VANCOUVER, Dec. 9, 2014 /PRNewswire/ - American Hotel Income
Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF)
announced today the completion of a new mortgage totaling
US$11.2 million related to four
new-build Oak Tree Inn railway properties acquired over the past
few months. AHIP has also renewed its US$4.0 million revolving line of credit facility
that can now be utilized for general working capital purposes, in
addition to construction financing of new-build railway
properties.
The new mortgage is for a 10-year term with a fixed interest
rate of 4.76% and will be amortized over 20 years. Previous
railway property mortgages had shorter 15-year amortization
periods. This new mortgage will be secured by the recently
acquired Brunswick, Maryland and
Glendive, Montana railway
properties as well as the previously acquired Santa Teresa, New Mexico and Livonia, Louisiana railway properties.
The revolving line of credit facility is interest-only with a
floating interest rate based on the 30-day LIBOR plus 3.0% (with a
minimum interest rate of 4.0%), and matures on February 20, 2016.
All the Oak Tree Inn railway properties have long-term lodging
facility arrangements with large, national U.S. railroad companies
that guarantee a majority of their available room nights.
Rob O'Neill, AHIP's Chief
Executive Officer, commented: "The ten-year, fixed interest rate
financing highlights one of our key objectives of providing highly
stable returns to our unitholders. The longer amortization
period on the new mortgage will preserve free cash for acquisitions
and value-added capital expenditure programs."
Forward-Looking Information
Certain statements contained in this news release may constitute
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as
"anticipate", "plan", "expect", "may", "will", "intend", "should",
and similar expressions. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements.
Forward-looking statements in this news release include, without
limitation, the ability to deploy capital for acquisitions and
value-added capital expenditure programs.
Forward-looking information is based on a number of key
expectations and assumptions made by AHIP, including, without
limitation: a reasonably stable North American economy and stock
market. Although the forward-looking information contained in
this news release is based on what AHIP's management believes to be
reasonable assumptions, AHIP cannot assure investors that actual
results will be consistent with such information.
Forward-looking information reflects current expectations of
AHIP's management regarding future events and operating performance
as of the date of this news 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. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, without limitation, those factors that can be
found under "Risk Factors" in AHIP's Annual Information Form dated
March 26, 2014.
The forward-looking statements contained herein represent AHIP's
expectations as of the date of this news release, and are subject
to change after this date. AHIP assumes no obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
About American Hotel Income Properties REIT LP
AHIP is a limited partnership formed under the Limited
Partnerships Act (Ontario) to
invest in hotel real estate properties located substantially in
the United States and engaged
primarily in the railroad employee accommodation, transportation
and contract-focused lodging sectors. AHIP's long-term
objectives are to: (i) generate stable and growing cash
distributions from hotel properties substantially in the U.S.; (ii)
enhance the value of its assets and maximize the long-term value of
the hotel properties through active management; and (iii) expand
its asset base and increase its AFFO per Unit through an accretive
acquisition program, participation in strategic development
opportunities and improvements to its properties through targeted
value-added capital expenditure programs.
Additional information relating to AHIP, including its other
public filings, is available on SEDAR at www.sedar.com and on
AHIP's website at www.ahipreit.com.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS
RELEASE.
SOURCE American Hotel Income Properties REIT LP