Company Results

DiamondRock Hospitality Reports Full Year 2013 RevPAR Increase of 1.4%

Hotel Adjusted EBITDA margin was 25.80%, a decrease of 143 basis points from 2012. Excluding the New York City hotels under renovation during 2013, the Company's Hotel Adjusted EBITDA margin increased 45 basis points from 2012.

DiamondRock

DiamondRock Hospitality Company (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 26 premium hotels in the United States, today announced results of operations for the fourth quarter and full year ended December 31, 2013.  The Company also announced a 21% increase to its quarterly dividend commencing with the first quarter 2014.

2013 Operating Results        

  • RevPAR: RevPAR was $138.11, an increase of 1.4% from 2012.  Excluding the New York City hotels under renovation during 2013, the Company's RevPAR increased 5.3% from 2012.
  • Hotel Adjusted EBITDA Margin: Hotel Adjusted EBITDA margin was 25.80%, a decrease of 143 basis points from 2012. Excluding the New York City hotels under renovation during 2013, the Company's Hotel Adjusted EBITDA margin increased 45 basis points from 2012.
  • Adjusted EBITDA: Adjusted EBITDA was $196.9 million.
  • Adjusted FFO: Adjusted FFO was $139.3 million and Adjusted FFO per diluted share was $0.71.
  • Dividends: The Company declared four quarterly dividends totaling $0.34 per share during 2013 and returned approximately $65 million to shareholders.

Fourth Quarter 2013 Highlights

  • RevPAR: RevPAR was $139.98, an increase of 3.3% from 2012.
  • Hotel Adjusted EBITDA Margin: Hotel Adjusted EBITDA margin was 25.81%, a decrease of 188 basis points from 2012.
  • Adjusted EBITDA: Adjusted EBITDA was $49.3 million.
  • Adjusted FFO: Adjusted FFO was $33.5 million and Adjusted FFO per diluted share was $0.17.
  • Lexington Hotel Renovation: The Company completed its comprehensive renovation of the Lexington Hotel New York City during the fourth quarter. The feedback from guests and meeting planners post-renovation has been very favorable.
  • Non-Core Hotel Disposition: The Company sold the 487-room Torrance Marriott South Bay for proceeds of approximately $76 million, which represented a 5.8% cap rate on the hotel's net operating income.
  • Salt Lake City Refinancing: The Company entered into a new $63 million mortgage loan secured by the Salt Lake City Marriott. The loan has a term of seven years and bears interest at a fixed rate of 4.25%.
  • Dividends: The Company declared a quarterly dividend of $0.085 per share during the fourth quarter.

Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company, stated, "In 2013 we focused on repositioning DiamondRock for meaningful growth in 2014 and beyond. We are pleased to announce that we have substantially completed our $140 million capital program, which included a number of transformational projects such as the comprehensive renovation and rebranding of the Lexington Hotel. Importantly, we don't expect any meaningful renovation disruption in 2014. Our successful strategic initiatives in 2013 have positioned the Company for a strong 2014, as we look for performance to be bolstered by accelerated RevPAR growth, strong group pace, renovation tailwinds and our intensified asset management efforts."

Operating Results     

Please see "Certain Definitions" and "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDA," "Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO."

For the quarter ended December 31, 2013 (92 days), the Company reported the following:

Fourth Quarter

2013

2012 Pro Forma2

Change

ADR 1

$194.12

$187.04

3.8%

Occupancy 1

72.1%

72.4%

(0.3) percentage points

RevPAR 1

$139.98

$135.50

3.3%

Total Revenue 1

$201.5 million

$190.8 million

5.6%

Hotel Adjusted EBITDA Margin 1

25.81%

27.69%

(188) basis points

Adjusted EBITDA

$49.3 million

Adjusted FFO

$33.5 million

Adjusted FFO per diluted share

$0.17

Excludes the Torrance Marriott South Bay, which was sold in November 2013 and reported in discontinued operations.

Pro forma to (a) include the operating results of the Company's Marriott-managed hotels from October 6, 2012 to December 31, 2012 (87 days) and all other hotels from October 1, 2012 to December 31, 2012, (b) assume the hotels acquired in 2012 were owned as of January 1, 2012 and (c) exclude the results of hotels sold.

