Company Results

Pebblebrook Hotel Trust Reports 2014 Results

Same-Property RevPAR for the year increased 9.2 percent over the same period of 2013 to $199.98. Same-Property ADR grew 7.4 percent from the comparable period of 2013 to $235.33. Same-Property Occupancy increased 1.6 percent to a robust 85.0 percent.

Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) today reported results for the fourth quarter and year ended December 31, 2014 and announced it expects to increase its quarterly dividend on its common shares 34.8 percent over the Company’s current quarterly common dividend. The Company’s results include the following:

“We’re very pleased with our continued ability to access the capital markets and the strong support from our shareholders and banking partners”

             
      Fourth Quarter     Full Year
      2014     2013     2014     2013
      ($ in millions except per share and RevPAR data)
                         
Net income (loss) to common shareholders     $9.5     $4.8     $47.8     $20.0
Net income (loss) per diluted share     $0.13     $0.08     $0.71     $0.32
                         
Same-Property RevPAR(1)     $193.42     $180.10     $199.98     $183.16
Same-Property RevPAR growth rate     7.4%           9.2%      
                         
Same-Property EBITDA(1)     $57.3     $50.4     $219.4     $188.5
Same-Property EBITDA growth rate     13.6%           16.4%      
Same-Property EBITDA Margin(1)     31.7%     29.2%     31.9%     29.2%
                         
Adjusted EBITDA(1)     $50.9     $40.9     $197.3     $150.1
Adjusted EBITDA growth rate     24.7%           31.4%      
                         
Adjusted FFO(1)     $32.6     $24.6     $130.1     $91.3
Adjusted FFO per diluted share(1)     $0.46     $0.39     $1.96     $1.47
Adjusted FFO per diluted share growth rate     17.9%           33.3%      

 

 

(1) See tables later in this press release for a description of same-property information and reconciliations from net income (loss) to non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Adjusted EBITDA, Funds from Operations ("FFO"), FFO per share, Adjusted FFO and Adjusted FFO per share.

For the details as to which hotels are included in Same-Property Revenue Per Available Room (“RevPAR”), Average Daily Rate (“ADR”), Occupancy, Revenues, Expenses, EBITDA and EBITDA Margins appearing in the table above and elsewhere in this press release, refer to the Same-Property Inclusion Reference Table later in this press release.

“We’re thrilled with our portfolio’s strong overall performance in 2014,” said Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “The hotel industry experienced another record-setting year, as industry demand accelerated throughout 2014, significantly outpacing supply growth. Our hotels especially benefitted from the continuous robust growth in business transient, leisure, group and international inbound travel. Our strategy of owning high quality hotels in high-barrier-to-entry, major gateway cities has enabled us to take advantage of these positive fundamentals and to outperform the overall industry’s RevPAR growth for the fourth straight year – this year by almost 100 bps. Furthermore, we were very active in the acquisition market, acquiring six high-quality hotels, while also completing several notable repositioning and capital reinvestment projects that should benefit our portfolio in 2015 and beyond. Overall, our performance during 2014 well exceeded our expectations as Adjusted EBITDA grew 31.4 percent, Adjusted FFO per share climbed 33.3 percent and we increased our common dividend in 2014 by 44 percent.”

2014 Highlights

  • Same-Property RevPAR: Same-Property RevPAR for the year increased 9.2 percent over the same period of 2013 to $199.98. Same-Property ADR grew 7.4 percent from the comparable period of 2013 to $235.33. Same-Property Occupancy increased 1.6 percent to a robust 85.0 percent.
  • Same-Property EBITDA: The Company’s hotels generated $219.4 million of Same-Property EBITDA for the year ended December 31, 2014, climbing 16.4 percent from the same period of 2013. Same-Property Revenues increased 6.8 percent, while Same-Property Expenses rose just 2.9 percent. As a result, Same-Property EBITDA Margin grew to 31.9 percent for the year ended December 31, 2014, representing an improvement of 262 basis points as compared to the same period last year.
  • Same-Property EBITDA per room: The Company’s Same-Property EBITDA per room for the year ended December 31, 2014 increased 16.3 percent to $32,704 from the comparable period of 2013.
  • Adjusted EBITDA: The Company’s Adjusted EBITDA for 2014 rose to $197.3 million, a gain of 31.4 percent versus $150.1 million in 2013.
  • Adjusted FFO: The Company’s Adjusted FFO for 2014 climbed 42.6 percent to $130.1 million, compared with $91.3 million for the prior year.
  • Dividends: During 2014, the Company declared dividends of $0.92 per share on its common shares, $1.96875 per share on its 7.875% Series A Cumulative Redeemable Preferred Shares, $2.00 per share on its 8.0% Series B Cumulative Redeemable Preferred Shares and $1.625 per share on its 6.50% Series C Cumulative Redeemable Preferred Shares.

