Market Overview

Chatham Lodging Trust Announces First Quarter 2018 Results

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Delivers RevPAR at Upper End of Guidance Range, Beats Consensus FFO
Per Share

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 135 hotels wholly or
through joint ventures, today announced results for the first quarter
ended March 31, 2018. The company also provided updated guidance for
2018.

First Quarter 2018 Key Metrics

  • Portfolio Revenue per Available Room (RevPAR) - Decreased 2.4
    percent to $122, compared to the 2017 first quarter, for Chatham's 40,
    wholly owned hotels. Average daily rate (ADR) lessened 1.2 percent to
    $162, and occupancy declined 1.2 percent to 76 percent.
  • Net Income - Declined $1.7 million to $2.9 million. Net income
    per diluted share was $0.06 versus $0.12 in the 2017 first quarter.
  • Adjusted EBITDA - Decreased $1.7 million to $26.4 million,
    slightly above the upper end its guidance.
  • Adjusted FFO - Lessened $1.6 million, to $16.5 million versus
    $18.1 million in the 2017 first quarter. Adjusted FFO per diluted
    share was $0.36, above consensus and compared to guidance of
    $0.33-$0.35 per share.
  • Operating Margins - Gross operating profit margins declined 260
    basis points to 44.4 percent. Hotel EBITDA margins were off 360 basis
    points to 36.3 percent, 30 basis points better than the upper end of
    its guidance.
  • Balance Sheet - Solidified the balance sheet, successfully
    refinancing its unsecured revolving credit facility, extending the
    maturity to 2023 and reducing its borrowing costs.

Consolidated Financial Results

The following is a summary of the consolidated financial results for the
three months ended March 31, 2018. RevPAR, ADR and occupancy for 2018
and 2017 are based on hotels owned as of March 31, 2018 ($ in millions,
except per share, RevPAR, ADR, occupancy and margins):

  Three Months Ended
March 31,
2018   2017
Net income $2.9 $4.6
Diluted net income per common share $0.06 $0.12
RevPAR $122 $125
ADR $162 $164
Occupancy 76% 77%
Adjusted EBITDA $26.4 $28.1
GOP Margin 44.4% 47.0%
Hotel EBITDA Margin 36.3% 39.9%
AFFO $16.5 $18.1
AFFO per diluted share $0.36 $0.47
Dividends per share $0.33 $0.33

Operating Results

"We were facing tough RevPAR comparisons in several of our key markets
versus last year, and our guidance reflected that," stated Jeffrey H.
Fisher, Chatham's president and chief executive officer. "In the 2017
first quarter, our four Houston hotels excelled from hosting the Super
Bowl, our three Washington D.C. hotels benefitted from the inauguration
and related events and were hurt this year due to the temporary
government shutdown, and our four Silicon Valley hotels had some large
corporate business that shifted from the first quarter last year into
the second quarter this year. Our portfolio RevPAR is forecast to
increase approximately 3 percent in April."

First quarter RevPAR performance for certain key markets:

  • Florida hotels saw RevPAR rise 6.6 percent, benefitting from a
    combination of hurricane-related demand and increased inbound
    travelers favoring Florida.
  • Silicon Valley RevPAR declined 5.1 percent to $177.
  • Two Los Angeles-area hotels experienced a RevPAR increase of 4.3
    percent.
  • RevPAR declined 7.0 percent at its four Houston hotels (2017 Super
    Bowl).
  • RevPAR at the company's three Washington D.C. hotels decreased 3.5
    percent (2017 inauguration).

"Unlike prior cycles, new supply this cycle has been focused in directly
competitive brands in harder-to-build locations in the top-25 markets,
where many of our hotels are located, but as we have previously
commented, demand growth also been strong, minimizing the impact,"
Fisher commented. "As we fully absorb this new supply in the near
future, our hotels are poised to perform well. In markets where the
impact of new supply is waning, such as Westchester County, N.Y. where
we have two hotels, Brentwood, Tenn., and downtown San Diego, RevPAR
grew in a range of 7-22 percent. Other strong markets for us where
RevPAR grew more than 5 percent during the quarter were Exeter, N.H.,
Marina Del Rey, Calif., Farmington, Conn., Bloomington, Minn., Dedham,
Mass., and Washington, Pa."