The year-over-year comparability of the Company's fourth quarter results is impacted by the change in its reporting calendar.  For the Company's Marriott-managed hotels, the 2013 fourth quarter includes 5 more days than the pro forma 2012 fourth quarter, which results in the 2013 fourth quarter including approximately 3% additional available room nights as compared to the pro forma 2012 fourth quarter.

For the year ended December 31, 2013, the Company reported the following:

Year Ended December 31,

2013

2012 Pro Forma2

Change

ADR 1

$183.85

$178.50

3.0%

Occupancy 1

75.1%

76.3%

(1.2) percentage points

RevPAR 1

$138.11

$136.27

1.4%

Total Revenue 1

$799.7 million

$779.5 million

2.6%

Hotel Adjusted EBITDA Margin 1

25.80%

27.23%

(143) basis points

Adjusted EBITDA

$196.9 million

Adjusted FFO

$139.3 million

Adjusted FFO per diluted share

$0.71

Excludes the Torrance Marriott South Bay, which was sold in November 2013 and reported in discontinued operations.

Pro forma to assume the hotels acquired in 2012 were owned as of January 1, 2012 and exclude the results of hotels sold.

The Company's operating results for the year ended December 31, 2013 were significantly impacted by the displacement of over 86,000 room nights at its three New York City hotels under renovation, the Lexington Hotel, Courtyard Manhattan Midtown East and Courtyard Fifth Avenue. The renovations of the two Courtyards were completed during the second quarter of 2013 and the renovation of the Lexington Hotel was completed in October 2013.  The following are selected operating results for the Company excluding these three hotels:

Year Ended December 31,

2013

2012 Pro Forma2

Change

ADR 1

$176.37

$170.43

3.5%

Occupancy 1

75.7%

74.4%

1.3 percentage points

RevPAR 1

$133.56

$126.79

5.3%

Total Revenue 1

$718.0 million

$680.6 million

5.5%

Hotel Adjusted EBITDA 1

$191.0 million

$177.9 million

7.3%

Hotel Adjusted EBITDA Margin 1

26.60%

26.15%

45 basis points

Excludes the Torrance Marriott South Bay, which was sold in November 2013 and reported in discontinued operations.

Pro forma to assume the hotels acquired in 2012 were owned as of January 1, 2012 and exclude the results of hotels sold.

Capital Expenditures

The Company has substantially completed its $140 million capital improvement program. During the year ended December 31, 2013, the Company spent approximately $107.3 million on these capital improvements. The following is an update on the most significant capital projects.

  • Lexington Hotel New York: The Company completed its comprehensive renovation of the Lexington Hotel in October 2013. The hotel joined Marriott's Autograph Collection during August 2013 and has increased average daily rates by approximately$40 from the comparable period in 2012.
  • Manhattan Courtyards:  The Company completed the renovation of the guest rooms, corridors and guest bathrooms at the Courtyard Manhattan/Midtown East and Courtyard Manhattan/Fifth Avenue.  The renovation at the Courtyard Midtown East included the addition of 5 new guest rooms.
  • Westin Washington D.C.:  A comprehensive $17 million renovation commenced in October 2013 and was substantially completed in February 2014.
  • Westin San Diego: A comprehensive $14.5 million renovation commenced in October 2013 and was substantially completed in January 2014.
  • Hilton Minneapolis: A $13 million renovation of the guest rooms, guest bathrooms and corridors commenced in November 2013 and will be substantially complete during the first quarter of 2014.
  • Hilton Boston: A $7 million renovation of the guest rooms, corridors, public areas, and meeting space commenced inOctober 2013 and was substantially completed at the end of 2013.
  • Hilton Burlington:  A $6 million renovation of the lobby, corridors, guest rooms and outdoor space commenced inNovember 2013 and was substantially completed in February 2014.

The Company expects to spend approximately $95 million on capital improvements at its hotels in 2014, of which approximately$45 million relates to the completion of 2013 capital projects in early 2014 and approximately $50 million relates to new 2014 capital projects.

