Aggressive capital expenditure cycles, such as the $82.7M spent in 2024Q4, continue to suppress free cash flow and create a recurring divergence between GAAP net losses and FFO generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 283.44M | 249.73M | 275M | 236.2M | 278.75M | 70.77M | -201.78M | 395.2M | 135.7M | 195.05M | 241.26M | 220.72M | 161.28M | 107.45M | 77.17M | 48.08M | 3.45M | 19K |
| Operating CF Growth % | 22.3% | -9.19% | 16.43% | -15.26% | 293.9% | 135.07% | -151.06% | 191.24% | -30.43% | -19.15% | 9.31% | 36.85% | 50.1% | 39.24% | 60.52% | 1291.89% | 18078.95% | - |
| Operating CF / Revenue % | 18.88% | 16.92% | 18.92% | 16.63% | 20.03% | 9.65% | -45.56% | 24.51% | 16.38% | 25.35% | 29.55% | 28.63% | 26.94% | 21.96% | 20.27% | 16.69% | 5.98% | - |
| Net Income | -62.56M | -62.23M | 16K | -74.28M | -84.98M | -186.37M | -392.59M | 115.72M | 13.38M | 100.26M | 73.96M | 95M | 73.54M | 43.19M | 26.51M | 15.2M | -6.64M | -147K |
| Depreciation & Amortization | 222.09M | 227.66M | 229.53M | 240.65M | 239.58M | 224.25M | 224.56M | 234.88M | 108.47M | 102.29M | 102.44M | 95.87M | 68.32M | 55.57M | 43.01M | 30.95M | 5.78M | 0 |
| Stock-Based Compensation | 12.8M | 13.72M | 13.6M | 12.54M | 11.35M | 11.43M | 22.78M | 8.24M | 6.23M | 5.65M | 8.47M | 8.33M | 11.7M | 5.22M | 4.21M | 2.65M | 2.04M | 79K |
| Other Non-Cash Items | 97.43M | 58.97M | 42.16M | 65.63M | 102.13M | 21.73M | 23.75M | 26.11M | 24.26M | 7.3M | 6.93M | 4.39M | 2.06M | 3.76M | 1.64M | 225K | 484K | 0 |
| Working Capital Changes | -10.8M | 7.42M | 18.17M | -8.35M | 10.66M | 49.59M | -37.42M | 13.07M | -21.77M | -9.16M | 11.65M | 7.1M | 4.19M | 3.33M | 7.77M | -385K | 1.71M | 87K |
| Cash from Investing | 22.22M | 10.32M | -92.83M | 142.02M | -109.39M | -81.57M | 250.12M | 299.97M | -1.78B | 131.17M | 298.69M | -399.89M | -631.33M | -245.99M | -407.87M | -681.76M | -459.31M | -70M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 111.82M | 84.18M | -248.76M | -125K | -1.37B | 8M | 2.53M | -305M | -575M | 26.29M | -105.28M | -467M | -519M | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -249.63M | -256.28M | -1.35M | -637K | -356.18M | -1.25M | 0 | -305.15M | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 254.55M | 255.93M | 375.13M | 470.35M | 6.66M | 205.48M | 418.6M | 10.03M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 22.22M | 10.32M | -92.83M | 142.02M | -109.39M | -81.57M | 250.12M | -168.87M | -55.89M | 123.21M | 296.24M | -94.62M | -55.18M | -272.25M | -302.55M | 292.99M | 582.22M | -70M |
| Cash from Financing | -319.24M | -281.44M | -158.22M | -236.85M | -209.34M | -33.25M | 31.08M | -746.11M | 1.72B | -334.22M | -532.89M | 152.64M | 467.79M | 107.77M | 350.91M | 478.64M | 358.28M | 389.1M |
| Dividends Paid | -38.91M | -51.92M | -52.05M | -53.58M | -52.66M | -44.72M | -86.52M | -217.39M | -121.82M | -123.42M | -127.09M | -109.99M | -80.44M | -58.53M | -44.83M | -28.84M | 0 | 0 |
| Common Dividends | -3.55M | -4.76M | -4.87M | -4.97M | -5.29M | -5.28M | -53.96M | -184.84M | -105.73M | -107.33M | -105.32M | -84.04M | -55.71M | -36.97M | -27M | -22.24M | 0 | 0 |
| Debt Issuance (Net) | -549K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | -68.93M | -78.71M | -16.85M | -92.75M | -70.72M | -720K | -1.25M | -4.01M | -2.51M | -95.98M | -227.55M | -4.09M | -632K | -523K | -321K | -140K | 0 | 0 |
| Other Financing | -105.92M | -1.36M | -23.89M | -3.64M | -2.58M | -54.17M | -56.15M | -1.5M | -30.56M | -5.5M | 935K | -1.79M | 307.98M | -4.44M | -12.81M | -19.47M | -3.13M | -16.1M |
| Net Change in Cash | -16.64M | -21.39M | 23.95M | 141.37M | -39.98M | -44.05M | 79.42M | -50.94M | 75.28M | -8M | 7.07M | -26.54M | -2.25M | -30.76M | 20.22M | -155.04M | -97.58M | 319.12M |
| Exchange Rate Effect | -3.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 196.2M | 217.59M | 193.64M | 52.27M | 92.25M | 136.3M | 56.88M | 107.81M | 32.53M | 33.41M | 26.34M | 52.88M | 55.14M | 85.9M | 65.68M | 220.72M | 319.12M | 0 |