Gross operating profit margins were down 260 basis points compared to
the 2017 first quarter. Key measures impacting margins at our 36
comparable hotels were:

  • Payroll and benefit costs increased 7.4 percent and reduced margins by
    170 basis points.
  • Weather related increases for utilities, snow removal and maintenance
    costs reduced margins by 60 basis points.

"We outperformed our EBITDA and FFO expectations as same-store hotel
EBITDA margins beat the upper-end of our guidance range by 30 basis
points," stated Dennis Craven, Chatham's chief operating officer.
"Rising labor costs remain the primary contributing factor to our margin
erosion. We are collaborating with Island Hospitality to gain even more
operating efficiencies and sourcing new or enhanced revenue
opportunities. Additionally, we are working with the brands to get
creative with respect to the labor model and provide alternatives that
will benefit owners over the long-term."

Strategic Capital Recycling Program and Hotel Investments

In November 2017, the company contracted to acquire the under
construction, 96-room Residence Inn Charleston Summerville, S.C., for
$21 million. The hotel sits adjacent to the 96-room Courtyard by
Marriott that Chatham acquired in the same month. These hotels are
located in Nexton, an emerging, mixed-use community in the heart of a
rapidly expanding area just outside of Charleston. The hotels will be
the highest quality and closest hotels to Volvo's first American factory
which is expected to open later this year. Volvo already announced plans
for a second factory on its nearby campus. Chatham expects to close on
the acquisition by July 1, 2018. RevPAR at our Courtyard by Marriott
Charleston Summerville, S.C. in the 2018 first quarter was up more than
two percent.

During the first quarter, the company substantially completed the
renovations of the Residence Inn San Diego Mission Valley, Calif. The
company commenced the renovations of the Homewood Suites Billerica,
Mass., and Hyatt Place Pittsburgh in the first quarter and expects to
complete those renovations during the 2018 second quarter. The company
intends to invest approximately $25 million renovating and upgrading its
hotels in 2018.

Capital Markets & Capital Structure

As of March 31, 2018, the company had net debt of $527.8 million (total
consolidated debt less unrestricted cash). Total debt outstanding was
$541.2 million at an average interest rate of 4.6 percent, comprised of
$507.2 million of fixed-rate mortgage debt at an average interest rate
of 4.7 percent and $34.0 million outstanding on the company's $250
million senior unsecured revolving credit facility, which currently
carries a 3.8 percent interest rate.

Chatham's leverage ratio was approximately 33.6 percent on March 31,
2018, based on the ratio of the company's net debt to hotel investments
at cost. The weighted average maturity date for Chatham's fixed-rate
debt is February 2024 with the earliest maturity in 2021. As of March
31, 2018, Chatham's proportionate share of joint venture debt and
unrestricted cash was $165.4 million and $2.9 million, respectively.

On March 31, 2018, as defined in the company's credit agreement,
Chatham's fixed charge coverage ratio, including its interest in the two
joint ventures with Colony NorthStar, was 3.2 times, and total net debt
to trailing 12-month corporate EBITDA was 5.5 times. Excluding its
interest in the two joint ventures, Chatham's fixed charge coverage
ratio was 3.5 times, and net debt to trailing 12-month corporate EBITDA
was 4.9 times.

Chatham successfully refinanced its $250 million senior unsecured
revolving credit facility. The new unsecured revolving credit facility
matures in March 2023 and replaces Chatham's previous $250 million
senior unsecured credit facility that was scheduled to mature in 2020.
Borrowing costs have been reduced by 0 to 15 basis points from
comparable leverage-based pricing levels in Chatham's previous credit
facility. At Chatham's current leverage level, the borrowing cost under
the new facility is LIBOR plus 1.65 percent.

"This refinancing improves our earnings through reduced borrowing costs,
provides us with incremental capacity and flexibility to pursue
accretive growth opportunities and adds security to our balance sheet
since we now have only $13.6 million of debt maturing between now and
2023," remarked Jeremy Wegner, Chatham's chief financial officer.
"Furthermore, with 94 percent of our debt carrying a fixed interest
rate, if interest rates continue to rise as expected, our FFO will not
be impacted nearly as much as our peers."

During the first quarter, Chatham sold 0.5 million shares under its
at-the-market ("ATM") and direct stock purchase ("DSPP") programs at a
weighted average price of $22.60 per share.

