| | | |
Winston Hotels, Inc. | | EXHIBIT 99.1 |
| 2626 Glenwood Avenue • Suite 200 | | |
Raleigh, North Carolina 27608 | | |
www.winstonhotels.com | |  |
NYSE: WXH | | |
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| FOR FURTHER INFORMATION: | | |
| | | |
| AT WINSTON HOTELS: | | |
| Patti L. Bell | | Contact: Jerry Daly or Carol McCune (Media) |
| Director of Investor Relations | | (703) 435-6293 |
| & Administration | | (jerry@dalygray.com, carol@dalygray.com) |
(919) 510-8003
| | |
| pbell@winstonhotels.com | | |
| | | |
For Immediate Release | | |
Winston Hotels Reports Third Quarter 2004 Results
RALEIGH, N.C., November 4, 2004-Winston Hotels, Inc. (NYSE: WXH), a real estate investment trust (REIT) and owner of premium limited-service, upscale extended-stay and full-service hotels, today announced results for the third quarter and nine months ended September 30, 2004.
Net income (loss) available to common shareholders was $3.1 million for the third quarter of 2004, or $0.12 per share, compared to $(0.6) million, or $(0.03) per share, for the same period a year earlier.
Funds from operations (FFO) available to common shareholders increased 87.8 percent to $7.7 million, or $0.28 per common share, for the third quarter of 2004, based on 27.5 million fully diluted weighted average common shares outstanding, compared to $4.1 million, or $0.18 per common share, for the third quarter of 2003, based on 22.1 million fully diluted weighted
average common shares outstanding. The FFO available to common shareholders for the third quarter of 2003 included a loss on impairment of $2.4 million, or $0.11 per share, and a management agreement acquisition expense of $1.3 million, or $0.06 per share.
“The lodging industry made steady progress during the third quarter, as business travel demand continued to improve and leisure travel remained strong during the summer,” said Bob Winston, chief executive officer. “We reported RevPAR gains at our properties, driven by both higher occupancy and higher average daily rate. As travel demand accelerates, we expect to increasingly have the ability to adjust average daily rate. We are optimistic that the industry will continue in an uptrend.”
“We currently have approximately $81 million available under our $125 million corporate line of credit,” said Joe Green, president and chief financial officer. “We believe that the strength of our balance sheet gives us flexibility and the ability to respond to investments as they arise. We continue to consider hotel acquisitions, both for our own account and for joint ventures, and a variety of opportunities to capitalize on our subordinate debt lending program. We also continue to selectively look at new development opportunities.”
Acquisitions/Development
| | • | | In September, the company opened the 147-room Courtyard by Marriott in Chapel Hill, N.C. The company owns a 48.78 percent interest in the joint venture that owns the property and Chapel Hill Investments, LLC (“CHI”) owns the balance. CHI is owned 52 percent by Charles Winston and James Winston, both of whom are directors of the Company, and 48% by three unrelated private investors. |
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| | • | | In August, the company’s joint venture with Charlesbank Capital Partners, LLC (“Charlesbank”) and Concord Hospitality Enterprises Company (“Concord”) acquired the |
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| | | | 95-room Quality Suites hotel in West Des Moines, Iowa for $4.45 million. The hotel is currently being renovated and is expected to be converted to a Springhill Suites by Marriott during the second quarter of 2005. The expected total cost of the hotel, after renovations, is approximately $7.15 million. The company owns a 13.05 percent interest in this joint venture; Charlesbank and Concord own a 73.95 percent and 13.0 percent interest, respectively. |
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| | • | | During the first nine months of 2004, the company’s capital expenditures to renovate its wholly owned hotels totaled $8.9 million. The company expects to spend an additional $1.1 million in the fourth quarter of 2004 for capital expenditures. |
Debt Investment Financing Program
During the third quarter of 2004, the company continued its focus on originating and acquiring subordinated hotel debt. In early October 2004, the company provided a $5.5 million loan to finance the construction of a 188-room Residence Inn by Marriott in St. Louis, Mo. The estimated total cost of the project is $25.0 million.