| Cash at End | 204.6M | 196.2M | 217.59M | 193.64M | 52.27M | 92.25M | 136.3M | 56.88M | 107.81M | 25.41M | 33.41M | 26.34M | 52.88M | 55.14M | 85.9M | 65.68M | 221.54M | 319.12M |
| Free Cash Flow | 256.79M | 152.33M | 275M | 236.2M | 162M | -13.06M | -326.79M | 394.45M | 135.53M | 195.01M | 241.19M | 220.44M | 160.14M | 107.42M | 77.13M | -459.68M | -519.08M | 19K |
| FCF Growth % | -29.07% | -44.61% | 16.43% | 45.8% | 1340.35% | 96% | -182.85% | 191.04% | -30.5% | -19.15% | 9.41% | 37.66% | 49.08% | 39.28% | 116.78% | 11.44% | -2732100% | - |
| FCF / Revenue % | 17.11% | 10.32% | 18.92% | 16.63% | 11.64% | -1.78% | -73.79% | 24.47% | 16.36% | 25.35% | 29.54% | 28.6% | 26.74% | 21.96% | 20.26% | -159.62% | -898.67% | - |
Urban Gateway Demand Sensitivity
As reported in financial statements, Pebblebrook's FFO frequently deviates from GAAP operating cash flow, with the 2026Q1 FFO of $22.3M contrasting sharply against $84.1M in OCF, suggesting that non-cash items and working capital timing significantly distort the company's perceived operational earnings power for investors.
The wide variance between GAAP operating cash flow and FFO highlights the difficulty in assessing true recurring profitability. Investors should monitor whether this divergence is driven by temporary working capital swings or structural accounting differences inherent in the hotel REIT model.
Based on reported figures, Pebblebrook's AFFO has struggled to consistently cover dividend payments, with periods like 2024Q4 showing a negative AFFO of -$75.7M against a $13.0M dividend payout, indicating that the current distribution policy may rely on capital recycling rather than recurring cash flow generation.
The inability to maintain positive AFFO in several quarters suggests that the dividend is not currently supported by property-level cash flow after accounting for necessary maintenance. This warrants further investigation into the sustainability of the payout if asset disposition proceeds are exhausted.
According to recent SEC filings, the company's aggressive investment in property renovations, such as the $82.7M in CAPEX during 2024Q4, creates significant volatility in free cash flow, effectively consuming the liquidity that would otherwise be available for debt reduction or shareholder distributions during transition periods.
These heavy capital outlays appear to be a strategic choice to maintain the 'lifestyle' brand proposition, yet they create a persistent drag on cash flow. Analysts should evaluate whether these investments are yielding the expected RevPAR premiums to justify the current cash burn.
As indicated by the consistent gap between GAAP net losses and positive FFO, such as the -$29.7M net loss in 2026Q1 compared to $22.3M in FFO, depreciation charges significantly obscure the company's actual cash-generating capacity, making GAAP metrics largely irrelevant for evaluating the REIT's operational health.
The reliance on FFO as a proxy for earnings is necessary given the heavy depreciation of hotel assets, but it may overstate the cash available for distribution. Investors should be cautious of using FFO as a perfect substitute for cash flow without adjusting for the recurring capital requirements of the portfolio.
Quick answers to the most common questions about buying PEB stock.
Pebblebrook Hotel Trust (PEB) generated $249.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Pebblebrook Hotel Trust (PEB) generated $152.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Pebblebrook Hotel Trust (PEB) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Pebblebrook Hotel Trust (PEB) returned $51.9M to shareholders via cash dividends and spent $78.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.