DALLAS and TORONTO, Aug. 19,
2022 /CNW/ -- NexPoint Hospitality Trust
("NHT"1), (TSX-V: NHT.U) announced the release of NHT's
financial results for the three and six months ended June 30, 2022. All amounts are expressed in U.S.
dollars.
The table below presents Net Income, FFO and AFFO.
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
|
Net Income
|
$
(2.1)
|
|
$
(5.4)
|
|
$
(1.4)
|
|
$
8.2
|
|
FFO²
|
1.0
|
|
(3.5)
|
|
6.9
|
|
(11.6)
|
|
AFFO²
|
(2.7)
|
|
(2.8)
|
|
3.8
|
|
(9.7)
|
The table below presents Occupancy, ADR and RevPAR.
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
June 30,
2022
|
|
June 30,
2021
|
|
June 30,
2022
|
|
June 30,
2021
|
|
Occupancy
|
69.9 %
|
|
66.4 %
|
|
66.1 %
|
|
59.2 %
|
|
ADR
|
$
161.79
|
|
$
121.02
|
|
$
154.96
|
|
$
106.47
|
|
RevPAR
|
$
113.64
|
|
$
81.91
|
|
$
104.58
|
|
$
65.32
|
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
August 19, 2022, the Company has
executed purchase and sale agreements with three different parties
for the sale of the Beaverton
property, the Tigard property, and Vancouver property for a combined purchase
price of US$43.6 million. The Company
expects these transactions to close at the end of the third
quarter, with the possibility of an extension to close in
October 2022. The Company will use
the proceeds from the sale to pay down the outstanding debt on the
DoubleTree Portfolio.
Subsequent to June 30, 2022, the
Company decided to no longer market the Bend property and
Olympia property for sale and will
continue to hold those assets for the foreseeable future.
NHT Capitalization Updates
NHT announced that a subsidiary of NHT has, between April 1, 2022, and June
30, 2022, issued convertible notes (the "Notes") in the
aggregate principal amount of US$1
million (the "Liquidity Transactions") to affiliates of
NHT's external advisor.
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.
Contact:
Jackie
Graham
Investor Relations
JGraham@nexpoint.com
Brian Mitts
Chief Financial Officer
BMitts@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. 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.
SOURCE NexPoint Hospitality Trust
