EX-99.1 2 chsp-20180501xex991.htm EXHIBIT 99.1 Exhibit
 
 
 
 
 
Exhibit 99.1
chsp20180501ex991.jpg
 
PRESS RELEASE
For Immediate Release
 Contact: Douglas W. Vicari (571) 349-9452
 
 
 


 CHESAPEAKE LODGING TRUST REPORTS FIRST QUARTER RESULTS

ARLINGTON, VA, May 1, 2018 – Chesapeake Lodging Trust (NYSE:CHSP), a lodging real estate investment trust (REIT), reported today its financial results for the quarter ended March 31, 2018.
HIGHLIGHTS
•
Comparable RevPAR: 3.5% increase for the 21-hotel portfolio over the same period in 2017.
•
Comparable Adjusted Hotel EBITDAre Margin: 90 basis point increase to 27.9% for the 21-hotel portfolio over the same period in 2017.
•
Adjusted Hotel EBITDAre: $37.7 million.
•
Adjusted Corporate EBITDAre: $32.3 million.
•
Net income available to common shareholders: $6.5 million or $0.11 per diluted common share.
•
Adjusted FFO: $25.7 million or $0.43 per diluted common share.


“We are pleased with our results for the first quarter, which exceeded the high end of our provided outlook for all of our key operating metrics. Our hotel managers, working with our asset management team, did a terrific job managing and controlling expenses during the quarter, leading to a 90 basis point increase in our comparable hotel EBITDAre margin,” said James L. Francis, Chesapeake Lodging Trust’s President and Chief Executive Officer.

Mr. Francis continued, “We have seen modest strengthening in lodging demand trends over the last few months. We remain cautiously optimistic that the pro-growth political agenda will continue to positively impact lodging demand as we proceed through the year.”





 
 
 
 
 
 
chsp20180501ex991.jpg
 
PRESS RELEASE
For Immediate Release
 Contact: Douglas W. Vicari (571) 349-9452
 
 
 







CONSOLIDATED FINANCIAL RESULTS
The following is a summary of the consolidated financial results for the three months ended March 31, 2018 and 2017 (in millions, except share and per share amounts):
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Total revenue
 
$
135.0

 
$
134.9

 
 
 
 
 
Net income available to common shareholders
 
$
6.5

 
$
5.6

Net income per diluted common share
 
$
0.11

 
$
0.09

 
 
 
 
 
Adjusted Hotel EBITDAre(1)
 
$
37.7

 
$
36.0

 
 
 
 
 
Adjusted Corporate EBITDAre(1)
 
$
32.3

 
$
31.1

 
 
 
 
 
AFFO available to common shareholders(1)
 
$
25.7

 
$
24.2

AFFO per diluted common share
 
$
0.43

 
$
0.41

 
 
 
 
 
Weighted-average number of diluted common shares outstanding
 
59,718,986

 
58,995,589

_____________
(1) See the discussion included in this press release for information regarding this non-GAAP financial measure.
HOTEL OPERATING RESULTS

The Trust uses the term "comparable" to refer to metrics that include only those hotels owned for the entirety of the two periods being compared. As of March 31, 2018, the Trust owned 21 hotels. Since The Hotel Minneapolis, Autograph Collection was sold on November 8, 2017, it has been excluded from the hotel portfolio metrics for the three months ended March 31, 2017. Included in the following table are comparisons of the key operating metrics for the comparable 21-hotel portfolio for the three months ended March 31, 2018 and 2017 (in thousands, except for ADR and RevPAR):
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
Change
Comparable Occupancy
 
81.0
%
 
76.6
%
 
440 bps
Comparable ADR
 
$
213.07

 
$
217.57

 
(2.1)%
Comparable RevPAR
 
$
172.55

 
$
166.68

 
3.5%
Comparable Adjusted Hotel EBITDAre(1)
 
$
37,664

 
$
35,744

 
5.4%
Comparable Adjusted Hotel EBITDAre Margin(1)
 
27.9
%
 
27.0
%
 
90 bps
_____________
(1) See the discussion included in this press release for information regarding this non-GAAP financial measure.



