The Florida-based investment company will hold its monthly dividend steady at 11 cents. The company announced its September dividend on Sept. 8. The dividend is payable to investors who own or buy the stock on Sept. 27 with an ex-dividend date of Sept. 28.
The Chatham Lodging Trust (CLDT, Financial) is trading at $20.99 with a forward dividend yield of 6.29%. It has reported a steady monthly dividend since 2013. Its most recent dividend increase was in March 2016 when it increased the dividend from $0.10 to its current rate of 11 cents. It’s currently reporting a three-year dividend growth rate of 15.67%.
In 2017, the stock has gained 2.14%. It currently has approximately 39.2 million shares outstanding with the majority of its ownership by institutional investors at approximately 54%. CEO Jeffery Fisher owns 1.79% of the outstanding shares. Vanguard Group is its top institutional shareholder with 11.65% of the outstanding shares.
The Chatham Lodging Trust portfolio is a traditional REIT investing with a focus on extended stay and premium brand hotel properties in the U.S. It owns and buys existing properties with the intention of increasing value through rebranding, renovation and other value add strategies.
The firm’s most recent second quarter earnings report showed steady results. Revenue of $77.91 million was down 0.1% from the comparable quarter and contributed to total 2017 revenue of $147.13 million. At $147.13 million the firm’s revenue is up 0.2% from 2016.
Earnings per share (also known as adjusted funds from operations or FFO) for the second quarter were 65 cents, a decrease of 6% from the comparable quarter. The quarter’s earnings contributed to total 2017 earnings per share of $1.11. At $1.11, earnings per share are down 3% from 2016.
A breakdown of the company’s revenue shows the greatest portion of revenue generated by room charges which represented $137.194 million in sales for the first half of the year. Expenses were also focused on hotel rooms at $28.53 million for the year. General and administrative, and franchise and marketing fees also generated a significant portion of the firm’s expenses. In total for the year, operating income of $22.935 million is down 22% from 2016.
Key initiatives for the company in 2017 include the Innkeepers and Inland joint ventures. Year over year the adjusted FFO contribution from these joint ventures was down $0.4 million. In the second quarter, the company completed the refinancing of the debt securing the properties in these joint ventures.
For the year the company is projecting $19.5 million to $23.3 million in net income and adjusted FFO per share of $2.07 to $2.17.
Disclosure: I do not own any shares of Chatham Lodging Trust.