In October 2004, the company entered into a credit facility with Marathon Structured Finance Fund, LP. The three-year facility will allow the company to borrow up to $50 million to provide hotel loans to the lodging industry in an expansion of the company’s hotel lending program.
“With the hotel industry recovering, there is a growing need for capital to fund both acquisitions and new development,” Green said. “Hotels are an attractive real estate asset class, and buyers are utilizing mezzanine loans to complete their financing packages. These are complex transactions, but we believe that our experience as owners enables us to better evaluate
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and add value to these deals. With our new credit facility, we have the resources and the flexibility to continue expanding our lending program.”
“Our program targets subordinated hotel loans between 60 percent and 85 percent of a project’s value, hotels with 100 to 425 rooms and single-asset loan amounts that normally range from $1 million to $15 million. We also seek to underwrite and acquire the junior mezzanine portion of loans that are originated in the marketplace under Collateralized Mortgage-Backed Securities (CMBS) programs.”
Internal Growth/Third Quarter Operating Statistics
Operating margins increased to 42.2 percent in the third quarter of 2004, compared to 41.5 percent in the same quarter for 2003. For the 47 hotels that were open during the quarters ended September 30, 2004 and 2003 (including 44 wholly owned hotels, 3 joint venture hotels, and excluding 2 sold hotels), revenue per available room (RevPAR) improved 6.4 percent in the third quarter of 2004, with a 4.3 percent increase in occupancy and a 2.1 percent improvement in average daily room rate (ADR), compared to the same period a year earlier. Total revenues increased from $32.7 million in the third quarter of 2003 to $36.6 million in the 2004 third quarter. FFO available to common shareholders payout ratio was 65.9 percent on a trailing 12-month basis.
Based on information provided by Smith Travel Research, RevPAR yield for the nine months ended September 30, 2004 for the company’s portfolio was approximately 112 percent, up from 109 percent in the same period a year earlier.
During the third quarter of 2004, the company declared a regular cash dividend of $0.15 per common share. The company also declared a cash dividend of $0.50 per share of Series B Preferred Stock.
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Outlook and Guidance
For the fourth quarter of this year, the company forecasts net income available to common shareholders per share of $0.01 to $0.03, compared to a net loss of $(0.01) for the fourth quarter of 2003. For the 2004 fourth quarter, we expect an increase in RevPAR of 3 percent to 5 percent. FFO available to common shareholders per share for the 2004 fourth quarter is expected to be between $0.17 and $0.19, compared to FFO available to common shareholders per share of $0.16 for the 2003 fourth quarter. This guidance assumes no additional acquisitions or developments of hotels or placements of debt during the 2004 fourth quarter.
Winston Hotels’ third quarter investor conference call is scheduled for 10 a.m. ET today, November 4, 2004. The call also will be simulcast over the Internet via the company’s Web site, www.winstonhotels.com. The replay will be available on the company’s Web site for 30 days and via telephone for seven days by calling 800-475-6701, access code 751781.
About the Company
Raleigh, North Carolina-based Winston Hotels, Inc. is a real estate investment trust specializing in the development, acquisition, and repositioning of, and provision of subordinated financing to, premium limited-service, upscale extended-stay and full-service hotels, with a portfolio increasingly weighted toward the leading brands in the lodging industry’s upscale segment. The company currently owns or is invested in 51 hotels with an aggregate of 7,185 rooms in 15 states, which includes: 44 wholly owned properties with an aggregate of 6,262 rooms; a 49 percent ownership interest in one joint-venture hotel with 118 rooms; a 48.78 percent ownership interest in one joint-venture hotel with 147 rooms; and a 13.05 percent ownership interest in five joint-venture hotels with 658 rooms. For more information about Winston Hotels, visit the company’s Web site at www.winstonhotels.com.
