NexPoint Hospitality Trust, (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 |
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|
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 |
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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 |
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|
RevPAR |
$ 97.73 |
$ 83.99 |
$ 100.42 |
$ 78.85 |
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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.
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 |
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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.