each distribution [1][2]. Distribution Summary - The common stock distribution for 2024 is $0.20 per share, with 100% classified as a return of capital [3]. - The Series B Cumulative Convertible Preferred Stock distribution is $1.3752 per share, with 75.51% as capital gain and 24.49% as return of capital [4]. - The Series D Cumulative Preferred Stock distribution is $2.0624 per share, with 75.51% as capital gain and 24.49% as return of capital [5]. - The Series E Redeemable Preferred Stock distribution is $1.8750 per share, with 75.51% as capital gain and 24.49% as return of capital [6]. - The Series M Redeemable Preferred Stock distributions vary, with amounts ranging from $2.1104 to $2.07295 per share, all showing 75.51% as capital gain and 24.49% as return of capital [8][9][10][11][12][13][14]. Company Overview - Braemar Hotels & Resorts is identified as a real estate investment trust (REIT) focused on investing in luxury hotels and resorts [16].

Core Insights - Braemar Hotels & Resorts Inc. has successfully extended its mortgage loan secured by the Ritz-Carlton Lake Tahoe, with a paydown of $10 million and a new spread of SOFR + 3.25% [1][2] - The company is in discussions regarding a $293.2 million loan maturing in June 2025, indicating optimism about improving financing conditions in the hotel lending market [2] Company Overview - Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts [2]

Core Points - Braemar Hotels & Resorts Inc. declared a quarterly cash dividend of $0.05 per diluted share for its common stock for Q1 2025, equating to an annual rate of $0.20 per share, payable on April 15, 2025 [1] - The Board also declared a quarterly cash dividend of $0.3438 per diluted share for the 5.5% Series B Cumulative Convertible Preferred Stock, payable on April 15, 2025 [2] - A quarterly cash dividend of $0.5156 per diluted share was declared for the 8.25% Series D Cumulative Preferred Stock, also payable on April 15, 2025 [3] - Monthly cash dividends for Series E Redeemable Preferred Stock were declared at $0.15625 per share, with payments scheduled for February 18, March 17, and April 15, 2025 [4] - Monthly cash dividends for Series M Redeemable Preferred Stock were declared at $0.17708 and $0.17500 per share, with similar payment schedules [5][6] - As of December 31, 2024, there were 14,910,521 shares of Series E Redeemable Preferred Stock and 1,476,621 shares of Series M Redeemable Preferred Stock issued and outstanding [7] Company Overview - Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts [7]

Core Points - Braemar Hotels & Resorts Inc. will release its fourth quarter results for the period ending December 31, 2024, after market close on February 26, 2025 [1][2] - A conference call to discuss the earnings will take place on February 27, 2025, at 11:00 a.m. ET, with a call-in number provided for participants [2] - The live broadcast of the conference call will be available on the company's website, and a replay will be accessible for approximately one year [3] Company Overview - Braemar Hotels & Resorts is identified as a real estate investment trust (REIT) that focuses on investing in luxury hotels and resorts [3]

Group 1 - The market for REITs and fixed income is experiencing a significant downturn due to a material spike in interest rates, prompting investment in Braemar Hotels & Resorts' preferred shares [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [2]