Pebblebrook Hotel Trust revised its earnings outlook for the 2018 fourth quarter and full year to take into account its recent acquisition of fellow hotel real estate investment trust LaSalle Hotel Properties and the sale of The Grand Hotel Minneapolis.
For the fourth quarter, the company now expects adjusted funds from operations per share in a range of 27 cents to 32 cents, compared to its prior guidance range of 36 cents to 43 cents.
For the 2018 full year, the REIT expects AFFO per share in a range of $2.37 to $2.44, compared to its prior guidance range of $2.57 to $2.64.
The S&P Global Market Intelligence consensus FFO-per-share estimates for the fourth quarter and full year are 40 cents and $2.50, respectively.
Pebblebrook noted that the revised outlook incorporates one month's performance of the LaSalle legacy portfolio; the negative impact of labor strikes in Boston, San Diego and San Francisco, which extended beyond the company's previous estimates; and the wildfires outside of San Francisco and Los Angeles, which occurred after the company had issued its previous earnings projection.
The new outlook also factors in the impact of the higher share count and outstanding debt following the LaSalle deal close.
The company said it also expects anticipated transaction and closing costs for the LaSalle deal to be below its previous forecast, and hopes to realize its projected $18 million to $20 million of annualized corporate synergies and expense savings.