DALLAS and TORONTO, Aug. 28, 2020 /PRNewswire/ -- NexPoint Hospitality Trust, ("NHT"1), (TSX-V: NHT.U) announced today the release of NHT's financial results for the three and six months ended June 30, 2020. All amounts are expressed in U.S. dollars.
Results for the three months ended June 30, 2020
- For the three months ended June 30, 2020, NHT reported Net Loss, FFO2, Core FFO2 and AFFO2 of $(13.4) million, $(4.7) million, $(4.7) million and $(4.6) million, respectively, attributable to Unitholders.
- For the three months ended June 30, 2020, the portfolio averaged occupancy of 22.2%, Average Daily Rate of $95.64 and Revenue per Available Room of $21.69.
- For the three months ended June 30, 2020, the portfolio generated total revenues of $2.8 million, operating and general and administrative expenses of $3.2 million and NOI2 of $(0.4) million, generating an NOI Margin2 of (14.6)%.
Results for the six months ended June 30, 2020
- For the six months ended June 30, 2020, NHT reported Net Loss, FFO2, Core FFO2 and AFFO2 of $(65.4) million, $(7.3) million, $(7.3) million and $(7.3) million, respectively, attributable to Unitholders.
- For the six months ended June 30, 2020, the portfolio generated total revenues of $17.1 million, operating and general and administrative expenses of $16.5 million and NOI2 of $0.6 million, generating an NOI Margin2 of 3.5%.
Additional information on second quarter 2020 financial and operational results can be found at www.sedar.com in our 2020 unaudited consolidated interim financial statements and management discussion and analysis ("MD&A").
The COVID-19 pandemic continues to severely impact the lodging sector worldwide. Due to the COVID-19 outbreak, NHT has made additional material changes to its forecasts for 2020 and assumed much lower occupancies across each property through the summer, with gradual increases thereafter.
As of June 30, 2020, NHT had a working capital deficiency of $46.4 million, which was primarily the result of NHT's $35 million mezzanine facility that originally matured on April 8, 2020 (which was further extended by the lender until September 8, 2020) and the impact of the COVID-19 pandemic.
Management is actively working towards addressing NHT's liquidity concerns, including the following: (i) negotiating with lenders to extend or otherwise restructure the terms of our loans and obtain relief from covenants in the near term and (ii) converting payables to an affiliate into Class B Units of NHT's operating partnership. In addition, subject to market conditions, NHT may seek to raise funding through new debt and equity financing, including sale-leaseback and ground lease arrangements. The particular features and quality of the underlying assets and the debt and equity market parameters existing at the time of financing may impact the ability to obtain financing.
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 11 branded properties sponsored by Marriott, Hilton and Intercontinental Hotels Group, located across the U.S. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P.
Certain statements in this press 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 is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. In particular, the impact of the COVID-19 pandemic on NHT's business and NHT's plan to address its liquidity concerns constitute forward-looking statements.
Forward-looking information contained in this press release is based on certain key expectations and assumptions made by NHT, including, without limitation, a reasonably stable North American economy and stock market. Although the forward-looking information contained in this press release is based upon what the NHT's management believes to be reasonable assumptions, NHT cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in NHT's final prospectus dated March 27, 2019, NHT's final short form base shelf prospectus dated November 15, 2019 and Management's Discussion and Analysis dated August 28, 2020, which are available on SEDAR (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 NHT. The forward-looking information is made as of the date of this press release and NHT assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
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.
Chief Financial Officer
1 In this release, "we," "us," "our," and "NHT" each refer to NexPoint Hospitality Trust.
2 FFO, Core FFO, AFFO, NOI, NOI Margin Debt to Gross Real Estate Value Ratio and Core FFO payout ratio 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.