Joint Venture Investments

During the 2018 first quarter, the Innkeepers and Inland joint ventures
contributed Adjusted EBITDA and Adjusted FFO of approximately $3.1
million and $0.9 million, respectively, compared to 2016 first quarter
Adjusted EBITDA and FFO of approximately $3.2 million and $1.4 million,
respectively. Both Adjusted EBITDA and Adjusted FFO were $0.1 million
above the company's previous guidance for the quarter.

Chatham received distributions from its joint venture investments of
$1.0 million during the 2018 first quarter.

Dividend

Chatham currently pays a monthly dividend of $0.11 per common share.
Chatham's 2018 dividend per share of $1.32 represents approximately 71
percent of its 2018 adjusted FFO per share, based on the midpoint of its
guidance for 2018.

2018 Guidance

The company provides guidance, but does not undertake to update it for
any developments in its business. Achievement of the results is subject
to the risks disclosed in the company's filings with the Securities and
Exchange Commission.

The company's 2018 guidance reflects the following assumptions:

  • Industrywide RevPAR growth of 0 to 3 percent in 2018
    • Marriott International forecast North American RevPAR growth of 1
      to 2 percent; Hilton Hotels & Resorts estimated North American
      RevPAR growth of 1 to 3 percent
    • STR projected industry RevPAR growth of 2.7 percent
  • Acquisition of the 96-room Residence Inn by Marriott Charleston
    Summerville, S.C., on July 1, 2018 for $21.0 million
  • Renovations commencing at the following hotels:
    • Residence Inn Mountain View, Calif., and Residence Inn Tysons
      Corner, Va., during the second quarter
    • Homewood Suites Dallas, Texas, during the third quarter
    • Residence Inn Sunnyvale, Calif., #1, and the Homewood Suites
      Farmington, Conn., in the fourth quarter
  • No additional acquisitions, dispositions, debt or equity issuance

Fisher concluded, "Our guidance has been updated to account for our
outperformance in the first quarter and does not reflect any future
acquisitions, developments or reinvestment of any asset sale proceeds or
additional leverage capacity. Although sourcing attractive acquisitions
is difficult, we expect to be a net acquirer of assets in 2018. GDP
growth remains strong which should boost lodging demand and as the
impact of new supply across our portfolio lessens, we should outperform
on both the top and bottom lines."

    Q2 2018     2018 Forecast
RevPAR $142 to $144 $131 to $134
RevPAR growth 0.0% to 1.5% -1.5% to 0.5%
Total hotel revenue $83.1 to $84.2 M $310.8 to $316.6 M
Net income $11.9 to $13.3 M $26.5 to $32.5 M
Net income per diluted share $0.26 to $0.29 $0.57 to $0.70
Adjusted EBITDA $36.6 to $38.0 M $126.3 to $132.3 M
Adjusted FFO $26.3 to $27.7 M $84.7 to $90.7 M
Adjusted FFO per diluted share $0.56 to $0.59 $1.82 to $1.95
Hotel EBITDA margins 41.4% to 42.1% 38.7% to 39.7%
Corporate cash administrative expenses $2.4 M $9.8 M
Corporate non-cash administrative expenses $1.1 M $4.3 M
Interest expense (excluding fee amortization) $6.5 M $26.3 M
Non-cash amortization of deferred fees $0.3 M $1.4M
Income taxes $0.0 M $0.0 M
Chatham's share of JV EBITDA $4.6 to $4.9 M $15.8 to $16.4 M
Chatham's share of JV FFO $2.2 to $2.5 M $6.2 to $6.8 M
Weighted average shares/units outstanding 46.6 M 46.6 M
Funds from operations (FFO), Adjusted FFO (AFFO), EBITDA and
Adjusted EBITDA are non-GAAP financial measures within the meaning
of the rules of the Securities and Exchange Commission. See the
discussion included in this press release for information regarding
these non-GAAP financial measures.

