LaSalle Hotel Properties (LHO, Financial) filed Quarterly Report for the period ended 2009-09-30.
Lasalle Hotel Properties which intends to operate as a real estate investment trust for federal income tax purposes has been formed to own hotel properties and to continue and expand the hotel investment activities of LaSalle Partners Incorporated and certain of its affiliates collectively LaSalle. LaSalle is an institutionally respected real estate services and investment firm which has extensive experience in the acquisition investment management finance development and disposition of hotel properties. Lasalle Hotel Properties has a market cap of $1.13 billion; its shares were traded at around $20.28 with a P/E ratio of 7.4 and P/S ratio of 1.6. The dividend yield of Lasalle Hotel Properties stocks is 0.2%. Lasalle Hotel Properties had an annual average earning growth of 3.1% over the past 10 years.
Interest expense decreased by $3.2 million from $12.4 million in 2008 to $9.2 million in 2009 due to a decrease in the Companys weighted average debt, partly offset by an increase in the weighted average interest and a decrease in capitalized interest. The Companys weighted average debt outstanding decreased from $970.5 million in 2008 to $680.2 million in 2009, which includes paydowns on outstanding debt with proceeds from:
Income tax expense increased $1.0 million from $0.8 million in 2008 to $1.8 million in 2009. For the three months ended September 30, 2009, current federal, state and local income tax expense totaled $0.1 million. LHLs net income before income tax expense increased $2.0 million from $2.4 million in 2008 to $4.4 million in 2009 primarily due to the reversal of allocated costs related to the resignation of an executive in the 2009 period and the property converted to a new lease with LHL in 2009, partly offset by lower hotel income across the portfolio due to the effects of the recession. Accordingly, for the three months ended September 30, 2009, LHL recorded a deferred federal, state and local income tax expense of $1.7 million (using an estimated tax rate of 40.3%).
Depreciation and amortization expense increased $3.4 million from $78.9 million in 2008 to $82.3 million in 2009. This increase includes an amount that is not comparable year-over-year of $1.5 million from Donovan House which re-opened on March 28, 2008 after completion of a comprehensive renovation and repositioning project. The remaining increase of $1.9 million is primarily due to depreciation on building and land improvements and purchases of furniture, fixtures and equipment made across the hotel portfolio during 2009 and 2008.
Real estate taxes, personal property taxes, and insurance expenses decreased $2.1 million from $25.8 million in 2008 to $23.7 million in 2009. The 2009 period includes an amount that is not comparable year-over-year of $0.4 million from Donovan House which re-opened on March 28, 2008 after completion of a comprehensive renovation and repositioning project. The 2009 period also includes decreases of $2.2 million in real estate and personal property taxes from Indianapolis Marriott Downtown and $1.6 million in real estate taxes from Hotel Sax Chicago due to decreases in assessed property values for 2009 and prior years. The remaining increase of $1.3 million is a result of an increase in real estate and personal property taxes of $1.4 million primarily from increases in assessments and rates at certain of the hotel properties, partially offset by a decrease in insurance premiums of $0.1 million across the portfolio.
Income tax expense increased $4.4 million from $0.7 million in 2008 to $5.1 million in 2009. For the nine months ended September 30, 2009, current federal, state and local income tax expense totaled $0.3 million. LHLs net income/loss before income tax expense increased $13.4 million from net loss of $1.4 million in 2008 to net income of $12.0 million in 2009 primarily due to the $9.5 million cure payment revenue recognized at Seaview Resort in the 2009 period, the reversal of allocated costs related to the resignation of an executive in the 2009 period and the two properties converted to new leases with LHL in 2008 and 2009, partly offset by lower hotel income across the portfolio due to the effects of the recession. Accordingly, for the nine months ended September 30, 2009, LHL recorded a deferred federal, state and local income tax expense of $4.8 million (using an estimated tax rate of 40.3%).
Read the The complete ReportLHO is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
Lasalle Hotel Properties which intends to operate as a real estate investment trust for federal income tax purposes has been formed to own hotel properties and to continue and expand the hotel investment activities of LaSalle Partners Incorporated and certain of its affiliates collectively LaSalle. LaSalle is an institutionally respected real estate services and investment firm which has extensive experience in the acquisition investment management finance development and disposition of hotel properties. Lasalle Hotel Properties has a market cap of $1.13 billion; its shares were traded at around $20.28 with a P/E ratio of 7.4 and P/S ratio of 1.6. The dividend yield of Lasalle Hotel Properties stocks is 0.2%. Lasalle Hotel Properties had an annual average earning growth of 3.1% over the past 10 years.
