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.
(PRNewsfoto/NexPoint Hospitality Trust)
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.
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.
