Thu, Jul. 23, 9:56 AM
Wed, Jul. 22, 4:38 PM
- Adjusted FFO of $102.6M or $0.91 per share vs. $86M and $0.82 one year ago.
- RevPAR of $219.76 up 4.1% Y/Y. EBITDA margin of 38.5% vs. 36.1%.
- Full-year outlook: RevPAR growth of 3.5-4.5%. EBITDA margin change of 175-225 bps. Adjusted EBITDA of $398M-$408M. Adjusted FFO per share of $2.87-$2.94. The midpoint of the EBITDA outlook is $5M higher than previously.
- Earnings call tomorrow at 10 ET
- Previously: LaSalle Hotel Properties beats by $0.01, misses on revenue (July 22)
- LHO +0.2% after hours
Wed, Jul. 22, 4:10 PM
Tue, Jul. 21, 5:35 PM| 5 Comments
Tue, Jul. 14, 7:50 AM
- Much of the beaten-up lodging REIT sector looks like a buy to Canaccord, which initiates RLJ Lodging (NYSE:RLJ), Summit Hotel (NYSE:INN), Hersha Hospitality (NYSE:HT), DiamondRock (NYSE:DRH), Strategic Hotels (NYSE:BEE), and Ashford Hospitality (NYSE:AHT) with Buy ratings.
- Rating only a Hold are Host Hotels (NYSE:HST), LaSalle Hotel (NYSE:LHO), Sunstone Hotel (NYSE:SHO), and Hospitality Properties (NYSE:HPT).
- Non-REIT lodging players, Starwood (NYSE:HOT) rates a Buy and Marriott (NASDAQ:MAR) a Hold.
Thu, Jul. 2, 3:01 PM
- Even as public market valuations have pulled back, says Citi's Michael Bilerman, private market pricing has remained strong, widening the gap between price and value.
- While fund flows are a negative, Bilerman notes an uptick in interest from market generalists, suggesting they're beginning to spot value in the sector.
- Healthcare: The REITs here are particularly sensitive to rising rates given high external growth expectations and accretive "spread" investing. Bilerman has Overweights in large-cap Ventas (NYSE:VTR) and small-cap Sabra Health Care (NASDAQ:SBRA).
- Lodging: Supply is largely intact and demand continues to improve, hopefully setting up a strong H2. He continues to favor C-corps like Hilton Worldwide (NYSE:HLT), but also has Overweight positions on Host Hotels (NYSE:HST) and LaSalle Hotel (NYSE:LHO).
- Office/Industrial: This sector offers particular opportunity for outperformance, and he prefers urban names, Boston Property (NYSE:BXP), SL Green (NYSE:SLG), and Vornado (NYSE:VNO), and only select suburban names Parkway (NYSE:PKY) and Mack Cali (NYSE:CLI). In industrial, he's Overweight EastGroup (NYSE:EGP), Prologis (NYSE:PLD), and DCT Industrial (NYSE:DCT).
- Apartments: Growth remains strong and valuations attractive. He's Overweight large caps AvalonBay (NYSE:AVB), Equity Residential (NYSE:EQR), and UDR, as well as value name Camden Property Trust (NYSE:CPT).
- Retail: He's still Overweight Class A mall REITs, but is getting more bullish on strip mall names, with Kimco (NYSE:KIM), Acadia (NYSE:AKR), and Weingarten (NYSE:WRI) upgraded to Buy. Other top picks are General Growth (NYSE:GGP), Simon Property (NYSE:SPG), Kite Realty (NYSE:KRG), and Forest City (NYSE:FCE.A).
- Previously: Citi spots value in beaten-up REIT sector (July 2)
Thu, May 21, 8:13 AM
- The red-hot in 2014 lodging REIT sector has had a tough go this year over valuation and interest rate concerns. SunTrust has seen enough carnage and pulls sell recommendations on a trio of names.
- LaSalle Hotel (NYSE:LHO), Host Hotels (NYSE:HST), and Diamond Rock Hospitality (reported earlier) are all upgraded to Neutral from Reduce.
- Previously: DiamondRock Hospitality on the move after upgrade (May 21)
Wed, Apr. 22, 4:44 PM
Wed, Apr. 22, 4:39 PM
- Q1 adjusted FFO of $45.3M or $0.40 per share vs. $33.2M and $0.32 one year ago. Dividend is $0.38. Q2 dividend is boosted to $0.45.
- RevPAR of $159.96 up 5.4% Y/Y. EBITDA margin of 25.2% up 245 bps. Adjusted EBITDA of $57.2M up 27.4%.
- 2015 outlook: RevPAR growth of 4.5-6.5%. Hotel EBITDA margin of 125-175 bps (50-150 bps previously). Adjusted EBITDA of $391M-$405M ($377M-$395M previously). Adjusted FFO per share of $2.78-$2.90 ($2.67-$2.84 previously).