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Notes About Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements. The reader can identify these statements by use of words like “may,” “will,” “expect,” “project,” “anticipate,” “estimate,” “target,” “believe,” or “continue” or similar expressions, including without limitation its acquisition and disposition plans for hotel properties, its hotel lending plans, its dividend policy, and its estimated net income available to common shareholders, earnings per share, FFO, FFO available to common shareholders and RevPAR for the 2004 fourth quarter. These statements represent the company’s judgment and are subject to risks and uncertainties that could cause actual operating results to differ materially from those expressed or implied in the forward looking statements including, but not limited to, changes in general economic conditions, lower occupancy rates, lower average daily rates, acquisition risks, development risks including risk of construction delay, cost overruns, occupancy and other governmental permits, zoning, the increase of development costs in connection with projects that are not pursued to completion, the risk of non-payment of mezzanine loans, or the failure to make additional hotel debt investments and investments in hotels. Other risks are discussed in the company’s filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2003.
Notes About Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (“SEC”) rules. As required by SEC rules, the company has provided a reconciliation in this press release of each non-GAAP financial measure to its most directly comparable GAAP measure. We believe that these non-GAAP measures, when combined with the company’s primary GAAP presentations required by the SEC, help improve our equity holders’ ability to understand our operating performance and make it easier to compare the results of our company with other hotel REITs. A description of each is provided below.
FFO
The company reports FFO in accordance with the definition of the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income (loss) (determined in accordance with generally accepted accounting principles, or “GAAP”), excluding gains (losses) from sales of property plus depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures (which are calculated to reflect FFO on the same basis). The company further subtracts preferred stock dividends from FFO to calculate FFO available to common shareholders. FFO available to common shareholders is a performance measure used by the company in its budgeting and forecasting models, it is discussed during Board meetings, and is considered when making decisions regarding acquisitions, sales of properties, and other investments. Actual results are compared to budget and forecast on a monthly basis. The calculation of FFO and FFO available to common shareholders may vary from entity to entity, and as such the presentation of FFO and FFO available to common shareholders by the company may not be comparable to other similarly titled measures of other reporting companies. FFO and FFO available to common shareholders are not intended to
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represent cash flows for the period. FFO and FFO available to common shareholders have not been presented as an alternative to operating income, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.
FFO is a supplemental industry-wide measure of REIT operating performance, the definition of which was first proposed by NAREIT in 1991 (and clarified in 1995, 1999 and 2002) in response to perceived drawbacks associated with net income under GAAP as applied to REITs. Since the introduction of the definition by NAREIT, the term has come to be widely used by REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors have considered presentations of operating results for real estate companies that use historical GAAP cost accounting to be insufficient by themselves. Accordingly, the company believes FFO and FFO available to common shareholders (combined with the company’s primary GAAP presentations required by the SEC) helps improve our investors’ ability to understand the company’s operating performance. The company only uses FFO available to common shareholders as a supplemental measure of operating performance.
The company computes FFO available to common shareholders payout ratio by dividing common dividends per share paid over the last twelve months by trailing twelve-month FFO available to common shareholders per share for the same period.
RevPAR
RevPAR is an acronym for Revenue Per Available Room, which is determined by multiplying average daily rate by occupancy percentage for any given period. RevPAR does not include food and beverage or other ancillary revenues such as parking, telephone, or other guest services generated by the property. Similar to the reporting periods for the company’s statement of operations, hotel operating statistics (i.e., RevPAR, average daily rate and average occupancy) are always reported on a quarter to date and/or year to date basis.
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WINSTON HOTELS, INC.
CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share amounts)
| | | | | | | | | |
| | | September 30, 2004
| | December 31, 2003
|
| | | (unaudited) | | | | |
ASSETS | | | | | | | | |
| Land | | $ | 45,470 | | | $ | 44,788 | |
| Buildings and improvements | | | 377,690 | | | | 377,109 | |
| Furniture and equipment | | | 52,554 | | | | 51,323 | |
| | | |
| | | |
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| Operating properties | | | 475,714 | | | | 473,220 | |
| Less accumulated depreciation | | | 132,495 | | | | 128,540 | |
| | | |
| | | |
| |
| | | | 343,219 | | | | 344,680 | |
| Properties under development | | | — | | | | 3,521 | |
| | | |
| | | |
| |
| Net investment in hotel properties | | | 343,219 | | | | 348,201 | |
| Assets held for sale | | | 2,100 | | | | 2,100 | |
| Corporate FF&E, net | | | 437 | | | | 621 | |
| Cash | | | 5,065 | | | | 5,623 | |
| Accounts receivable | | | 3,542 | | | | 2,505 | |
| Lease revenue receivable | | | — | | | | 179 | |
| Notes receivable | | | 13,371 | | | | 5,016 | |
| Investment in joint ventures | | | 2,484 | | | | 1,607 | |
| Deferred expenses, net | | | 2,293 | | | | 2,935 | |
| Prepaid expenses and other assets | | | 9,190 | | | | 8,653 | |
| Deferred tax asset | | | 11,312 | | | | 9,821 | |
| | | |
| | | |
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| Total assets | | $ | 393,013 | | | $ | 387,261 | |
| | | |
| | | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| Due to banks | | $ | 33,000 | | | $ | 29,200 | |
| Long-term debt | | | 86,512 | | | | 91,284 | |
| Accounts payable and accrued expenses | | | 13,907 | | | | 11,484 | |
| Distributions payable | | | 5,994 | | | | 5,870 | |
| | | |
| | | |
| |
| Total liabilities | | | 139,413 | | | | 137,838 | |
| | | |
| | | |
| |
| Minority interest | | | 10,377 | | | | 17,489 | |
| | | |
| | | |
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| Shareholders’ equity: | | | | | | | | |
| Preferred stock, Series A, $.01 par value, 10,000,000 shares authorized, 3,000,000 shares issued and outstanding | | | — | | | | 30 | |
| Preferred stock, Series B, $.01 par value, 5,000,000 shares authorized, 3,680,000 shares issued and outstanding (liquidation preference of $93,840) | | | 37 | | | | — | |
| Common stock, $.01 par value, 50,000,000 shares authorized, 26,397,799 and 26,270,805 shares issued and outstanding | | | 264 | | | | 263 | |
| Additional paid-in capital | | | 323,955 | | | | 307,089 | |
| Accumulated other comprehensive loss | | | — | | | | (33 | ) |
| Unearned compensation | | | (1,268 | ) | | | (527 | ) |
| Distributions in excess of earnings | | | (79,765 | ) | | | (74,888 | ) |
| | | |
| | | |
| |
| Total shareholders’ equity | | | 243,223 | | | | 231,934 | |
| | | |
| | | |
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| Total liabilities and shareholders’ equity | | $ | 393,013 | | | $ | 387,261 | |
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WINSTON HOTELS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| | | | | | | | | |
| | | Three Months Ended | | Three Months Ended |
| | | September 30, 2004
| | September 30, 2003
|
| Revenue: | | | | | | | | |
| Rooms | | $ | 33,275 | | | $ | 29,473 | |
| Food and beverage | | | 2,235 | | | | 1,640 | |
| Other operating departments | | | 1,042 | | | | 1,001 | |
| Percentage lease revenue | | | — | | | | 535 | |
| Joint venture fee income | | | 50 | | | | 91 | |
