DALLAS and TORONTO, April 8, 2022 /CNW/ -- NexPoint Hospitality Trust ("NHT"1), (TSX-V: NHT.U) announced the release of NHT's financial results for the twelve months ended December 31, 2021. All amounts are expressed in U.S. dollars.
The table below presents Net Income (Loss), FFO and AFFO.
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For the Year Ended
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December 31, 2021
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December 31, 2020
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Net Income (Loss)
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$
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24.3
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$
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(112.3)
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FFO²
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(9.2)
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(17.6)
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AFFO²
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(10.5)
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(20.2)
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The table below presents Occupancy, ADR and RevPAR.
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For the Year Ended
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December 31, 2021
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December 31, 2020
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Occupancy
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62.6%
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41.8%
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ADR
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$
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122.16
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$
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110.14
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RevPAR
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$
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78.85
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$
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47.16
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Additional information on 2021 financial and operational results can be found at www.sedar.com in our 2021 audited consolidated financial statements and management discussion and analysis ("MD&A").
Acquisition Activity
NHT acquired the Hyatt Place in Park City, Utah on February 15, 2022. Located minutes away from one of America's premier outdoor sports destinations, the Hyatt Place has 122 rooms, several dining options, an outdoor pool and hot tub, and secure sports equipment storage options.
Additionally, NHT acquired the Hampton Inn & Suites Bradenton Downtown Historic District in Bradenton, Florida on February 22, 2022. The property boasts 119 rooms, a fitness center, an outdoor pool, and 2,282 square feet of meeting space. The Hampton Inn & Suites is centrally located, with easy access to several beaches, a business district, and various entertainment venues.
Both new properties have performed well since acquisition as they were both in season in February and through mid-March. As the Park City asset moves out of season, Management expects to begin value-add renovations.
NHT Capitalization Updates
NHT announced that a subsidiary of NHT has, between July 2021 and December 2021, issued convertible notes (the "Notes") in the aggregate principal amount of US$19.09 million (the "Liquidity Transactions") to affiliates of NHT's external advisor.
The Notes bear interest at a rate of 2.25% per annum and are repayable in membership interests ("Membership Interests") of NHT's operating subsidiary, NHT Operating Partnership, LLC (the "OP"), which are redeemable for trust units of NHT ("Trust Units") at the option of NHT in its sole discretion. The approval of the TSX Venture Exchange will be required prior to any conversion of the Membership Interests into Trust Units. NHT used the proceeds of the Liquidity Transactions for general working capital purposes. Management believes the Liquidity Transactions will further strengthen NHT's balance sheet and liquidity profile to better position itself as the hospitality industry continues to rebound from the impact of the COVID-19 pandemic. The fair market value of each Note does not exceed and did not exceed at the time of issuance of such Note 25% of NHT's market capitalization.
Each of the Liquidity Transactions constituted a related party transaction as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Liquidity Transactions were completed in reliance on (i) an available exemption from the formal valuation requirement of MI 61-101 provided in paragraph (a) of Section 5.5 of MI 61-101 and (ii) an available exemption from the minority shareholder requirement of MI 61-101 provided in paragraph (a) of Section 5.7(1) of MI 61-101.
Additionally, in December 2021 pursuant to NHT's omnibus equity incentive plan, NHT issued 210,000 Deferred Units to the independent trustees and 2,475,000 Profits Interests in the OP to officers of NHT and employees of the Advisor. As of December 31, 2021, there are 1,468 Deferred Units or Profits Interests remaining that may be granted under the omnibus equity incentive plan. The Deferred Units vested immediately. The Profits Interests vest ratably over four years, however, 50% of the Profits Interests can vest sooner if certain unit price thresholds are achieved. See note 23 of the audited consolidated financial statements for a detailed discussion of equity awards under the omnibus equity incentive plan.
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 13 branded properties sponsored by Marriott, Hilton, Hyatt, and Intercontinental Hotels Group, located across the U.S. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P.
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 and AFFO 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.
SOURCE NexPoint Hospitality Trust
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