NYSE:RLJ.PRA

Stock Analysis Report

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Executive Summary

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels.


Snowflake Analysis

Good value with reasonable growth potential.


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Share Price & News

How has RLJ Lodging Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RLJ.PRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

RLJ.PRA

6.6%

US REITs

3.8%

US Market


1 Year Return

-11.0%

RLJ.PRA

-5.9%

US REITs

9.7%

US Market

Return vs Industry: RLJ.PRA underperformed the US REITs industry which returned -7.2% over the past year.

Return vs Market: RLJ.PRA underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

RLJ.PRAIndustryMarket
7 Day4.9%6.6%3.8%
30 Day21.6%13.4%11.4%
90 Day-7.2%-8.2%6.8%
1 Year-3.6%-11.0%-2.0%-5.9%12.1%9.7%
3 Yearn/a18.5%3.9%36.2%27.2%
5 Yearn/a50.1%19.4%63.7%45.4%

Price Volatility Vs. Market

How volatile is RLJ Lodging Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is RLJ Lodging Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RLJ.PRA ($23.5) is trading below our estimate of fair value ($138.23)

Significantly Below Fair Value: RLJ.PRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RLJ.PRA is poor value based on its PE Ratio (46.5x) compared to the REITs industry average (29.6x).

PE vs Market: RLJ.PRA is poor value based on its PE Ratio (46.5x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: RLJ.PRA is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: RLJ.PRA is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (1.5x).


Next Steps

Future Growth

How is RLJ Lodging Trust forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLJ.PRA's forecast earnings growth (56% per year) is above the savings rate (2.2%).

Earnings vs Market: RLJ.PRA's earnings (56% per year) are forecast to grow faster than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RLJ.PRA's revenue (14.1% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: RLJ.PRA's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RLJ.PRA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RLJ Lodging Trust performed over the past 5 years?

-15.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLJ.PRA has a large one-off loss of $25.6M impacting its March 31 2020 financial results.

Growing Profit Margin: RLJ.PRA's current net profit margins (3.1%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: RLJ.PRA's earnings have declined by -15.7% per year over the past 5 years.

Accelerating Growth: RLJ.PRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RLJ.PRA had negative earnings growth (-72.8%) over the past year, making it difficult to compare to the REITs industry average (5.2%).


Return on Equity

High ROE: RLJ.PRA's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is RLJ Lodging Trust's financial position?


Financial Position Analysis

Short Term Liabilities: RLJ.PRA's short term assets ($1.3B) exceed its short term liabilities ($157.5M).

Long Term Liabilities: RLJ.PRA's short term assets ($1.3B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: RLJ.PRA's debt to equity ratio (86.6%) is considered high.

Reducing Debt: RLJ.PRA's debt to equity ratio has increased from 61.1% to 86.6% over the past 5 years.

Debt Coverage: RLJ.PRA's debt is not well covered by operating cash flow (13.2%).

Interest Coverage: RLJ.PRA's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is RLJ Lodging Trust's current dividend yield, its reliability and sustainability?

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RLJ.PRA's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RLJ.PRA's dividend (0.32%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

Stable Dividend: RLJ.PRA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: RLJ.PRA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RLJ.PRA is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RLJ.PRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Leslie Hale (47yo)

1.83yrs

Tenure

US$6,002,381

Compensation

Ms. Leslie D. Hale has been President and Chief Executive Officer of RLJ Lodging Trust, L.P. (“RLJ LP”) and Rangers Sub and Rangers GP at FelCor Lodging Limited Partnership since August 22, 2018 and also s ...


CEO Compensation Analysis

Compensation vs Market: Leslie's total compensation ($USD6.00M) is about average for companies of similar size in the US market ($USD4.72M).

Compensation vs Earnings: Leslie's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Johnson
Co-Founder & Executive Chairman of the Board9.08yrsUS$2.54m0.76% $15.4m
Leslie Hale
President1.83yrsUS$6.00m0.38% $7.7m
Sean Mahoney
Executive VP1.83yrsUS$2.05m0.090% $1.8m
Kate Henriksen
Co-Chief Investment Officer1.42yrsno datano data
Jeffrey Dauray
Co-Chief Investment Officer1.42yrsno datano data
Christopher Gormsen
Senior VP & Chief Accounting Officer7.42yrsno data0.036% $736.8k
Anita Wells
Senior VP of Administration & Corporate Secretaryno datano datano data
Frederick McKalip
Senior VP & General Counselno datano datano data
Thomas Bardenett
Executive Vice President of Asset Management2.75yrsno datano data
Susan Sloan
VP & Controller11.42yrsno datano data

2.3yrs

Average Tenure

47yo

Average Age

Experienced Management: RLJ.PRA's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Johnson
Co-Founder & Executive Chairman of the Board9.08yrsUS$2.54m0.76% $15.4m
Leslie Hale
President1.83yrsUS$6.00m0.38% $7.7m
Nathaniel Davis
Lead Independent Trustee3.92yrsUS$247.19k0.059% $1.2m
B. Bayh
Independent Trustee9.08yrsUS$214.69k0.036% $727.3k
Glenda McNeal
Independent Trustee9.08yrsUS$210.20k0.033% $661.4k
Robert McCarthy
Independent Trustee2.33yrsUS$205.91k0.015% $297.1k
Patricia Gibson
Independent Trustee2.83yrsUS$209.54k0.037% $749.4k
Robert La Forgia
Independent Trustee9.08yrsUS$219.00k0.043% $874.9k
Arthur Collins
Independent Trustee3.58yrsUS$207.19k0.017% $355.1k

3.9yrs

Average Tenure

60yo

Average Age

Experienced Board: RLJ.PRA's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RLJ Lodging Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RLJ Lodging Trust
  • Ticker: RLJ.PRA
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.034b
  • Market Cap: US$2.024b
  • Shares outstanding: 164.54m
  • Website: https://www.rljlodgingtrust.com

Number of Employees


Location

  • RLJ Lodging Trust
  • 3 Bethesda Metro Center
  • Suite 1000
  • Bethesda
  • Maryland
  • 20814
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RLJNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2011
RLJ.PRANYSE (New York Stock Exchange)CUM CONV PFD AUSUSDSep 2017

Biography

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 103 hotels with approximately 22,570 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 20:28
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.