| | | |
| | | |
| |
| Total revenue | | | 36,602 | | | | 32,740 | |
| | | |
| | | |
| |
| Hotel operating expenses: | | | | | | | | |
| Rooms | | | 7,505 | | | | 6,821 | |
| Food and beverage | | | 1,700 | | | | 1,337 | |
| Other operating departments | | | 754 | | | | 768 | |
| Undistributed operating expenses: | | | | | | | | |
| Property operating expenses | | | 7,315 | | | | 6,360 | |
| Real estate taxes and property and casualty insurance | | | 1,742 | | | | 1,521 | |
| Franchise costs | | | 2,377 | | | | 2,122 | |
| Maintenance and repair | | | 1,916 | | | | 1,688 | |
| Management fees | | | 792 | | | | 720 | |
| Percentage lease expense | | | — | | | | 1,216 | |
| General and administrative | | | 2,149 | | | | 1,095 | |
| Depreciation | | | 4,449 | | | | 4,149 | |
| Amortization | | | 331 | | | | 224 | |
| Management agreement acquisition | | | — | | | | 1,300 | |
| | | |
| | | |
| |
| Total operating expenses | | | 31,030 | | | | 29,321 | |
| | | |
| | | |
| |
| Operating income | | | 5,572 | | | | 3,419 | |
| Interest and other income | | | 590 | | | | 316 | |
| Interest expense | | | 1,696 | | | | 1,883 | |
| | | |
| | | |
| |
| Income before allocation to minority interest in Partnership, allocation to minority interest in consolidated joint ventures, income taxes, and equity in income (loss) of unconsolidated joint ventures | | | 4,466 | | | | 1,852 | |
| Income allocation to minority interest in Partnership | | | 148 | | | | 119 | |
| Loss allocation to minority interest in consolidated joint ventures | | | (52 | ) | | | (10 | ) |
| Income tax benefit | | | (503 | ) | | | (1,041 | ) |
| Equity in income (loss) of unconsolidated joint ventures | | | (31 | ) | | | 499 | |
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| | | |
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| Income from continuing operations | | | 4,842 | | | | 3,283 | |
| Discontinued operations: | | | | | | | | |
| Earnings from discontinued operations | | | 63 | | | | 183 | |
| Loss on impairment of asset held for sale | | | (2 | ) | | | (2,366 | ) |
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| Net income | | | 4,903 | | | | 1,100 | |
| Preferred stock distribution | | | (1,840 | ) | | | (1,734 | ) |
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| Net income (loss) available to common shareholders | | $ | 3,063 | | | $ | (634 | ) |
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| Income (loss) per common share: | | | | | | | | |
| Basic and diluted: | | | | | | | | |
| Income from continuing operations | | $ | 0.12 | | | $ | 0.08 | |
| Loss from discontinued operations | | | — | | | | (0.11 | ) |
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| Net income (loss) per common share | | $ | 0.12 | | | $ | (0.03 | ) |
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WINSTON HOTELS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
| | | | | | | | | |
| | | Nine Months Ended | | Nine Months Ended |
| | | September 30, 2004
| | September 30, 2003
|
| Revenue: | | | | | | | | |
| Rooms | | $ | 95,786 | | | $ | 84,606 | |
| Food and beverage | | | 6,614 | | | | 5,287 | |
| Other operating departments | | | 3,079 | | | | 3,135 | |
| Percentage lease revenue | | | 701 | | | | 1,603 | |
| Joint venture fee income | | | 123 | | | | 240 | |
| | | |
| | | |
| |
| Total revenue | | | 106,303 | | | | 94,871 | |
| | | |
| | | |
