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Section 1: 8-K (8-K)

8Kearningsrelease_

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8‑K

CURRENT REPORT Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934



March 31, 2020

Date of report (Date of earliest event reported)



Condor Hospitality Trust, Inc.

(Exact Name of Registrant as Specified in Its Charter)



Maryland

(State or Other Jurisdiction of Incorporation)



 

1-34087

52-1889548

(Commission File Number)

(IRS Employer Identification No.)

1800 West Pasewalk Avenue, Ste. 200, Norfolk, NE

 

Norfolk,  NE

68701

(Address of Principal Executive Offices)

(Zip Code)



 

(301)  861-3305

(Registrant’s Telephone Number, Including Area Code)



 (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):





 

 

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



 

 

 

 



Securities registered pursuant to Section 12(b) of the Act:





 

 

 

 

Title of each class

 

Trading symbol

 

Name of each exchange on which registered

Common stock, par value $0.01 per share

 

CDOR

 

NYSE American



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  


 

Item 2.02  Results of Operations and Financial Condition.

On March 31, 2020, Condor Hospitality Trust, Inc. (the “Company”) issued a press release on its earnings for the quarter and year ended December 31, 2019.  The press release is furnished as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.



Item 9.01  Financial Statements and Exhibits.

(d)  Exhibits.



 

99.1

Press Release dated March 31, 2020.




 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



 



Condor Hospitality Trust, Inc.



 

Date: March 31, 2020

By:  /s/ Arinn Cavey



Name: Arinn Cavey



Title: Chief Financial Officer and Chief Accounting Officer










(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Earnings Release Q4 2019







 

Picture 3

Picture 1





For Immediate Release



Condor Hospitality Trust Reports Fourth Quarter and Fiscal Year 2019 Results



BETHESDA, MD, March 31, 2020 – Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”) today announced results for the fourth quarter ended December 31, 2019.  



FOURTH QUARTER AND FISCAL YEAR 2019 RELEASE FINANCIAL HIGHLIGHTS



·

Revenue of $61.1 million in Fiscal Year 2019 including $0.3 million from Legacy Hotels, Decreased 6.2% from $65.1 million of Revenue in Fiscal Year 2018 which included $4.4 million from Legacy Hotels.

·

Revenue in the fourth quarter 2019 of $14.3 million generated entirely from New Investment Platform Hotels, a 3.6% decrease from $14.8 million generated by New Investment Platform Hotels in the $15.1 million fourth quarter 2018 Revenue.

·

Same-Store ADR increased 1.3% in Fiscal Year 2019 compared to Fiscal Year 2018 while Same- Store RevPAR increased 0.1% over this same time period in the previous year.

·

Net Earnings (Loss) Attributable to Common Shareholders of ($2.0 million), or ($0.17) per Diluted Share in the fourth quarter, compared to ($1.1 million), or ($0.10) per share, in the 2018 fourth quarter.  Decline in Net Earnings Attributable to Common Shareholders primarily caused by $0.1 million Increase in General and administrative costs for the fourth quarter, $0.2 million in Equity Transaction and Strategic Alternatives costs incurred in the fourth quarter 2019, and $0.3 million Increase in Income tax expense for the quarter.

·

Adjusted Funds from Operations for the fourth quarter 2019 was $1.8 million, or $0.15 per Diluted Share, a $0.5 million decrease from $2.3 million, or $0.20, in the 2018 fourth quarter. 

·

Hotel EBITDA decreased to $26.2 million from $27.6 million, a 5.3% Decrease Over Last Fiscal Year, the current Fiscal Year included $0.1 million from Legacy Hotels compared to $1.1 million from Legacy Hotels in the Last Fiscal Year.



MANAGEMENT COMMENTARY



Bill Blackham, Condor’s Chief Executive Officer, commented:



“For the Fiscal year 2019 our portfolio outperformed the upscale and upper midscale chain scales with 0.1% RevPAR growth compared to (0.5)% for upscale and (0.2)% for upper midscale as reported by Smith Travel Research.  Our proforma same-store RevPAR for the fourth quarter 2019 excluding the Home2 Tallahassee increased 0.3% as compared to (0.6)% for upscale and (1.0)% for upper midscale, as reported by Smith Travel Research while unadjusted same-store RevPAR declined 2.9% for the fourth quarter.  In addition to the market conditions in Tallahassee and San Antonio, the portfolio during the quarter experienced ongoing operational disruptions caused by management company changes at seven of our hotels.  In the Fiscal year 2019 Same-Store Hotel EBITDA was approximately 2.0% lower than 2018 at $26.3 million compared to $26.8 million, and our margins while declining for the year, did so moderately reducing 60 bps from 37.7% in 2018 to 37.1% in 2019.  The outbreak of the novel coronavirus has reduced travel and adversely affected the hospitality industry in general.  The extent to which our business may be affected by the coronavirus will largely depend on future developments which we cannot accurately predict, and its impact on customer travel, including the duration of the outbreak, the continued spread and treatment of the coronavirus.”



