Page 26 - Apple REIT 9 2008 Annual Report

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For the period
November 9, 2007
(initial capitalization)
YearEnded through
(in thousands except per share and statistical data) December 31, 2008 December 31, 2007
Revenues:
Room revenue ........................................................................................................................ $ 9,501 $ -
Other revenue ........................................................................................................................ 2,023 -
Total revenue ......................................................................................................................... 11,524 -
Expenses:
Hotel operating expenses ....................................................................................................... 7,422 -
Taxes, insurance and other . ................................................................................................... 731 -
General and administrative .................................................................................................... 1,288 15
Depreciation .......................................................................................................................... 2,277 -
Interest (income) expense, net ............................................................................................... (2,346 ) 2
Total expenses . ...................................................................................................................... 9,372 17
Net income (loss) ................................................................................................................... $ 2,152 $ (17 )
Per Share:
Net income (loss) per common share .................................................................................... $ 0.14 $ (1,684.60 )
Distributions declared and paid per common share .............................................................. $ 0.51 $ -
Weighted-average common shares outstanding - basic and diluted ...................................... 15,852 -
Balance Sheet Data (at end of period):
Cash and cash equivalents ..................................................................................................... $ 75,193 $ 20
Investment in real estate, net ................................................................................................. $ 346,423 $ -
Total assets ............................................................................................................................. $ 431,619 $ 337
Notes payable ........................................................................................................................ $ 38,647 $ 151
Shareholders’ equity .............................................................................................................. $ 389,740 $ 31
Net book value per share ....................................................................................................... $ 9.50 $ -
Other Data:
Cash Flow From (Used In):
Operating activities ......................................................................................................... $ 3,317 $ (2 )
Investing activities .......................................................................................................... $ (315,322 ) $ -
Financing activities ......................................................................................................... $ 387,178 $ (26 )
Number of hotels owned at end of period ............................................................................. 21 -
Average Daily Rate (ADR) (a) .............................................................................................. $ 110 $ -
Occupancy ............................................................................................................................. 59 % -
Revenue Per Available Room (RevPAR) (b) ......................................................................... $ 65 $ -
Funds From Operations Calculation:
Net Income (loss) .................................................................................................................. $ 2,152 $ (17 )
Depreciation of real estate owned .................................................................................. 2,277 -
Funds from operations (c) ..................................................................................................... $ 4,429 $ (17 )
(a) Total room revenue divided by number of rooms sold.
(b) ADR multiplied by occupancy percentage.
(c) Funds from operations (FFO) is defined as net income (loss) (computed in accordance with generally accepted accounting
principles—GAAP) excluding gains and losses from sales of depreciable property, plus depreciation and amortization. The
Company considers FFO in evaluating property acquisitions and its operating performance and believes that FFO should be
considered along with, but not as an alternative to, net income and cash flows as a measure of the Company’s activities in
accordance with GAAP and is not necessarily indicative of cash available to fund cash needs.