DALLAS and TORONTO, Aug. 28,
2020 /CNW/ -- NexPoint Hospitality Trust,
("NHT"1), (TSX-V: NHT.U) announced today the release of
NHT's financial results for the three and six months ended
June 30, 2020. All amounts are
expressed in U.S. dollars.
Results for the three months ended June 30, 2020
- For the three months ended June 30,
2020, NHT reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(13.4) million, $(4.7)
million, $(4.7) million and
$(4.6) million, respectively,
attributable to Unitholders.
- For the three months ended June 30,
2020, the portfolio averaged occupancy of 22.2%, Average
Daily Rate of $95.64 and Revenue per
Available Room of $21.69.
- For the three months ended June 30,
2020, the portfolio generated total revenues of $2.8 million, operating and general and
administrative expenses of $3.2
million and NOI2 of $(0.4)
million, generating an NOI Margin2 of
(14.6)%.
Results for the six months ended June
30, 2020
- For the six months ended June 30,
2020, NHT reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(65.4) million, $(7.3)
million, $(7.3) million and
$(7.3) million, respectively,
attributable to Unitholders.
- For the six months ended June 30,
2020, the portfolio generated total revenues of $17.1 million, operating and general and
administrative expenses of $16.5
million and NOI2 of $0.6
million, generating an NOI Margin2 of 3.5%.
Additional information on second 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").
The COVID-19 pandemic continues to severely impact the lodging
sector worldwide. 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 June 30, 2020, NHT had a
working capital deficiency of $46.4
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 September 8, 2020) and the impact of the COVID-19
pandemic.
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 features and quality of the underlying
assets and the debt and equity market parameters existing at the
time of financing 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. 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 and NHT's plan to address its liquidity
concerns constitute forward-looking statements.
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 August 28, 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