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.
|
|
For the Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Net Income
(Loss)
|
|
$
|
24.3
|
|
$
|
(112.3)
|
FFO²
|
|
|
(9.2)
|
|
|
(17.6)
|
AFFO²
|
|
|
(10.5)
|
|
|
(20.2)
|
The table below presents Occupancy, ADR and RevPAR.
|
|
For the Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Occupancy
|
|
|
62.6%
|
|
|
41.8%
|
ADR
|
|
$
|
122.16
|
|
$
|
110.14
|
RevPAR
|
|
$
|
78.85
|
|
$
|
47.16
|
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