PR Newswire
VANCOUVER, March 7, 2018
(All numbers are in U.S. dollars unless otherwise indicated)
VANCOUVER, March 7, 2018 /PRNewswire/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), which has 115 select-service hotels located across the United States, announced today its financial results for the three months and year ended December 31, 2017.
During the fourth quarter, revenues increased 85.6% to $82.2 million, EBITDA rose by 68.6% to $20.4 million, funds from operations ("FFO") increased by 48.3% to $13.2 million, and adjusted funds from operations ("AFFO") rose 44.1% to $11.1 million, in each case, as a result of the addition of new hotels. Q4 2017 Diluted FFO per Unit was $0.17, and Diluted AFFO per Unit was $0.14.
2017 full year revenues increased 75.0% to $303.7 million, EBITDA rose by 71.2% to $89.8 million, FFO increased by 60.1% to $58.6 million, and AFFO rose 57.1% to $50.1 million, again due to hotel acquisitions during the year. 2017 Diluted FFO per Unit was $0.82, and Diluted AFFO per Unit was $0.70.
"2017 was a transformative year for AHIP's diversification and growth," said Rob O'Neill, AHIP's CEO. "We completed several meaningful strategic initiatives, including upgrading our hotel portfolio to more upscale, select-service properties, located within larger urban and secondary cities across the U.S. We also negotiated a new master agreement with a leading railway customer, and expanded our in-house asset management team to help drive operating performance. AHIP is well positioned to benefit from the buoyant U.S. economy, the appreciating U.S. dollar – which enhances the value of our U.S. dollar distribution to Canadian unitholders – and a resilient U.S. hotel industry, now in its 94th month of continuous growth. Just as important, our long-term fixed rate debt structure, with an average remaining term of approximately 7.6 years, will shield us well from current interest rate volatility, and our hotel manager's ability to change guestroom rates daily will mitigate any impact from inflation."
Ian McAuley, President of AHIP added, "Strengthening our hotel portfolio has been an important strategic goal, with 23 new premium branded hotels added during 2017, 74% of which focus on the extended stay, suite product – which achieves higher RevPAR and net operating income per key. This rapid pace of acquisitions, and our expansion into new markets, created some integration headwinds and additional costs for our hotel manager during the year. Looking forward, we intend to spend 2018 enhancing our current portfolio through stronger asset management and renovations at several of our larger hotels. We expect these investments will showcase the true cash flow and income generating power of our higher quality portfolio, and will support sustainable, long-term AFFO growth. We also continue to pivot our Economy Lodging properties to better cater to the changing needs of our railway customers and other guests, and drive improved performance from this legacy segment of our business."
THREE MONTHS ENDED DECEMBER 31, 2017 FINANCIAL HIGHLIGHTS
12 MONTHS ENDED DECEMBER 31, 2017 FINANCIAL HIGHLIGHTS
FOURTH QUARTER DEVELOPMENTS
SUBSEQUENT EVENTS
2018 PROPERTY IMPROVEMENT PLANS ("PIPs")
During 2018, AHIP and its third-party hotel manager will continue the integration of AHIP's recent hotel acquisitions, including renovating properties to continue to improve the performance and market share of its hotel portfolio. As part of this strategy, approximately $20.0 million of hotel renovations, or PIPs, will take place during 2018 to modernize and enhance lobbies, atriums, guestrooms and amenities to improve the overall guest experience. The funds to complete these renovations have been pre-funded with AHIP's lenders and are not expected to materially impact AHIP's current cash position. However, given the size and scope of these renovations, there may be some guest displacement and impact to hotel operating performance during the year. AHIP and its hotel manager will make efforts to minimize the impacts of the renovations, whenever possible. More information, including a schedule of property renovations, is included in the Q4 2017 MD&A.
The information in this news release should be read in conjunction with AHIP's audited condensed consolidated financial statements for the years ended December 31, 2017 and 2016, and management's discussion and analysis ("MD&A") for the three and twelve months ended December 31, 2017, which are available on AHIP's website at www.ahipreit.com and on SEDAR at www.sedar.com.
Q4 AND 2017 FINANCIAL RESULTS CONFERENCE CALL
Management will host a conference call at 4:00 p.m. (Eastern), 1:00 p.m. (Pacific) on Thursday, March 8, 2018 to review the financial results for the three and 12 months ended December 31, 2017.
To participate in this conference call, please dial one of the following numbers at least five minutes prior to the commencement of the call and ask to join the American Hotel Income Properties' Q4 2017 Analyst Call.
Dial in numbers: | North America Toll free: | 1-877-291-4570 |
| International or local Toronto: | 1-647-788-4919 |
The conference call will also be webcast live (in listen-only mode). The link to the webcast can be found on the Events tab of the following webpage: https://www.ahipreit.com/news-and-events/
CONFERENCE CALL REPLAY
A replay of the conference call will be available by dialing one of the following replay numbers. You will be able to dial in and listen to the conference call replay two hours after the call end time, and the replay will be available until Thursday, April 5, 2018. An audio recording of this conference call will also be available at www.ahipreit.com under the "News and Events" tab.
Please enter replay PIN number 2399487 followed by the # key.