Highlight of Business Operations:
For the third quarter of 2009, the Company had net income applicable to common shareholders of $3.4 million, or $0.05 per diluted share. FFO was $30.7 million, or $0.49 per diluted share, and EBITDA was $48.4 million. RevPAR for the hotel portfolio was $132.82, which was a decline of 19.7% compared to the third quarter of 2008. Average daily rate fell 17.6% and occupancy was down 2.5%, compared to the same period of the prior year. Hotel portfolio revenues declined 16.8% and hotel portfolio expenses were reduced by 11.9% compared to the third quarter of 2008, resulting in a hotel portfolio EBITDA decrease of 26.1%. Hotel portfolio EBITDA margin was 30.8%, a decline of only 388 basis points as a result of the decrease in revenues being partially mitigated by continued cost reductions implemented by our team and operators.Interest expense decreased by $3.2 million from $12.4 million in 2008 to $9.2 million in 2009 due to a decrease in the Companys weighted average debt, partly offset by an increase in the weighted average interest and a decrease in capitalized interest. The Companys weighted average debt outstanding decreased from $970.5 million in 2008 to $680.2 million in 2009, which includes paydowns on outstanding debt with proceeds from:
Income tax expense increased $1.0 million from $0.8 million in 2008 to $1.8 million in 2009. For the three months ended September 30, 2009, current federal, state and local income tax expense totaled $0.1 million. LHLs net income before income tax expense increased $2.0 million from $2.4 million in 2008 to $4.4 million in 2009 primarily due to the reversal of allocated costs related to the resignation of an executive in the 2009 period and the property converted to a new lease with LHL in 2009, partly offset by lower hotel income across the portfolio due to the effects of the recession. Accordingly, for the three months ended September 30, 2009, LHL recorded a deferred federal, state and local income tax expense of $1.7 million (using an estimated tax rate of 40.3%).
Depreciation and amortization expense increased $3.4 million from $78.9 million in 2008 to $82.3 million in 2009. This increase includes an amount that is not comparable year-over-year of $1.5 million from Donovan House which re-opened on March 28, 2008 after completion of a comprehensive renovation and repositioning project. The remaining increase of $1.9 million is primarily due to depreciation on building and land improvements and purchases of furniture, fixtures and equipment made across the hotel portfolio during 2009 and 2008.
Real estate taxes, personal property taxes, and insurance expenses decreased $2.1 million from $25.8 million in 2008 to $23.7 million in 2009. The 2009 period includes an amount that is not comparable year-over-year of $0.4 million from Donovan House which re-opened on March 28, 2008 after completion of a comprehensive renovation and repositioning project. The 2009 period also includes decreases of $2.2 million in real estate and personal property taxes from Indianapolis Marriott Downtown and $1.6 million in real estate taxes from Hotel Sax Chicago due to decreases in assessed property values for 2009 and prior years. The remaining increase of $1.3 million is a result of an increase in real estate and personal property taxes of $1.4 million primarily from increases in assessments and rates at certain of the hotel properties, partially offset by a decrease in insurance premiums of $0.1 million across the portfolio.
Income tax expense increased $4.4 million from $0.7 million in 2008 to $5.1 million in 2009. For the nine months ended September 30, 2009, current federal, state and local income tax expense totaled $0.3 million. LHLs net income/loss before income tax expense increased $13.4 million from net loss of $1.4 million in 2008 to net income of $12.0 million in 2009 primarily due to the $9.5 million cure payment revenue recognized at Seaview Resort in the 2009 period, the reversal of allocated costs related to the resignation of an executive in the 2009 period and the two properties converted to new leases with LHL in 2008 and 2009, partly offset by lower hotel income across the portfolio due to the effects of the recession. Accordingly, for the nine months ended September 30, 2009, LHL recorded a deferred federal, state and local income tax expense of $4.8 million (using an estimated tax rate of 40.3%).
Read the The complete ReportLHO is in the portfolios of Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC.
