DALLAS and TORONTO, July 6,
2020 /CNW/ -- NexPoint Hospitality Trust,
("NHT"1), (TSX-V: NHT.U) announced today the release of
NHT's financial results for the three months ended March 31, 2020. All amounts are expressed
in U.S. dollars.
Results for the three months ended March 31, 2020:
- For the three months ended March 31,
2020, NHT reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(52.0) million, $(2.6)
million, $(2.6) million and
$(2.7) million, respectively,
attributable to Unitholders.
- For the three months ended March 31,
2020, the portfolio averaged occupancy of 60.7%, Average
Daily Rate of $134.57 and Revenue per
Available Room of $85.41.
- For the three months ended March 31,
2020, the portfolio generated total revenues of $14.3 million, operating and general and
administrative expenses of $13.4
million and NOI2 of $0.9
million, generating an NOI Margin2 of 6.2%.
Additional information on first quarter 2020 financial and
operational results can be found at www.sedar.com in our 2020
unaudited consolidated interim financial statements and management
discussion and analysis ("MD&A").
Entering the traditionally busy summer travel season, the
COVID-19 pandemic continues to severely impact the lodging sector
worldwide. It is still not yet known when economic and societal
conditions in the U.S., and the lodging sector in particular, will
return to normalcy. Due to the COVID-19 outbreak, NHT has made
additional material changes to its forecasts for 2020 and assumed
much lower occupancies across each property through the summer,
with gradual increases thereafter.
As of March 31, 2020, NHT had a
working capital deficiency of $41.58
million, which was primarily the result of NHT's
$35 million mezzanine facility that
originally matured on April 8, 2020
(which was further extended by the lender until July 8, 2020) and the impact of the COVID-19
pandemic.
As we enter the second quarter of 2020, Management is actively
working towards addressing NHT's liquidity concerns, including the
following: (i) negotiating with lenders to extend or otherwise
restructure the terms of our loans and obtain relief from covenants
in the near term; and (ii) converting payables to an affiliate into
Class B Units of NHT's operating partnership. In addition,
subject to market conditions, NHT may seek to raise funding through
new debt and equity financing, including sale-leaseback and ground
lease arrangements. The particular characteristics of the
underlying assets and the present environment of the debt and
equity markets, which may continue for some period of time, may
impact the ability to obtain financing.
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 11 branded properties sponsored by Marriott, Hilton and
Intercontinental Hotels Group, located across the U.S. NHT is
externally advised by NexPoint Real Estate Advisors VI, L.P.
Forward-Looking Information
Certain statements in
this press 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 is identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would", and similar terms and phrases, including references to
assumptions. In particular, the impact of the COVID-19
pandemic on NHT's business constitutes a forward-looking
statement.
Forward-looking information contained in this press release is
based on certain key expectations and assumptions made by NHT,
including, without limitation, a reasonably stable North American
economy and stock market. Although the forward-looking information
contained in this press release is based upon what the NHT's
management believes to be reasonable assumptions, NHT cannot assure
investors that actual results will be consistent with such
information. Forward-looking information reflects current
expectations of management regarding future events and operating
performance as of the date of this press release. Such information
involves significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
information, and a description of these factors can be found under
"Risk Factors" in NHT's final prospectus dated March 27, 2019, NHT's final short form base shelf
prospectus dated November 15, 2019
and Management's Discussion and Analysis dated July 6, 2020, which are available on SEDAR
(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 NHT. The
forward-looking information is made as of the date of this press
release and NHT assumes no obligation to update or revise such
information to reflect new events or circumstances, except as may
be required by applicable law.
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
972-419-6213
JGraham@nexpointadvisors.com
Chief Financial Officer
Brian Mitts
972-419-2556
BMitts@nexpointadvisors.com
Media Inquiries
MediaRelations@nexpointadvisors.com
1 In this release, "we," "us," "our," and "NHT" each
refer to NexPoint Hospitality Trust.
2 FFO, Core FFO, AFFO, NOI, NOI Margin Debt to Gross
Real Estate Value Ratio and Core FFO payout ratio 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