 
 
 
 
 
 
chsp20180501ex991.jpg
 
PRESS RELEASE
For Immediate Release
 Contact: Douglas W. Vicari (571) 349-9452
 
 
 







DIVIDEND
On January 12, 2018, the Trust paid a dividend in the amount of $0.40 per share to its common shareholders of record as of December 29, 2017. On March 7, 2018, the Trust declared a dividend in the amount of $0.40 per share payable to its common shareholders of record as of March 29, 2018. The dividend was paid on April 13, 2018.
2018 OUTLOOK
The Trust reaffirms its previously provided full year 2018 outlook and is now providing its outlook for the second quarter 2018. The outlook assumes no future acquisitions, dispositions, or financing transactions (in millions, except RevPAR and per share amounts):
 
Second Quarter
2018 Outlook
 
Full Year
2018 Outlook
 
Low
 
High
 
Low
 
High
CONSOLIDATED:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income available to common shareholders
$
22.4

 
$
24.4

 
$
62.9

 
$
69.4

Net income per diluted common share
$
0.37

 
$
0.41

 
$
1.06

 
$
1.17

 
 
 
 
 
 
 
 
Adjusted Corporate EBITDAre
$
52.6

 
$
54.8

 
$
175.5

 
$
183.0

 
 
 
 
 
 
 
 
AFFO available to common shareholders
$
41.4

 
$
43.4

 
$
138.1

 
$
144.6

AFFO per diluted common share
$
0.69

 
$
0.73

 
$
2.33

 
$
2.43

 
 
 
 
 
 
 
 
Corporate cash general and administrative expense
$
2.8

 
$
3.0

 
$
10.8

 
$
11.8

Corporate non-cash general and administrative expense
$
1.9

 
$
1.9

 
$
7.6

 
$
7.6

 
 
 
 
 
 
 
 
Weighted-average number of diluted common shares outstanding
59.8

 
59.8

 
59.4

 
59.4

 
 
 
 
 
 
 
 
HOTEL PORTFOLIO:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RevPAR
$
208.00

 
$
212.00

 
$193.00
 
$197.00
RevPAR change as compared to 2017(1)
2.5
%
 
4.5
%
 
3.0
%
 
5.0
%
Adjusted Hotel EBITDAre
$
57.2

 
$
59.6

 
$
193.8

 
$
202.3

Adjusted Hotel EBITDAre Margin
35.4
%
 
36.2
%
 
32.1
%
 
32.9
%
Adjusted Hotel EBITDAre Margin change as compared to 2017(1)
25 bps

 
100 bps

 
50 bps

 
125 bps

_____________
(1) The comparable 2017 period excludes results of operations for The Hotel Minneapolis, Autograph Collection, which was sold on November 8, 2017.
NON-GAAP FINANCIAL MEASURES
The Trust reports the following seven non-GAAP financial measures (within the meaning of the rules of the Securities and Exchange Commission) that it believes are useful to investors as key measures of its operating performance: (1) EBITDAre, (2) Adjusted Corporate EBITDAre, (3) Adjusted Hotel EBITDAre, (4) Adjusted Hotel EBITDAre Margin, (5) FFO, (6) FFO available to common shareholders and (7) AFFO available to common shareholders. Effective January 1, 2018, the Trust began reporting EBITDAre in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). Adjusted Corporate



 
 
 
 
 
 
chsp20180501ex991.jpg
 
PRESS RELEASE
For Immediate Release
 Contact: Douglas W. Vicari (571) 349-9452
 
 
 