1

 


 

FINANCIAL SUMMARY



At December 31, 2019,  the Company’s total portfolio included 15 hotels, representing 1,908 rooms. The Company’s last remaining legacy asset was sold during the first quarter of 2019.



Total Company Financial Results

($ in millions except per share amounts)





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three months ended December 31,

 

Year  ended December 31,



2019

 

2018

 

Change

 

2019

 

2018

 

Change

Revenue

$

14.3 

 

$

15.1 

 

-5.1%

 

$

61.1 

 

$

65.1 

 

-6.2%

Net Earnings (Loss) Attributable to Common Shareholders

$

(2.0)

 

$

(1.1)

 

-77.3%

 

$

(5.7)

 

$

4.8 

 

NA

Diluted Earnings (Loss) per Share

$

(0.17)

 

$

(0.10)

 

-70.0%

 

$

(0.48)

 

$

0.40 

 

NA



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from Operations (FFO)*

$

0.9 

 

$

1.6 

 

-41.1%

 

$

5.7 

 

$

10.3 

 

-44.3%

FFO per Diluted Share*

$

0.06 

 

$

0.12 

 

-50.0%

 

$

0.43 

 

$

0.81 

 

-46.9%

Adjusted FFO*

$

1.8 

 

$

2.3 

 

-22.9%

 

$

11.3 

 

$

12.2 

 

-8.0%

Adjusted FFO per Diluted Share*

$

0.15 

 

$

0.20 

 

-25.0%

 

$

0.94 

 

$

1.02 

 

-7.8%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel EBITDA*

$

5.3 

 

$

6.1 

 

-13.0%

 

$

26.2 

 

$

27.6 

 

-5.3%

Adjusted EBITDAre*

$

4.0 

 

$

4.8 

 

-16.0%

 

$

21.2 

 

$

21.9 

 

-3.5%





*Please see the Reg. G reconciliation tables at the end of this release.



Same Store Operational Results**

 ($ in millions except per share amounts and operating metrics)







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three months ended December 31,

 

Year  ended December 31,



2019

 

2018

 

Change

 

2019

 

2018

 

Change

Same-Store RevPAR

$

89.68 

 

$

92.35 

 

-2.9%

 

$

98.68 

 

$

98.63 

 

0.1% 

Same-Store Occupancy

 

75.07% 

 

 

76.20% 

 

-1.5%

 

 

78.88% 

 

 

79.84% 

 

-1.2%

Same-Store ADR

$

119.45 

 

$

121.10 

 

-1.4%

 

$

125.09 

 

$

123.54 

 

1.3% 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same-Store Hotel EBITDA*

$

5.3 

 

$

6.0 

 

-12.8%

 

$

26.1 

 

$

26.8 

 

-2.5%

Same-Store Hotel EBITDA Margin*

 

32.2% 

 

 

36.0% 

 

-3.8%

 

 

36.8% 

 

 

37.8% 

 

-1.0%



*Please see the Reg. G reconciliation tables at the end of this release.

**Financial results presented above include results from prior to our ownership. 





BALANCE SHEET AND CAPITAL MARKETS ACTIVITY

As of December 31, 2019, the Company had cash and cash equivalents (including restricted cash) of $8.4 million and available revolver borrowing capacity of $9.0  million.  As of December 31, 2019, the Company had total outstanding long-term debt of $135.4 million associated with assets held for use with a weighted average maturity of 1.5 years and a weighted average interest rate of 4.22%.



CAPITAL INVESTMENTS

The Company invested $1.5 million in capital improvements throughout the portfolio in the twelve months ended December 31, 2019 to upgrade its properties and maintain brand standards.



OUTLOOK AND GUIDANCE

The Company has suspended guidance until further notice.





DIVIDENDS

On December 18, 2019 the Company announced that its Board of Directors has authorized and the Company has declared a cash common stock dividend of $0.195 per share, payable on December 31, 2019 to shareholders of record on December 30, 2019.  On March 30, 2020, the Sixth Amendment to the Key Bank credit facility was signed which provides that no cash dividends or distributions may be made to common or preferred shareholders for the remaining term of the debt.



EARNINGS CALL

The Company will not be conducting a fourth quarter earnings conference call.



2

 


 

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded, select-service, extended-stay, and limited-service hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with a particular focus on the top 20 to 60 MSAs. The Company currently owns 15 hotels in 8 states.  Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels.



Forward-Looking Statement

This news release (including statements about the expected timing, completion and effects of the Merger) may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “believe”, “continue”, “project”, “plan”, the negative version of these words or other similar expressions.  Readers are cautioned not to place undue reliance on any such forward-looking statements.



