DALLAS and TORONTO, Nov. 29,
2023 /CNW/ -- NexPoint Hospitality Trust
("NHT"1), (TSX-V: NHT.U) announced the release of NHT's
financial results for the three and nine months ended September 30, 2023. All amounts are expressed in
U.S. dollars.
The table below presents net income from continuing operations,
Funds from Operations ("FFO") and Adjusted Funds from Operations
("AFFO")2.
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
September
30, 2023
|
|
September
30, 2022
|
|
September
30, 2023
|
|
September
30, 2022
|
|
Net Income
|
$
(3.6)
|
|
$
(2.0)
|
|
$
(8.4)
|
|
$
(2.8)
|
|
FFO²
|
(1.6)
|
|
(1.2)
|
|
(2.8)
|
|
4.7
|
|
AFFO²
|
(1.9)
|
|
(2.6)
|
|
(3.7)
|
|
3.5
|
|
|
|
|
|
|
|
|
The table below presents Occupancy, ADR and RevPAR.
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
September
30, 2023
|
|
September
30, 2022
|
|
September
30, 2023
|
|
September
30, 2022
|
|
Occupancy
|
69.1 %
|
|
68.6 %
|
|
70.9 %
|
|
68.7 %
|
|
ADR
|
$
140.47
|
|
$
151.31
|
|
$
156.06
|
|
$
145.96
|
|
RevPAR
|
$
98.59
|
|
$
107.53
|
|
$
111.32
|
|
$
100.64
|
|
|
|
|
|
|
|
|
Additional information on 2023 financial and operational results
can be found at www.sedarplus.ca in our 2023 interim consolidated
financial statements and management discussion and analysis
("MD&A").
DoubleTree Portfolio
On March 8, 2022, the REIT began
the marketing process to sell its DoubleTree Portfolio. As of
September 30, 2023, the REIT has sold
the Beaverton, Vancouver, Bend and Olympia properties for a combined purchase
price of US$80.25 million. The REIT
had executed purchase and sale agreements on the Tigard property
for a purchase price of US$24.5
million. However, the buyer defaulted on the agreement and
relinquished the escrow to the REIT. The REIT is still actively
marketing the Tigard property and hopes to complete the sale of the
property before year-end. The REIT used the proceeds from the
Beaverton, Bend, Vancouver, and Olympia sales to pay off the DT Portfolio debt
and reduce other portfolio debt and liabilities.
HIX Nashville Portfolio
On February 6, 2023, the REIT
entered into an agreement with a broker to market the Holiday Inn
Express Nashville property (the "Tennessee Property"). On
August 11, 2023, the REIT's
subsidiary NHT Nashville, LLC, entered into an agreement for the
sale of the Tennessee Property for a purchase price of US$120 million. The sale of the Tennessee
Property is expected to close in December 2023. Proceeds of
the transaction will be used to repay indebtedness related to the
Tennessee Property and to potentially fund future acquisitions of
real property.
Non-IFRS Financial Measures
FFO and AFFO are key measures of performance commonly used by
real estate operating companies and real estate investment trusts.
They are not measures recognized under International Financial
Reporting Standards ("IFRS") and do not have standardized meanings
prescribed by IFRS. FFO and AFFO may not be comparable to similar
measures presented by other issuers in the real estate or lodging
industries. For complete definitions of these measures, as well as
an explanation of their composition and how the measures provide
useful information to investors, please refer to the section titled
"Non-IFRS Financial Measures" in NHT's MD&A for the three and
nine months ended September 30, 2023,
which section is hereby incorporated herein by reference.
The following is a reconciliation of our net income to FFO and
AFFO for the three and nine months ended September 30, 2023 and September 30, 2022:
|
|
For the Three Months
Ended
|
|
For the Nine Months
Ended
|
|
|
September
30, 2023
|
|
September
30, 2022
|
|
September
30, 2023
|
|
September
30, 2022
|
|
Net income (loss) from
continuing operations1
|
|
$
(3,600)
|
|
$
(1,957)
|
|
$
(8,409)
|
|
$
(2,786)
|
|
Depreciation of
property and equipment
|
|
1,854
|
|
2,926
|
|
5,560
|
|
8,436
|
|
Depreciation of
right-of-use asset
|
|
40
|
|
84
|
|
127
|
|
251
|
|
Amortization of
advanced bookings from acquisitions
|
|
9
|
|
268
|
|
18
|
|
486
|
|
Acquisition
costs
|
|
—
|
|
134
|
|
—
|
|
498
|
|
Deferred income tax
recovery
|
|
153
|
|
(998)
|
|
144
|
|
(1,270)
|
|
Fair value adjustment
of Class B Units
|
|
(51)
|
|
(311)
|
|
(255)
|
|
(818)
|
|
Impairment
(recovery)/loss
|
|
—
|
|
(1,312)
|
|
—
|
|
95
|
|
Funds from
Operations
|
|
(1,595)
|
|
(1,166)
|
|
(2,815)
|
|
4,702
|
|
FFO per unit – basic
and dilutive
|
|
(0.05)
|
|
(0.04)
|
|
(0.09)
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
(217)
|
|
(414)
|
|
(171)
|
|
130
|
|
Core Funds from
Operations
|
|
(1,812)
|
|
(1,580)
|
|
(2,986)
|
|
4,832
|
|
CFFO per unit – basic
and dilutive
|
|
(0.06)
|
|
(0.05)
|
|
(0.10)
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
FF&E
reserve
|
|
(741)
|
|
(990)
|
|
(2,098)
|
|
(1,304)
|
|
Amortization of
deferred financing costs
|
|
263
|
|
313
|
|
661
|
|
886
|
|
Stock
Compensation
|
|
383
|
|
(311)
|
|
679
|
|
(900)
|
|
Adjusted Funds from
Operations
|
|
(1,907)
|
|
(2,568)
|
|
(3,744)
|
|
3,514
|
|
AFFO per unit – basic
and dilutive
|
|
(0.06)
|
|
(0.09)
|
|
(0.12)
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
Weighted average units
outstanding – basic and dilutive
|
|
30,918,659
|
|
29,901,742
|
|
30,829,954
|
|
29,901,742
|
|
|
|
|
|
|
|
|
|
About NHT
NexPoint Hospitality Trust is a publicly
traded real estate investment trust, with its Units listed on the
TSXV under the ticker NHT.U. NHT is focused on acquiring, owning
and operating well-located hospitality properties in the United States that offer a high current
yield and in many cases are underperforming assets with the
potential to increase in value through investments in capital
improvements, a market-based recovery, brand repositioning, revenue
enhancements, operational improvements, expense inefficiencies, and
exploiting excess land or underutilized space. NHT owns 9 branded
properties sponsored by Marriott, Hilton, Hyatt, and
Intercontinental Hotels Group, located across the U.S. NHT is
externally advised by NexPoint Real Estate Advisors VI, L.P.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contact:
Investor
Relations
IR@nexpoint.com
Media Inquiries
MediaRelations@nexpoint.com
1 In this release, "we," "us," "our," "NHT", and the
"REIT" each refer to NexPoint Hospitality Trust.
2 FFO and AFFO are non-IFRS measures. For a description
of the basis of presentation and reconciliations of NHT's non-IFRS
measures, see "Non-IFRS Financial Measures" in this release.
SOURCE NexPoint Hospitality Trust