American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures T.HOT.DB.V

Alternate Symbol(s): AHOTF | T.HOT.UN

American Hotel Income Properties REIT LP is a trust that invests in hotel real estate properties. The company's primary business is owning Premium Branded hotels, which have franchise agreements with international hotel brands including Marriott, Hilton, and IHG. It generates revenue from the room, food, beverage, and other revenue. The other revenue is comprised of conference room rentals, parking revenues, and other incidental income.

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American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures

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Post by BSdetector2016on Aug 10, 2021 6:14pm

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Post# 33682493

American Hotel Income Properties REIT LP Reports Q2 Results

Q2 2021 diluted FFO per unit of $0.14; increasing from ($0.03) per unit in Q1 2021
Q2 2021 Occupancy of 70.0% vs 60.2% in Q1 2021; Q2 2021 RevPAR of $76.53 vs $57.01 in Q1 2021
Portfolio recovery highlighted by sequential monthly gains in top-line measures; June ADR & Occupancy of $115.33 and 73.1%, each at 0.96x and 0.88x June 2019 levels
Operating efficiency gains contributed to Q2 Hotel EBITDA margin of 38.6%
Revenues increased to $63.6 million in Q2 2021 compared to $27.3 million in Q2 2020
Total available liquidity at June 30, 2021 was $40.2 million

THREE MONTHS ENDED JUNE 30, 2021 FINANCIAL HIGHLIGHTS

AHIP's portfolio Average Daily Rate ("ADR") and Revenue per Available Room ("RevPAR") improved each month during the quarter, contributing to revenues of $63.6 million, an increase of 133.1% from Q2 2020 ($27.3 million), reflecting the recovery from significantly lower demand experienced in the prior year due to the initial onset of COVID-19.
RevPAR increased 131.8% to $76.53 (2020 – $33.01) caused by ADR increases of 14.9% to $109.31 (2019 – $95.13) and occupancy increase of 101.7% to 70.0% (2020 – 34.7%).
Net income and comprehensive income for the quarter was $0.5 million (2020 – loss of $20.8 million) primarily as a result of higher revenue and NOI and lack of impairment charges in the current period partially offset by the increase in corporate and administrative costs and the change in fair value of warrants.
Funds from operations ("FFO") for Q2 2021 increased to $11.5 million (2020: ($9.1) million) and adjusted funds from operations ("AFFO") increased to $10.9 million (2020: ($8.7) million), as a result of higher revenue and NOI.
Q2 2021 Diluted FFO per Unit was $0.14 (Q2 2020: ($0.12)) and Diluted AFFO per Unit was $0.13 (Q2 2020: ($0.11)).
Strong performance continued through July, with Occupancy of 73.2%, ADR of $119.71 and RevPAR of $87.62, each at 0.90x, 1.00x and 0.90x of July 2019 levels, respectively.

SIX MONTHS ENDED JUNE 30, 2021 FINANCIAL HIGHLIGHTS

For Premium Branded hotels only and using prior ownership's financial information for the 12 Premium Branded hotels acquired in December 2019, AHIP's portfolio has meaningfully narrowed the previously sizeable gap between 2021 and 2019 demand levels, while exceeding 2019 net operating income ("NOI") Margin levels:

Metric	Jan-21	Feb-21	Mar-21	Apr-21	May-21	Jun-21	Q1-21	Q2-21
Occupancy (%)	51.2%	59.9%	69.4%	68.6%	68.4%	73.1%	60.2%	70.0%
*Recovery (vs. 2019)*	*0.77x*	*0.81x*	*0.86x*	*0.85x*	*0.85x*	*0.88x*	*0.82x*	*0.86x*
ADR (US$)	$90.81	$93.87	$98.22	$103.16	$109.06	$115.33	$94.70	$109.31
*Recovery (vs. 2019)*	*0.81x*	*0.81x*	*0.82x*	*0.88x*	*0.92x*	*0.96x*	*0.82x*	*0.92x*
RevPAR (US$)	$46.52	$56.24	$68.13	$70.79	$74.60	$84.28	$56.99	$76.53
*Recovery (vs. 2019)*	*0.63x*	*0.66x*	*0.70x*	*0.75x*	*0.78x*	*0.85x*	*0.67x*	*0.80x*
NOI Margin (%)	25.3%	27.7%	39.9%	38.9%	40.7%	44.3%	32.1%	41.5%
*Recovery (vs. 2019)*	*0.85x*	*0.90x*	*0.99x*	*1.08x*	*1.08x*	*1.18x*	*0.93x*	*1.12x*

RevPAR at AHIP's 24 extended stay properties represent approximately 30% of its portfolio on a per key basis and was its strongest performing segment with recovery of RevPAR to 0.84x of 2019 levels.
FFO increased to $9.5 million (2020 – ($4.4) million) as a result of higher NOI and AFFO increased to $9.3 million (2020 – ($5.1) million).
Diluted FFO per Unit in the first half of 2021 was $0.12 (2020: ($0.06)) and Diluted AFFO per Unit was $0.12 (2020: ($0.06)).
The STR RevPAR index, which compares the performance of AHIP-owned hotels to their competitive set in each region, indicated AHIP's 78 Premium Branded hotels have, in aggregate, outperformed their identified direct competition with an average index rating of 115.3 during the quarter (Q2 2020: 135.4), with 100.0 representing a fair share of the market.
NOI for the first half of 2021 increased to $41.4 million (2020: $22.2 million) due to higher revenues and expense reduction initiatives. NOI Margins increased to 37.5% (2020: 24.9%) attributable to extensive cost saving measures and relaxed brand standards which reduced operating expenses during this period compared to the prior period.
Loss and comprehensive loss was $13.4 million, compared to the loss and comprehensive loss of $33.4 million in 2020, as a result of higher NOI, fair value changes on interest rate swaps, and lack of impairment charges, partially offset by higher corporate and administrative costs and the change in fair value of warrants.
As part of effective asset management of the portfolio, AHIP deferred a number of capital projects in 2020 to preserve cash during the height of the pandemic. AHIP is currently in discussions with Brand partners on these Property Improvement Plans ("PIPs") and expects to restart two small renovations in late 2021.