Apple Hospitality REIT, Inc. Reports Results Of Operations For Third Quarter 2016

Apple Hospitality REIT, Inc. (NYSE:APLE) (the "Company" or "Apple Hospitality") today announced results of operations for the third quarter of 2016.
 

Selected Statistical and Financial Data

As of and For the Three and Nine Months Ended September 30

(Unaudited) (in thousands, except statistical and per share amounts) (1)
 
      Three Months Ended       Nine Months Ended
September 30, September 30,
2016       2015       % Change 2016       2015       % Change
 
Net income $   13,694 $   46,968 (70.8%) $   103,098 $   135,080 (23.7%)
Net income per share $ 0.07 $ 0.27 (74.1%) $ 0.57 $ 0.74 (23.0%)
 
Adjusted EBITDA $ 104,084 $ 90,563 14.9% $ 283,208 $ 251,772 12.5%
Comparable Hotels Adjusted Hotel EBITDA $ 125,692 $ 126,295 (0.5%) $ 371,271 $ 357,070 4.0%
Comparable Hotels Adjusted Hotel EBITDA Margin 38.6% 40.0% (140 bps) 39.1% 39.2% (10 bps)
Modified funds from operations (MFFO) $ 93,706 $ 80,893 15.8% $ 253,384 $ 225,946 12.1%
MFFO per share $ 0.49 $ 0.46 6.5% $ 1.41 $ 1.24 13.7%
 
ADR (Actual) $ 136.04 $ 133.18 2.1% $ 135.88 $ 130.12 4.4%
Occupancy (Actual) 80.2% 80.5% (0.4%) 78.9% 78.6% 0.4%
RevPAR (Actual) $ 109.07 $ 107.19 1.8% $ 107.18 $ 102.23 4.8%
 
Comparable Hotels ADR $ 134.75 $ 132.51 1.7% $ 134.90 $ 130.78 3.2%
Comparable Hotels Occupancy 80.1% 80.3% (0.2%) 78.5% 78.7% (0.3%)
Comparable Hotels RevPAR $ 107.97 $ 106.37 1.5% $ 105.96 $ 102.86 3.0%
 
Distributions paid $ 57,227 $ 52,576 8.8% $ 161,940 $ 176,814 (8.4%)
Distributions paid per share $ 0.30 $ 0.30 - $ 0.90 $ 0.97 (7.2%)
 
Total debt outstanding $ 1,351,399
Net debt to trailing twelve month Adjusted EBITDA (2) 3.0
 
(1) Explanations of and reconciliations to Net Income of Adjusted EBITDA, Comparable Hotels Adjusted Hotel EBITDA and MFFO, are included at the end of this release.
(2) Adjusted EBITDA used for the calculation is the trailing twelve month Comparable Hotels Adjusted Hotel EBITDA of $469 million less actual General and Administrative expenses for the Company and Apple REIT Ten, Inc. for the trailing twelve months totaling $24 million.
 

Comparable Hotels is defined as the 236 hotels owned by the Company as of September 30, 2016. For hotels acquired during the periods noted, the Company has included, as applicable, results of those hotels for periods prior to the Company's ownership, and for dispositions, results have been excluded for the Company's period of ownership. Results for periods prior to the Company's ownership have not been included in the Company's actual Consolidated Financial Statements and are included only for comparison purposes. Results included for periods prior to the Company's ownership are based on information from the prior owner of each hotel and have not been audited or adjusted.

Justin Knight, President and Chief Executive Officer, commented, "We are pleased with the overall performance of our portfolio of hotels during the third quarter of this year. Amid a more moderate growth environment, our hotels delivered an increase in Comparable Hotels RevPAR of 1.5 percent and Adjusted EBITDA growth of 14.9 percent. With our successful completion of the merger with Apple REIT Ten during the quarter, we further enhanced our geographic reach and product focus which I believe will increase our opportunity for long-term outperformance in a period of general economic and lodging sector uncertainty."

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