DALLAS and TORONTO, Nov. 20,
2020 /CNW/ -- NexPoint Hospitality Trust,
("NHT"1), (TSX-V: NHT.U) announced today the release of
NHT's financial results for the three and nine months ended
September 30, 2020. All amounts
are expressed in U.S. dollars.
Results for the three months ended September 30, 2020
- For the three months ended September 30,
2020, NHT reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(30.7) million, $(3.1)
million, $(2.7) million and
$(2.8) million, respectively,
attributable to unitholders of NHT ("Unitholders"). For the three
months ended June 30, 2020, NHT
reported Net Loss of $(13.4) million,
FFO2 of $(4.7) million,
Core FFO2 of $(4.7)
million, and AFFO2 of $(4.6) million.
- For the three months ended September 30,
2020, the portfolio averaged Occupancy3 of 42.8%,
Average Daily Rate3 of $99.17 and Revenue per Available Room3
of $44.57. This is a substantial
improvement compared to the previous quarter, during which average
Occupancy3 for the portfolio was 22.2%, Average Daily
Rate3 was $95.64 and
Revenue per Available Room3 was $21.69 for the three months ended June 30, 2020.
- For the three months ended September 30,
2020, the portfolio generated total revenues of $8.2 million, operating and general and
administrative expenses of $5.8
million and NOI[2] of $2.4
million, generating an NOI Margin2 of 29.4%,
compared to $2.8 million,
$0.8 million, $(0.4) million, and (14.6)%, respectively, for
the three months ended June 30,
2020.
Results for the nine months ended September 30, 2020
- For the nine months ended September 30,
2020, NHT reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(96.1) million, $(10.4)
million, $(10.0) million and
$(10.0) million, respectively,
attributable to Unitholders.
- For the nine months ended September 30,
2020, the portfolio generated total revenues of $25.3 million, operating and general and
administrative expenses of $22.3
million and NOI2 of $3.0
million, generating an NOI Margin2 of 11.9%.
Additional information on third 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.
Looking ahead to 2021, Management believes travel will increase
upon approval and distribution of a vaccine.
As of September 30, 2020, NHT had
a working capital deficiency of $51.1
million, which was primarily the result of NHT's
$35 million mezzanine facility that
originally matured on January 8, 2020
(which was further extended by the lender until January 8, 2021) 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 of an affiliate into Class B Units of NHT's
operating partnership. In addition, subject to market
conditions, NHT may seek to raise funds 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 November 20, 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.
3 Occupancy, Average Daily Rate and Revenue per
Available Room are terms commonly used in the hotel and lodging
industry. See "Select Industry Terms" in our MD&A for
definitions of each of these terms.
SOURCE NexPoint Hospitality Trust