Chatham Lodging Trust(CLDT)2025-05-06 19:54Revenue and Income - Total revenue for the three months ended March 31, 2025, was $68.6 million, a 0.3% increase from $68.4 million in the same period of 2024[109] - Net income for the three months ended March 31, 2025, was $1.5 million, a significant improvement from a net loss of $(5.5) million for the same period in 2024[126] - Funds From Operations (FFO) attributable to common share and unit holders was $6.88 million for Q1 2025, compared to $7.88 million in Q1 2024[132] - Adjusted FFO for the three months ended March 31, 2025, was $7.40 million, slightly down from $7.93 million in the same period of 2024[132] - EBITDA for the three months ended March 31, 2025, increased to $23.40 million from $17.08 million in Q1 2024[136] - Adjusted Hotel EBITDA for Q1 2025 was $20.84 million, compared to $21.03 million in Q1 2024, indicating a slight decline[139] Revenue Breakdown - Room revenue comprised 90.9% of total revenue for the three months ended March 31, 2025[109] - Food and beverage revenue decreased by 10.1% to $1.7 million for the three months ended March 31, 2025[110] - The company sold five hotels during the reporting period, which contributed $1.3 million in room revenue for the three months ended March 31, 2025[108] - The company acquired one hotel in Phoenix, AZ, on May 30, 2024, contributing $2.8 million in revenue during the three months ended March 31, 2025[108] Expenses and Financial Metrics - Hotel operating expenses remained flat at $41.8 million for the three months ended March 31, 2025, compared to the same period in 2024[116] - Total general and administrative expenses remained stable at $3.0 million for both the three months ended March 31, 2025, and 2024, excluding stock-based compensation[121] - Interest expense decreased by $0.4 million, from $7.3 million in Q1 2024 to $6.9 million in Q1 2025, primarily due to lower debt balances[124] - Depreciation and amortization expense was $15.0 million for Q1 2025, compared to $15.3 million in Q1 2024[119] - Total property taxes, ground rent, and insurance expenses increased by $0.4 million, from $5.3 million in Q1 2024 to $5.7 million in Q1 2025[120] Cash Flow and Investments - Net cash flows provided by operating activities decreased by $2.7 million to $4.2 million for the three months ended March 31, 2025, compared to $6.9 million for the same period in 2024, primarily due to the sale of five hotels[145] - Net cash flows provided by investing activities increased by $16.5 million to $22.8 million for the three months ended March 31, 2025, compared to $6.3 million for the same period in 2024[146] - The company expects to invest approximately $18.6 million on renovations and emergency expenditures on existing hotels during the remainder of 2025[147] - Net cash flows used in financing activities increased by $24.1 million to $(31.6) million for the three months ended March 31, 2025, compared to $(7.5) million for the same period in 2024[148] Debt and Leverage - Total debt as of March 31, 2025, was $383.2 million, with a weighted-average interest rate of approximately 6.43%[101] - The leverage ratio was 22.3% as of March 31, 2025, consistent with the company's historical range of low 20s to low 50s[101] - Total debt principal and interest obligations amounted to $470.5 million as of March 31, 2025, with $161.2 million payable within the next 12 months[150] - The company had approximately $77.5 million in common shares available for issuance under the ATM Program as of March 31, 2025[155] Interest Rate Sensitivity - The company has a total floating rate debt of $240 million with an average interest rate of 5.95%[168] - The fixed rate debt amounts to $143.225 million, with an average interest rate of 7.12%[168] - A hypothetical 100 basis points increase in SOFR would lead to an additional interest expense of approximately $2.4 million annually[168] - The fixed rate debt includes $24,590 maturing in 2028, $23,681 in 2029, and $94,954 thereafter[168] - The fair value of the fixed rate debt is estimated at $146.782 million[168] - The company’s financial instruments are sensitive to changes in interest rates, impacting future cash flows[168] - The average interest rate for fixed rate debt maturing in 2029 is 7.29%[168] - The company’s financial strategy includes managing interest rate exposure through a mix of floating and fixed rate debt[168]