Based on the Company’s 2015 outlook and the continued improvement in the operating performance of the Company’s hotels, Pebblebrook expects to increase its quarterly dividend on its common shares to $0.31 per share, or $1.24 on an annualized basis, commencing with the dividend for the first quarter of 2015. This proposed increase represents a 34.8 percent increase over the Company’s current quarterly common dividend of $0.23 per share.

“The hotel industry’s fundamentals continued to strengthen in 2014, as demand growth accelerated during the year, increasing a very healthy 4.5 percent, the fifth highest year-over-year growth rate since 1987,” added Mr. Bortz. “While demand growth accelerated, supply growth remained very subdued at just 0.9 percent, pushing industry occupancy up to historical highs in most urban markets, allowing for solid rate improvement and leading to hotel industry RevPAR growth of 8.3 percent. Pebblebrook’s Same-Property RevPAR growth of 9.2 percent exceeded the industry’s strong results, as we benefited from our creative capital reinvestment programs as well as our strategy of investing primarily in dynamic, urban markets in major gateway cities, particularly those on the west coast.”

Fourth Quarter Highlights

  • Same-Property RevPAR: Same-Property RevPAR in the fourth quarter of 2014 increased 7.4 percent over the same period of 2013 to $193.42. Same-Property ADR grew 6.3 percent from the fourth quarter of 2013 to $237.43. Same-Property Occupancy rose 1.0 percent to a very strong 81.5 percent.
  • Same-Property EBITDA: The Company’s hotels generated $57.3 million of Same-Property EBITDA for the quarter ended December 31, 2014, climbing 13.6 percent compared with the same period of 2013. Same-Property Revenues increased 4.5 percent, while Same-Property Hotel Expenses rose only 0.8 percent. As a result, Same-Property EBITDA Margin grew to 31.7 percent from the fourth quarter of 2013, representing an increase of 254 basis points.
  • Adjusted EBITDA: The Company’s Adjusted EBITDA rose to $50.9 million from $40.9 million in the prior year period, an increase of $10.1 million, or 24.7 percent.
  • Adjusted FFO: The Company’s Adjusted FFO climbed 32.6 percent to $32.6 million from $24.6 million in the prior year period.
  • Dividends: On December 15, 2014, the Company declared a regular quarterly cash dividend of $0.23 per share on its common shares, a regular quarterly cash dividend of $0.4921875 per share on its 7.875% Series A Cumulative Redeemable Preferred Shares, a regular quarterly cash dividend of $0.50 per share on its 8.00% Series B Cumulative Redeemable Preferred Shares and a regular quarterly cash dividend of $0.40625 per share on its 6.50% Series C Cumulative Redeemable Preferred Shares.

Capital Reinvestment and Asset Management

During 2014, the Company made $57.1 million of capital improvements throughout its portfolio, which includes the Company’s 49 percent interest in its six-hotel joint venture with Denihan Hospitality Group (the “Manhattan Collection”). The Company’s capital improvements included $13.3 million at W Los Angeles – Westwood, $7.7 million at Radisson Hotel Fisherman’s Wharf, $5.7 million at Hotel Palomar San Francisco and $4.7 million at Embassy Suites San Diego Bay – Downtown.

In the second quarter of 2014, the Company completed the $6.0 million comprehensive renovation and redevelopment of Hotel Vintage Seattle in downtown Seattle, WA. This complete renovation included the guest rooms, corridors, public areas, meeting space, lobby, entry and exterior, as well as a renaming of the hotel.

In the third quarter of 2014, the Company completed a $5.5 million lobby renovation, corridor and rooms refresh and the addition of five rooms at Hotel Palomar San Francisco. As part of the property’s renovation, the Company also redeveloped the restaurant and bar into a highly successful, bar-centric concept, Dirty Habit.