Salt Lake City Marriott Refinancing

The Company entered into a new $63 million mortgage loan secured by the Salt Lake City Marriott in October 2013. The new loan has a term of seven years and bears interest at a fixed rate of 4.25%. As part of the refinancing, the Company prepaid the $27.3 million mortgage loan previously secured by the hotel, which had a fixed interest rate of 5.5 % and a maturity date of January 2015. The cost of prepaying the loan through defeasance was approximately $1.5 million, which is added back to Adjusted EBITDA and Adjusted FFO. The Company used the proceeds from the new loan to repay the prior loan and to create additional investment capacity for the acquisition of the Hilton Garden Inn Times Square Central.

Sale of Torrance Marriott South Bay

On November 21, 2013, the Company sold the 487-room Torrance Marriott South Bay for approximately $76 million, which included credit for the hotel's replacement reserve. The proceeds from the sale will be used to create investment capacity for the acquisition of the Hilton Garden Inn Times Square Central.  The Torrance Marriott South Bay generated $5.4 million of Hotel Adjusted EBITDA during the year ended December 31, 2013.

Balance Sheet

As of December 31, 2013, the Company had $144.6 million of unrestricted cash on hand and approximately $1.1 billion of total debt, which consists solely of property-specific mortgage debt.  The Company has no outstanding borrowings on its $200 millionsenior unsecured credit facility.

Dividends

The Company's Board of Directors declared a quarterly dividend of $0.085 per share to stockholders of record as of December 31, 2013.  The dividend was paid on January 10, 2014.  The Company increased its quarterly dividend for 2014 by 21% and its Board of Directors declared a dividend of $0.1025 per share for stockholders of record as of March 31, 2014.

Outlook and Guidance

The Company is providing annual guidance for 2014, but does not undertake to update it for any developments in its business.  Achievement of the anticipated results is subject to the risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission.  The Company's outlook assumes the Hilton Garden Inn Times Square Central opens in August 2014.  The 2014 Pro Forma RevPAR growth excludes the Hilton Garden Inn Times Square Central, which is expected to positively impact the Company's RevPAR by approximately 75 basis points.

Based on the above assumptions, the Company expects its full year 2014 results to be as follows:

Metric

Low End

High End

Pro Forma RevPAR Growth

9 percent

11 percent

Adjusted EBITDA

$230 million

$240 million

Adjusted FFO

$169 million

$176 million

Adjusted FFO per share

(based on 196.5 million shares)

$0.86 per share

$0.90 per share

The Company expects approximately 16% of full year 2014 Adjusted EBITDA to be earned during the first quarter of 2014.

The midpoint of the guidance range above implies Hotel Adjusted EBITDA margin growth of over 250 basis points.  For comparison purposes, the Company's Pro Forma RevPAR growth outlook excluding the New York City hotels under renovation during 2013 is 5.5 percent to 7.5 percent.

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations.  The Company owns 26 premium quality hotels with over 11,100 rooms. The Company has strategically positioned its hotels to generally be operated under the leading global brands such as Hilton, Marriott, and Westin.

DIAMONDROCK HOSPITALITY COMPANY 

CONSOLIDATED BALANCE SHEETS 

As of December 31, 2013 and December 31, 2012 

(in thousands, except share and per share amounts)

2013

2012

ASSETS

Property and equipment, at cost

$

3,168,088

$

3,131,175

Less: accumulated depreciation

(600,555)

(519,721)

2,567,533

2,611,454

Deferred financing costs, net

7,702

9,724

Restricted cash

89,106

76,131

Due from hotel managers

69,353

68,532

Note receivable

50,084

53,792

Favorable lease assets, net

39,936

40,972

Prepaid and other assets (1)

79,474

73,814

Cash and cash equivalents

144,584

9,623

Total assets

$

3,047,772

$

2,944,042

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Mortgage debt

$

1,091,861

$

968,731

Senior unsecured credit facility

20,000

Total debt

1,091,861

988,731

Deferred income related to key money, net

23,707

24,362

Unfavorable contract liabilities, net

78,093

80,043

Due to hotel managers

54,225

51,003

Dividends declared and unpaid

16,981

15,911

Accounts payable and accrued expenses (2)