All forward-looking statements speak only as of the date hereof and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements.  They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict.  Condor may not be able to complete the proposed transaction on the terms described herein or other acceptable terms or at all because of a number of factors, including without limitation, the following:  (i) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (ii) unknown, underestimated or undisclosed commitments or liabilities; (iii) the inability to complete the proposed transaction due to the failure to satisfy the closing conditions to the proposed transaction; (iv) risks related to disruption of management’s attention from Condor’s ongoing business operations due to the proposed transaction; (v) the effect of the announcement of the proposed transaction on the ability of the parties to retain and hire key personnel, maintain relationships with their franchisors, management companies and suppliers, and maintain their operating results and business generally; (vi) the risk that certain approvals or consents will not be received in a timely manner or that the proposed transaction will not be consummated in a timely manner; (vii) adverse changes in U.S. and non-U.S. governmental laws and regulations; (viii) the risk of litigation, including shareholder litigation in connection with the proposed transaction, and the impact of any adverse legal judgments, fines, penalties, injunctions or settlements; and (ix) risks related to uncertainty and disruption in global economic markets as a result of COVID-19 (commonly referred to as the coronavirus).



The forward-looking statements represent Condor’s views as of the date on which such statements were made.  Condor anticipates that subsequent events and developments may cause those views to change.  These forward-looking statements should not be relied upon as representing Condor’s views as of any date subsequent to the date hereof.  Condor expressly disclaims a duty to provide updates to forward-looking statements, whether as a result of new information, future events or other occurrences.



Additional factors that may affect the Company’s business or financial results are described in the risk factors included in the Company’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

3

 


 

SELECTED FINANCIAL DATA:



Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Balance Sheets

 (In thousands, except share and per share data)







 

 

 

 

 

 



 

 

As of December 31,



 

2019

 

2018



 

 

 

 

 

 

Assets

 

 

 

 

 

 

Investment in hotel properties, net

 

$

222,063 

 

$

230,178 

Investment in unconsolidated joint venture

 

 

4,244 

 

 

5,866 

Cash and cash equivalents

 

 

2,584 

 

 

4,151 

Restricted cash, property escrows

 

 

5,811 

 

 

5,005 

Accounts receivable, net

 

 

1,099 

 

 

1,290 

Prepaid expenses and other assets

 

 

1,118 

 

 

2,227 

Derivative assets, at fair value

 

 

22 

 

 

639 

Investment in hotel properties held for sale, net

 

 

 -

 

 

4,092 

Total Assets

 

$

236,941 

 

$

253,448 



 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 



 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Accounts payable, accrued expenses, and other liabilities

 

$

5,523 

 

$

5,336 

Dividends and distributions payable

 

 

145 

 

 

2,330 

Derivative liabilities, at fair value

 

 

366 

 

 

 -

Convertible debt, at fair value

 

 

1,080 

 

 

1,000 

Long-term debt, net of deferred financing costs

 

 

134,001 

 

 

135,810 

Long-term debt related to hotel properties held for sale, net of deferred financing costs

 

 

 -

 

 

1,120 

Total Liabilities

 

 

141,115 

 

 

145,596 



 

 

 

 

 

 

Equity

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

Preferred stock,  40,000,000 shares authorized:

 

 

 

 

 

 

6.25% Series E, 925,000 shares authorized, $.01 par value, 925,000 shares outstanding, liquidation preference of $9,395 and $9,250

 

 

10,050 

 

 

10,050 

Common stock, $.01 par value, 200,000,000 shares authorized;11,993,608 and 11,833,573 shares outstanding

 

 

120 

 

 

119 

Additional paid-in capital

 

 

233,189 

 

 

231,805 

Accumulated deficit

 

 

(147,582)

 

 

(134,970)

Total Shareholders' Equity

 

 

95,777 

 

 

107,004 

Noncontrolling interest in consolidated partnership (Condor Hospitality Limited Partnership), redemption value of $47 and $435

 

 

49 

 

 

848 

Total Equity

 

 

95,826 

 

 

107,852 



 

 

 

 

 

 

Total Liabilities and Equity

 

$

236,941 

 

$

253,448 

4

 


 

Condor Hospitality Trust, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share data)







 

 

 

 

 

 

 

 

 

 

 

 



 

(Unaudited)

 

 

 



 

Three months ended December 31,

 

Year ended December 31,



 

2019

 

2018

 

2019

 

2018

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Room rentals and other hotel services

 

$

14,306 

 

$

15,082 

 

$

61,052 

 

$

65,057 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Hotel and property operations

 

 

9,503 

 

 

9,690 

 

 

38,769 

 

 

41,008 

Depreciation and amortization

 

 

2,407 

 

 

2,349 

 

 

9,568 

 

 

9,475 

General and administrative

 

 

1,255 

 

 

1,144 

 

 

5,700 

 

 

6,217 

Acquisition and terminated transactions

 

 

23 

 

 

19 

 

 

38 

 

 

205 

Equity transaction and strategic alternatives

 

 

224 

 

 

 -

 

 

2,110 

 

 

 -

Total operating expenses

 

 

13,412 

 

 

13,202 

 

 

56,185 

 

 

56,905 

Operating income

 