In the fourth quarter of 2014, the Company commenced multiple comprehensive renovations at a number of its more recently acquired West Coast properties, including the $23.5 million renovation and 39 guest room expansion at W Los Angeles – Westwood, the $32.0 million renovation and repositioning at Radisson Hotel Fisherman’s Wharf, the $10.0 million renovation and repositioning at Hotel Vintage Plaza Portland and the $8.5 million renovation at Embassy Suites San Diego Bay – Downtown.

“The completed capital investment programs at Hotel Vintage Seattle and Hotel Palomar San Francisco, along with the recently commenced repositionings and guest room additions at the W Los Angeles – Westwood, Radisson Hotel Fisherman’s Wharf, Embassy Suites San Diego Bay - Downtown and Hotel Vintage Plaza Portland, will provide us with additional opportunities to grow market share at each hotel by generating higher room rates and increased RevPAR penetration,” continued Mr. Bortz.

During 2015, the Company has various renovations and repositionings planned at its properties, including the 355-room Radisson Hotel Fisherman’s Wharf, with completion and relaunch as Hotel Zephyr expected in the second quarter of 2015; the Embassy Suites San Diego Bay – Downtown, with completion forecasted later this month; the 117-room Hotel Vintage Plaza Portland, which is now closed and is scheduled to reopen as Hotel Vintage Portland upon completion of its renovation by April; the 258-room W Los Angeles – Westwood, which is adding 39 new guest rooms and undergoing a full property renovation, all of which is expected to be completed in the second quarter of 2015; the 242-room Dumont NYC, which will add 10 new guest rooms, and is expected to be completed in the third quarter of 2015; The Westin Colonnade Coral Gables, with its renovation and repositioning planned to commence in the third quarter of 2015 and be completed in the fourth quarter of 2015; and the Union Station Hotel, Autograph Collection, Hotel Monaco Washington DC, and The Nines, a Luxury Collection Hotel, Portland, all of which are expected to commence rooms renovations late in the fourth quarter, with completions planned in the first quarter of 2016.

In addition to its capital reinvestment programs, the Company continues to implement a comprehensive array of asset management best practices and initiatives throughout its portfolio to enhance hotel revenues and improve operating efficiencies to promote expense controls and strong margin growth. To date, Pebblebrook has identified $26.6 million of annualized best practices and asset management opportunities throughout its portfolio.

“We’re incredibly pleased with the progress we’ve made in implementing our asset management initiatives and best practices across our hotel portfolio and executing on our wide array of renovation, repositioning and capital investment projects,” continued Mr. Bortz. “The implementation of these programs has proved to be an important driver of the strong operational results we’ve achieved over the last several years and will continue to be key to our push to drive outsized growth in 2015 and beyond. We truly appreciate the hard work and support of our hotel management teams, who continue to work collaboratively with our asset management team to find new opportunities to grow revenues, reduce expenses, improve operating efficiencies and increase our cash flow across our hotel portfolio.”

Acquisitions

In 2014, the Company successfully acquired six, urban, high-quality, upper-upscale, full-service hotels with a total of 1,393 guest rooms for a total investment of $626.8 million. All of the Company’s 2014 acquisitions are located in highly desirable, major urban cities.

“We’re thrilled to opportunistically increase our investments in our target markets of San Francisco, Portland, Miami, Los Angeles and Boston, and we’re very excited to enter the high-growth and dynamic market of Nashville with such a unique hotel,” said Mr. Bortz. “We believe these properties offer incredible opportunities for value creation through renovations and repositionings, further implementation of our comprehensive asset management initiatives and best practices, and from the underlying strength of these markets.”

Capital Markets

During 2014, the Company completed numerous attractive capital market transactions to help fund strategic growth and maintain its strong balance sheet. The Company raised $292.6 million in net proceeds through common share offerings and $24.5 million in net proceeds through a preferred share offering, while increasing the size of its credit facility to $600 million.

