Company: PEB
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001474098-25-000070
Chunk: 36

Company: Pebblebrook Hotel Trust
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 36
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 and amortization including our share of the joint venture depreciation and amortization, gains (losses) from sales of real estate and impairments of real estate assets (including impairment of real estate related joint ventures), all of which are based on historical cost accounting and which may be of lesser significance in evaluating current performance, we believe that FFO provides investors a useful financial measure to evaluate our operating performance. 

Adjusted FFO is defined as FFO, as adjusted for transaction costs, non-cash ground rent on operating and capital leases, management/franchise contract transition costs, interest expense adjustment for acquired liabilities, finance lease adjustment, non-cash amortization of acquired intangibles, gain on insurance settlement, early extinguishment of debt, amortization of share-based compensation expense, issuance costs of redeemed preferred shares, hurricane-related costs, non-cash interest expense and deferred tax asset provision (benefit). We believe Adjusted FFO provides useful supplemental information regarding our ongoing operating performance. 

The following table reconciles net income (loss) to FFO, FFO available to common share and unit holders and Adjusted FFO available to common share and unit holders for the three months ended March 31, 2025 and 2024 (in thousands):

 For the three months ended March 31, 20252024Net income (loss)$(32,180)$(27,520)Adjustments:Real estate depreciation and amortization57,487 57,126 FFO$25,307 $29,606 Distribution to preferred shareholders and unit holders(11,795)(11,795)FFO available to common share and unit holders$13,512 $17,811 Transaction costs2 4 Non-cash ground rent on operating and capital leases1,839 1,873 Management/franchise contract transition costs5 44 Interest expense adjustment for acquired liabilities324 263 Finance lease adjustment755 745 Non-cash amortization of acquired intangibles(472)(482)Early extinguishment of debt— 1,534 Amortization of share-based compensation expense3,219 3,060 Hurricane-related costs— 150 Deferred tax provision (benefit)(3,105)— Unrealized loss on investment2,662 — Adjusted FFO available to common share and unit holders$18,741 $25,002 

EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. We calculate E