LaSalle Hotel Properties
), a real estate investment trust (REIT), recently updated its
outlook for full year 2012 to better reflect the adverse effects
of Hurricane Sandy on its business. Although the company did not
report any physical damage to its properties or any casualties,
the hurricane had a material impact on its operations and was
likely to affect its profitability.
Based on these turn of events, LaSalle presently expects a RevPAR
(revenue per available room) growth of 4.0% - 4.3% versus an
earlier projection of 4.5% - 4.8%. Adjusted EBITDA (earnings
before interest, tax, depreciation, and amortization) is expected
to be in the range of $259.0 million - $261.0 million, compared
to earlier estimates of $263.5 million - $265.5 million.
LaSalle reduced its fiscal 2012 adjusted FFO (funds from
operations) guidance to between $175.3 million and $176.3 million
from the earlier range of $179.3 million - $180.3 million. On a
per share basis, adjusted FFO is lowered from $2.09 - $2.10 to
$2.04 - $2.05.
The current Zacks Consensus Estimate for 2012 is pegged at $2.10.
Over the past 30 days, 12 out of 13 earnings estimate revisions
for the current fiscal have moved down, while the Zacks Consensus
Estimate dipped 1.9% to $2.10. We expect the Zacks Consensus
Estimate for 2012 to reduce further in the coming days in tune
with the revised earnings guidance by the company.
For 2013, the current Zacks Consensus Estimate is $2.34. Over the
past 30 days, 11 out of 13 earnings estimate revisions have moved
down for 2013, while the Zacks Consensus Estimate decreased 4.9%
to $2.34. This further reinforces the ongoing negative investor
sentiments in accordance with the devastation caused by the
LaSalle owns luxury and upper-upscale hotels in high
barriers-to-entry markets throughout the U.S. The company
specifically focuses on owning, redeveloping and repositioning
upscale full-service hotels in urban, resort and convention
markets. LaSalle currently owns 10,200 guest rooms in 13 markets
in 9 states in the U.S. and the District of Columbia.
We maintain our Neutral rating on the stock, which presently has
a Zacks #3 Rank that translates into a short-term Hold rating. We
also have a Neutral recommendation and a Zacks #3 Rank for
Host Hotels & Resorts Inc.
), one of the competitors of LaSalle.
Note: FFO, a widely used metric to gauge the performance of
REITs, is obtained after adding depreciation and amortization
and other non-cash expenses to net income.
HOST HOTEL&RSRT (HST): Free Stock Analysis
LASALLE HTL PRP (LHO): Free Stock Analysis
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