EBITDAre, Adjusted Hotel EBITDAre, and Adjusted Hotel EBITDAre Margin are equivalent to the Trust's previously reported Adjusted Corporate EBITDA, Adjusted Hotel EBITDA, and Adjusted Hotel EBITDA Margin measures, respectively. Reconciliations of all non-GAAP financial measures to the most comparable GAAP measure are included in the accompanying financial tables.
EBITDAre — The Trust calculates EBITDAre in accordance with standards established by NAREIT, which defines EBITDAre as net income (calculated in accordance with GAAP) before interest, income taxes, depreciation and amortization, gains (losses) from sales of real estate, impairment charges of depreciated real estate, and adjustments for unconsolidated partnerships and joint ventures. The Trust believes that EBITDAre provides investors a useful financial measure to evaluate the Trust’s operating performance, excluding the impact of the Trust’s capital structure (primarily interest expense) and the Trust’s asset base (primarily depreciation and amortization).
Adjusted Corporate EBITDAre — The Trust further adjusts EBITDAre for certain additional recurring and non-recurring items that are not in NAREIT’s definition of EBITDAre. Specifically, the Trust adjusts for hotel acquisition costs and non-cash amortization of intangible assets and liabilities, deferred franchise costs, and deferred key money, all of which are recurring items. The Trust believes that Adjusted Corporate EBITDAre provides investors another financial measure of its operating performance that provides for greater comparability of its core operating results between periods.
Adjusted Hotel EBITDAre — The Trust further adjusts Adjusted Corporate EBITDAre for corporate general and administrative expenses, which is a recurring item. The Trust believes that Adjusted Hotel EBITDAre provides investors a useful financial measure to evaluate the Trust’s hotel operating performance by excluding the impact of corporate-level expenses.
Adjusted Hotel EBITDAre Margin — Adjusted Hotel EBITDAre Margin is defined as Adjusted Hotel EBITDAre as a percentage of total revenues. The Trust believes that Adjusted Hotel EBITDAre Margin provides investors another useful financial measure to evaluate the Trust’s hotel operating performance.
FFO — The Trust calculates FFO in accordance with standards established by NAREIT, which defines FFO as net income (calculated in accordance with GAAP), excluding depreciation and amortization, gains (losses) from sales of real estate, impairment charges of depreciated real estate, adjustments for unconsolidated partnerships and joint ventures, and the cumulative effect of changes in accounting principles. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. By excluding the effect of depreciation and amortization and gains (losses) from sales of real estate, both of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, the Trust believes that FFO provides investors a useful financial measure to evaluate the Trust’s operating performance.
FFO available to common shareholders — The Trust reduces FFO for preferred share dividends, write-off of issuance costs of redeemed preferred shares, and dividends declared on and earnings allocated to unvested time-based awards (consistent with adjustments required by GAAP in reporting net income available to common shareholders and related per share amounts). FFO available to common shareholders provides investors another financial measure to evaluate the Trust’s operating performance after taking into account the interests of holders of the Trust’s preferred shares and unvested time-based awards.
AFFO available to common shareholders — The Trust further adjusts FFO available to common shareholders for certain additional recurring and non-recurring items that are not in NAREIT’s definition of FFO. Specifically, the



 
 
 
 
 
 
chsp20180501ex991.jpg
 
PRESS RELEASE
For Immediate Release
 Contact: Douglas W. Vicari (571) 349-9452
 
 
 







Trust adjusts for hotel acquisition costs and non-cash amortization of intangible assets and liabilities, deferred franchise costs, and deferred key money, all of which are recurring items. The Trust believes that AFFO available to common shareholders provides investors another financial measure of its operating performance that provides for greater comparability of its core operating results between periods.
CONFERENCE CALL
The Trust will host a conference call on Tuesday, May 1, 2018 at 11:00 a.m. Eastern Time to discuss its financial results. Interested individuals are invited to listen to the call by dialing (877) 683-0303 (U.S./Canadian callers) or (706) 643-5037 (International callers). The conference call ID is 3040596. A simultaneous webcast of the call will be available on the Trust’s website at www.chesapeakelodgingtrust.com. It is recommended that participants call or log on 10 minutes ahead of the scheduled start time to ensure proper connection.
A replay of the conference call will be available two hours after the live call until midnight on May 8, 2018. To access the replay, dial (855) 859-2056 (U.S./Canadian callers) or (404) 537-3406 (International callers). The conference call ID is 3040596. A webcast replay and transcript of the conference call will be archived and available on the Trust’s website for 12 months.
ABOUT CHESAPEAKE LODGING TRUST
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. The Trust owns 21 hotels with an aggregate of 6,479 rooms in eight states and the District of Columbia. Additional information can be found on the Trust’s website at www.chesapeakelodgingtrust.com.
Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts, such as the Trust’s second quarter and full year 2018 outlook. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: U.S. economic conditions generally and the real estate market and the lodging industry specifically; management and performance of the Trust's hotels; supply and demand for hotel rooms in the Trust's markets; the Trust's competition; the Trust’s ability to continue to satisfy complex rules in order for it to remain a REIT for federal income tax purposes; the effects of any acquisitions, dispositions or financing transactions the Trust may undertake; and other risks and uncertainties associated with the Trust’s business described in its filings with the SEC. Although the Trust believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of May 1, 2018, and the Trust undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Trust’s expectations, except as required by law.