 

894 

 

 

1,880 

 

 

4,867 

 

 

8,152 

Net gain (loss) on disposition of assets

 

 

(45)

 

 

(17)

 

 

(36)

 

 

5,570 

Equity in earnings (loss) of joint venture

 

 

(405)

 

 

(469)

 

 

190 

 

 

(218)

Net gain (loss) on derivatives and convertible debt

 

 

(155)

 

 

(402)

 

 

(1,071)

 

 

317 

Other expense, net

 

 

(24)

 

 

(26)

 

 

(104)

 

 

(83)

Interest expense

 

 

(1,807)

 

 

(2,153)

 

 

(7,976)

 

 

(8,326)

Impairment recovery

 

 

 -

 

 

 -

 

 

 -

 

 

93 

Earnings (loss) from continuing operations before income taxes

 

 

(1,542)

 

 

(1,187)

 

 

(4,130)

 

 

5,505 

Income tax expense

 

 

(282)

 

 

(20)

 

 

(937)

 

 

(335)

Net earnings (loss)

 

 

(1,824)

 

 

(1,207)

 

 

(5,067)

 

 

5,170 

Loss (earnings) attributable to noncontrolling interest

 

 

 

 

242 

 

 

19 

 

 

195 

Net earnings (loss) attributable to controlling interests

 

 

(1,822)

 

 

(965)

 

 

(5,048)

 

 

5,365 

Dividends declared and undeclared and in kind dividends deemed on preferred stock

 

 

(144)

 

 

(144)

 

 

(578)

 

 

(578)

Net earnings (loss) attributable to common shareholders

 

$

(1,966)

 

$

(1,109)

 

$

(5,626)

 

$

4,787 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) per Share

 

 

 

 

 

 

 

 

 

 

 

 

Total - Basic Earnings (Loss) per Share

 

$

(0.17)

 

$

(0.10)

 

$

(0.48)

 

$

0.40 

Total - Diluted Earnings (Loss) per Share

 

$

(0.17)

 

$

(0.10)

 

$

(0.48)

 

$

0.40 











5

 


 

Reconciliation of Non-GAAP Financial Measures (Unaudited)

Non-GAAP financial measures are measures of our historical financial performance that are different from measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  We report Funds from Operations (“FFO”), Adjusted FFO (“AFFO”), Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), EBITDA for real estate (“EBITDAre”), Adjusted EBITDAre, and Hotel EBITDA as non-GAAP measures that we believe are useful to investors as key measures of our operating results and which management uses to facilitate a periodic evaluation of our operating results relative to those of our peers.  Our non-GAAP measures should not be considered as an alternative to U.S. GAAP net earnings as an indication of financial performance or to U.S. GAAP cash flows from operating activities as a measure of liquidity.  Additionally, these measures are not indicative of funds available to fund cash needs or our ability to make cash distributions as they have not been adjusted to consider cash requirements for capital expenditures, property acquisitions, debt service obligations, or other commitments.



FFO and AFFO



The following table reconciles net earnings (loss) to FFO and AFFO for the three months and year ended December 31, 2019 and 2018 (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV.













 

 

 

 

 

 

 

 

 

 

 



Three months ended

 

Years ended



December 31,

 

December 31,

Reconciliation of Net Earnings (Loss) to FFO and AFFO

2019

 

2018

 

2019

 

2018

Net earnings (loss)

$

(1,824)

 

$

(1,207)

 

$

(5,067)

 

$

5,170 

Depreciation and amortization expense

 

2,407 

 

 

2,349 

 

 

9,568 

 

 

9,475 

Depreciation and amortization expense from JV

 

300 

 

 

289 

 

 

1,195 

 

 

1,155 

Net (loss) gain on disposition of assets

 

45 

 

 

17 

 

 

36 

 

 

(5,570)

Net loss on disposition of assets from JV

 

 -

 

 

128 

 

 

 

 

157 

Impairment recovery

 

 -

 

 

 -

 

 

 -

 

 

(93)

FFO

 

928 

 

 

1,576 

 

 

5,734 

 

 

10,294 

Dividends declared and undeclared and in kind dividends deemed on preferred stock

 

(144)

 

 

(144)

 

 

(578)

 

 

(578)

FFO attributable to common shares and common units

 

784 

 

 

1,432 

 

 

5,156 

 

 

9,716 

Net loss (gain) on derivatives and convertible debt

 

155 

 

 

402 

 

 

1,071 

 

 

(317)

Net loss on derivatives from JV

 

 -

 

 

22 

 

 

 

 

22 

Acquisitions and terminated transactions expense

 

23 

 

 

19 

 

 

38 

 

 

205 

Equity transaction and strategic alternatives

 

224 

 

 

 -

 

 

2,110 

 

 

 -

Loss on extinguishment of debt from JV

 

 -

 

 

 -

 

 

138 

 

 

 -

Stock-based compensation and LTIP expense

 

125 

 

 

62 

 

 

