Solid Quarter Highlighted by Announcement of Merger Agreement
with Condor Hospitality Trust, Inc.
DALLAS and TORONTO, Aug. 28,
2019 /CNW/ -- NexPoint Hospitality Trust,
("NHT"1), (TSX-V: NHT.U) announced today the release of
NHT's financial results for the three and six months ended
June 30, 2019. Additionally,
the board of trustees announced NHT's second quarterly distribution
of $0.075 per outstanding trust unit
("Unit") payable to unitholders of NHT as of the record date
September 30, 2019 on or about
October 15, 2019. All amounts
are expressed in U.S. dollars.
Highlights
- On July 22, 2019, NHT announced
an agreement to acquire Condor Hospitality Trust, Inc. (NYSE
American: CDOR) ("Condor"). In line with NHT's growth strategy, NHT
will acquire 15 select-service and extended stay hospitality
properties. The transaction is expected to increase NHT's gross
asset value to $700 million and is
anticipated to close during the fourth quarter of 2019.
- For several reasons, we believe the acquisition of Condor will
be immediately accretive. Additionally, the acquisition provides
other benefits such as scale, geographic diversification, brand
diversification, more exposure to extended stay assets with higher
occupancy and more stable cash flows, and a newer portfolio with
upside revenue growth potential as the Condor assets continue to
move toward stabilization.
- For the three months ended June 30,
2019, NHT reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(2.9) million, $.9
million, $2.5 million and
$1.9 million, respectively,
attributable to Unitholders.
- For the three months ended June 30,
2019, the portfolio averaged occupancy of 76.2%, Average
Daily Rate of $153.45 and Revenue per
Available Room of $116.95.
- For the three months ended June 30,
2019, the portfolio generated total revenues of $19.3 million, operating and general and
administrative expenses of $11.4
million and NOI2 of $7.8
million, generating an NOI Margin2 of 40.6%.
- The board declared a distribution of $0.075 per Unit payable to Unitholders of record
on September 30, 2019 with payment on
or about October 15, 2019,
representing a 45% Core FFO payout ratio2.
- Additional information on second quarter 2019 financial and
operational results can be found at www.sedar.com in our quarterly
consolidated interim financial statements and management discussion
and & analysis ("MD&A").
"We continued to achieve our objectives in the second quarter
posting strong revenue and CFFO growth as a result of our
renovation strategy. We are extremely excited about the
Condor acquisition as we believe it will provide several benefits
to our existing portfolio and is immediately accretive," said
chairman and chief executive officer, James
Dondero.
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 11 branded properties sponsored by Marriott, Hilton and
Intercontinental Hotels Group, located across the U.S. NHT is
externally advised by NexPoint Real Estate Advisors VI, L.P., an
affiliate of Highland Capital Management, L.P., a leading global
alternative asset manager and an SEC-registered investment
adviser.
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.
Forward-Looking Information
Certain statements in
this press release may constitute "forward-looking" information
that involves known and unknown risks, uncertainties and other
factors, and it may cause actual results, performance or
achievements or industry results, to be materially different from
any future results, performance or achievements or industry results
expressed or implied by such forward-looking information.
Forward-looking information is identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would", and similar terms and phrases, including references to
assumptions. In particular, the expectation that the
acquisition of Condor will be completed, the timing for the
closing, and the expected benefits of the acquisition including
NHT's gross asset value following closing of the acquisition
constitute forward-looking statements.
Forward-looking information contained in this press release is
based on certain key expectations and assumptions made by NHT,
including, without limitation, expectations that the closing
conditions of the Condor acquisition will be satisfied and the
acquisition will close, assumptions respecting the amount of the
expected monthly cash distributions and the timing to pay such cash
distributions to unitholders, and a reasonably stable North
American economy and stock market. Although the forward-looking
information contained in this press release is based upon what the
NHT's management believes to be reasonable assumptions, NHT cannot
assure investors that actual results will be consistent with such
information. Forward-looking information reflects current
expectations of management regarding future events and operating
performance as of the date of this press release. Such information
involves significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
information, and a description of these factors can be found under
"Risk Factors" in NHT's final prospectus dated March 27, 2019 and Management's Discussion and
Analysis dated August 27, 2019, which
are available on SEDAR (www.sedar.com).
The forward-looking information contained herein is expressly
qualified in its entirety by this cautionary statement.
Forward-looking information reflects management's current beliefs
and is based on information currently available to NHT. The
forward-looking information is made as of the date of this press
release and NHT assumes no obligation to update or revise such
information to reflect new events or circumstances, except as may
be required by applicable law.
1 In this release, "we," "us," "our," and "NHT" each
refer to NexPoint Hospitality Trust.
2 FFO, Core FFO, AFFO NOI, NOI Margin Debt to
Gross Real Estate Value Ratio and Core FFO payout ratio 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.
Contact:
Jackie
Graham
Investor Relations
972-419-6213
SOURCE NexPoint Hospitality Trust, Inc.