DALLAS and TORONTO, May 30, 2023
/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,
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").
|
For the Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
Net income
|
$
(3.8)
|
|
$
0.8
|
|
|
FFO2
|
(1.8)
|
|
5.8
|
|
|
AFFO2
|
(6.8)
|
|
2.4
|
|
|
The table below presents Occupancy, ADR and RevPAR.
|
For the Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
Occupancy
|
73.3 %
|
|
66.9 %
|
|
|
ADR
|
$
169.94
|
|
$
149.83
|
|
|
RevPAR
|
$
126.29
|
|
$
100.84
|
|
|
Additional information on 2023 financial and operational results
can be found at www.sedar.com in our 2023 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
March 31, 2023, the Company has sold
the Beaverton, Vancouver and Bend properties for a combined
purchase price of US$67.5 million.
The Company 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 Company. The Company is still
actively marketing the Tigard property and hopes to complete the
sale of the property before year end. Additionally, the Company has
executed a purchase and sale agreement on the Olympia property for a purchase price of
US$12.75 million and expects the
transaction to close in the third quarter of 2023. The Company used
the proceeds from the Beaverton,
Bend, and Vancouver sales to pay
off the DT Portfolio debt. The proceeds from the remaining sales
will be used to pay down other outstanding debt the Company
holds.
HIX Nashville Portfolio
On February 6, 2023, the Company
entered into an agreement with a broker to actively start marketing
the Holiday Inn Express Nashville for sale. The Company is
targeting a sales price of US$125
million. As of the date of this report, the Company has
received bids between US$115 million
and US$120 million. Management is
confident that the Company will receive an offer at the target
price in the near future. The Company plans to retire the entirety
of the HIX Nashville debt with the
proceeds of the sale.
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
months ended March 31, 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 months ended March 31,
2023 and March 31, 2022:
|
For the Three Months
Ended
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
$
|
|
$
|
|
|
Net income (loss) from
continuing operations
|
(3,756)
|
|
832
|
|
|
Depreciation of
property and equipment
|
1,847
|
|
2,794
|
|
|
Depreciation of
right-of-use asset
|
47
|
|
83
|
|
|
Amortization of
advanced bookings from
acquisitions
|
—
|
|
96
|
|
|
Fair value adjustment
to interest rate caps
|
135
|
|
326
|
|
|
Acquisition
costs
|
—
|
|
278
|
|
|
Deferred income tax
recovery
|
(20)
|
|
(121)
|
|
|
Fair value adjustment
of Class B Units
|
(101)
|
|
(289)
|
|
|
Impairment
(recovery)/loss
|
—
|
|
1,787
|
|
|
Funds from
Operations
|
(1,848)
|
|
5,783
|
|
|
FFO per unit -
basic
|
(0.06)
|
|
0.20
|
|
|
|
|
|
|
|
Income taxes
|
242
|
|
57
|
|
|
Core Funds from
Operations
|
(1,606)
|
|
5,840
|
|
|
CFFO per unit -
basic
|
(0.05)
|
|
0.20
|
|
|
|
|
|
|
|
FF&E
reserve
|
(5,158)
|
|
(4,556)
|
|
|
Amortization of
deferred financing costs
|
213
|
|
1,079
|
|
|
Fees related to
Nashville forbearance
|
(3)
|
|
—
|
|
|
Stock
compensation
|
(264)
|
|
—
|
|
|
Adjusted Funds from
Operations
|
(6,818)
|
|
2,363
|
|
|
AFFO per unit -
basic
|
(0.23)
|
|
0.08
|
|
|
|
|
|
|
|
Weighted average units
outstanding - basic
|
29,901,742
|
|
29,352,055
|
|
|
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. 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 10 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," and "NHT" 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