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| Hotel operating expenses: | | | | | | | | |
| Rooms | | | 21,390 | | | | 19,460 | |
| Food and beverage | | | 4,920 | | | | 4,053 | |
| Other operating departments | | | 2,199 | | | | 2,195 | |
| Undistributed operating expenses: | | | | | | | | |
| Property operating expenses | | | 21,550 | | | | 18,209 | |
| Real estate taxes and property and casualty insurance | | | 5,054 | | | | 4,866 | |
| Franchise costs | | | 6,861 | | | | 6,038 | |
| Maintenance and repair | | | 5,590 | | | | 4,928 | |
| Management fees | | | 2,388 | | | | 1,972 | |
| Percentage lease expense | | | — | | | | 3,426 | |
| General and administrative | | | 5,290 | | | | 4,050 | |
| Depreciation | | | 13,281 | | | | 12,981 | |
| Amortization | | | 991 | | | | 666 | |
| Management agreement acquisition | | | — | | | | 1,300 | |
| | | |
| | | |
| |
| Total operating expenses | | | 89,514 | | | | 84,144 | |
| | | |
| | | |
| |
| Operating income | | | 16,789 | | | | 10,727 | |
| Interest and other income | | | 1,346 | | | | 897 | |
| Interest expense | | | 5,100 | | | | 5,758 | |
| | | |
| | | |
| |
| Income before allocation to minority interest in Partnership, allocation to minority interest in consolidated joint ventures, income taxes, and equity in income (loss) of unconsolidated joint ventures | | | 13,035 | | | | 5,866 | |
| Income allocation to minority interest in Partnership | | | 329 | | | | 193 | |
| Income (loss) allocation to minority interest in consolidated joint ventures | | | 210 | | | | (10 | ) |
| Income tax benefit | | | (1,476 | ) | | | (1,671 | ) |
| Equity in income (loss) of unconsolidated joint ventures | | | (85 | ) | | | 553 | |
| | | |
| | | |
| |
| Income from continuing operations | | | 13,887 | | | | 7,907 | |
| Discontinued operations: | | | | | | | | |
| Earnings from discontinued operations | | | 328 | | | | 489 | |
| Gain on sale of discontinued operations | | | 15 | | | | — | |
| Loss on impairment of asset held for sale | | | (49 | ) | | | (2,366 | ) |
| | | |
| | | |
| |
| Net income | | | 14,181 | | | | 6,030 | |
| Preferred stock distribution | | | (5,475 | ) | | | (5,203 | ) |
| Loss on redemption of Series A Preferred Stock | | | (1,720 | ) | | | — | |
| | | |
| | | |
| |
| Net income available to common shareholders | | $ | 6,986 | | | $ | 827 | |
| | | |
| | | |
| |
| Income (loss) per common share: | | | | | | | | |
| Basic and diluted: | | | | | | | | |
| Income from continuing operations | | $ | 0.26 | | | $ | 0.13 | |
| Income (loss) from discontinued operations | | | 0.01 | | | | (0.09 | ) |
| | | |
| | | |
| |
| Net income per common share | | $ | 0.27 | | | $ | 0.04 | |
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WINSTON HOTELS, INC.
RECONCILIATION AND CALCULATION OF FFO, FFO AVAILABLE TO COMMON
SHAREHOLDERS AND FFO AVAILABLE TO COMMON SHAREHOLDERS PAYOUT RATIO
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | For the Trailing Twelve |
| | | For the Quarter Ended | | For the Nine Months Ended | | Months Ended |
| | | September 30,
| | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
| | 2004
|
| Net income | | $ | 4,903 | | | $ | 1,100 | | | $ | 14,181 | | | $ | 6,030 | | | $ | 15,856 | |
| Minority interest in Partnership allocation of income | | | 148 | | | | 119 | | | | 329 | | | | 193 | | | | 343 | |
| Gain on sale of discontinued operations | | | — | | | | — | | | | (16 | ) | | | — | | | | (16 | ) |
