Chatham Lodging Trust Reinstates Common Dividend, Declares Preferred Dividend
December 08 2022 - 9:00AM
Business Wire
Performance Leadership Positions Chatham to
Reward Shareholders
Chatham Lodging Trust (NYSE: CLDT), a lodging real estate
investment trust (REIT) that invests in upscale, extended-stay
hotels and premium-branded, select-service hotels and owns 39
hotels, today announced that it has reinstated a fourth quarter
common dividend, its first since early 2020. Chatham announced that
its board of trustees declared a common share dividend of $0.07 per
common share, as well as a preferred share dividend of $0.41406 per
share, payable on January 17, 2023, to shareholders of record as of
December 30, 2022.
“Nothing in history compares to the sharp downturn that occurred
during the pandemic, but using experience gained through several
down-cycles, we worked diligently to maintain liquidity, protect
our balance sheet and position Chatham for success coming out of
the pandemic,” commented Jeffrey H. Fisher, Chatham’s president and
chief executive officer. “With assuredness, I can say we
accomplished much.”
Highlights include:
- Produced superior operating performance during the pandemic
that resulted in Chatham being the second fastest hotel REIT to be
corporate cash flow positive and have generated approximately $32
million of free cash flow from April 2020 to September 2022.
- Producing in 2022 the highest operating margins of all lodging
REITs.
- Successfully recycled hotels to enhance its portfolio quality
that will increase returns and drive future earnings growth.
- Sold five hotels with an average age of 26 years, yielding 6
percent for $147 million, and avoided near-term capital spend of
$12 million on those hotels.
- Acquired three hotels and built one hotel for total investment
of $173 million with no near-term capital needs and an expected
yield of 8 percent.
- Strengthened the company’s balance sheet by reducing net debt
by $323 million or 42 percent since March 31, 2020, the second
highest reduction of all hotel REITs.
- Currently have zero borrowings outstanding on the recently
completed $215 million revolving credit facility and $90 million
term loan.
“Given all of the above, as well as the belief that our
high-quality portfolio will generate strong cash flow returns as
business travel continues its recovery in 2023, we are confident in
our business and feel it is the appropriate time to reinstate a
common dividend to our shareholders. In addition to this 2022
fourth quarter dividend, we intend to pay a regular quarterly
dividend for the first three quarters of 2023 and a higher 2023
fourth quarter dividend sufficient to distribute approximately 100
percent of taxable income. I thank our employees for their great
efforts and each of our shareholders for your support during the
most trying times in the history of our industry,” Fisher
concluded.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real
estate investment trust (REIT) focused primarily on investing in
upscale, extended-stay hotels and premium-branded, select-service
hotels. The company owns 39 hotels totaling 5,914 rooms/suites in
16 states and the District of Columbia. Additional information
about Chatham may be found at chathamlodgingtrust.com.
Forward-Looking Statement Safe Harbor
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 assumption and forecasts of future results.
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: national and
local economic and business conditions, including the effect on
travel of potential terrorist attacks, that will affect occupancy
rates at the company’s hotels and the demand for hotel products and
services; operating risks associated with the hotel business; risks
associated with the level of the company’s indebtedness and its
ability to meet covenants in its debt agreements; relationships
with property managers; the company’s ability to maintain its
properties in a Fourth-class manner, including meeting capital
expenditure requirements; the company’s ability to compete
effectively in areas such as access, location, quality of
accommodations and room rate structures; changes in travel
patterns, taxes and government regulations which influence or
determine wages, prices, construction procedures and costs; the
company’s ability to complete acquisitions and dispositions; and
the company’s ability to continue to satisfy complex rules in order
for the company to remain a REIT for federal income tax purposes
and other risks and uncertainties associated with the company’s
business described in the company's filings with the SEC. Although
the company 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 the date hereof, and the company undertakes no
obligation to update any forward-looking statement to conform the
statement to actual results or changes in the company’s
expectations.
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Dennis Craven (Company) Chief Operating Officer (561)
227-1386
Chatham Lodging (NYSE:CLDT)
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