1,026 

 

 

974 

Amortization of deferred financing fees

 

286 

 

 

363 

 

 

1,267 

 

 

1,443 

Amortization of deferred financing fees from JV

 

210 

 

 

45 

 

 

444 

 

 

181 

AFFO attributable to common shares and common units

$

1,807 

 

$

2,345 

 

$

11,251 

 

$

12,224 



 

 

 

 

 

 

 

 

 

 

 

FFO attributable to common shares and partnership units - Basic

$

784 

 

$

1,432 

 

$

5,156 

 

$

9,716 

Convertible note interest and fair value adjustments

 

(103)

 

 

(33)

 

 

 -

 

 

(6)

FFO attributable to common shares and partnership units - Diluted

$

681 

 

$

1,399 

 

$

5,156 

 

$

9,710 



 

 

 

 

 

 

 

 

 

 

 

FFO per common share and partnership unit - Basic

$

0.07 

 

$

0.12 

 

$

0.43 

 

$

0.82 

FFO per common share and partnership unit - Diluted

$

0.06 

 

$

0.12 

 

$

0.43 

 

$

0.81 



 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and partnership units - Basic FFO

 

11,935,689 

 

 

11,878,418 

 

 

11,910,443 

 

 

11,870,477 

Weighted average common shares and partnership units - Diluted FFO

 

12,035,028 

 

 

11,986,970 

 

 

11,925,587 

 

 

11,982,047 











 

 

 

 

 

 

 

 

 

 

 

AFFO attributable to common shares and partnership units - Basic

$

1,807 

 

$

2,345 

 

$

11,251 

 

$

12,224 

Convertible note interest

 

 -

 

 

16 

 

 

63 

 

 

63 

Preferred dividends at stated rates

 

 -

 

 

 -

 

 

578 

 

 

578 

AFFO attributable to common shares and partnership units - Diluted

$

1,807 

 

$

2,361 

 

$

11,892 

 

$

12,865 



 

 

 

 

 

 

 

 

 

 

 

AFFO per common share and partnership unit - Basic

$

0.15 

 

$

0.20 

 

$

0.94 

 

$

1.03 

AFFO per common share and partnership unit - Diluted

$

0.15 

 

$

0.20 

 

$

0.94 

 

$

1.02 



 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and partnership units - Basic AFFO

 

11,935,689 

 

 

11,878,418 

 

 

11,910,443 

 

 

11,870,477 

Weighted average common shares and partnership units - Diluted AFFO

 

11,937,759 

 

 

11,986,970 

 

 

12,690,967 

 

 

12,650,158 



6

 


 

We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net earnings or loss computed in accordance with GAAP, excluding gains or losses from sales of real estate assets, impairment, and the depreciation and amortization of real estate assets.  FFO is calculated both for the Company in total and as FFO attributable to common shares and common units, which is FFO reduced by preferred stock dividends.  AFFO is FFO attributable to common shares and common units adjusted to exclude items we do not believe are representative of the results from our core operations, including non-cash gains or losses on derivatives and convertible debt, stock-based compensation expense, amortization of certain fees, losses on debt extinguishment, and in-kind dividends above stated rates, and cash charges for acquisition and equity transaction and strategic alternatives costs. All REITs do not calculate FFO and AFFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO and AFFO for similar REITs.



We consider FFO to be a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time.  Since real estate values have historically risen or fallen with market conditions, we believe that FFO provides a meaningful indication of our performance.  We believe that AFFO provides useful supplemental information to investors regarding our ongoing operating performance that, when considered with net income and FFO, is beneficial to an investor’s understanding of our operating performance. We present FFO and AFFO per common share and common unit because our common units are redeemable for common shares.  We believe it is meaningful for the investor to understand FFO and AFFO applicable to common shares and common units.  



EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA



The following table reconciles net earnings (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three months and year ended December 31, 2019 and 2018 (in thousands). All amounts presented our portion of the results of our unconsolidated Atlanta JV.









 

 

 

 

 

 

 

 

 

 

 



Three months ended

 

Year ended



December 31,

 

December 31,

Reconciliation of Net earnings (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA    

2019

 

2018

 

2019

 

2018

Net earnings (loss)

$

(1,824)

 

$

(1,207)

 

$

(5,067)

 

$

5,170 

Interest expense

 

1,807 

 

 

2,153 

 

 

7,976 

 

 

8,326 

Interest expense from JV

 

495 

 

 

556 

 

 

2,140 

 

 

2,109 

Loss on extinguishment of debt from JV

 

 -

 

 

 -

 

 

138 

 

 

 -

Income tax expense

 

282 

 

 

20 

 

 

937 

 

 

335 

Depreciation and amortization expense

 

2,407 

 

 

2,349 

 

 

9,568 

 

 

9,475 

Depreciation and amortization expense from JV

 

300 

 

 

289 

 

 

1,195 

 

 

1,155 

EBITDA

 

3,467 

 

 

4,160 

 