102,214

88,879

Total other liabilities

275,220

260,198

Stockholders' Equity:

Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued and outstanding

Common stock, $0.01 par value; 400,000,000 shares authorized; 195,470,791 and 195,145,707 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively

1,955

1,951

Additional paid-in capital

1,979,613

1,976,200

Accumulated deficit

(300,877)

(283,038)

Total stockholders' equity

1,680,691

1,695,113

Total liabilities and stockholders' equity

$

3,047,772

$

2,944,042

(1)

Includes $39.4 million of deferred tax assets, $26.9 million for the Hilton Garden Inn Times Square purchase deposit, $8.1 million of prepaid expenses and $5.1 million of other assets as of December 31, 2013.

(2)

Includes $59.0 million of deferred ground rent, $11.0 million of deferred tax liabilities, $11.7 million of accrued property taxes, $8.6 million of accrued capital expenditures and $11.9 million of other accrued liabilities as of December 31, 2013.

 

 

DIAMONDROCK HOSPITALITY COMPANY 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

For the Fiscal Quarters Ended December 31, 2013 and December 31, 2012 and 

the Years Ended December 31, 2013 and December 31, 2012 

(in thousands, except per share amounts) 

(unaudited)

Fiscal Quarter Ended December 31,

Year Ended December 31,

2013

2012

2013

2012

Revenues:

Rooms

$

142,864

$

183,215

$

558,751

$

509,902

Food and beverage

47,239

61,024

193,043

174,963

Other

11,364

14,993

47,894

42,022

Total revenues

201,467

259,232

799,688

726,887

Operating Expenses:

Rooms

38,573

46,248

151,040

135,437

Food and beverage

33,194

41,891

136,454

124,890

Management fees

6,621

9,410

25,546

24,307

Other hotel expenses

71,241

88,396

284,523

254,265

Impairment loss

30,844

Depreciation and amortization

25,374

36,409

103,895

97,004

Hotel acquisition costs

246

10,591

Corporate expenses

4,971

5,384

23,072

21,095

Total operating expenses

179,974

227,984

724,530

698,433

Operating profit

21,493

31,248

75,158

28,454

Other Expenses (Income):

Interest income

(1,724)

(29)

(6,328)

(305)

Interest expense

14,769

17,061

57,279

53,771

Loss (gain) on early extinguishment of debt

1,492

1,492

(144)

Total other expenses, net

14,537

17,032

52,443

53,322

Income (loss) from continuing operations before income taxes

6,956

14,216

22,715

(24,868)

Income tax (expense) benefit

(128)

1,400

1,113

6,793

Income (loss) from continuing operations

6,828

15,616

23,828

(18,075)

Income from discontinued operations, net of income taxes

22,727

1,012

25,237

1,483

Net income (loss)

29,555

16,628

49,065

(16,592)

Earnings (loss) earnings per share:

Continuing operations

$

0.03

$

0.08

$

0.12

$

(0.10)

Discontinued operations

0.12

0.00

0.13

0.01

Basic and diluted earnings (loss) per share

$

0.15

$

0.08

$

0.25

$

(0.09)

Non-GAAP Financial Measures

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP.  EBITDA, Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

EBITDA and FFO

EBITDA represents net income excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. We believe EBITDA is useful to an investor in evaluating our operating performance because it helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization) from  our operating results. In addition, covenants included in our indebtedness use EBITDA as a measure of financial compliance. We also use EBITDA as one measure in determining the value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by NAREIT, which defines FFO as net income determined in accordance with GAAP, excluding gains or losses from sales of properties and impairment losses, plus depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate depreciation and amortization and gain or loss on sale of assets.  The Company also uses FFO as one measure in assessing its results.

