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Free Post Earnings Research Report: LaSalle Reported Better Than Expected FFO Results

LONDON, UK / ACCESSWIRE / June 19, 2018 / If you want access to our free earnings report on LaSalle Hotel Properties (NYSE: LHO) ("LaSalle"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LHO. LaSalle reported its first quarter fiscal 2018 operating and financial results on May 10, 2018. The real estate investment trust (REIT), based in Bethesda, Maryland, outperformed revenue estimates.

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, LaSalle Hotel Properties most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended March 31, 2018, LaSalle recorded revenues of $223.0 million compared to $251.0 million for Q1 2017. The Company's reported numbers exceeded analysts' estimates of $217.6 million.

During Q1 2018, LaSalle's revenue per available room (RevPAR) decreased 7.6% to $165, driven by a 4.0% reduction in average daily rate to $221 and an occupancy decline of 3.7% to 74.9%. Excluding the Company's hotels located in Washington, DC and Key West and hotels under renovation, RevPAR was approximately flat on a y-o-y basis.

During Q1 2018, LaSalle's Hotel EBITDAre margin was 23.7%, which declined by 370 basis points (bps) on a y-o-y basis. The Company's hotel expenses declined by 1% during the reported quarter. For Q1 2018, LaSalle's adjusted EBITDAre was $48 million, reflecting a decrease of $14 million from Q1 2017.

For Q1 2018, LaSalle's net loss attributable to common shareholders was $11.1 million compared to net income of $76.1 million in Q1 2017. The Company's previous quarter results included $74 million of gains from three asset sales.

In Q1 2018, LaSalle generated adjusted funds from operations (FFO) of $37 million, or $0.33 per diluted share/unit, compared to $51 million, or $0.45 per diluted share/unit, for Q1 2017. The Company's reported numbers surpassed Wall Street's estimates of $0.27 per share.

Financial Position

During Q1 2018, LaSalle invested $39 million of capital in its hotels. The majority of this investment was for renovations. The Company anticipates investing approximately $175 million of capital in its hotels in 2018.

As of March 31, 2018, LaSalle had total outstanding debt of $1.1 billion, and total net debt to trailing 12-month Corporate earnings before interest, tax, depreciation, and amortization (EBITDA) of 2.6 times. The Company's fixed charge coverage ratio was 5.3 times, and its weighted average interest rate for Q1 2018 was 3.2%. LaSalle had capacity of $773 million available on its credit facilities, in addition to $229 million of cash and cash equivalents on its balance sheet.

Between February 26, 2018, and March 05, 2018, the Company repurchased 2,982,800 of its common shares at a cost of $74.5 million and a weighted average price of $24.96 per share under its share repurchase program, which equates to an 8.1% capitalization rate on 2017 net operating income (NOI). The Company has approximately $500 million of capacity remaining in its share repurchase authorization. The Company has not repurchased any common shares under the program since March 5, 2018.

Acquisition Announcement

On May 21, 2018, LaSalle announced that it has entered into a definitive agreement with affiliates of Blackstone Real Estate Partners VIII, under which Blackstone, a leading global asset manager, will acquire all outstanding common shares of beneficial interest of LaSalle for $33.50 per share in an all-cash transaction valued at $4.8 billion.

The transaction, which has been unanimously approved by LaSalle's Board of Trustees (the "Board"), represents a premium of approximately 35% over LaSalle's unaffected share price of $24.84 as of March 27, 2018, the day before the public announcement of a proposal to acquire the Company in an all-stock transaction. The purchase price also represents a premium of approximately 13 percent to LaSalle's consensus net asset value (NAV) of $29.64 per share per FactSet as of May 18, 2018.

Completion of the transaction, which is expected to occur in Q3 2018, is contingent upon customary closing conditions, including the approval of LaSalle's shareholders.

Stock Performance Snapshot

June 18, 2018 - At Monday's closing bell, LaSalle Hotel Properties' stock declined 1.33%, ending the trading session at $34.83.

Volume traded for the day: 1.59 million shares.

Stock performance in the last month – up 10.05%; previous three-month period – up 33.70%; past twelve-month period – up 11.53%; and year-to-date – up 24.08%

After yesterday's close, LaSalle Hotel Properties' market cap was at $3.86 billion.

Price to Earnings (P/E) ratio was at 45.47.

The stock has a dividend yield of 5.17%.

The stock is part of the Financial sector, categorized under the REIT - Hotel/Motel industry.

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