 

16,887 

 

 

26,570 

Net (gain) loss on disposition of assets

 

45 

 

 

17 

 

 

36 

 

 

(5,570)

Net loss on disposition of assets from JV

 

 -

 

 

128 

 

 

 

 

157 

Impairment recovery

 

 -

 

 

 -

 

 

 -

 

 

(93)

EBITDAre

 

3,512 

 

 

4,305 

 

 

16,925 

 

 

21,064 

Net (gain) loss on derivatives and convertible debt

 

155 

 

 

402 

 

 

1,071 

 

 

(317)

Net loss on derivative from JV

 

 -

 

 

22 

 

 

 

 

22 

Stock-based compensation and LTIP expense

 

125 

 

 

62 

 

 

1,026 

 

 

974 

Equity transaction and strategic alternatives

 

23 

 

 

19 

 

 

38 

 

 

205 



 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAre

 

4,039 

 

 

4,810 

 

 

21,171 

 

 

21,948 

General and administrative expense, excluding stock compensation and LTIP expense

 

1,130 

 

 

1,082 

 

 

4,674 

 

 

5,243 

Other expense, net

 

24 

 

 

26 

 

 

104 

 

 

83 

Unallocated hotel and property operations expense

 

74 

 

 

135 

 

 

227 

 

 

364 

Hotel EBITDA

$

5,267 

 

$

6,053 

 

$

26,176 

 

$

27,638 



 

 

 

 

 

 

 

 

 

 

 

Revenue

$

14,306 

 

$

15,082 

 

$

61,052 

 

$

65,057 

JV revenue

 

2,041 

 

 

1,923 

 

 

10,133 

 

 

9,510 

Total Company and JV revenue

$

16,347 

 

$

17,005 

 

$

71,185 

 

$

74,567 

Hotel EBITDA as a percentage of revenue

 

32.2% 

 

 

35.6% 

 

 

36.8% 

 

 

37.1% 



7

 


 

We calculate EBITDA, EBITDAre, and Adjusted EBITDAre by adding back to net earnings or loss certain non-operating expenses and certain non-cash charges which are based on historical cost accounting that we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods. In calculating EBITDA, we add back to net earnings or loss interest expense, loss on debt extinguishment, income tax expense, and depreciation and amortization expense.  NAREIT adopted EBITDAre in order to promote an industry-wide measure of REIT operating performance.  We adjust EBITDA by adding back net gain/loss on disposition of assets and impairment charges to calculate EBITDAre.  To calculate Adjusted EBITDAre, we adjust EBITDAre to add back acquisition and terminated transactions expense and equity transactions and strategic alternatives expense, which are cash charges. We also add back stock –based compensation expense and gain/loss on derivatives and convertible debt, which are non-cash charges.  EBITDA, EBITDAre, and Adjusted EBITDAre, as presented, may not be comparable to similarly titled measures of other companies.



We believe EBITDA, EBITDAre, and Adjusted EBITDAre to be useful additional measures of our operating performance, excluding the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortization expense), and other items we do not believe are representative of the results from our core operations.



The Company further excludes general and administrative expenses, other non-operating income or expense, and certain hotel and property operations expenses that are not allocated to individual properties in assessing hotel performance (primarily certain general liability and other insurance costs, land lease costs, and office and banking fees) from Adjusted EBITDAre to calculate Hotel EBITDA.  Hotel EBITDA, as presented, may not be comparable to similarly titled measures of other companies. 



Hotel EBITDA is intended to isolate property level operational performance over which the Company’s hotel operators have direct control.  We believe Hotel EBITDA is helpful to investors as it better communicates the comparability of our hotels’ operating results for all of the Company’s hotel properties and is used by management to measure the performance of the Company’s hotels and the effectiveness of the operators of the hotels.



Same-Store Revenue and Hotel EBITDA



The following tables present our same-store revenue, Hotel EBITDA, and Hotel EBITDA margin broken down by property type for the three and year ended December 31, 2019 and 2018 (in thousands) and reconcile these same-store measures to total revenue and Hotel EBITDA as presented above.  Same-store results include all our hotels owned at December 31, 2019.  Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors. All amounts presented include our portion of the results of our unconsolidated Atlanta Aloft JV.  Results for periods prior to the Company’s ownership have not been included in the Company’s actual consolidated financial statements and are included here only for comparison purposes.







