DALLAS and TORONTO, April 30,
2021 /CNW/ -- NexPoint Hospitality Trust,
("NHT"1), (TSX-V: NHT.U) announced today the release of
NHT's financial results for the twelve months ended December 31, 2020. All amounts are
expressed in U.S. dollars.
Results for the twelve months ended December 31, 2020
- For the twelve months ended December 31,
2020, NHT reported Net Loss, FFO2, Core
FFO2 and AFFO2 of $(112.4) million, $(17.6)
million, $(16.8) million and
$(16.7) million, respectively,
attributable to Unitholders.
- For the twelve months ended December 31,
2020, the portfolio averaged occupancy of 41.8%, Average
Daily Rate ("ADR") of $110.14 and
Revenue per Available Room of $47.16.
- For the twelve months ended December 31,
2020, the portfolio generated total revenues of $32.0 million, operating and general and
administrative expenses of $27.7
million and NOI2 of $4.3
million, generating an NOI Margin2 of 13.4%.
Additional information on fiscal year 2020 financial and
operational results can be found at www.sedar.com in our 2020
audited consolidated annual financial statements and management
discussion and & analysis ("MD&A").
As of December 31, 2020, NHT had a
working capital deficiency of $54.2
million, which was primarily the result of NHT's
$35 million mezzanine facility that
originally matured on January 8,
2020, which has been further extended by the lender until
May 8, 2021. Additionally, due to the
continuing impact of the COVID-19 virus on the hospitality industry
in particular, management anticipates negative cash flow from
operations for the first half of 2021.
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 obtaining 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.
While 2020 was not a positive year for the hospitality sector
worldwide, NHT has seen a substantial increase in operational
performance to date in 2021. Average occupancy and ADR for
the portfolio have increased to 54.9% and $93.16, respectively, for 2021 as of April 27, 2021, as compared to 41.8% and
$110.14 for 2020. Management
believes the continued distribution of vaccines will create
widespread demand for travel in the
United States that will drive occupancy and ADR for the
remainder of 2021.
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 and potential
new debt and equity financings 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, expectations relating to cash flow
from operations during the first half of 2021 and the ability of
management to address NHT's liquidity concerns. 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
April 30, 2021, 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
JGraham@nexpoint.com
Chief Financial Officer
Brian Mitts
BMitts@nexpoint.com
Media Inquiries
MediaRelations@nexpoint.com
1 In this release, "we," "us," "our," and "NHT" each
refer to NexPoint Hospitality Trust.
2 FFO, Core FFO, AFFO, NOI and NOI Margin 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.
View original
content:http://www.prnewswire.com/news-releases/nexpoint-hospitality-trust-announces-fiscal-year-2020-financial-results-301281453.html
SOURCE NexPoint Hospitality Trust