Chatham Lodging Trust (NYSE:CLDT) Q2 2024 Results Conference Call August 2, 2024 10:00 AM ET

Company Participants

Chris Daly - President, DG Public Relations
Jeff Fisher - Chairman, President and CEO
Dennis Craven - EVP, COO
Jeremy Wegner - SVP, CFO

Conference Call Participants

Ari Klein - BMO Capital Markets

Operator

Greetings, and welcome to the Chatham Lodging Trust Second Quarter 2024 Financial Results Conference Call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation [Operator Instruction]. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Chris Daly, President of DG Public Relations. Please go ahead.

Chris Daly

Thank you, Brock. Good morning, everyone. And welcome to the Chatham Lodging Trust second quarter 2024 results conference call. Please note that many of our comments today are considered forward-looking statements as defined by Federal Securities Laws. These statements are subjects to risks and uncertainties, both known and unknown, as described in our most recent Form 10-K and other SEC filings. All information in this call is as of August 2, 2024 unless otherwise noted. And the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations. You can find copies of our SEC filings and earnings release, which contain reconciliations to non-GAAP financial messages referenced on this call on our Web site at chathamlodgingtrust.com. Now to provide you with some insight into Chatham's 2024 second quarter results, allow me to introduce Jeff Fisher, Chairman, President and Chief Executive Officer; Dennis Craven, Executive Vice President and Chief Operating Officer; and Jeremy Wegner, Senior Vice President and Chief Financial Officer Let me turn the session over to Jeff Fisher. Jeff?

Jeff Fisher

Thanks, Chris. And I certainly appreciate everyone joining us this Friday morning for our call. I understand our time slot does conflict with one of our other peer lodging REITs. So for anyone who ends up listening to our replay, if you have any questions or follow up items, of course, feel free to call me Dennis or Jeremy. Before I get into our strong quarterly results, I want to provide an update on some key corporate initiatives that we have been undertaking. First, we've been quite active, solidifying our balance sheet over the [Technical Difficulty] of maturing debt, and just the past three months we've repaid approximately $280 million of maturing debt. And as we sit here today, we've only got $30 million of maturing debt over the next year. We have no liquidity issues whatsoever, to be clear. We patiently addressed this large wall of maturities through the issuance of debt, asset sales and free cash flow. Additionally, through the refinancing, we've added exposure to floating rate debt and with rates expected to decline, we will be able to grow FFO. In fact, based on current borrowings outstanding, our FFO increases $2.6 million or $0.05 per share for every 100 hundred basis points decline in SOFR. With interest rates expected to decline as growth opportunities arise, we'll then be able to lock in longer term borrowings at more historically attractive rates.