 

 

 

 

 

 

 

 

 

 

 

 



 

Revenue - Reconciliation of Actual to Same-Store



 

Three months ended December 31,

 

Year ended December 31,



 

2019

 

2018

 

2019

 

2018

Condor and JV Revenue - Actual

 

$

16,347 

 

$

17,005 

 

$

71,185 

 

$

74,567 

Revenue earned on properties disposed of prior to December 31, 2019 during the period of ownership

 

 

 -

 

 

(240)

 

 

(272)

 

 

(4,362)

Revenue earned on properties owned at December 31, 2019 prior to ownership

 

 

 -

 

 

 -

 

 

 -

 

 

637 

Total Revenue - Same-Store

 

$

16,347 

 

$

16,765 

 

$

70,913 

 

$

70,842 











 

 

 

 

 

 

 

 

 

 

 

 



 

Hotel EBITDA - Reconciliation of Actual to Same-Store



 

Three months ended December 31,

 

Year ended December 31,



 

2019

 

2018

 

2019

 

2018

Condor and JV Hotel EBITDA - Actual

 

$

5,267 

 

$

6,053 

 

$

26,176 

 

$

27,638 

Hotel EBITDA earned on properties disposed of prior to December 31, 2019 during the period of ownership

 

 

 -

 

 

(12)

 

 

(63)

 

 

(1,140)

Hotel EBITDA earned on properties owned at December 31, 2019 prior to ownership

 

 

 -

 

 

 -

 

 

 -

 

 

285 

Total Hotel EBITDA - Same-Store

 

$

5,267 

 

$

6,041 

 

$

26,113 

 

$

26,783 

8

 


 







 

 

 

 

 

 

 

 

 

 

 

 



 

Hotel EBITDA Margin by Property Type



 

Three months ended December 31,

 

Year ended December 31,



 

2019

 

2018

 

2019

 

2018

Total Hotel EBITDA Margin - Same-Store

 

 

32.2% 

 

 

36.0% 

 

 

36.8% 

 

 

37.8% 



Condor Hospitality Trust, Inc. Operating Statistics



The following tables present our same-store occupancy, ADR, and RevPAR for all our hotels owned at December 31, 2019.  Same-store occupancy, ADR, and RevPAR reflect the performance of hotels during the entire period, regardless of our ownership during the period presented.  Results for the hotels for periods prior to our ownership were provided to us by prior owners and have not been adjusted by us or audited or reviewed by our independent auditors.  The performance metrics for the hotel acquired through our Atlanta JV, also presented below, reflect 100% of the operating results of the property, including our interest and the interest of our partner.









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three months ended December 31,

 

 



2019

 

2018

 

 



Occupancy

 

ADR

 

RevPAR

 

Occupancy

 

ADR

 

RevPAR

 

Growth

Solomons Hilton Garden Inn

68.55% 

 

$

114.40 

 

$

78.43 

 

60.21% 

 

$

115.31 

 

$

69.43 

 

13.0% 

Atlanta Hotel Indigo

70.61% 

 

$

98.12 

 

$

69.28 

 

68.98% 

 

$

104.96 

 

$

72.40 

 

-4.3%

Jacksonville Courtyard by Marriott

78.77% 

 

$

106.88 

 

$

84.19 

 

73.73% 

 

$

113.02 

 

$

83.33 

 

1.0% 

San Antonio SpringHill Suites

72.71% 

 

$

125.19 

 

$

91.03 

 

82.52% 

 

$

136.78 

 

$

112.88 

 

-19.4%

Leawood Aloft

72.39% 

 

$

124.85 

 

$

90.37 

 

76.40% 

 

$

122.33 

 

$

93.46 

 

-3.3%

Lexington Home2 Suites

71.19% 

 

$

117.42 

 

$

83.59 

 

71.79% 

 

$

121.24 

 

$

87.04 

 

-4.0%

Round Rock Home2 Suites

76.30% 

 

$

109.55 

 

$

83.59 

 

78.15% 

 

$

112.49 

 

$

87.92 

 

-4.9%

Tallahassee Home2 Suites

72.51% 

 

$

122.92 

 

$

89.13 

 

95.41% 

 

$

131.19 

 

$

125.18 

 

-28.8%

South Haven Home2 Suites

80.60% 

 

$

113.16 

 

$

91.21 

 

88.29% 

 

$

111.30 

 

$

98.27 

 

-7.2%

Lake Mary Hampton Inn & Suites

78.60% 

 

$

132.24 

 

$

103.93 

 

82.92% 

 

$

129.02 

 

$

106.98 

 

-2.9%

Austin Residence Inn

80.09% 

 

$

132.42 

 

$

106.06 

 

76.22% 

 

$

133.77 

 

$

101.96 

 

4.0% 

El Paso Fairfield Inn

87.47% 

 

$

106.42 

 

$

93.09 

 

86.10% 

 

$

101.35 

 

$

87.26 

 

6.7% 

Austin TownePlace Suites

75.69% 

 

$

113.57 

 

$

85.97 

 

67.55% 

 

$

108.73 

 

$

73.45 

 

17.0% 

Summerville Home2 Suites

88.58% 

 

$

120.18 

 

$

106.45 

 

81.36% 

 

$

125.63 

 

$

102.21 

 

4.2% 

Wholly owned new investment platform properties

76.49% 

 

$

117.11 

 

$

89.58 

 

77.95% 

 

$

119.54 

 

$

93.19 

 

-3.9%

Atlanta Aloft JV

65.83% 

 

$

137.16 

 