Earnings Call

The company will hold its first quarter 2018 conference later today at
10:00 a.m. Eastern Time. Shareholders and other interested parties may
listen to a simultaneous webcast of the conference call on the Internet
by logging onto either www.chathamlodgingtrust.com,
or www.streetevents.com,
or may participate in the conference call by dialing 1-877-407-0789 and
referencing Chatham Lodging Trust. A recording of the call will be
available by telephone until 11:59 p.m. ET on Tuesday, May 8, 2018, by
dialing 1-844-512-2921, reference number 13678543. A replay of the
conference call will be posted on Chatham's website.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly-traded real estate
investment trust focused primarily on investing in upscale,
extended-stay hotels and premium-branded, select-service hotels. The
company owns interests in 135 hotels totaling 18,518 rooms/suites,
comprised of 40 properties it wholly owns with an aggregate of 6,020
rooms/suites in 15 states and the District of Columbia and a minority
investment in two joint ventures that own 95 hotels with an aggregate of
12,498 rooms/suites. Additional information about Chatham may be found
at chathamlodgingtrust.com.

Non-GAAP Financial Measures

Included in this press release are certain "non-GAAP financial
measures," within the meaning of Securities and Exchange Commission
(SEC) rules and regulations, that are different from measures calculated
and presented in accordance with GAAP (generally accepted accounting
principles). The company considers the following non-GAAP financial
measures useful to investors as key supplemental measures of its
operating performance: (1) FFO, (2) Adjusted FFO, (3) EBITDA,
(4) Adjusted EBITDA and (5) Adjusted Hotel EBITDA. These non-GAAP
financial measures should be considered along with, but not as
alternatives to, net income or loss as prescribed by GAAP as a measure
of its operating performance.

FFO As Defined by NAREIT and Adjusted FFO

The company calculates FFO in accordance with standards established
by the National Association of Real Estate Investment Trusts (NAREIT),
which defines FFO as net income or loss (calculated in accordance with
GAAP), excluding gains or losses from sales of real estate, impairment
write-downs, the cumulative effect of changes in accounting principles,
plus depreciation and amortization (excluding amortization of deferred
financing costs), and after adjustments for unconsolidated partnerships
and joint ventures following the same approach. The company believes
that the presentation of FFO provides useful information to investors
regarding its operating performance because it measures its performance
without regard to specified non-cash items such as real estate
depreciation and amortization, gain or loss on sale of real estate
assets and certain other items that the company believes are not
indicative of the property level performance of its hotel properties.
The company believes that these items reflect historical cost of its
asset base and its acquisition and disposition activities and are less
reflective of its ongoing operations, and that by adjusting to exclude
the effects of these items, FFO is useful to investors in comparing its
operating performance between periods and between REITs that also report
using the NAREIT definition.

The company calculates Adjusted FFO by further adjusting FFO for
certain additional items that are not addressed in NAREIT's definition
of FFO, including other charges, losses on the early extinguishment of
debt and similar items related to its unconsolidated real estate
entities that it believes do not represent costs related to hotel
operations.
The company believes that Adjusted FFO provides
investors with another financial measure that may facilitate comparisons
of operating performance between periods and between REITs that make
similar adjustments to FFO.

EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA

The company calculates EBITDA for purposes of the credit facility
debt as net income or loss excluding: (1) interest expense; (2)
provision for income taxes, including income taxes applicable to sale of
assets; (3) depreciation and amortization; and (4) unconsolidated real
estate entity items including interest, depreciation and amortization
excluding gains and losses from sales of real estate. The company
believes EBITDA is useful to investors in evaluating its operating
performance because it helps investors compare the company's operating
performance between periods and between REITs by removing the impact of
its capital structure (primarily interest expense) and asset base
(primarily depreciation and amortization) from its operating results. In
addition, the company uses EBITDA as one measure in determining the
value of hotel acquisitions and dispositions.

The company calculates Adjusted EBITDA by further adjusting EBITDA
for certain additional items, including other charges, gains or losses
on the sale of real estate, losses on the early extinguishment of debt,
amortization of non-cash share-based compensation and similar items
related to its unconsolidated real estate entities, which it believes
are not indicative of the performance of its underlying hotel properties
entities. The company believes that Adjusted EBITDA provides investors
with another financial measure that may facilitate comparisons of
operating performance between periods and between REITs that report
similar measures.

Adjusted Hotel EBITDA is defined as net income before interest,
income taxes, depreciation and amortization, corporate general and
administrative, impairment loss, loss on early extinguishment of debt,
interest and other income and income or loss from unconsolidated real
estate entities.
The Company presents Adjusted Hotel EBITDA
because the Company believes it is useful to investors in comparing its
hotel operating performance between periods and comparing its Adjusted
Hotel EBITDA margins to those of our peer companies.
Adjusted
Hotel EBITDA represents the results of operations for its wholly owned
hotels only
.

