Earnings out...no divvy cut so far YEAR ENDED DECEMBER 31, 2018 FINANCIAL HIGHLIGHTS
-- 2018 annual revenues increased 11.5% to $338.6 million (2017 - $303.7 million) primarily due to the acquisition of new hotels in June 2017 that had higher occupancy and higher ADR. -- Net income for 2018 was $8.4 million, compared to net income of $89,000 in the comparable period last year. Diluted net income per Unit was $0.11 compared to $0.00 last year. -- Total portfolio RevPAR increased 2.9% in 2018 to $73.29 (2017 - $71.20), led by ADR increases of 1.2% and occupancy increases of 1.7%. -- Premium Branded hotel RevPAR decreased 0.8% in 2018 to $88.71 (2017 - $89.47), with occupancy decreasing 1.4% and ADR increasing 0.6%. Occupancy declines were largely related to hotel renovations. -- Economy Lodging hotel RevPAR increased 6.6% to $42.81 during 2018 (2017 - $40.16), with occupancy increasing 7.4% and ADR decreasing 0.7%. Occupancy increases were due to higher transient guests from the Wyndham rebranding of these hotels, as well as higher rail crew contract utilization. -- Total portfolio same-property revenues for 2018 were $190.6 million, in line with revenues in 2017. -- Total portfolio same-property RevPAR increased 0.1% to $62.33 (2017 - $62.27), with occupancy increasing 0.4% and ADR decreasing 0.3%. -- FFO for 2018 decreased 5.0% to $55.6 million (2017 - $58.6 million), while AFFO deceased 2.4% to $51.5 million (2017 - $52.8 million). -- For 2018, Diluted FFO per Unit was $0.70 (2017 - $0.82) and Diluted AFFO per Unit was $0.65 (2017 - $0.76).
FOURTH QUARTER DEVELOPMENTS
-- On October 1, 2018, John O'Neill joined AHIP as Chief Executive Officer, following the retirement of AHIP's former CEO. -- On November 1, 2018, AHIP announced the completion of $2.3 million of renovations at its 227-room Embassy Suites Cincinnati hotel (located across the river from downtown Cincinnati, in Covington, Kentucky). -- From the time of his appointment as CEO on October 1, 2018 until the end of the fourth quarter, John O'Neill acquired 479,400 additional Units in the Company, increasing the number of Units he owns and has control over to 1.3 million units. In addition, other AHIP insiders acquired 658,688 units and $149,200 worth of Debentures through open market purchases during the fourth quarter.
SUBSEQUENT EVENTS
-- On January 16, 2019, AHIP announced the completion of $3.0 million of renovations at its 284-room Embassy Suites Columbus hotel (in Dublin, Ohio). -- On January 28, 2019, AHIP announced the resignation of Ian McAuley, President. -- On February 1, 2019, AHIP announced that it had completed $4.2 million of renovations at its 100-room Staybridge Suites Tampa East hotel (in Tampa, Florida) and its 131-room Residence Inn Baltimore White Marsh hotel (in Baltimore, Maryland). -- On February 11, 2019, AHIP announced the appointment of Chris Cameron as its new Chief Investment Officer. -- The Company is pleased to confirm that for 2018, based on AHIP's calculation of taxable income, 68.01% of AHIP's distributions were considered return of capital and 31.99% were considered taxable. Unitholders should consult their own tax advisors for advice with respect to the tax consequences of their investment in Units based on their particular circumstances.