Pebblebrook Hotel Trust (PEB) Financials

Pebblebrook Hotel Trust (NYSE: PEB) has shown some notable financial trends over the recent quarters and years through their income statements, cash flow statements, and balance sheets from Q2 2022 through Q2 2025.

The company operates in the hotel sector and its financials indicate variability largely driven by occupancy, expenses, and special charges impacting profitability. Here's a summary of key trends and points for investors:

• Net Income has substantially improved in recent quarters, moving from losses in 2023 to generating positive net income of $19.3 million in Q2 2025, indicating a recovery and operational improvement.
• Operating cash flow remains strong with $90.5 million reported in Q2 2025 and consistent positive cash flows from operations across recent periods, supporting operational liquidity.
• Depreciation and amortization expenses remain relatively steady around $57-$61 million per quarter, showing consistent investment in assets and indicative of stable capital asset utilization.
• Total assets have been stable around $5.6 billion to $6.3 billion, with premises and equipment making up the large portion (~$5.2 to $6 billion), reflecting the asset-heavy nature of the hotel business.
• Common equity has remained strong, around $2.6 to $3.1 billion, showing solid capital base and shareholder equity levels.
• Interest expense on long-term debt has been significant, consistently around $27-$31 million quarterly, reflecting the company’s leverage but stable interest costs without drastic increases.
• The company has regularly paid dividends in the range of $12-$13 million, demonstrating commitment to returning capital to shareholders despite past losses.
• There are fluctuations in other special charges, ranging from negative impacts of $320 million to $400+ million quarterly, which heavily impact net income and indicate episodic impairments or one-time charges.
• Several quarters during 2023 and before showed significant net losses, sometimes exceeding $40 million per quarter, driven by high special charges and impairments.
• The company has engaged in repurchases of common equity, notable during some quarters with amounts up to $50 million, which could deplete cash reserves and increase leverage if not balanced with operations.

Summary: Pebblebrook Hotel Trust is showing signs of financial recovery with positive net incomes and strong cash flow from operations in recent quarters. The business remains capital intensive with substantial premises and equipment assets and consistent depreciation expenses. However, investors should be aware of significant volatility in earnings caused by large special charges and impairments in prior periods. The ongoing interest expense and debt levels indicate moderate leverage but seem manageable. Dividends and buybacks illustrate a shareholder return focus, but balancing capital allocation will be key for sustainable growth.