Condor Hospitality Trust — Investor Presentation (May 2018)
27 slides from Condor Hospitality Trust's investor presentation, May 11, 2018
Slide 1: Condor Hospitality Trust, Inc. Investor Presentation May 2018
Condor hospitality trust, inc. Investor presentation may 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement All statements included in this presentation, other than statements of historical fact, are or may be deemed to be “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking stateme
Slide 3: May 2018 Update
7) May 2018 Update
Slide 4: Condor is a Self-Administered Lodging REIT with a Differentiated Investment Strategy
Condor is a Self-Administered Lodging REIT with a Differentiated Investment Strategy Hotels Located in Attractive, High-Growth Markets Mission Provide to our shareholders attractive total returns for the lodging sector through disciplined investment in high-quality select-service, limited-service, e
Slide 5: Condor Presents a Compelling Investment Opportunity
Condor Presents a Compelling Investment Opportunity Execution of Continued execution of strategy with completion of stated objectives Strategy 1Q18 Same-Store RevPAR growth greater than peers and national Producing average with 3.9% growth vs. STR’s 3.5% growth Outperformance [Slide 5] Hotel EBITDA
Slide 6: Continued Execution of Stated Strategy Driving Outperformance
Continued Execution of Stated Strategy Driving Outperformance Successful Completion of Key Objectives Same-Store RevPAR Outperformance Versus Peers and STR(1) Delivered 3.9% Same-Store RevPAR growth FY2017 1Q18 in 1Q18 for the New Investment Platform 5.0% hotels 3.9% 3.5% New Investment Platform inc
Slide 7: Differentiated Investment Thesis Will Continue to Drive Outperformance
Differentiated Investment Thesis Will Continue to Drive Outperformance Expect Premium Select-Service in Secondary Lodging Markets to Drive Outsized Returns Slower Supply Growth in Strong Demand Growth for Minimal Competition Enables Targeted Secondary Markets Premium Select-Service Accretive Valuati
Slide 8: Proven Ability to Execute Acquisition Strategy with Robust Pipeline
Proven Ability to Execute Acquisition Strategy with Robust Pipeline Acquired / Under Contract Pipeline ~$277 million acquired since October 2015 representing 1,808 Over $300 million of premium branded select-service assets under rooms (1) consideration, subject to capital availability, that represen
Slide 9: Third Party Management Agreements
Third Party Management Agreements Unlike many of our peers, Condor has no Relationships with Multiple High-Quality Management Companies captive management company and all contracts are fully arms-length Management Company Hotels City State Rooms Our third-party management agreements InnVentures Home
Slide 10: Attractive Dividend Yield Among Highest in Public Company Lodging Industry
Attractive Dividend Yield Among Highest in Public Company Lodging Industry • 7.8% dividend yield provided solid returns as Condor added scale • Dividend is well-covered, representing a ~67% payout ratio on 1Q18 AFFO per share(1) Dividend Yield Very Attractive Compared to Peers and Index Averages(2)
Slide 11: Growth-Oriented, Scalable Platform Poised to Create Shareholder Value
Growth-Oriented, Scalable Platform Poised to Create Shareholder Value We believe we have the platform, management team, and G&A in place to dramatically increase scale Healthy debt profile with $150M credit facility which has the ability to increase to $400M contingent upon additional lender commitm
Slide 12: Appendix A | Case Studies
7) eC Appendix A | Case Studies
Slide 13: Case Study | Peachtree Portfolio Acquisition
Case Study | Peachtree Portfolio Acquisition Hotel Indigo Atlanta | 1776 Harvard Avenue Courtyard Jacksonville | 14402 Old St. Augustine Rd. Springhill Suites San Antonio | 524 S Saint Mary’s St. Acquisition Date: 10/2/2015 Acquisition Date: 10/2/2015 Acquisition Date: 10/1/2015 Flag / Brand: Hotel
Slide 14: Case Study | Vista Portfolio Acquisition
Case Study | Vista Portfolio Acquisition Home2 Suites Lexington | 126 E. Lowry Lane Home2 Suites Southaven | 6750 Southcrest Pkwy Home2 Suites Tallahassee | 219 S. Magnolia Drive Home2 Suites Round Rock | 1000 W. Louis Henna Blvd. AcquisitionDate: 3/24/2017 AcquisitionDate: 4/14/2017 AcquisitionDate