CHESAPEAKE LODGING TRUST
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
 



 
 
March 31, 2018
 
December 31, 2017
 
 
(unaudited)
 
 
 
 
 
 
 
ASSETS
 
 
 
 
Property and equipment, net
 
$
1,813,771

 
$
1,823,217

Intangible assets, net
 
35,112

 
35,256

Cash and cash equivalents
 
31,903

 
44,314

Restricted cash
 
30,067

 
30,602

Accounts receivable, net
 
25,365

 
20,769

Prepaid expenses and other assets
 
27,981

 
21,202

Total assets
 
$
1,964,199

 
$
1,975,360

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
Long-term debt
 
$
831,684

 
$
829,552

Accounts payable and accrued expenses
 
65,968

 
65,783

Other liabilities
 
31,438

 
31,597

Total liabilities
 
929,090

 
926,932

 
 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
 
 
Preferred shares, $.01 par value; 100,000,000 shares
authorized; no shares issued and outstanding, respectively
 
—

 
—

Common shares, $.01 par value; 400,000,000 shares authorized;
60,381,164 and 59,941,088 shares issued and outstanding, respectively
 
604

 
599

Additional paid-in capital
 
1,191,047

 
1,190,250

Cumulative dividends in excess of net income
 
(162,337
)
 
(144,734
)
Accumulated other comprehensive income
 
5,795

 
2,313

Total shareholders’ equity
 
1,035,109

 
1,048,428

Total liabilities and shareholders’ equity
 
$
1,964,199

 
$
1,975,360

 
 
 
 
 
 
 
 
 
 
SUPPLEMENTAL CREDIT INFORMATION:
 
 
 
 
Fixed charge coverage ratio(1)
 
3.10

 
3.00

Leverage ratio(1)
 
39.1
%
 
39.2
%
______________ 
(1)
Calculated as defined under the Trust’s revolving credit facility.



CHESAPEAKE LODGING TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
 


 
 
Three Months Ended March 31,
 
 
2018
 
2017
REVENUE
 
 
 
 
Rooms
 
$
100,613

 
$
98,901

Food and beverage
 
27,633

 
29,312

Other
 
6,779

 
6,661

Total revenue
 
135,025

 
134,874

 
 
 
 
 
EXPENSES
 
 
 
 
Hotel operating expenses:
 
 
 
 
Rooms
 
25,286

 
25,322

Food and beverage
 
21,059

 
22,239

Other direct
 
1,148

 
1,356

Indirect
 
49,793

 
49,815

Total hotel operating expenses
 
97,286

 
98,732

Depreciation and amortization
 
19,208

 
18,787

Air rights contract amortization
 
130

 
130

Corporate general and administrative
 
5,378

 
4,935

Total operating expenses
 
122,002

 
122,584

 
 
 
 
 
Operating income
 
13,023

 
12,290

 
 
 
 
 
Interest expense
 
(8,844
)
 
(7,798
)
 
 
 
 
 
Income before income taxes
 
4,179

 
4,492

 
 
 
 
 
Income tax benefit
 
2,370

 
3,527

 
 
 
 
 
Net income
 
6,549

 
8,019

 
 
 
 
 
Preferred share dividends
 
—

 
(2,422
)
Net income available to common shareholders
 
$
6,549

 
$
5,597

 
 
 
 
 
Net income per common share—basic and diluted
 
$
0.11

 
$
0.09

 
 
 
 
 
Weighted-average number of common shares outstanding:
 
 
 
 
Basic
 
59,120,065

 
58,995,589

Diluted
 
59,718,986

 
58,995,589





CHESAPEAKE LODGING TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)


 
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
Net income
 
$
6,549

 
$
8,019

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
19,208

 
18,787

Air rights contract amortization
 
130

 
130

Deferred financing costs amortization
 
424

 
407

Share-based compensation
 
1,948

 
1,990

Other
 
(75
)
 
(155
)
Changes in assets and liabilities:
 
 
 
 
Accounts receivable, net
 
(4,596
)
 
207

Prepaid expenses and other assets
 
(3,310
)
 
(4,429
)
Accounts payable and accrued expenses
 
208

 
(1,248
)
Other liabilities
 
(88
)
 
(13
)
Net cash provided by operating activities
 
20,398

 
23,695

 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
Improvements and additions to hotels
 
(10,165
)
 
(16,389
)
Net cash used in investing activities
 
(10,165
)
 
(16,389
)
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
Borrowings under revolving credit facility
 
20,000

 
155,000

Repayments under revolving credit facility
 
(15,000
)
 
(10,000
)
Scheduled principal payments on mortgage debt
 
(3,292
)
 
(128,162
)
Payment of deferred financing costs
 
—

 
(36
)
Payment of dividends to common shareholders
 
(23,741
)
 
(24,693
)
Payment of dividends to preferred shareholders
 
—

 
(2,422
)
Repurchase of common shares
 
(1,146
)
 