Replay dial in numbers: | North America Toll free: | 1-800-585-8367 |
| International or local Toronto: | 1-416-621-4642 |
NON-IFRS MEASURES
Certain non-IFRS financial measures are included in this news release, which include NOI, EBITDA, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, interest coverage ratio, AFFO payout ratio and debt-to-gross book value. These terms are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. Real estate issuers often refer to NOI, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, and AFFO payout ratio as supplemental measures of performance and interest coverage ratio and debt-to-gross book value as supplemental measures of financial condition.
Debt-to-gross book value, NOI, EBITDA, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, interest coverage ratio and payout ratio should not be construed as alternatives to measurements determined in accordance with IFRS as indicators of AHIP's performance or financial condition. AHIP's method of calculating NOI, EBITDA, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, interest coverage ratio, AFFO payout ratio and debt-to-gross book value may differ from other issuers' methods and accordingly may not be comparable to measures used by other issuers. For further information, including reconciliations of certain of these non-IFRS financial measures to the closest comparable IFRS measure, please refer to AHIP's MD&A dated March 6, 2018, which is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.
FORWARD-LOOKING INFORMATION
Certain statements in this news 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 generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to: management's belief that AHIP's long-term fixed rate debt structure, will shield AHIP well from current interest rate volatility, and AHIP's hotel manager's ability to change its guestroom rates daily will mitigate any impact from inflation; management's intention to spend 2018 enhancing AHIP's current portfolio through stronger asset management and renovations at several of AHIP's larger hotels; management's belief that the agreement with Wyndham will help drive improved RevPAR at AHIP's Economy Lodging Hotels in the future, through improved brand recognition and increased transient guest occupancy of rooms not used for rail crew lodging contracts; AHIP gaining access to Wyndham's world-class reservations network, higher brand recognition and customer rewards program to drive incremental transient guests and revenues at the rebranded hotels; the expected cost of PIP renovations to be completed in 2018 and the expected impacts thereof on the applicable hotels including on occupancy levels and revenues; the expectation that the new Master Agreement with one of AHIP's most significant railway customers will allow both parties to expedite future contracts and contract renewals; and AHIP's long-term objectives.
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; the continued strength of the U.S. lodging industry; AHIP will be able to successfully integrate properties acquired into its portfolio; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; the accuracy of third party reports with respect to lodging industry data; the value of the U.S. dollar; the successful rebranding of AHIP's Economy Lodging Hotels; the rebranding of AHIP's Economy Lodging Hotels achieving its intended results; the costs and timing of the rebranding being consistent with management's current estimates; the cost, timing and impact of PIP renovations for 2018 being consistent with management's expectations; the ability to successfully integrate the recent Economy Lodging acquisitions into AHIP's existing portfolio of Economy Lodging Hotels; AHIP's rail partner not terminating the Master Agreement and continuing to rely on AHIP for its future rail crew lodging needs. 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 statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results. Those risks and uncertainties include, among other things, risks related to: general economic conditions; future growth potential; Unit prices; liquidity; tax risk; tax laws currently in effect remaining unchanged; ability to access capital markets; competition for real property investments; environmental matters; the value of the U.S. dollar; and changes in legislation or regulations. Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with these forward-looking statements. Additional information about risks and uncertainties is contained in AHIP's MD&A dated March 6, 2018 and annual information form for the year ended December 31, 2016, copies of which are available on SEDAR at 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 AHIP. The forward-looking information is made as of the date of this news release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
ADDITIONAL INFORMATION
Additional information relating to AHIP, including AHIP's audited consolidated financial statements for the years ended December 31, 2017 and 2016, AHIP's MD&A dated March 6, 2018, and other public filings are available on SEDAR at www.sedar.com.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties located substantially in the United States. AHIP currently has 115 hotels, and is actively engaged in growing its portfolio of premium branded, select-service hotels in larger secondary markets that have diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. The company's long-term objectives are to build on its proven track record of successful investment, deliver reliable and consistent U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio. More information is available at www.ahipreit.com.
FOURTH QUARTER HIGHLIGHTS AND KEY PERFORMANCE INDICATORS | ||||||||
(US$000s unless noted and except Units | Three months Dec. 31, 2017 | Three months Dec. 31, 2016 | Twelve months Dec. 31, 2017 | Twelve months Dec. 31, 2016 | ||||
| | | | | ||||
Number of rooms (1) | 11,708 | 8,156 | 11,708 | 8,156 | ||||
Number of properties (1) | 115 | 91 | 115 | 91 | ||||
Number of restaurants (1) | 41 | 32 | 41 | 32 | ||||
| | | | | ||||
Occupancy rate | 72.8% | 70.3% | 74.7% | 72.1% | ||||
Average daily room rate | $ | 94.74 | $ | 82.06 | $ | 95.32 | $ | 82.79 |
Revenue per available room | $ | 68.97 | $ | 57.69 | $ | 71.20 | $ | 59.69 |
| | | | | ||||
Revenues | $ | 82,222 | $ | 44,346 Werbung Mehr Nachrichten zur American Hotel Income Properties REIT LP Aktie kostenlos abonnieren
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