$

90.30 

 

64.78% 

 

$

134.20 

 

$

86.93 

 

3.9% 

Total Same-Store Portfolio

75.07% 

 

$

119.45 

 

$

89.68 

 

76.20% 

 

$

121.20 

 

$

92.35 

 

-2.9%





















 

 

 

 

 

 

 

 

 

Same-Store Hotel Comparison

 

4Q19

 

4Q18

 

Growth

8 Negative RevPAR Same-Store Hotels

 

$

87.76 

 

$

98.12 

 

 

-10.6%

7 Positive RevPAR Same-Store Hotels

 

$

91.86 

 

$

86.33 

 

 

6.4% 

Total Same-Store Portfolio

 

$

89.68 

 

$

92.35 

 

 

-2.9%

9

 


 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Year ended December 31,

 

 

 



2019

 

2018

 

 

 



Occupancy

 

ADR

 

RevPAR

 

Occupancy

 

ADR

 

RevPAR

 

Growth

Solomons Hilton Garden Inn

75.63% 

 

$

120.98 

 

$

91.49 

 

73.72% 

 

$

123.86 

 

$

91.30 

 

 

0.2% 

Atlanta Hotel Indigo

74.77% 

 

$

105.43 

 

$

78.83 

 

75.94% 

 

$

103.80 

 

$

78.83 

 

 

0.0% 

Jacksonville Courtyard by Marriott

77.12% 

 

$

117.51 

 

$

90.62 

 

78.52% 

 

$

115.66 

 

$

90.81 

 

 

-0.2%

San Antonio SpringHill Suites

78.37% 

 

$

129.33 

 

$

101.36 

 

84.05% 

 

$

137.45 

 

$

115.53 

 

 

-12.3%

Leawood Aloft

70.22% 

 

$

130.45 

 

$

91.60 

 

74.42% 

 

$

126.39 

 

$

94.06 

 

 

-2.6%

Lexington Home2 Suites

78.47% 

 

$

116.46 

 

$

91.39 

 

78.50% 

 

$

114.68 

 

$

90.02 

 

 

1.5% 

Round Rock Home2 Suites

82.17% 

 

$

115.04 

 

$

94.53 

 

83.65% 

 

$

117.07 

 

$

97.93 

 

 

-3.5%

Tallahassee Home2 Suites

84.96% 

 

$

124.67 

 

$

105.91 

 

88.95% 

 

$

123.12 

 

$

109.51 

 

 

-3.3%

South Haven Home2 Suites

88.16% 

 

$

117.76 

 

$

103.82 

 

86.91% 

 

$

113.76 

 

$

98.87 

 

 

5.0% 

Lake Mary Hampton Inn & Suites

78.96% 

 

$

137.14 

 

$

108.29 

 

82.22% 

 

$

134.93 

 

$

110.94 

 

 

-2.4%

Austin Residence Inn

82.20% 

 

$

135.13 

 

$

111.08 

 

80.43% 

 

$

131.49 

 

$

105.75 

 

 

5.0% 

El Paso Fairfield Inn

86.38% 

 

$

105.88 

 

$

91.45 

 

82.76% 

 

$

100.85 

 

$

83.46 

 

 

9.6% 

Austin TownePlace Suites

73.21% 

 

$

112.49 

 

$

82.35 

 

75.85% 

 

$

115.80 

 

$

87.83 

 

 

-6.2%

Summerville Home2 Suites

84.65% 

 

$

127.95 

 

$

108.30 

 

84.16% 

 

$

128.22 

 

$

107.91 

 

 

0.4% 

Wholly owned new investment platform properties

79.29% 

 

$

121.25 

 

$

96.15 

 

80.52% 

 

$

120.53 

 

$

97.05 

 

 

-0.9%

Atlanta Aloft JV

76.21% 

 

$

151.09 

 

$

115.15 

 

75.37% 

 

$

144.43 

 

$

108.85 

 

 

5.8% 

Total Same-Store Portfolio

78.88% 

 

$

125.09 

 

$

98.68 

 

79.84% 

 

$

123.54 

 

$

98.63 

 

 

0.1% 







 

 

 

 

 

 

 

 

 

Same-Store Hotel Comparison

 

YTD19

 

YTD18

 

Growth

8 Positive RevPAR Same-Store Hotels

 

$

100.45 

 

$

98.29 

 

 

2.2% 

7 Negative RevPAR Same-Store Hotels

 

$

96.15 

 

$

99.1 

 

 

-3.0%

Total Same-Store Portfolio

 

$

98.68 

 

$

98.63 

 

 

0.1% 







 

 

 

 

 

 

Condor Hospitality Trust, Inc.

 

Property List | As of December 31, 2019

 



 

 

 

 

 

 

New Investment Platform | Acquired from January 1, 2012 -December 31, 2019



Hotel Name

City

State

Rooms

Acquisition Date

Purchase Price (in millions)

1

Hilton Garden Inn

Dowell/Solomons