Subject: ERN
NexPoint Hospitality Trust Announces Third Quarter 2023 Financial Results, Update on Sale of DoubleTree Portfolio and the Sale Process of the HIX Nashville Portfolio
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 | September | September | September | ||||
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 | September | September | September | ||||
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 | September | September | September | |||||
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
[email protected]
Media Inquiries
[email protected]
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
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