  • On September 9, 2014, the Company completed an underwritten public offering of 3,450,000 common shares at a price per share of $38.15, resulting in net proceeds of $131.4 million.
  • On September 30, 2014, the Company completed an underwritten public offering of 1,000,000 additional shares of its 6.50% Series C Cumulative Redeemable Preferred Shares at a price per share of $25.00, resulting in net proceeds of $24.5 million.
  • On October 16, 2014, the Company amended and restated its unsecured credit facility. The size of the credit facility was increased to $600 million and is comprised of a $300 million unsecured revolving credit facility and a five-year, $300 million unsecured term loan facility. The pricing on the amended credit facility was significantly reduced; the revolving credit facility now matures in January 2019 with options to extend the maturity date to January 2020; and the term loan facility, with $300 million outstanding, now matures in January 2020 and is subject to a blended rate of 2.93 percent.
  • On October 30, 2014, the Company completed an underwritten public offering of 3,680,000 of its common shares at a price per share of $39.77, resulting in net proceeds of $146.2 million.
  • During 2014, the Company issued and sold 400,000 common shares under its ATM offering program at an average price per share of $38.09, for total net proceeds of $15.0 million.

“We’re very pleased with our continued ability to access the capital markets and the strong support from our shareholders and banking partners,” commented Raymond D. Martz, Chief Financial Officer of Pebblebrook Hotel Trust. “With their support, we’ve been able to maintain a strong balance sheet, lower our overall cost of capital and extend our debt maturities, providing us with additional capacity for growth.”

Balance Sheet

As of December 31, 2014, the Company had $840.0 million in consolidated debt and $225.4 million in unconsolidated, non-recourse, secured debt at weighted-average interest rates of 4.1 percent and 3.6 percent, respectively. The Company’s total combined consolidated and unconsolidated debt has a weighted-average interest rate of 4.0 percent. The Company had $300.0 million outstanding in the form of an unsecured term loan and a $50.0 million outstanding balance on its $300.0 million senior unsecured revolving credit facility. As of December 31, 2014, the Company had $69.3 million of consolidated cash, cash equivalents and restricted cash and $16.7 million of unconsolidated cash, cash equivalents and restricted cash. The unconsolidated debt, cash, cash equivalents and restricted cash amounts represent the Company’s 49 percent interest in the Manhattan Collection.

On December 31, 2014, as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 3.0 times and total net debt to trailing 12-month corporate EBITDA was 4.2 times. The Company’s total debt to total gross assets ratio was 32 percent. Excluding its interest in the off-balance sheet Manhattan Collection, the Company’s fixed charge coverage ratio was 3.0 times, net debt to trailing 12-month corporate EBITDA was 3.8 times and total debt to total gross assets ratio was 30 percent.

2015 Outlook

The Company's outlook for 2015, which remains unchanged from its outlook announced in January 2015, incorporates the expected impact of the Company’s various capital investment projects and assumes continued improvement in economic activity, positive business travel trends and other significant assumptions. The Company’s outlook for 2015 is as follows:

       
      2015 Outlook
      Low     High
     

($ and shares/units in millions,

except per share and RevPAR data)

             

Net income

    $54.5     $61.5
Net income per diluted share     $0.75     $0.85
             
Adjusted EBITDA     $249.5     $256.5
Adjusted EBITDA growth rate     26.5%     30.0%
             
Adjusted FFO     $173.5     $180.5
Adjusted FFO per diluted share     $2.40     $2.50
Adjusted FFO per diluted share growth rate     22.4%     27.6%
             

This 2015 outlook is based, in part, on the following estimates and assumptions:

             
U.S. GDP growth rate     2.5%     3.0%
U.S. Hotel Industry RevPAR growth rate     6.0%     7.0%
             
Same-Property RevPAR     $211     $213
Same-Property RevPAR growth rate     6.5%     7.5%
             
Same-Property EBITDA     $274.0     $281.0
Same-Property EBITDA growth rate    

8.0%

   

10.7%

Same-Property EBITDA Margin     32.7%     33.2%
Same-Property EBITDA Margin growth rate     100 bps     150 bps
             
Corporate cash general and administrative expenses     $17.1     $17.1
Corporate non-cash general and administrative expenses     $9.5     $9.5
             
Total capital investments related to renovations, capital maintenance and return on investment projects     $80.0     $100.0
             
Weighted-average fully diluted shares and units     72.4     72.4
             

“As we look forward to 2015, we expect the U.S. hotel industry will remain strong as U.S. economic growth accelerates and broadens, group and transient business travel increases, and new supply growth remains well below historical averages, which should enable our properties to continue to increase room rates and improve profitability,” noted Mr. Bortz.

