FBR Capital Maintains an 'Outperform' on Chatham Lodging Trust (CLDT); Updating Estimates Following 1Q11 Results; Dividend Growth Story Remains Intact
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Price: $12.99 +0.62%
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Chatham Lodging Trust (NYSE: CLDT), PT lowered from $23 to $21.
FBR analyst says, "...we are lowering our PT to $21 from $23 previously, as we assume higher debt levels in 2012...We are maintaining our 2011 Adj. EBITDA estimate of $22.6M, but are lowering our full-year 2011 AFFO/share estimate to $1.07 from $1.17 previously, to account for higher interest expense. We are, however, increasing our 2012 Adj. EBITDA estimate to $48.2M from $34.5M, previously and increasing our AFFO/share estimate to $1.94 from $1.75 previously, to reflect contribution from the five sister properties to be acquired from Innkeepers and CLDT’s share of the JV with Cerberus. We view the RevPAR and hotel EBITDA margins across the five sister properties to be significantly higher than CLDT’s portfolio in its current form. Additionally, we are modeling $8.3M in Adj. EBITDA in 2012 as CLDT’s share from the Cerberus JV. We believe CLDT maintains meaningful capacity to pay its current quarterly dividend of $0.18 and has capacity to potentially double its quarterly dividend to $0.36 in 2012, implying yield of over 8% over recent share price."
For more ratings news on Chatham Lodging Trust click here and for the rating history of Chatham Lodging Trust click here.
Shares of Chatham Lodging Trust closed at $15.62 yesterday.
FBR analyst says, "...we are lowering our PT to $21 from $23 previously, as we assume higher debt levels in 2012...We are maintaining our 2011 Adj. EBITDA estimate of $22.6M, but are lowering our full-year 2011 AFFO/share estimate to $1.07 from $1.17 previously, to account for higher interest expense. We are, however, increasing our 2012 Adj. EBITDA estimate to $48.2M from $34.5M, previously and increasing our AFFO/share estimate to $1.94 from $1.75 previously, to reflect contribution from the five sister properties to be acquired from Innkeepers and CLDT’s share of the JV with Cerberus. We view the RevPAR and hotel EBITDA margins across the five sister properties to be significantly higher than CLDT’s portfolio in its current form. Additionally, we are modeling $8.3M in Adj. EBITDA in 2012 as CLDT’s share from the Cerberus JV. We believe CLDT maintains meaningful capacity to pay its current quarterly dividend of $0.18 and has capacity to potentially double its quarterly dividend to $0.36 in 2012, implying yield of over 8% over recent share price."
For more ratings news on Chatham Lodging Trust click here and for the rating history of Chatham Lodging Trust click here.
Shares of Chatham Lodging Trust closed at $15.62 yesterday.
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