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Pebblebrook Hotel Trust Reports Operating Results (10-K)

February 21, 2012 | About:
10qk

10qk

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Pebblebrook Hotel Trust (PEB) filed Annual Report for the period ended 2011-12-31.

Pebblebrook Htl has a market cap of $1.12 billion; its shares were traded at around $22.17 with a P/E ratio of 29.5 and P/S ratio of 19.5. The dividend yield of Pebblebrook Htl stocks is 2.2%.

Highlight of Business Operations:

In January 2012, we repaid the $42.0 million loan on the Argonaut Hotel with $31.0 million from cash on hand and $15.0 million of borrowings from our senior unsecured revolving credit facility. In February 2012, we obtained a new $47.0 million loan secured by this property. The proceeds from this loan were used to pay down the balance on the senior unsecured revolving credit facility. This loan has a fixed interest rate of 4.25 percent per annum and requires monthly principal and interest payments of $0.3 million through March 2017, the maturity date.

We have a $200 million senior unsecured revolving credit facility to fund acquisitions, property redevelopments, return on investment initiatives and general business needs. As of December 31, 2011, we had no outstanding borrowings under this credit facility. We intend to repay indebtedness incurred, if any, under our senior unsecured revolving credit facility from time to time out of cash flows from operations and from the net proceeds of issuances of additional equity and debt securities, as market conditions permit. During 2011, we borrowed $42.0 million under this credit facility and we repaid this amount in September 2011. The weighted-average interest rate on our credit facility borrowings was 3.2%.

In January 2012, we repaid the $42.0 million loan on the Argonaut Hotel with $31.0 million from cash on hand and $11.0 million from our senior unsecured revolving credit facility. In February 2012, we obtained a new $47.0 million loan secured by this property. The proceeds from this loan were used to partially pay down the balance on the senior unsecured revolving credit facility. This loan has a fixed interest rate of 4.25 percent per annum and requires monthly principal and interest payments of $0.3 million through March 2017, the maturity date.

Cash Used in Investing Activities. Our cash used in investing activities was $681.8 million for the year ended December 31, 2011. We used $467.1 million to acquire six hotels, incurred capital investments of $40.5 million at our hotels, invested $169.4 million for an equity interest in an unconsolidated joint venture and had an increase in restricted cash of $4.6 million. Our cash used in investing activities was $460.1 million and $70.0 million for the years ended December 31, 2010 and 2009, respectively. During the year ended December 31, 2010, we used $518.7 million to acquire eight hotels, incurred capital expenditures of $3.3 million at our hotels, placed a deposit of $5.0 million on one property which we acquired during the first quarter of 2011, had an increase in restricted cash of $2.6 million and used $0.5 million to purchase corporate fixed assets. In 2009, we invested $70 million in certificates of deposits.

Cash From Financing Activities. $478.6 million of cash was provided by financing activities for the year ended December 31, 2011, which consisted of $236.0 million of proceeds received from our public offering of approximately 10.9 million common shares and $225.2 million of proceeds received from our offerings of preferred shares, both of which were offset by an aggregate of approximately $17.2 million in underwriting discounts and offering-related costs. We borrowed $42.0 million from our senior unsecured revolving credit facility and repaid that amount in September 2011. We also received $67.0 million of proceeds from the mortgage debt placed on the Skamania Lodge and DoubleTree by Hilton Bethesda-Washington DC hotels and paid $28.8 million in distributions during the period. Approximately $358.3 million of cash was provided by financing activities for the year ended December 31, 2010, which consisted of $332.4 million of gross proceeds received from our follow-on public offering of common shares which were offset by $23.4 million in underwriting discounts and offering-related costs, and $52.5 million of proceeds from the mortgage debt placed on the InterContinental Buckhead, which were offset by the payment of $3.1 million of fees associated with our debt financings. For the year ended December 31, 2009, we received net proceeds of $389.1 million from the initial public offering and concurrent private placement of our common shares.

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