| Minority interest in Partnership allocation of gain on sale of discontinued operations | | | — | | | | — | | | | 1 | | | | — | | | | 1 | |
| Minority interest in Partnership allocation of earnings from discontinued operations | | | 3 | | | | 11 | | | | 16 | | | | 31 | | | | 20 | |
| Depreciation | | | 4,359 | | | | 4,149 | | | | 12,808 | | | | 12,981 | | | | 16,914 | |
| Depreciation from discontinued operations | | | — | | | | 208 | | | | 192 | | | | 646 | | | | 337 | |
| Depreciation from joint ventures | | | 103 | | | | 219 | | | | 411 | | | | 617 | | | | 649 | |
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FFO | | | 9,516 | | | | 5,806 | | | | 27,922 | | | | 20,498 | | | | 34,104 | |
| Loss on redemption of Series A Preferred Stock | | | — | | | | — | | | | (1,720 | ) | | | — | | | | (1,720 | ) |
| Preferred stock dividend | | | (1,840 | ) | | | (1,734 | ) | | | (5,475 | ) | | | (5,203 | ) | | | (7,210 | ) |
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FFO Available to Common Shareholders | | $ | 7,676 | | | $ | 4,072 | | | $ | 20,727 | | | $ | 15,295 | | | $ | 25,174 | |
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| Weighted average common shares outstanding assuming dilution | | | 27,542 | | | | 22,092 | | | | 27,554 | | | | 21,618 | | | | 27,522 | |
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FFO Available to Common Shareholders per share | | $ | 0.28 | | | $ | 0.18 | | | $ | 0.75 | | | $ | 0.71 | | | $ | 0.91 | |
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Common dividend per share | | $ | 0.15 | | | $ | 0.15 | | | $ | 0.45 | | | $ | 0.45 | | | $ | 0.60 | |
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FFO Available to Common Shareholders Payout Ratio: | | | | | | | | | | | | | | | | | | | | |
| (based on a twelve-month basis) | | | | | | | | | | | | | | | | | | | | |
| FFO Available to Common Shareholders per share - 10/1/03 through 9/30/04: | | | | | | | | | | | | | | | | | | $ | 0.91 | |
| Common dividends paid per share - 10/1/03 through 9/30/04 | | | | | | | | | | | | | | | | | | | 0.60 | |
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| | | | | | | | | | | | | | | | | | | | 65.9 | % |
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WINSTON HOTELS, INC.
2004 FOURTH QUARTER GUIDANCE
RECONCILIATION OF NET INCOME TO FFO AND FFO AVAILABLE TO COMMON SHAREHOLDERS
(in thousands, except per share data)
| | | | | | | | | |
| | | Guidance Range
|
| | | Low
| | High
|
| Net income | | $ | 2,200 | | | $ | 2,800 | |
| Depreciation | | | 4,200 | | | | 4,200 | |
| Depreciation from joint ventures | | | 200 | | | | 200 | |
| Minority interest allocation | | | — | | | | — | |
| | | |
| | | |
| |
FFO | | | 6,600 | | | | 7,200 | |
| Preferred stock dividend | | | (1,840 | ) | | | (1,840 | ) |
| | | |
| | | |
| |
FFO Available to Common Shareholders | | $ | 4,760 | | | $ | 5,360 | |
| | | |
| | | |
| |
| Weighted average common shares outstanding assuming dilution | | | 27,600 | | | | 27,600 | |
FFO Available to Common Shareholders per share | | $ | 0.17 | | | $ | 0.19 | |
15
Winston Hotels, Inc.
Third Quarter and Year-to-Date RevPAR Statistics
Total for 47 Hotels (1)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months | | Nine Months |
| | | Ended September 30,
| | Ended September 30,
|
| | | 2003
| | 2004
| | % CH
| | 2003
| | 2004
| | % CH
|
Combined Brands | | | | | | | | | | | | | | | | | | | | | | | | |