Although the company presents FFO, Adjusted FFO, EBITDA and Adjusted
EBITDA because it believes they are useful to investors in comparing the
company's operating performance between periods and between REITs that
report similar measures, these measures have limitations as analytical
tools. Some of these limitations are:

  • FFO, Adjusted FFO, EBITDA, Adjusted EBITDA and Adjusted Hotel
    EBITDA do not reflect the company's cash expenditures, or future
    requirements, for capital expenditures or contractual commitments;
  • FFO, Adjusted FFO, EBITDA, Adjusted EBITDA and Adjusted Hotel
    EBITDA do not reflect changes in, or cash requirements for, the
    company's working capital needs;
  • FFO, Adjusted FFO, EBITDA, Adjusted EBITDA and Adjusted Hotel
    EBITDA do not reflect funds available to make cash distributions;
  • EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA do not reflect
    the significant interest expense, or the cash requirements necessary
    to service interest or principal payments, on the company's debts;
  • Although depreciation and amortization are non-cash charges, the
    assets being depreciated and amortized may need to be replaced in the
    future, and FFO, Adjusted FFO, EBITDA, Adjusted EBITDA and Adjusted
    Hotel EBITDA do not reflect any cash requirements for such
    replacements;
  • Non-cash compensation is and will remain a key element of the
    company's overall long-term incentive compensation package, although
    the company excludes it as an expense when evaluating its ongoing
    operating performance for a particular period using adjusted EBITDA;
  • Adjusted FFO, Adjusted EBITDA and Adjusted Hotel EBITDA do not
    reflect the impact of certain cash charges (including acquisition
    transaction costs) that result from matters the company considers not
    to be indicative of the underlying performance of its hotel
    properties; and
  • Other companies in the company's industry may calculate FFO,
    Adjusted FFO, EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA
    differently than the company does, limiting their usefulness as a
    comparative measure.

In addition, FFO, Adjusted FFO, EBITDA, Adjusted EBITDA and Adjusted
Hotel EBITDA do not represent cash generated from operating activities
as determined by GAAP and should not be considered as alternatives to
net income or loss, cash flows from operations or any other operating
performance measure prescribed by GAAP. FFO, Adjusted FFO, EBITDA,
Adjusted EBITDA and Adjusted Hotel EBITDA are not measures of the
Company's liquidity. Because of these limitations, FFO, Adjusted FFO,
EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA should not be
considered in isolation or as a substitute for performance measures
calculated in accordance with GAAP. The Company compensates for these
limitations by relying primarily on its GAAP results and using FFO,
Adjusted FFO, EBITDA, Adjusted EBITDA and Adjusted Hotel EBITDA only
supplementally. The Company's consolidated financial statements and the
notes to those statements included elsewhere are prepared in accordance
with GAAP.

The company's reconciliation of FFO, Adjusted FFO, EBITDA, Adjusted
EBITDA and Adjusted Hotel EBITDA to net income attributable to common
shareholders, as determined under GAAP, is set forth below.

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 second-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.

CHATHAM LODGING TRUST
Consolidated Balance Sheets
(In thousands, except share and per share data)
   
March 31, December 31,
2018 2017
(unaudited)
Assets:
Investment in hotel properties, net $ 1,314,504 $ 1,320,082
Cash and cash equivalents 13,403 9,333
Restricted cash 25,398 27,166
Investment in unconsolidated real estate entities 23,491 24,389
Hotel receivables (net of allowance for doubtful accounts of $215
and $200, respectively)
5,293 4,047
Deferred costs, net 5,486 4,646
Prepaid expenses and other assets 5,555 2,523
Deferred tax asset, net 30   30  
Total assets $ 1,393,160   $ 1,392,216  
Liabilities and Equity:
Mortgage debt, net $ 505,179 $ 506,316
Revolving credit facility 34,000 32,000
Accounts payable and accrued expenses 31,775 31,692
Distributions and losses in excess of investments of unconsolidated
real estate entities
7,458 6,582
Distributions payable 5,950   5,846  
Total liabilities 584,362   582,436  
Commitments and contingencies
Equity:
Shareholders' Equity:
Preferred shares, $0.01 par value, 100,000,000 shares authorized and
unissued at March 31, 2018 and December 31, 2017
Common shares, $0.01 par value, 500,000,000 shares authorized;
45,869,600 and 45,375,266 shares issued and outstanding at March 31,
2018 and December 31, 2017, respectively
459 450
Additional paid-in capital 882,586 871,730
Retained earnings (distributions in excess of retained earnings) (81,311 ) (69,018 )
Total shareholders' equity 801,734   803,162  
Noncontrolling interests:
Noncontrolling interest in Operating Partnership 7,064   6,618  
Total equity 808,798   809,780  
Total liabilities and equity $ 1,393,160   $ 1,392,216  