Slide 15: Case Study | Bedford Portfolio Acquisition
Case Study | Bedford Portfolio Acquisition Fairfield Inn & Suites El Paso Airport | 6611 Edgemere Blvd. Residence Inn Austin Airport | 3201 Caseybridge Ct. TownePlace Suites Austin North Tech Ridge | 12427 Tech Ridge Blvd. Acquisition Date: 8/31/2017 Acquisition Date: 8/31/2017 Acquisition Date: 1/1
Slide 16: Case Study | Individual Hotel Acquisitions
Case Study | Individual Hotel Acquisitions Aloft Downtown Atlanta | 300 Spring St. NW Aloft Leawood / Kansas City | 11620 Ash St. Hampton Inn & Suites Lake Mary | 850 Village Oak Ln. Acquisition Date: 8/22/2016 Acquisition Date: 12/14/2016 Acquisition Date: 6/19/2017 Flag / Brand: Aloft / Marriott F
Slide 17: Case Study | Individual Hotel Acquisitions (Continued)
Case Study | Individual Hotel Acquisitions (Continued) Home2 Suites by Hilton – Summerville, SC | 221 Holiday Dr. Acquisition Date: 2/21/2018 Flag / Brand: Home2 Suites / Hilton Rooms: 93 Year Built: 2017 Last Renovation: NA MSA Ranking: 74 1Q18 ADR: $119.94 1Q18 Occupancy: 87.3% 1Q18 RevPAR: $104.6
Slide 18: Appendix B | Asset List
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Slide 19: Condor Portfolio New Investment Platform
Condor Portfolio New Investment Platform | Acquired from January 1, 2012—May 9, 2018 # Hotel Name City State MSA Rank Rooms Acquisition Date Purchase Price ($M) 1 Hilton Garden Inn Dowell/Solomons MD 6 100 5/25/2012 $11.5 2 SpringHill Suites San Antonio TX 24 116 10/1/2015 $17.5 3 Courtyard by Marri
Slide 20: Same-Store Portfolio Distribution by Market and Flag
Same-Store Portfolio Distribution by Market and Flag(1) New Investment Platform Distribution by Market—Hotels Owned as of December 31, 2017 # MSA State MSA Rank Rooms Rooms % Hotel EBITDA %2 1 Atlanta GA 9 396 23% 22% 2 Austin TX 31 211 12% 15% 4 Orlando FL 23 130 8% 12% 3 Tallahassee FL 140 132 8%
Slide 21: Appendix C | Non-GAAP Reconciliation
Appendix C | Non-GAAP Reconciliation
Slide 22: Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
Funds From Operations (“FFO”) and Adjusted Funds From Operations (“AFFO”) We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net earnings or loss computed in accordance with GAAP, excluding gains
Slide 23: Non-GAAP Reconciliation: FFO and AFFO
Non-GAAP Reconciliation: Condor Hospitality Trust, Inc. FFO and AFFO The following table reconciles net earnings (loss) to FFO and AFFO for the three months ended March 31, 2018 and 2017 (in thousands). All amounts presented include our portion of the results of our unconsolidated Atlanta JV. Reconc
Slide 24: EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”), EBITDAre, Adjusted EBITDAre, and Hotel EBITDA We calculate EBITDA, EBITDAre, and Adjusted EBITDAre by adding back to net earnings or loss certain non-operating expenses and certain non-cash charges which are based on histori
Slide 25: Non-GAAP Reconciliation: EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA
Non-GAAP Reconciliation: Condor Hospitality Trust, Inc. EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA The following table reconciles net earnings (loss) to EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA for the three months ended March 31, 2018 and 2017 (in thousands). All amounts pre
Slide 26: Non-GAAP Reconciliation: Same-Store Revenue and Hotel EBITDA
Non-GAAP Reconciliation: Condor Hospitality Trust, Inc. EBITDA, Adjusted EBITDA, and Hotel EBITDA The following tables present our Same-Store revenue, Hotel EBITDA, and Hotel EBITDA margin broken down by property type for the three months ended March 31, 2018 and 2017 (in thousands) and reconcile th
Slide 27: Operating Performance Metrics
Condor Hospitality Trust, Inc. Operating Performance Metrics The following tables present our Same-Store occupancy, ADR, and RevPAR for all our hotels owned at March 31, 2018, with the exception of the Austin TownePlace Suites, which was opened on January 3, 2017, and Summerville, SC Home2 Suites wh
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