Exhibit 99.1
Selected Financial Data
The following sets forth selected financial and operating data on a historical consolidated basis. The following data should be read in conjunction with the financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-K.
HERSHA HOSPITALITY TRUST
SELECTED FINANCIAL DATA
(In thousands, except per share data)
Operating Data | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||
Revenue: | ||||||||||||||||
| Percentage Lease Revenues - HHMLP (1) | $ | - | $ | 1,192 | $ | 10,144 | $ | 9,846 | $ | 9,360 | ||||||
| Hotel Operating Revenues | 75,212 | 42,470 | 1,631 | - | - | |||||||||||
| Total Revenue | 75,212 | 43,662 | 11,775 | 9,846 | 9,360 | |||||||||||
Expenses: | ||||||||||||||||
| Hotel Operating Expenses | 46,082 | 26,890 | 1,242 | - | - | |||||||||||
| Land Lease - Related Party | - | - | - | - | 13 | |||||||||||
| Land Lease | 433 | 504 | 50 | - | - | |||||||||||
| Real Estate and Personal Property Taxes and Property Insurance | 4,067 | 2,851 | 1,021 | 748 | 643 | |||||||||||
| General and Administrative | 4,972 | 3,150 | 631 | 514 | 492 | |||||||||||
| Prepayment Penalties | - | - | 116 | - | - | |||||||||||
| Gain on Sale of Assets | - | - | - | - | (598 | ) | ||||||||||
| Unrecognized Loss on Derivatives | (13 | ) | 62 | - | - | - | ||||||||||
| Compensation Expense related to Option Redemption | - | - | 1,307 | - | - | |||||||||||
| Depreciation and Amortization | 9,548 | 5,964 | 3,315 | 2,862 | 3,095 | |||||||||||
| Total Operating Expenses | 65,089 | 39,421 | 7,682 | 4,124 | 3,645 | |||||||||||
Operating Income | 10,123 | 4,241 | 4,093 | 5,722 | 5,715 | |||||||||||
| Interest | 359 | 241 | 86 | 7 | 32 | |||||||||||
| Interest - Secured Loans Related Party | 4,046 | 1,498 | 715 | 207 | 154 | |||||||||||
| Intrest - Secured Loans | 137 | 693 | - | - | - | |||||||||||
| Other Revenue | 520 | 176 | 8 | - | - | |||||||||||
| Interest expense | (13,150 | ) | (5,151 | ) | (3,294 | ) | (3,376 | ) | (3,637 | ) | ||||||
| Interest expense - Related Party | - | - | (60 | ) | (60 | ) | (72 | ) | ||||||||
Income before income (loss) from Unconsolidated Joint Venture Investments, Distributions to Preferred Unitholders, Minority Interests and Discontinued Operations | 2,035 | 1,698 | 1,548 | 2,500 | 2,192 | |||||||||||
| Income (Loss) from Unconsolidated Joint Venture Investments | 457 | 481 | (24 | ) | - | - | ||||||||||
Income Before Distribution to Preferred Unitholders, Minority Interest and Discontinued Operations | 2,492 | 2,179 | 1,524 | 2,500 | 2,192 | |||||||||||
| Distributions to Preferred Unitholders | - | 499 | 1,195 | - | - | |||||||||||
| Income Allocated to Minority Interest | 38 | 210 | 148 | 2,211 | 1,818 | |||||||||||
Income from continuing operations | 2,454 | 1,470 | 181 | 289 | 374 | |||||||||||
| Discontinued Operations: | ||||||||||||||||
| Gain on Sale of Discontinued Operations | 1,161 | - | - | 449 | - | |||||||||||
| (Loss) Income from Discontinued Operations | (318 | ) | 579 | 604 | 554 | 460 | ||||||||||
Net income | $ | 3,297 | $ | 2,049 | $ | 785 | $ | 1,292 | $ | 834 | ||||||
| Preferred Distributions | 1,920 | - | - | - | - | |||||||||||
Net Income applicable to Common Shareholders | $ | 1,377 | $ | 2,049 | $ | 785 | $ | 1,292 | $ | 834 | ||||||
| Basic Earnings from Continuing Operations applicable to Common Shareholders Per Common Share (3) | $ | 0.03 | $ | 0.09 | $ | 0.04 | $ | 0.11 | $ | 0.17 | ||||||
| Diluted Earnings from Continuing Operations applicable to Common Shareholders Per Common Share | $ | 0.03 | $ | 0.09 | $ | 0.04 | $ | 0.11 | $ | 0.17 | ||||||
| Dividends declared per Common Share | $ | 0.72 | $ | 0.72 | $ | 0.72 | $ | 0.72 | $ | 0.72 | ||||||
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2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||
Balance Sheet Data | ||||||||||||||||
| Net investment in hotel properties | $ | 317,980 | $ | 163,923 | $ | 121,076 | $ | 93,814 | $ | 88,100 | ||||||
| Assets Held for Sale | $ | 3,407 | $ | 18,758 | $ | - | $ | - | $ | - | ||||||
| Minority interest in Partnership | $ | 15,147 | $ | 16,779 | $ | 38,971 | $ | 20,258 | $ | 20,436 | ||||||
| Shareholder's equity | $ | 164,703 | $ | 119,792 | $ | 71,460 | $ | 11,378 | $ | 10,210 | ||||||
| Total assets | $ | 455,355 | $ | 261,021 | $ | 196,568 | $ | 101,516 | $ | 96,017 | ||||||
| Total debt | $ | 256,146 | $ | 97,761 | $ | 71,837 | $ | 65,341 | $ | 61,535 | ||||||
| Debt related to Assets Held for Sale | $ | 375 | $ | 13,058 | $ | 0 | $ | 0 | $ | 0 | ||||||
Other Data | ||||||||||||||||
| Funds from Operations (3) | $ | 13,474 | $ | 10,477 | $ | 6,533 | $ | 8,293 | $ | 7,998 | ||||||
| Net cash provided by operating activities | $ | 15,413 | $ | 12,148 | $ | 5,193 | $ | 8,177 | $ | 6,828 | ||||||
| Net cash (used in) provided by investing activities | $ | (191,236 | ) | $ | (78,378 | ) | $ | (58,370 | ) | $ | (345 | ) | $ | 5,513 | ||
| Net cash provided by (used in) financing activities | $ | 163,989 | $ | 46,137 | $ | 93,744 | $ | (7,859 | ) | $ | (12,174 | ) | ||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 20,293,554 | 16,391,805 | 4,614,316 | 2,519,820 | 2,275,000 | |||||||||||
| Diluted | 20,335,181 | 16,391,805 | 4,614,316 | 2,519,820 | 2,275,000 | |||||||||||
_________________________
(1) Represents initial fixed rent plus aggregate percentage rent paid by HHMLP to the Partnership pursuant to percentage leases, which payments are calculated by applying the rent provisions in the respective percentage leases to the historical room revenues.
(2) Represents basic earnings per share computed in accordance with FAS No. 128.
(3) See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Funds From Operations” for an explanation of FFO, why we believe Adjusted FFO is a meaningful measure of our operating performance and a reconciliation of Adjusted FFO to net income calculated in accordance with GAAP.
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