CHATHAM LODGING TRUST
Consolidated Statements of Operations
(In thousands, except share and per share data)
(unaudited)
 
For the three months ended
March 31,
2018   2017
Revenue:
Room $ 66,251 $ 64,393
Food and beverage 2,098 1,502
Other 3,027 2,446
Cost reimbursements from unconsolidated real estate entities 2,657   2,494  
Total revenue 74,033   70,835  
Expenses:
Hotel operating expenses:
Room 14,553 13,505
Food and beverage 1,740 1,252
Telephone 459 409
Other hotel operating 721 599
General and administrative 6,033 5,654
Franchise and marketing fees 5,525 5,302
Advertising and promotions 1,565 1,331
Utilities 2,699 2,370
Repairs and maintenance 3,624 3,252
Management fees 2,437 2,247
Insurance 333     333  
Total hotel operating expenses 39,689 36,254
Depreciation and amortization 12,036 12,004
Property taxes, ground rent and insurance 5,775 4,788
General and administrative 3,622 3,268
Other charges (14 )
Reimbursed costs from unconsolidated real estate entities 2,657   2,494  
Total operating expenses 63,765   58,808  
Operating income 10,268 12,027
Interest and other income 2 12
Interest expense, including amortization of deferred fees (6,631 ) (6,993 )
Loss on sale of hotel property (17 )
Loss from unconsolidated real estate entities (754 ) (85 )
Income before income tax expense 2,868 4,961
Income tax expense   (317 )
Net income 2,868 4,644
Net income attributable to noncontrolling interests (20 ) (31 )
Net income attributable to common shareholders $ 2,848   $ 4,613  
 
Income per Common Share - Basic:
Net income attributable to common shareholders $ 0.06   $ 0.12  
Income per Common Share - Diluted:
Net income attributable to common shareholders $ 0.06   0.12  
Weighted average number of common shares outstanding:
Basic 45,753,792 38,361,113
Diluted 46,022,690 38,573,928
Distributions paid per common share: $ 0.33 $ 0.33

CHATHAM LODGING TRUST
FFO and EBITDA
(In thousands, except share and per share data)
 
For the three months ended
March 31,
2018 2017
Funds From Operations ("FFO"):
Net income $ 2,868 $ 4,644
Loss on sale of hotel property 17
Depreciation 11,978 11,950
Adjustments for unconsolidated real estate entity items 1,678   1,471
FFO attributable to common share and unit holders 16,541 18,065
Other charges (14 )
Adjustments for unconsolidated real estate entity items 12   7
Adjusted FFO attributable to common share and unit holders $ 16,539   $ 18,072
Weighted average number of common shares and units
Basic 46,085,461 38,618,888
Diluted 46,354,359 38,813,703
 
For the three months ended
March 31,
2018 2017
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA"):
Net income $ 2,868 $ 4,644
Interest expense 6,631 6,993
Income tax expense 317
Depreciation and amortization 12,036 12,004
Adjustments for unconsolidated real estate entity items 3,908   3,313
EBITDA 25,443 27,271
Other charges (14 )
Adjustments for unconsolidated real estate entity items (11 ) 15
Loss on sale of hotel property 17
Share based compensation 918   787
Adjusted EBITDA $ 26,353   $ 28,073

CHATHAM LODGING TRUST
ADJUSTED HOTEL EBITDA
(In thousands, except share and per share data)
 
For the three months ended
March 31,
2018   2017
 
Net Income $ 2,868 $ 4,644
Add: Interest expense 6,631 6,993
Income tax expense 317
Depreciation and amortization 12,036 12,004
Corporate general and administrative 3,622 3,268
Loss from unconsolidated real estate entities 754 85
Loss on sale of hotel property 17
Less: Interest and other income (2 ) (12 )
Other charges (14 )  
Adjusted Hotel EBITDA $ 25,912   $ 27,299  

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