(1,052
)
Net cash used in financing activities
 
(23,179
)
 
(11,365
)
Net decrease in cash, cash equivalents, and restricted cash
 
(12,946
)
 
(4,059
)
Cash, cash equivalents, and restricted cash, beginning of period
 
74,916

 
79,188

Cash, cash equivalents, and restricted cash, end of period
 
$
61,970

 
$
75,129






CHESAPEAKE LODGING TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)

The following table reconciles net income to EBITDAre, Adjusted Corporate EBITDAre, Adjusted Hotel EBITDAre, and Adjusted Hotel EBITDAre Margin for the three months ended March 31, 2018 and 2017:
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Net income
 
$
6,549

 
$
8,019

Add: Interest expense
 
8,844

 
7,798

Depreciation and amortization
 
19,208

 
18,787

Less: Income tax benefit
 
(2,370
)
 
(3,527
)
EBITDAre
 
32,231

 
31,077

Add: Non-cash amortization(1)
 
55

 
(25
)
Adjusted Corporate EBITDAre
 
32,286

 
31,052

Add: Corporate general and administrative
 
5,378

 
4,935

Adjusted Hotel EBITDAre
 
37,664

 
35,987

Less: Adjusted Hotel EBITDAre of hotel sold(2)
 
—

 
(243
)
Comparable Adjusted Hotel EBITDAre(3)
 
$
37,664

 
$
35,744

Total revenue
 
$
135,025

 
$
134,874

Less: Total revenue of hotel sold(2)
 
—

 
(2,389
)
Comparable total revenue(3)
 
$
135,025

 
$
132,485

 
 
 
 
 
Comparable Adjusted Hotel EBITDAre Margin(3)
 
27.9
%
 
27.0
%
_____________
(1)
Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract.
(2)
Reflects results of operations for The Hotel Minneapolis, Autograph Collection, which was sold on November 8, 2017.
(3)
The Trust uses the term "comparable" to refer to metrics that include only those hotels owned for the entirety of the two periods being compared.




CHESAPEAKE LODGING TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)

The following table reconciles net income to FFO, FFO available to common shareholders, and AFFO available to common shareholders for the three months ended March 31, 2018 and 2017:
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Net income
 
$
6,549

 
$
8,019

Add: Depreciation and amortization
 
19,208

 
18,787

FFO
 
25,757

 
26,806

Less: Preferred share dividends
 
—

 
(2,422
)
Dividends declared on unvested time-based awards
 
(121
)
 
(124
)
Undistributed earnings allocated to unvested time-based awards
 
—

 
—

FFO available to common shareholders
 
25,636

 
24,260

Add: Non-cash amortization(1)
 
55

 
(25
)
AFFO available to common shareholders
 
$
25,691

 
$
24,235

 
 
 
 
 
FFO per common share—basic and diluted
 
$
0.43

 
$
0.41

 
 
 
 
 
AFFO per common share—basic and diluted
 
$
0.43

 
$
0.41

_____________
(1)
Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, unfavorable contract liability, and air rights contract.
The following table reconciles forecasted net income to EBITDAre, Adjusted Corporate EBITDAre, Adjusted Hotel EBITDAre, and Adjusted Hotel EBITDAre Margin for the three months ending June 30, 2018 and year ending December 31, 2018:
 
Three Months Ending
June 30, 2018
 
Year Ending
December 31, 2018
 
Low
 
High
 
Low
 
High
Net income
$
22,520

 
$
24,520

 
$
63,380

 
$
69,880

Add: Interest expense
8,940

 
8,940

 
35,600

 
35,600

Income tax expense
2,150

 
2,350

 
1,250

 
2,250

Depreciation and amortization
18,940

 
18,940

 
75,000

 
75,000

EBITDAre
52,550

 
54,750

 
175,230

 
182,730

Add: Non-cash amortization(1)
50

 
50

 
220

 
220

Adjusted Corporate EBITDAre
52,600

 
54,800

 
175,450

 
182,950

Add: Corporate general and administrative
4,600

 
4,800

 
18,300

 
19,300

Adjusted Hotel EBITDAre
$
57,200

 
$
59,600

 
$
193,750

 
$
202,250

 
 
 
 
 
 
 
 
Total revenue
$
161,400

 
$
164,700

 
$
603,000

 
$
615,250

 
 
 
 
 
 
 
 
Adjusted Hotel EBITDAre Margin
35.4
%
 
36.2
%
 
32.1
%
 
32.9
%
_____________
(1)
Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, and air rights contract.





