PALM BEACH, FL—Chatham Lodging Trust is raising its monthly dividend by 25%, or $0.02 per share.
On an annualized basis, the dividend will increase $0.24 to $1.20 per share, compared to $0.96 in 2014, according to the lodging REIT.
“We have raised our annual dividend each year since our 2010 IPO, from $0.35 in 2010 to $1.20 per share for 2015, an increase of 243% and a testament to the strong cash flow that our platform is generating,” noted Jeffrey H. Fisher, Chatham’s president/CEO. “We are gratified that our Board of Trustees has the confidence to increase our monthly dividend once again, reflecting our strong 2014 performance and significant portfolio growth, making more than $500 million of hotel investments and catapulting our owned and joint-venture assets to more than $3 billion.”
“We have stated since our IPO that we would increase our dividend in tandem with growth in cash flow, EBITDA and adjusted FFO per share,” commented Dennis Craven, Chatham’s CFO. “Since 2010, adjusted FFO per share has increased by approximately 30% per annum, and we expect continued strong growth in 2015, giving us the confidence to support this significant increase and maintain a healthy and prudent FFO per share payout ratio.”
Chatham’s Board declared the company’s first monthly common share dividend of $0.10 for January, reflecting the 25% increase, payable February 27, to shareholders of record on January 30, 2015.