Adjustments to EBITDA and FFO

We adjust EBITDA and FFO when evaluating our performance because we believe that the exclusion of certain additional recurring and non-recurring items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA and Adjusted FFO, when combined with GAAP net income, EBITDA and FFO, is beneficial to an investor's complete understanding of our operating performance.  We adjust EBITDA and FFO for the following items:

  • Non-Cash Ground Rent: We exclude the non-cash expense incurred from the straight line recognition of rent from our ground lease obligations and the non-cash amortization of our favorable lease assets.
  • Non-Cash Amortization of Favorable and Unfavorable Contracts: We exclude the non-cash amortization of the favorable management contract assets recorded in conjunction with our acquisitions of the Westin Washington D.C. City Center,Westin San Diego, and Hilton Burlington and the non-cash amortization of the unfavorable contract liabilities recorded in conjunction with our acquisitions of the Bethesda Marriott Suites, the Chicago Marriott Downtown, the Renaissance Charleston and the Lexington Hotel New York.  The amortization of the favorable and unfavorable contracts does not reflect the underlying operating performance of our hotels.
  • Cumulative Effect of a Change in Accounting Principle: Infrequently, the Financial Accounting Standards Board (FASB) promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle.  We exclude the effect of these one-time adjustments because they do not reflect its actual performance for that period.
  • Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because we believe they do not accurately reflect the underlying performance of the Company.
  • Acquisition Costs:  We exclude acquisition transaction costs expensed during the period because we believe they do not reflect the underlying performance of the Company.
  • Allerton Loan:  In 2012, due to the uncertainty of the timing of the bankruptcy resolution, we excluded both cash interest payments received and the legal costs incurred as a result of the bankruptcy proceedings from our calculation of Adjusted EBITDA and Adjusted FFO.  Due to the settlement of the bankruptcy proceedings and amended and restated loan, we commenced recognizing interest income in 2013, which includes the amortization of the difference between the carrying basis of the old loan and face value of the new loan. Cash payments received during 2010 and 2011 that were included in Adjusted EBITDA and Adjusted FFO and reduced the carrying basis of the loan are now deducted from Adjusted EBITDA and Adjusted FFO on a straight-line basis over the anticipated five-year term of the new loan.
  • Other Non-Cash and /or Unusual Items:  From time to time we incur costs or realize gains that we do not believe reflect the underlying performance of the Company.  Such items include, but are not limited to, new hotel pre-opening costs, contract termination fees and severance costs.  In 2012, we excluded the franchise termination fee paid to Radisson Hotels International, Inc. for the Lexington Hotel New York.  In 2013, we excluded the severance costs associated with the departure of our former President and Chief Operating Officer, as well as the write off of unamortized key money, net of a termination payment, related to the termination of the Oak Brook Hills Resort management agreement.

In addition, to derive Adjusted EBITDA we exclude gains or losses on sales of properties and impairment losses because we believe that including them in EBITDA is not consistent with reflecting the ongoing performance of our hotels. Additionally, the gains or losses on sales of properties and impairment losses represent either accelerated depreciation or excess depreciation in previous periods, and depreciation is excluded from EBITDA.

In addition, to derive Adjusted FFO we exclude any fair value adjustments to debt instruments.  Specifically, we exclude the impact of the non-cash amortization of the debt premium recorded in conjunction with the acquisition of the JW Marriott Denver at Cherry Creek and fair market value adjustments to the Company's interest rate cap agreement.

The following tables are reconciliations of our U.S. GAAP net income to EBITDA and Adjusted EBITDA (in thousands):   

Fiscal Quarter Ended 

December 31,

Year Ended 

December 31,

2013

2012

2013

2012

Net income (loss)

$

29,555

$

16,628

$

49,065

$

(16,592)

Interest expense (1)

14,769

17,061

57,279

56,068

Income tax expense (benefit) (2)

928

(1,242)

(16)

(6,046)

Real estate related depreciation (3)

25,374

37,350

105,655

101,498

EBITDA

70,626

69,797

211,983

134,928

Non-cash ground rent

1,677

2,074

6,787

6,694

Non-cash amortization of favorable and unfavorable contract liabilities, net

(424)

(357)

(1,487)

(1,653)

(Gain) loss on sale of hotel properties

(22,733)

61

(22,733)

(9,479)

Loss (gain) on early extinguishment of debt

1,492

1,492

(144)

Acquisition costs

246

10,591

Reversal of previously recognized Allerton income

(291)

(1,163)

Allerton loan legal fees

476

2,493

Write-off of key money

(1,082)

(1,082)

Franchise termination fee

750

Impairment losses (4)

45,534

Severance costs

3,065

Adjusted EBITDA

$

49,265

$

72,297

$

196,862

$

189,714

(1)

Includes $2.3 million of interest expense reported in discontinued operations for the year ended December 31, 2012. 