The Company’s outlook for the first quarter of 2015 is as follows:

       
      First Quarter 2015 Outlook
      Low     High
     

($ and shares/units in millions,

except per share and RevPAR data)

             
Same-Property RevPAR     $171.0     $174.0
Same-Property RevPAR growth rate     1.0%     3.0%
             
Same-Property EBITDA     $41.7     $43.7
Same-Property EBITDA Margin     24.3%     24.8%
Same-Property EBITDA Margin growth rate     0 bps     50 bps
             
Adjusted EBITDA     $34.7     $36.7
Adjusted EBITDA growth rate     17.5%     24.2%
             
Adjusted FFO     $19.2     $21.2
Adjusted FFO per diluted share     $0.27     $0.29
Adjusted FFO per diluted share growth rate     3.8%     11.5%
             
Weighted-average fully diluted shares and units     72.4     72.4
             

The Company’s outlook for 2015 and first quarter 2015 reflects the Company’s 49 percent interest in the Manhattan Collection. The Company’s outlook incorporates all expected first quarter renovation disruption, including the disruption associated with the renovations at the Embassy Suites San Diego Bay – Downtown, W Los Angeles – Westwood, Hotel Vintage Plaza Portland and Radisson Hotel Fisherman’s Wharf, as well as renovation disruption and the associated negative impact from renovations later this year at The Nines, a Luxury Collection Hotel, Portland, Hotel Monaco Washington DC, The Westin Colonnade Coral Gables, Prescott Hotel and Union Station Hotel, Autograph Collection.

The Company’s estimates and assumptions, including the Company’s outlook for 2015 and first quarter 2015, for Same-Property RevPAR, Same-Property RevPAR growth rate, Same-Property EBITDA, Same-Property EBITDA Margin and Same-Property EBITDA Margin growth rate include the hotels owned as of December 31, 2014, as if they had been owned by the Company for all of 2014 and 2015, except for Hotel Vintage Plaza Portland, which is not included in the first quarter and the Prescott Hotel, which is not included in the fourth quarter. The Company’s 2015 outlook assumes no additional acquisitions beyond the hotels the Company owned as of December 31, 2014.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust is a publicly traded real estate investment trust (“REIT”) organized to opportunistically acquire and invest primarily in upper-upscale, full-service hotels located in urban markets in major gateway cities. The Company owns 35 hotels, including 29 wholly owned hotels with a total of 6,948 guest rooms and a 49% joint venture interest in six hotels with a total of 1,775 guest rooms. The Company owns, or has an ownership interest in, hotels located in 11 states and the District of Columbia, including: San Francisco, California; Los Angeles, California (Hollywood, Santa Monica, West Hollywood and Westwood); New York, New York; Boston, Massachusetts; San Diego, California; Portland, Oregon; Buckhead, Georgia; Seattle, Washington; Washington, DC; Philadelphia, Pennsylvania; Miami, Florida; Columbia River Gorge, Washington; Nashville, Tennessee; Bethesda, Maryland and Minneapolis, Minnesota. 

                   
Pebblebrook Hotel Trust
Consolidated Balance Sheets
($ in thousands, except for per share data)
 
 
      December 31, 2014     December 31, 2013
                     
ASSETS
Assets:                    
Investment in hotel properties, net     $ 2,343,690       $ 1,717,611  
Investment in joint venture       258,828         260,304  
Ground lease asset, net       30,891         19,217  
Cash and cash equivalents       52,883         55,136  
Restricted cash       16,383         16,482  
Hotel receivables (net of allowance for doubtful accounts of $139 and $270, respectively)       21,320         16,850  
Deferred financing costs, net       6,246         4,736  
Prepaid expenses and other assets       40,243         26,595  
Total assets     $ 2,770,484       $ 2,116,931  
                     
                     
LIABILITIES AND EQUITY
                     
Liabilities:                    
Senior unsecured revolving credit facility     $ 50,000       $ -  
Term loan       300,000         100,000  
Mortgage debt (including mortgage loan premium of $4,026 and $5,888, respectively)       493,987         454,247  
Accounts payable and accrued expenses       106,828         61,428  
Advance deposits       11,583         8,432  
Accrued interest       2,382         1,945  
Distribution payable       23,293         15,795  
Total liabilities       988,073         641,847  
Commitments and contingencies                    
                     
Equity:                    

Preferred shares of beneficial interest, $0.01 par value (liquidation preference $350,000 at December 31, 2014 and $325,000 at December 31, 2013), 100,000,000 shares authorized; 14,000,000 shares issued and outstanding at December 31, 2014 and 13,000,000 shares issued and outstanding at December 31, 2013

