Braemar Hotels & Resorts Inc. (NYSE: BHR, announced yesterday its preliminary expectations for net income attributable to common stockholders, Adjusted EBITDAre, and Adjusted FFO for the first quarter ended March 31, 2022.
The Company reported yesterday a preliminary estimated range of net income attributable to common stockholders of approximately $10.6 million to $12.0 million, a preliminary estimated range of Adjusted EBITDAre of $48.5 million to $49.9 million, and a preliminary estimated range of Adjusted FFO available to common stockholders, OP unitholders, Series B Cumulative Convertible preferred stockholders and convertible note holders on an "as converted" basis of $36.4 million to $37.8 million for the first quarter ended March 31, 2022. Also, through April 25, 2022, the Company has issued 3.57 million shares of its Series E and Series M non-traded perpetual preferred stock raising approximately $80.2 million of net proceeds. Final results for the first quarter ended March 31, 2022 will be released on May 4, 2022 as previously announced.
"We are absolutely thrilled with the performance of our portfolio in the first quarter. These unprecedented results are a testament to the ideal positioning and industry leading quality of our portfolio. Our luxury resorts are located in very desirable, high barrier to entry markets, which are benefitting from the recent surge in leisure demand and sky-rocketing average daily rates," stated Richard J. Stockton, Braemar's President and Chief Executive Officer. He continued, "Furthermore, we are now also seeing strong bookings within our urban hotel portfolio, as corporate transient and corporate group demand rebounds, which should further solidify our results for the balance of the year." He concluded, "This year, I entirely expect to significantly exceed both the RevPAR and Adjusted EBITDAre that we achieved in 2019."
The following tables are reconciliations of the Company's preliminary estimated GAAP net income (loss) to the Company's preliminary estimated EBITDA, EBITDAre, Adjusted EBITDAre, FFO and Adjusted FFO:
| BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESRECONCILIATION OF NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED EBITDAre (in millions) (unaudited) | |||
| Three Months Ended March 31, 2022 | |||
| Low End | High End | ||
| Net income (loss) | $ 14.9 | $ 16.3 | |
| Interest expense and amortization of loan costs | 8.5 | 8.5 | |
| Depreciation and amortization | 18.4 | 18.4 | |
| Income tax expense (benefit) | 2.6 | 2.6 | |
| Equity in (earnings) loss of unconsolidated entity | 0.1 | 0.1 | |
| Company's portion of EBITDA of OpenKey | (0.1) | (0.1) | |
| EBITDA | 44.4 | 45.8 | |
| (Gain) loss on insurance settlement and disposition of assets | — | — | |
| EBITDAre | 44.4 | 45.8 | |
| Amortization of favorable (unfavorable) contract assets (liabilities) | 0.1 | 0.1 | |
| Transaction and conversion costs | 0.6 | 0.6 | |
| Write-off of loan costs and exit fees | 0.1 | 0.1 | |
| Unrealized (gain) loss on derivatives | (0.4) | (0.4) | |
| Stock/unit-based compensation | 2.4 | 2.4 | |
| Legal, advisory and settlement costs | 0.3 | 0.3 | |
| Advisory services incentive fee | 1.0 | 1.0 | |
| Company's portion of adjustments to EBITDAre of OpenKey | — | — | |
| Adjusted EBITDAre | $ 48.5 | $ 49.9 | |
| BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESRECONCILIATION OF NET INCOME (LOSS) TO FFO AND ADJUSTED FFO (in millions) (unaudited) | |||
| Three Months Ended March 31, 2022 | |||
| Low End | High End | ||
| Net income (loss) | $ 14.9 | $ 16.3 | |
| (Income) loss attributable to noncontrolling interest in consolidated entities | — | — | |
| Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | (1.0) | (1.0) | |
| Preferred dividends | (3.3) | (3.3) | |
| Net income (loss) attributable to common stockholders | 10.6 | 12.0 | |
| Depreciation and amortization on real estate | 17.8 | 17.8 | |
| Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | 1.0 | 1.0 | |
| Equity in (earnings) loss of unconsolidated entity | 0.1 | 0.1 | |
| Company's portion of FFO of OpenKey | (0.1) | (0.1) | |
| FFO available to common stockholders and OP unitholders | 29.4 | 30.8 | |
| Series B Cumulative Convertible Preferred Stock dividends | 1.1 | 1.1 | |
| Transaction and conversion costs | 0.6 | 0.6 | |
| Interest expense on convertible notes | 1.1 | 1.1 | |
| Interest expense accretion on refundable membership club deposits | 0.2 | 0.2 | |
| Write-off of loan costs and exit fees | 0.1 | 0.1 | |
| Amortization of loan costs | 0.6 | 0.6 | |
| Unrealized (gain) loss on derivatives | (0.4) | (0.4) | |
| Stock/unit-based compensation | 2.4 | 2.4 | |
| Legal, advisory and settlement costs | 0.3 | 0.3 | |
| Advisory services incentive fee | 1.0 | 1.0 | |
| Company's portion of adjustments to FFO of OpenKey | — | — | |
| Adjusted FFO available to common stockholders, OP unitholders, Series B Cumulative Convertible preferred stockholders and convertible note holders on an "as converted" basis | $ 36.4 | $ 37.8 | |
| Weighted average diluted shares | 89.5 | 89.5 | |
Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.