(2)

Includes $0.8 million of income tax expense reported in discontinued operations for the fiscal quarter ended December 31, 2013 and $1.1 million of income tax expense reported in discontinued operations for the year ended December 31, 2013.  Includes $0.2 million of income tax expense reported in discontinued operations for the fiscal quarter ended December 31, 2012 and $0.7 million of income tax expense reported in discontinued operations for the year ended December 31, 2012.

(3)

Includes $1.8 million of depreciation expense reported in discontinued operations for the year ended December 31, 2013.  Includes $0.9 million of depreciation expense reported in discontinued operations for the quarter ended December 31, 2012 and $4.5 million of depreciation expense reported in discontinued operations for the year ended December 31, 2012.

(4)

Includes impairment losses of $14.7 million reported in discontinued operations for the year ended December 31, 2012. 

 

 

Guidance (in 000s)

Full Year 2014

Low End

High End

Net income (1)

$

69,163

$

76,663

Interest expense

59,200

59,100

Income tax expense (benefit)

1,400

4,500

Real estate related depreciation and amortization

95,500

95,000

EBITDA

225,263

235,263

Non-cash ground rent

6,400

6,400

Non-cash amortization of favorable and unfavorable contracts, net

(1,400)

(1,400)

Reversal of previously recognized Allerton income

(1,163)

(1,163)

Pre-opening costs

900

900

Adjusted EBITDA

$

230,000

$

240,000

(1)

Net income includes approximately $6.6 million of interest income related to the Allerton loan and approximately $21.0 million of corporate expenses.

 

 

The following tables are reconciliations of our U.S. GAAP net income to FFO and Adjusted FFO (in thousands):

Fiscal Quarter Ended 

December 31,

Year Ended 

December 31,

2013

2012

2013

2012

Net income (loss)

$

29,555

$

16,628

$

49,065

$

(16,592)

Real estate related depreciation (1)

25,374

37,350

105,655

101,498

Impairment losses (2)

45,534

(Gain) loss on sale of hotel properties

(22,733)

61

(22,733)

(9,479)

FFO

32,196

54,039

131,987

120,961

Non-cash ground rent

1,677

2,074

6,787

6,694

Non-cash amortization of unfavorable contract liabilities, net

(424)

(357)

(1,487)

(1,653)

Loss (gain) on early extinguishment of debt

1,492

1,492

(144)

Acquisition costs

246

10,591

Reversal of previously recognized Allerton income

(291)

(1,163)

Allerton loan legal fees

476

2,493

Write-off of key money

(1,082)

(1,082)

Franchise termination fee

750

Severance costs

3,065

Fair value adjustments to debt instruments

(65)

(28)

(298)

471

Adjusted FFO

$

33,503

$

56,450

$

139,301

$

140,163

Adjusted FFO per share

$

0.17

$

0.29

$

0.71

$

0.78

(1)

Includes $1.8 million of depreciation expense reported in discontinued operations for the year ended December 31, 2013.  Includes $0.9 million of depreciation expense reported in discontinued operations for the quarter ended December 31, 2012 and $4.5 million of depreciation expense reported in discontinued operations for the year ended December 31, 2012.

(2)

Includes impairment losses of $14.7 million reported in discontinued operations in the year ended December 31, 2012. 

 

 

Guidance (in 000s)

Full Year 2014

Low End

High End

Net income (1)

$

69,163

$

76,663

Real estate related depreciation and amortization

95,500

95,000

FFO

164,663

171,663

Non-cash ground rent

6,400

6,400

Non-cash amortization of favorable and unfavorable contracts, net

(1,400)

(1,400)

Reversal of previously recognized Allerton income

(1,163)

(1,163)

Pre-opening costs

900




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