Here they are- look great.INNVEST REIT REPORTS THIRD QUARTER RESULTS
7.8% RevPAR growth driven by investments made across the portfolio
Toronto, Canada (November 5, 2014) – InnVest Real Estate Investment Trust (“InnVest” or the “REIT”) (TSX:INN.UN), today announced financial results for the three and nine months ended September 30, 2014.
“Building upon our positive second quarter momentum, we drove continued high performance among all our key metrics during the third quarter, highlighted by same-hotel RevPAR growth of 7.8% and same-hotel GOP margin expansion of 190 basis points. The strength of these key performance measures substantiates the hard work that has been done to reposition the portfolio over the last two years,” said Anthony Messina, InnVest’s President and Chief Executive Officer. “We believe current industry fundamentals support continued growth driven by improving demand expectations and a low supply-growth outlook.”
Third Quarter Operating Highlights
Same-hotel RevPAR improved 7.8%;
Same-hotel GOP margins improved 190 basis points to 32.7%;
GOP improved 1.8% to $48.2 million notwithstanding overall revenue declines of $12.7 million reflecting the sale of non-core hotels;
Net income improved to $16.5 million or $0.161 per unit diluted (vs $13.9 million or $0.139 per unit diluted in 2013);
FFO per unit improved to $0.278 per unit diluted (vs $0.270 in 2013);
Third Quarter Strategic Highlights
Sold three non-core assets for aggregate gross proceeds of $16.4 million ($91.6 million year-to-date) and have commitments to sell five additional hotels for aggregate gross proceeds of over $44 million;
Completed an offer to purchase and cancelled $28.8 million of its Series G convertible debentures, and amended certain terms for its remaining Series G convertible debentures; and
Subsequent to the end of the quarter, entered into an agreement to acquire a 20% interest in the Fairmont Royal York Hotel in downtown Toronto.
“Our long-term goal at InnVest is to out-perform, through all market cycles. That means having a portfolio that can out-perform and operating partners who can out-perform,” commented Edward Pitoniak, InnVest’s Managing Director and Trustee. “In the third quarter, we began to see our portfolio and partners out-perform the national averages for RevPAR growth. These results give us confidence that in the long term, we can and will be the Canadian hotel company that leads in growth.”
InnVest's Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis for the three and nine months ended September 30, 2014 and 2013 are available on InnVest’s website at www.innvestreit.com.