NexPoint Hospitality Trust Announces Fiscal Year 2022 Improving Financial Results and Update on Sale of DoubleTree Portfolio

DALLAS and TORONTO, April 4, 2023 /CNW/ -- NexPoint Hospitality Trust ("NHT"¹), (TSX-V: NHT.U) announced the release of NHT's financial results for the three and twelve months ended December 31, 2022.  All amounts are expressed in U.S. dollars.

The table below presents net income from continuing operations, Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO").

	For the Three Months Ended				For the Twelve Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Net income	$                   (10.9)		$                (30.7)		$                       2.0		$                  25.3
FFO2	(0.9)		(3.1)		12.3		(11.1)
AFFO2	(3.8)		(2.8)		9.1		(12.4

The table below presents Occupancy, ADR and RevPAR.

	For the Three Months Ended				For the Twelve Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Occupancy	66.6 %		63.1 %		67.3 %		62.6 %
ADR	$                146.01		$             130.53		$               148.89		$                122.16
RevPAR	$                  97.73		$               83.99		$               100.42		$                  78.85

Additional information on 2022 financial and operational results can be found at www.sedar.com in our 2022 audited consolidated financial statements and management discussion and analysis ("MD&A").

DoubleTree Portfolio

On March 8, 2022, the Company began the marketing process to sell its DoubleTree Portfolio. As of December 31, 2022, the Company has sold the Beaverton, Vancouver and Bend properties for a combined purchase price of US$67.5 million. The Company has executed purchase and sale agreements on the Tigard property for a purchase price of US$24.5 million and expects this transaction to close in the second quarter of 2023. The Company will use the proceeds from the sale to pay down the outstanding debt on the DoubleTree Portfolio.

The Company has opted to no longer sell the Olympia property at this time.

Non-IFRS Financial Measures

FFO and AFFO are key measures of performance commonly used by real estate operating companies and real estate investment trusts. They are not measures recognized under International Financial Reporting Standards ("IFRS") and do not have standardized meanings prescribed by IFRS. FFO and AFFO may not be comparable to similar measures presented by other issuers in the real estate or lodging industries. For complete definitions of these measures, as well as an explanation of their composition and how the measures provide useful information to investors, please refer to the section titled "Non-IFRS Financial Measures" in NHT's MD&A for the three months and twelve months ended December 31, 2022, which section is hereby incorporated herein by reference.

The following is a reconciliation of our net income to FFO and AFFO for the three months and twelve months ended December 31, 2022 and December 31, 2021:

	For the Three Months Ended				For the Twelve Months Ended
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
	$		$		$		$
Net income (loss) from continuing operations	(10,694)		(30,664)		1,985		25,313
Depreciation of property and equipment	12,104		3,397		12,104		10,283
Depreciation of right-of-use asset	334		82		334		316
Fair value adjustment to interest rate swaps	—		376		—		(7,994)
Acquisition costs	—		457		498		162
Deferred income tax recovery	(1,653)		(825)		(1,653)		(845)
Fair value adjustment of Class B Units	(123)		2		(123)		(194)
Impairment (recovery)/loss	(829)		24,047		(829)		(38,162)
Funds from Operations	(861)		(3,128)		12,316		(11,121)
FFO per unit - basic	(0.03)		(0.11)		0.41		(0.38)
Income taxes	115		465		115		45
Core Funds from Operations	(746)		(2,668)		12,431		(11,076)
CFFO per unit - basic	(0.02)		(0.09)		0.42		(0.38)
FF&E reserve	(4,242)		(359)		(4,556)		(2,213)
Amortization of deferred financing costs	1,202		229		1,202		852
Adjusted Funds from Operations	(3,786)		(2,793)		9,077		(12,437)
AFFO per unit - basic	(0.13)		(0.10)		0. 30		(0.42)
Weighted average units outstanding - basic	29,901,742		29,352,055		29,901,742		29,352,055

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. 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 10 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:              

Investor Relations
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Media Inquiries
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1 In this release, "we," "us," "our," and "NHT" each refer to NexPoint Hospitality Trust.

2 FFO and AFFO are non-IFRS measures. For a description of the basis of presentation and reconciliations of NHT's non-IFRS measures, see "Non-IFRS Financial Measures" in this release.

 

SOURCE NexPoint Hospitality Trust

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