      140         130  

Common shares of beneficial interest, $0.01 par value, 500,000,000 shares authorized; 71,553,481 issued and outstanding at December 31, 2014 and 63,709,628 issued and outstanding at December 31, 2013

      716         637  
Additional paid-in capital       1,864,739         1,541,138  
Accumulated other comprehensive income (loss)       (341 )       1,086  
Distributions in excess of retained earnings       (84,163 )       (69,652 )
Total shareholders' equity       1,781,091         1,473,339  
Non-controlling interests       1,320         1,745  
Total equity       1,782,411         1,475,084  
Total liabilities and equity     $ 2,770,484       $ 2,116,931  
                     
                                         
Pebblebrook Hotel Trust
Consolidated Statement of Operations
($ in thousands, except for per share data)
                                         
                                         
      Three months ended

December 31,

    Year ended

December 31,

      2014     2013     2014     2013
      (unaudited)                    
Revenues:                                        
Room     $ 103,713       $ 80,999       $ 410,600       $ 321,630  
Food and beverage       41,672         37,240         148,114         136,531  
Other operating       10,549         8,529         40,062         31,056  
Total revenues     $ 155,934       $ 126,768       $ 598,776       $ 489,217  
                                         
Expenses:                                        
Hotel operating expenses:                                        
Room     $ 27,149         21,622       $ 102,709       $ 83,390  
Food and beverage       28,281         26,064         104,843         100,244  
Other direct       3,700         3,693         14,512         14,037  
Other indirect       40,972         33,634         151,923         126,527  
Total hotel operating expenses       100,102         85,013         373,987         324,198  
Depreciation and amortization       18,810         14,823         68,324         55,570  
Real estate taxes, personal property taxes, property insurance, and ground rent       10,030         8,152         36,878         31,052  
General and administrative       7,402         4,328         26,349         17,166  
Hotel acquisition costs       977         1,947         1,973         3,376  
Total operating expenses       137,321         114,263         507,511         431,362  
Operating income (loss)       18,613         12,505         91,265         57,855  
Interest income       648         656         2,529         2,620  
Interest expense       (7,456 )       (6,223 )       (27,065 )       (23,680 )
Equity in earnings (loss) of joint venture       5,595         5,131         10,065         7,623  
Income (loss) before income taxes       17,400         12,069         76,794         44,418  
Income tax (expense) benefit       (1,310 )       (1,089 )       (3,251 )       (1,226 )
Net income (loss)       16,090         10,980         73,543         43,192  
Net income (loss) available to non-controlling interests       140         63         677         274  
Net income (loss) available to the Company       15,950         10,917         72,866         42,918  
Distributions to preferred shareholders       (6,488 )       (6,081 )       (25,079 )       (22,953 )
Net income (loss) available to common shareholders     $ 9,462       $ 4,836       $ 47,787       $ 19,965  
                                         
                                         
Net income (loss) per share available to common shareholders, basic     $ 0.13       $ 0.08       $ 0.72       $ 0.32  
Net income (loss) per share available to common shareholders, diluted     $ 0.13       $ 0.08       $ 0.71       $ 0.32  
                                         
Weighted-average number of common shares, basic       70,138,092         62,719,628         65,646,712         61,498,389  
Weighted-average number of common shares, diluted       70,793,130         63,065,226         66,264,118         61,836,741  
                                         

                                         
Pebblebrook Hotel Trust
Reconciliation of Net Income (Loss) to FFO, EBITDA, Adjusted FFO and Adjusted EBITDA
($ in thousands, except per share data)
(Unaudited)
 
                                         
      Three months ended

December 31,

    Year ended

December 31,

      2014     2013     2014     2013
                                         
Net income (loss)     $ 16,090       $ 10,980       $ 73,543       $ 43,192  
Adjustments:                                        
Depreciation and amortization       18,753         14,779         68,136         55,398  
Depreciation and amortization from joint venture       2,304         2,117         9,025         8,892  
FFO     $ 37,147       $ 27,876       $ 150,704       $ 107,482  
Distribution to preferred shareholders     $ (6,488 )     $ (6,081 )     $ (25,079 )     $ (22,953 )
FFO available to common share and unit holders     $ 30,659       $ 21,795       $ 125,625       $ 84,529  
Hotel acquisition costs       977         1,947         1,973         3,376  
Non-cash ground rent       608         723  



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