DALLAS and TORONTO, May 1, 2024
/CNW/ -- NexPoint Hospitality Trust ("NHT"1), (TSX-V:
NHT.U) announced the release of NHT's financial results for the
year ended December 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 Year
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
Net income
|
$
(16.9)
|
|
$
5.5
|
|
|
FFO2
|
0.2
|
|
16.5
|
|
|
AFFO2
|
(1.9)
|
|
12.9
|
|
The table below presents Occupancy, ADR and RevPAR.
|
For the Year
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
Occupancy
|
67.4 %
|
|
67.0 %
|
|
|
ADR
|
$
143.10
|
|
$
136.42
|
|
|
RevPAR
|
$
96.00
|
|
$
90.85
|
|
Additional information on 2023 financial and operational results
can be found at www.sedarplus.ca in our 2023 audited 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 (the "DT
Portfolio"). As of December 31, 2023,
the REIT has sold the Beaverton,
Vancouver, Bend and Olympia properties for a combined purchase
price of US $80.25 million. 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. On March 8, 2023, the REIT began the marketing
process to sell the remaining DoubleTree property of Tigard, which
is currently under Purchase and Sale Agreement and classified as
held for sale. The REIT closed on the sale of this property on
April 19, 2024 for $10.4 million.
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 and closed on December 13, 2023 for $116
million. Proceeds of the transaction were used to retire the
mezzanine debt and the indebtedness related to the Tennessee
Property and to 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 year ended
December 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 years ended December 31,
2023 and December 31, 2022
|
For the Year Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
Net income
(loss)
|
$
(16,891)
|
|
$
5,492
|
|
|
Depreciation of
property and equipment
|
7.419
|
|
12,699
|
|
|
Depreciation of
right-of-use asset
|
181
|
|
334
|
|
|
Acquisition
costs
|
—
|
|
498
|
|
|
Deferred income tax
recovery
|
4,836
|
|
(2,230)
|
|
|
Fair value adjustment
of Class B Units
|
(305)
|
|
(123)
|
|
|
Impairment
(recovery)/loss
|
4,963
|
|
(202)
|
|
|
Funds from
Operations
|
203
|
|
16,468
|
|
|
FFO per unit -
basic
|
0.01
|
|
0.56
|
|
|
|
|
|
|
|
Income taxes
|
179
|
|
115
|
|
|
Core Funds from
Operations
|
382
|
|
16,583
|
|
|
CFFO per unit -
basic
|
0.01
|
|
0.56
|
|
|
|
|
|
|
|
FF&E
reserve
|
(3,473)
|
|
(4,556)
|
|
|
Amortization of
deferred financing costs
|
1,223
|
|
852
|
|
|
Adjusted Funds from
Operations
|
(1,868)
|
|
12,879
|
|
|
AFFO per unit -
basic
|
(0.06)
|
|
0.44
|
|
|
|
|
|
|
|
Weighted average units
outstanding - basic
|
29,352,055
|
|
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 8 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
1402-1000-3211
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