NYSE:RLJ

Stock Analysis Report

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 average dividend payer.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

RLJ

-0.07%

US REITs

-1.1%

US Market


1 Year Return

-15.8%

RLJ

16.6%

US REITs

17.8%

US Market

Return vs Industry: RLJ underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: RLJ underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

RLJIndustryMarket
7 Day-1.8%-0.07%-1.1%
30 Day-1.0%3.6%1.5%
90 Day-5.0%6.9%6.6%
1 Year-9.2%-15.8%21.3%16.6%20.2%17.8%
3 Year-15.1%-30.8%37.4%20.2%47.5%38.1%
5 Year-31.5%-50.0%59.8%26.8%71.2%52.4%

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

Valuation

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

21.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RLJ ($16.07) is trading below our estimate of fair value ($20.52)

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


Price To Earnings Ratio

PE vs Industry: RLJ is good value based on its PE Ratio (29.5x) compared to the REITs industry average (37.2x).

PE vs Market: RLJ is poor value based on its PE Ratio (29.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: RLJ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RLJ is good value based on its PB Ratio (1x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is RLJ Lodging Trust forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RLJ's earnings are forecast to decline over the next 3 years (-5.2% per year).

Earnings vs Market: RLJ's earnings are forecast to decline over the next 3 years (-5.2% per year).

High Growth Earnings: RLJ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RLJ's revenue is expected to decline over the next 3 years (-5.1% per year).

High Growth Revenue: RLJ's revenue is forecast to decline over the next 3 years (-5.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RLJ's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

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

-8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLJ has a large one-off loss of $33.7M impacting its September 30 2019 financial results.

Growing Profit Margin: RLJ's current net profit margins (5.8%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: RLJ's earnings have declined by -8.2% per year over the past 5 years.

Accelerating Growth: RLJ'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 had negative earnings growth (-33.8%) over the past year, making it difficult to compare to the REITs industry average (7.6%).


Return on Equity

High ROE: RLJ's Return on Equity (3.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is RLJ Lodging Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: RLJ has a high level of physical assets or inventory.

Debt Coverage by Assets: RLJ's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: RLJ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if RLJ has a sufficient allowance for bad loans.

Low Risk Liabilities: RLJ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if RLJ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: RLJ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if RLJ has an appropriate level of bad loans.


Next Steps

Dividend

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

8.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RLJ's dividend (8.21%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: RLJ's dividend (8.21%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RLJ has been paying a dividend for less than 10 years.

Growing Dividend: RLJ's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.9%), RLJ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RLJ's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Leslie Hale (47yo)

1.5yrs

Tenure

US$3,669,151

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Leslie's total compensation ($USD3.67M) is about average for companies of similar size in the US market ($USD4.87M).

Compensation vs Earnings: Leslie's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Johnson
Co-Founder & Executive Chairman of the Board9.1yrsUS$2.25m0.70% $19.3m
Leslie Hale
President1.5yrsUS$3.67m0.26% $7.0m
Sean Mahoney
Executive VP1.5yrsUS$2.78m0.056% $1.5m
Kate Henriksen
Co-Chief Investment Officer1.1yrsno datano data
Jeffrey Dauray
Co-Chief Investment Officer1.1yrsno datano data
Christopher Gormsen
Senior VP & Chief Accounting Officer7.1yrsno data0.027% $727.2k
Anita Wells
Senior VP of Administration & Corporate Secretary0yrsno datano data
Frederick McKalip
Senior VP & General Counsel0yrsno datano data
Thomas Bardenett
Executive Vice President of Asset Management2.4yrsno datano data
Susan Sloan
VP & Controller11.1yrsno datano data

2.0yrs

Average Tenure

47yo

Average Age

Experienced Management: RLJ's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Johnson
Co-Founder & Executive Chairman of the Board9.1yrsUS$2.25m0.70% $19.3m
Leslie Hale
President1.5yrsUS$3.67m0.26% $7.0m
Nathaniel Davis
Lead Independent Director3.6yrsUS$246.47k0.050% $1.4m
B. Bayh
Independent Director8.8yrsUS$213.97k0.028% $754.5k
Glenda McNeal
Independent Director8.8yrsUS$208.72k0.024% $668.6k
Robert McCarthy
Independent Director2yrsUS$207.82k0.0071% $195.1k
Patricia Gibson
Independent Director2.5yrsUS$269.83k0.023% $621.6k
Robert La Forgia
Independent Director8.8yrsUS$218.53k0.035% $946.3k
Arthur Collins
Independent Director3.3yrsUS$206.47k0.0099% $270.6k

3.6yrs

Average Tenure

60yo

Average Age

Experienced Board: RLJ's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

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
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.736b
  • Market Cap: US$2.723b
  • Shares outstanding: 170.24m
  • 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 108 hotels with approximately 23,170 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 Analysis2020/02/24 02:58
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.