CHESAPEAKE LODGING TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)

The following table reconciles forecasted net income to FFO, FFO available to common shareholders, and AFFO available to common shareholders for the three months ending June 30, 2018 and year ending December 31, 2018:
 
Three Months Ending
June 30, 2018
 
Year Ending
December 31, 2018
 
Low
 
High
 
Low
 
High
Net income
$
22,520

 
$
24,520

 
$
63,380

 
$
69,880

Add: Depreciation and amortization
18,940

 
18,940

 
75,000

 
75,000

FFO
41,460

 
43,460

 
138,380

 
144,880

Less: Dividends declared on unvested time-based awards
(120
)
 
(120
)
 
(480
)
 
(480
)
Undistributed earnings allocated to unvested time-based awards
—

 
—

 
—

 
—

FFO available to common shareholders
41,340

 
43,340

 
137,900

 
144,400

Add: Non-cash amortization(1)
50

 
50

 
220

 
220

AFFO available to common shareholders
$
41,390

 
$
43,390

 
$
138,120

 
$
144,620

FFO per common share:
 
 
 
 
 
 
 
Basic
$
0.70

 
$
0.73

 
$
2.33

 
$
2.44

Diluted
$
0.69

 
$
0.73

 
$
2.32

 
$
2.43

 
 
 
 
 
 
 
 
AFFO per common share:
 
 
 
 
 
 
 
Basic
$
0.70

 
$
0.73

 
$
2.34

 
$
2.45

Diluted
$
0.69

 
$
0.73

 
$
2.33

 
$
2.43

 
 
 
 
 
 
 
 
Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
59,140

 
59,140

 
59,145

 
59,145

Diluted
59,779

 
59,779

 
59,394

 
59,394

_____________
(1)
Reflects non-cash amortization of ground lease asset, deferred franchise costs, deferred key money, and air rights contract.




CHESAPEAKE LODGING TRUST
CURRENT HOTEL PORTFOLIO












Hotel
 
Location
 
Rooms
 
Acquisition Date
1
 
Hyatt Regency Boston
 
Boston, MA
 
502
 
March 18, 2010
2
 
Hilton Checkers Los Angeles
 
Los Angeles, CA
 
193
 
June 1, 2010
3
 
Boston Marriott Newton
 
Newton, MA
 
430
 
July 30, 2010
4
 
Le Meridien San Francisco
 
San Francisco, CA
 
360
 
December 15, 2010
5
 
Homewood Suites Seattle Convention Center
 
Seattle, WA
 
195
 
May 2, 2011
6
 
W Chicago – City Center
 
Chicago, IL
 
403
 
May 10, 2011
7
 
Hotel Indigo San Diego Gaslamp Quarter
 
San Diego, CA
 
210
 
June 17, 2011
8
 
Courtyard Washington Capitol Hill/Navy Yard
 
Washington, DC
 
204
 
June 30, 2011
9
 
Hotel Adagio San Francisco, Autograph Collection
 
San Francisco, CA
 
171
 
July 8, 2011
10
 
Hilton Denver City Center
 
Denver, CO
 
613
 
October 3, 2011
11
 
Hyatt Herald Square New York
 
New York, NY
 
122
 
December 22, 2011
12
 
W Chicago – Lakeshore
 
Chicago, IL
 
520
 
August 21, 2012
13
 
Hyatt Regency Mission Bay Spa and Marina
 
San Diego, CA
 
429
 
September 7, 2012
14
 
Hyatt Place New York Midtown South
 
New York, NY
 
185
 
March 14, 2013
15
 
W New Orleans – French Quarter
 
New Orleans, LA
 
97
 
March 28, 2013
16
 
Le Meridien New Orleans
 
New Orleans, LA
 
410
 
April 25, 2013
17
 
Hyatt Centric Fisherman’s Wharf
 
San Francisco, CA
 
316
 
May 31, 2013
18
 
Hyatt Centric Santa Barbara
 
Santa Barbara, CA
 
200
 
June 27, 2013
19
 
JW Marriott San Francisco Union Square
 
San Francisco, CA
 
344
 
October 1, 2014
20
 
Royal Palm South Beach Miami, a Tribute Portfolio Resort
 
Miami Beach, FL
 
393
 
March 9, 2015
21
 
Ace Hotel and Theater Downtown Los Angeles
 
Los Angeles, CA
 
182
 
April 30, 2015
 
 
 
 
 
 
6,479