DALLAS and TORONTO, April 4,
2023 /CNW/ -- NexPoint Hospitality Trust
("NHT"1), (TSX-V: NHT.U) announced the release of NHT's
financial results for the three and twelve months ended
December 31, 2022. 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
|
|
For the Twelve
Months Ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
|
Net income
|
$
(10.9)
|
|
$
(30.7)
|
|
$
2.0
|
|
$
25.3
|
|
FFO2
|
(0.9)
|
|
(3.1)
|
|
12.3
|
|
(11.1)
|
|
AFFO2
|
(3.8)
|
|
(2.8)
|
|
9.1
|
|
(12.4
|
The table below presents Occupancy, ADR and RevPAR.
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
|
Occupancy
|
66.6 %
|
|
63.1 %
|
|
67.3 %
|
|
62.6 %
|
|
ADR
|
$
146.01
|
|
$
130.53
|
|
$
148.89
|
|
$
122.16
|
|
RevPAR
|
$
97.73
|
|
$
83.99
|
|
$
100.42
|
|
$
78.85
|
Additional information on 2022 financial and operational results
can be found at www.sedar.com in our 2022 audited 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
December 31, 2022, the Company has
sold the Beaverton, Vancouver and Bend properties for a combined
purchase price of US$67.5 million.
The Company has executed purchase and sale agreements on the Tigard
property for a purchase price of US$24.5
million and expects this transaction to close in the second
quarter of 2023. The Company will use the proceeds from the sale to
pay down the outstanding debt on the DoubleTree Portfolio.
The Company has opted to no longer sell the Olympia property at this time.
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 and twelve months ended December 31,
2022, 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 and twelve months ended December 31, 2022 and December 31, 2021:
|
For the Three Months
Ended
|
|
For the Twelve
Months Ended
|
|
December 31,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
December 31,
2021
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Net income (loss) from
continuing operations
|
(10,694)
|
|
(30,664)
|
|
1,985
|
|
25,313
|
|
Depreciation of
property and equipment
|
12,104
|
|
3,397
|
|
12,104
|
|
10,283
|
|
Depreciation of
right-of-use asset
|
334
|
|
82
|
|
334
|
|
316
|
|
Fair value adjustment
to interest rate swaps
|
—
|
|
376
|
|
—
|
|
(7,994)
|
|
Acquisition
costs
|
—
|
|
457
|
|
498
|
|
162
|
|
Deferred income tax
recovery
|
(1,653)
|
|
(825)
|
|
(1,653)
|
|
(845)
|
|
Fair value adjustment
of Class B Units
|
(123)
|
|
2
|
|
(123)
|
|
(194)
|
|
Impairment
(recovery)/loss
|
(829)
|
|
24,047
|
|
(829)
|
|
(38,162)
|
|
Funds from
Operations
|
(861)
|
|
(3,128)
|
|
12,316
|
|
(11,121)
|
|
FFO per unit -
basic
|
(0.03)
|
|
(0.11)
|
|
0.41
|
|
(0.38)
|
|
|
|
|
|
|
|
|
|
Income taxes
|
115
|
|
465
|
|
115
|
|
45
|
|
Core Funds from
Operations
|
(746)
|
|
(2,668)
|
|
12,431
|
|
(11,076)
|
|
CFFO per unit -
basic
|
(0.02)
|
|
(0.09)
|
|
0.42
|
|
(0.38)
|
|
|
|
|
|
|
|
|
|
FF&E
reserve
|
(4,242)
|
|
(359)
|
|
(4,556)
|
|
(2,213)
|
|
Amortization of
deferred financing costs
|
1,202
|
|
229
|
|
1,202
|
|
852
|
|
Adjusted Funds from
Operations
|
(3,786)
|
|
(2,793)
|
|
9,077
|
|
(12,437)
|
|
AFFO per unit -
basic
|
(0.13)
|
|
(0.10)
|
|
0. 30
|
|
(0.42)
|
|
|
|
|
|
|
|
|
|
Weighted average units
outstanding - basic
|
29,901,742
|
|
29,352,055
|
|
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
