DALLAS and TORONTO, May 27, 2022
/CNW/ -- NexPoint Hospitality Trust ("NHT"1), (TSX-V:
NHT.U) announced the release of NHT's financial results for the
three months ended March 31,
2022. All amounts are expressed in U.S. dollars.
The table below presents Net Income, FFO and AFFO.
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For the Three Months
Ended
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March 31,
2022
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March 31,
2021
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Net Income
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$
0.7
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$
13.5
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FFO²
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5.9
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(8.0)
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AFFO²
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3.5
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(8.5)
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The table below presents Occupancy, ADR and RevPAR.
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For the Three Months
Ended
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March 31,
2022
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March 31,
2021
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Occupancy
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60.8%
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51.9%
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ADR
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$
152.52
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$
93.79
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RevPAR
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$
95.31
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$
48.39
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Additional information on 2022 financial and operational results
can be found at www.sedar.com in our 2022 interim consolidated
financial statements and management discussion and analysis
("MD&A").
DoubleTree Portfolio
On March 8, 2022, the Company
began the marketing process to sell its DoubleTree Portfolio. As of
May 27, 2022, the Company has
received multiple offers and expects the transaction to close in
the third quarter of 2022. The Company will use the proceeds from
the sale to pay down the outstanding debt on the DT Portfolio with
the remaining proceeds used to make principal paydowns on existing
third party debt.
NHT Capitalization Updates
NHT announced that a subsidiary of NHT has, between January 1, 2022, and March
31, 2022, issued convertible notes (the "Notes") in the
aggregate principal amount of US$27.48
million (the "Liquidity Transactions") to affiliates of
NHT's external advisor. NHT repaid $4.55
million of principal to affiliates in the first quarter of
2022.
The Notes bear interest at varying rates and are repayable in
membership interests ("Membership Interests") of NHT's operating
subsidiary, NHT Operating Partnership, LLC (the "OP"), which are
redeemable for trust units of NHT ("Trust Units") at the option of
NHT in its sole discretion. The approval of the TSX Venture
Exchange will be required prior to any conversion of the Membership
Interests into Trust Units. NHT used the proceeds of the Liquidity
Transactions for general working capital purposes. Management
believes the Liquidity Transactions will further strengthen NHT's
balance sheet and liquidity profile to better position itself as
the hospitality industry continues to rebound from the impact of
the COVID-19 pandemic. The fair market value of each Note does not
exceed and did not exceed at the time of issuance of such Note 25%
of NHT's market capitalization.
Each of the Liquidity Transactions constituted a related party
transaction as defined in Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions
("MI 61-101"). The Liquidity Transactions were completed in
reliance on (i) an available exemption from the formal valuation
requirement of MI 61-101 provided in paragraph (a) of Section 5.5
of MI 61-101 and (ii) an available exemption from the minority
shareholder requirement of MI 61-101 provided in paragraph (a) of
Section 5.7(1) of MI 61-101.
About NHT
NexPoint Hospitality Trust is a publicly traded real estate
investment trust, with its Units listed on the TSX Venture Exchange
under the ticker NHT.U. and 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 13 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.
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1 In this
release, "we," "us," "our," and "NHT" each refer to NexPoint
Hospitality Trust.
2 FFO and AFFO are non-IFRS measures. See
"Non-IFRS Financial Measures" in our MD&A for definitions of
each of these measures and a reconciliation of these measures to
Net Income.
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Contact:
Jackie
Graham
Investor Relations
JGraham@nexpoint.com
Brian Mitts
Chief Financial Officer
BMitts@nexpoint.com
Media Inquiries
MediaRelations@nexpoint.com
SOURCE NexPoint Hospitality Trust