| Comfort Inn/Suites & Quality Suites | | $ | 41.74 | | | $ | 44.46 | | | | 6.5 | % | | $ | 40.59 | | | $ | 43.84 | | | | 8.0 | % |
| Courtyard, Fairfield Inn, Residence Inn | | $ | 54.73 | | | $ | 59.11 | | | | 8.0 | % | | $ | 51.54 | | | $ | 56.73 | | | | 10.1 | % |
| Hampton Inn/Suites | | $ | 53.99 | | | $ | 54.45 | | | | 0.9 | % | | $ | 51.70 | | | $ | 52.76 | | | | 2.1 | % |
| Hilton Garden Inn | | $ | 70.53 | | | $ | 79.03 | | | | 12.1 | % | | $ | 67.55 | | | $ | 75.98 | | | | 12.5 | % |
| Holiday Inn Express/Select | | $ | 54.65 | | | $ | 59.26 | | | | 8.4 | % | | $ | 51.14 | | | $ | 53.67 | | | | 4.9 | % |
| Homewood Suites | | $ | 59.99 | | | $ | 64.30 | | | | 7.2 | % | | $ | 61.96 | | | $ | 65.42 | | | | 5.6 | % |
Region | | | | | | | | | | | | | | | | | | | | | | | | |
| South Atlantic | | $ | 50.04 | | | $ | 52.39 | | | | 4.7 | % | | $ | 48.88 | | | $ | 51.41 | | | | 5.2 | % |
| East North Central | | $ | 75.36 | | | $ | 87.13 | | | | 15.6 | % | | $ | 65.77 | | | $ | 76.90 | | | | 16.9 | % |
| West South Central | | $ | 39.85 | | | $ | 40.97 | | | | 2.8 | % | | $ | 41.72 | | | $ | 42.82 | | | | 2.6 | % |
| West North Central | | $ | 54.01 | | | $ | 66.09 | | | | 22.4 | % | | $ | 46.24 | | | $ | 54.52 | | | | 17.9 | % |
| Mountain | | $ | 31.22 | | | $ | 32.34 | | | | 3.6 | % | | $ | 47.00 | | | $ | 50.02 | | | | 6.4 | % |
| New England | | $ | 69.36 | | | $ | 70.82 | | | | 2.1 | % | | $ | 62.51 | | | $ | 66.00 | | | | 5.6 | % |
| Middle Atlantic | | $ | 82.52 | | | $ | 88.86 | | | | 7.7 | % | | $ | 75.19 | | | $ | 79.29 | | | | 5.5 | % |
Segment | | | | | | | | | | | | | | | | | | | | | | | | |
| Upscale | | $ | 60.98 | | | $ | 66.43 | | | | 8.9 | % | | $ | 60.39 | | | $ | 65.63 | | | | 8.7 | % |
| Mid-scale w/ F&B | | $ | 60.96 | | | $ | 64.71 | | | | 6.2 | % | | $ | 56.24 | | | $ | 59.28 | | | | 5.4 | % |
| Mid-scale w/o F&B | | $ | 47.79 | | | $ | 49.64 | | | | 3.9 | % | | $ | 45.56 | | | $ | 47.69 | | | | 4.7 | % |
Service | | | | | | | | | | | | | | | | | | | | | | | | |
| Limited-service | | $ | 47.79 | | | $ | 49.64 | | | | 3.9 | % | | $ | 45.56 | | | $ | 47.69 | | | | 4.7 | % |
| Full-service | | $ | 64.11 | | | $ | 69.74 | | | | 8.8 | % | | $ | 59.99 | | | $ | 65.65 | | | | 9.4 | % |
| Extended-stay | | $ | 54.67 | | | $ | 58.62 | | | | 7.2 | % | | $ | 58.42 | | | $ | 61.41 | | | | 5.1 | % |
All Hotels | | $ | 54.59 | | | $ | 58.11 | | | | 6.4 | % | | $ | 52.67 | | | $ | 56.23 | | | | 6.8 | % |
| (1) | | Includes the company’s 44 wholly owned hotels as of September 30, 2004, as well as three joint venture hotels the company has held an ownership interest in during the periods presented. These joint venture hotels include the Ponte Vedra, FL Hampton Inn, the West Des Moines, IA Fairfield Inn & Suites, and the Beachwood, OH Courtyard by Marriott. |
Excludes three joint venture hotels, in which the company owns a 13.05 percent interest through the Charlesbank joint venture. These hotels include the Houston, TX Springhill Suites acquired in September 2003, the Shelton, CT Ramada Inn acquired in March 2004, and the West Des Moines, IA Springhill Suites acquired in August 2004. Also, excludes the Chapel Hill, NC Courtyard which opened in September 2004, in which the company owns a 48.78 percent interest. These properties were not open during both periods presented; therefore they are excluded from the table above.
16
