Stable and sustainable operating results
VANCOUVER, BC--(Marketwired - November 08, 2016) - All amounts expressed in U.S. dollars unless otherwise indicated.
American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN) (OTCQX: AHOTF) announced today its financial results for the three and nine months ended September 30, 2016.
THIRD QUARTER 2016 FINANCIAL HIGHLIGHTS
THIRD QUARTER DEVELOPMENTS
Ian McAuley, President of AHIP, commented, "Our stable third quarter results highlight the balance and diversity of our Branded and Rail portfolios which we have assembled over the past three years. The solid same-property double-digit RevPAR growth and resulting NOI of our Virginia, North Carolina, and Florida Branded Hotels provided a buffer to offset the temporary situational weakness currently experienced by five of our Pittsburgh and Oklahoma hotels. The quarterly and annual NOI contributions from our Branded portfolio provide significant support and balance to the long-term sustainability of distributions while the railroad industry continues to experience a temporary period of lower carload volumes. Our railway customers have reported an easing in carload volume declines and we expect to see more rail crews staying at our Oak Tree Inns in the coming quarters. The combination of continued accretive acquisitions, steady same-property operating performance and a conservative balance sheet provides AHIP with a strong foundation for future growth."
SUBSEQUENT EVENTS
Rob O'Neill, CEO of AHIP, commented, "The capital markets continue to support our growth strategy as evidenced by our recently completed Cdn$103.5 million bought deal offering. Although the net proceeds created a temporary per Unit dilution of four cents during the quarter, we expect to fully invest those funds by year end with accretive hotel acquisitions." Mr. O'Neill continued, "Given ongoing volatility in the currency markets, we are pleased to provide our unitholders with long-term, sustainable, and consistent U.S. dollar distributions with investments in U.S. hotel assets."
Q3 2016 FINANCIAL RESULTS CONFERENCE CALL
Management will host a conference call at 4:00 p.m. (Eastern), 1:00 p.m. (Pacific) on Wednesday, November 9, 2016 to review the financial results and corporate results for the three and nine months ended September 30, 2016.
To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call, and ask to join the AHIP conference call.
Dial in numbers: | North America Toll free: | 1-877-291-4570 | ||
International or local Toronto: | 1-647-788-4919 |
CONFERENCE CALL REPLAY
If you cannot participate on Wednesday, November 9, 2016, a replay of the conference call will be available by dialing one of the following replay numbers. You will be able to dial in and listen to the conference call replay two hours after the call end time, and the replay will be available until Wednesday, November 16, 2016. An audio recording of this conference call will also be available at www.ahipreit.com under the "Investor Info/Presentations & Calls" tab.
Please enter replay PIN number 2106923 followed by the # key.
Replay dial in numbers: | North America Toll free: | 1-800-585-8367 | ||
International or local Toronto: | 1-416-621-4642 |
NON-IFRS MEASURES
Certain non-IFRS financial measures are included in this news release, which include NOI, EBITDA, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, interest coverage ratio, payout ratio and debt-to-gross book value. These terms are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. Real estate investment trusts often refer to NOI, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, and payout ratio as supplemental measures of performance and interest coverage ratio and debt-to-gross book value as a supplemental measure of financial condition.
Debt-to-gross book value, NOI, EBITDA, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, interest coverage ratio, payout ratio and debt-to-gross book value should not be construed as alternatives to measurements determined in accordance with IFRS as indicators of AHIP's performance or financial condition. AHIP's method of calculating NOI, EBITDA, FFO, Diluted FFO per Unit, AFFO, Diluted AFFO per Unit, interest coverage ratio, payout ratio, debt-to-gross book value may differ from other issuers' methods and accordingly may not be comparable to measures used by other issuers. For further information, please refer to AHIP's Management's Discussion and Analysis ("MD&A") dated November 7, 2016, which is available on SEDAR at www.sedar.com and on AHIP's website at www.ahipreit.com.
FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to: management's expectations with respect to AHIP's future performance; the expectation that AHIP will see more rail crews staying at its Oak Tree Inns in the coming quarters; the expectation that AHIP will fully deploy the net proceeds of the July 2016 Offering by year end 2016 to fund the acquisition of additional hotel properties; the terms of, and expected timing of completion for, the acquisitions of each of the Embassy Suites Portfolio, the rail hotel in Nashville, Tennessee and the Florida 6 Portfolio; and AHIP's long-term objectives.
Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: a reasonably stable North American economy and stock market; the continued strength of the U.S. lodging industry; AHIP will be able to successfully integrate properties acquired into its portfolio; the currently proposed acquisitions of the Embassy Suites Portfolio, the Florida 6 Portfolio and the rail hotel in Nashville, Tennessee will be completed on the terms currently contemplated; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP; and the value of the U.S. dollar. Although the forward-looking information contained in this news release is based on what AHIP's management believes to be reasonable assumptions, AHIP cannot assure investors that actual results will be consistent with such information.
Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results. Those risks and uncertainties include, among other things, risks related to: general economic conditions; future growth potential; Unit prices; liquidity; tax risk; tax laws currently in effect remaining unchanged; ability to access capital markets; competition for real property investments; environmental matters; the value of the U.S. dollar; and changes in legislation or regulations. Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with these forward-looking statements. Additional information about risks and uncertainties is contained in AHIP's MD&A and in its annual information form for the year ended December 31, 2015, copies of which are available on SEDAR at www.sedar.com.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to AHIP. The forward-looking information is made as of the date of this news release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
AHIP's current property portfolio is comprised of 84 hotels located in 28 U.S. states, representing 7,493 available guestrooms. The Rail Hotel segment, serving the U.S. freight railway industry, consists of 45 hotels comprising 3,789 guestrooms and 27 Penny's Diner restaurants. The Branded Hotel segment consists of 39 hotels comprising 3,704 guestrooms and is affiliated with leading hotel brands including Marriott, Hilton and IHG.
AHIP is a limited partnership formed under the Limited Partnerships Act (Ontario) to invest in hotel real estate properties located substantially in the United States and engaged primarily in the rail crew accommodation, transportation, and branded, select service lodging sectors.
AHIP's long-term objectives are to: (i) generate stable and growing cash distributions from hotel properties substantially in the U.S.; (ii) enhance the value of its assets and maximize the long-term value of the hotel properties through active management; and (iii) expand its asset base and increase its AFFO per Unit through an accretive acquisition program, participation in strategic development opportunities and improvements to its properties through targeted value-added capital expenditure programs.
ADDITIONAL INFORMATION
Additional information relating to AHIP, including AHIP's financial statements for the three and nine months ended September 30, 2016, AHIP's MD&A dated November 7, 2016, and other public filings are available on SEDAR at www.sedar.com.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS NEWS RELEASE.
For further information, please contact:
Andrew Greig
Investor Relations
American Hotel Income Properties REIT LP
Suite 1660 - 401 West Georgia Street, Vancouver, B.C. V6B 5A1
Phone: 604-633-2857
Email: [email protected]