- Earnings call tomorrow at 10 ET
- Previously: LaSalle Hotel Properties beats by $0.05, beats on revenue (April 22)
- LHO -0.45% after hours
Wed, Apr. 22, 4:19 PM
Tue, Apr. 21, 5:35 PM
Fri, Apr. 17, 12:19 PM
- For the first time in nearly a year, writes Susan Persin, weekly U.S. RevPAR fell as of April 4, and results were mixed for the following week, with lower occupancy offsetting ADR growth.
- According to STR, which compiles the data, the RevPAR weakness is likely temporary thanks to Passover and Easter. The company notes fundamentals - an improving economy, low gasoline prices, and limited supply - remain in place.
- Could be, says Persin, but investors - eyeing the strong dollar and its effect on foreign travel to the U.S. - had turned somewhat negative on the previously hot sector before April's data. Host Hotels and Resorts (NYSE:HST) is the largest lodging REIT by far, contributing more than 25% of the sector's market cap. Its stock peaked in December and is lower by 14.3% YTD, despite a Q4 earnings beat and raised guidance.
- There's also supply concerns, with the 126K rooms under construction in March up 23% from a year ago. NYC has the largest number of rooms under construction/planned, followed by Houston, Miami, and Chicago.
- Other sector names: Hospitality Properties (NYSE:HPT), Ashford Hospitality (NYSE:AHT), Strategic Hotels (NYSE:BEE), Sunstone Hotel (NYSE:SHO), LaSalle Hotel (NYSE:LHO), Pebblebrook Hotel (NYSE:PEB), Chesapeake Lodging (NYSE:CHSP), Summit Hotels (NYSE:INN), RLJ Lodging (NYSE:RLJ), Chatham Lodging (NYSE:CLDT), Hersha Hospitality (NYSE:HT).
Mon, Apr. 6, 3:13 PM
- The lodging names are still underperformers vs. the broader REIT sector this year (after strong outperformance in 2013 and 2014), but Credit Suisse's bullish Ian Weissman notes the hotel stocks had a 2nd consecutive good week of double-digit RevPAR growth which should help calm growth concerns.
- He still likes the lodging REITs, with RLJ Lodging (RLJ -0.3%), Strategic Hotels and Resorts (BEE +0.8%), and LaSalle Hotel Properties (LHO +0.6%) his favorites.
- Turning to mall owners in the wake of Macerich's (MAC -1.5%) rejection of Simon Properties' (SPG +0.7%) bid, Weissman thinks the time is right to get more aggressive on A mall cap rates, and the owners of the majority of them in the U.S. - with General Growth Properties (GGP +0.9%), Taubman Centers (TCO +0.3%), and Westfield (OTCPK:WFGPY +1.9%) joining Macerich and Simon. Taubman and Simon are his favorites.
- Source: Barron's
Wed, Mar. 25, 9:48 AM
- Downgraded to Reduce from Neutral are DiamondRock Hospitality (DRH -1.3%), FelCor Lodging (FCH -1.8%), Hersha Hospitality Trust (HT -2.5%), Host Hotels and Resorts (HST -0.9%), and LaSalle Hotel (LHO -1.5%).
- Cut to Neutral from Buy is Starwood Hotels (HOT -0.9%).
- For what it's worth, Starwood - the only one of the group rated a Buy before today - has about the worst performance of the bunch over the last year, ahead about 6% (Hersha is up just 5%, and the rest are up by far more).
Fri, Mar. 13, 9:03 AM
Tue, Feb. 24, 3:32 PM
- The 10-year Treasury yield has tumbled back beneath 2% amid Janet Yellen's congressional testimony and some weak economic data, but there's no bid for income favorites like equity REITs.
- The iShares DJ U.S. Real Estate ETF (IYR -1.9%).
- Realty Income (O -2.9%), National Retail Properties (NNN -2.7%), Senior Housing Properties (SNH -2.2%), Ventas (VTR -3.8%), HCP (HCP -3.6%), Equity Commonwealth (EQC -2.3%), Vornado (VNO -1.9%), Equity Residential (EQR -2.5%), AvalonBay (AVB -2.7%), Simon Property (SPG -1.8%), General Growth (GGP -2.1%), Kimco (KIM -3%), Sovran Self Storage (SSS -2%), Boston Properties (BXP -2%), Hospitality Properties (HPT -2.7%), LaSalle Hotel (LHO -2.8%), Liberty Property Trust (LPT -2.7%), American Campus Communities (ACC -1.7%).
- ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI
LHO vs. ETF Alternatives
LaSalle Hotel Properties is a real estate investment trust. The Company's business includes buying, owing, redeveloping & leasing mainly upscale & luxury full-service hotels located in convention, resort & urban business markets.
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