BETHESDA, Md., Nov. 08, 2016 (GLOBE NEWSWIRE) -- Condor Hospitality Trust, Inc. (NASDAQ:CDOR) (the "Company") today announced results for the third quarter ended September 30, 2016. "We achieved significant progress in the strategic repositioning of Condor once again in the third quarter of 2016 with the closing of the joint venture to acquire the Atlanta Aloft Downtown, the announcement of a purchase contract to acquire the Aloft Leawood/Overland Park, and the sale of seven legacy assets, including three subsequent to quarter-end," said Bill Blackham, Condor's Chief Executive Officer. "Moreover, despite the reduction of our portfolio from 45 hotels as of September 30, 2015 to 28 hotels as of September 30, 2016 and a decline of $9.1 million in Net Income mainly due to nonrecurring items, Adjusted EBITDA was significantly less impacted than might otherwise be expected as a result of the larger contribution and increased profitability of our new investment platform hotels. In fact, our new investment platform hotels achieved 6.4% RevPAR growth for the nine months ended September 30, 2016, greatly exceeding industry-average RevPAR growth," Blackham continued. 2016 Third Quarter HighlightsThe Company maintained the positive momentum of its strategic repositioning in the third quarter of 2016. The Company closed the joint venture to acquire the Aloft Atlanta Downtown, announced the purchase contract to acquire the Aloft Leawood/Overland Park, closed on the disposition of seven non-core hotels both in the quarter and subsequent to quarter-end, and increased its common dividend. These important accomplishments are further detailed below. Revenue and Net Earnings: Condor's third quarter 2016 revenue from continuing operations was $13.5 million compared to $15.9 million in the same 2015 period. Revenue from newly acquired properties for the third quarter totaled $3.0 million which was offset by revenue declines from properties considered held for sale or sold of $5.0 million for the same period. Third quarter net earnings attributable to common shareholders was $1.8 million, or $0.37 per basic and $0.06 per diluted share, compared to net earnings of $10.3 million, or $2.09 per basic and $0.13 per diluted share for the same 2015 period, which included a substantial $7.9 million noncash derivative gain. Common Dividend Increase: On September 15, 2016, the Board of Directors declared a common stock dividend of $0.03 per share related to the third quarter, a $0.02 per share increase over the dividend announced on July 11, 2016 related to the second quarter. The third quarter dividend was paid on October 12, 2016 to shareholders of record on September 29, 2016. The third quarter dividend represents the second consecutive quarterly dividend for the Company since declaring a dividend for the first time since 2009. Although the Board of Directors will evaluate the Company's dividend policy on a quarterly basis, it believes that the new common dividend level is sustainable. Closed Joint Venture Acquisition of the Aloft Atlanta Downtown: On August 23, 2016, the Company announced the closing of the joint venture acquisition of the 254-room Aloft Atlanta located in downtown Atlanta at 300 Spring Street NW, Atlanta, GA 30308. Condor entered into a joint venture agreement with Three Wall Capital to acquire the hotel. Through its operating partnership subsidiary, Condor owns 80% of the joint venture with Three Wall Capital owning the remaining 20%. The purchase price for the hotel was $43,550,000. The hotel will be managed by Boast Hotel Management Company, LLC, an affiliate of Three Wall Capital. Announced Purchase Contract to Acquire the Aloft Leawood/Overland Park: On August 31, 2016, the Company announced that it executed an agreement to purchase the 156-room Aloft Leawood/Overland Park located within Park Place Village at 11620 Ash Street, Leawood, KS, 66211. The purchase price for the hotel is $22,500,000. The hotel will be managed by Presidian Hotels and Resorts. The closing of the acquisition of the hotel is anticipated to occur in the fourth quarter of 2016, but is subject to customary closing conditions including accuracy of representations and warranties and compliance with covenants and obligations. 7 Non-Core Assets Sold: In the third quarter of 2016, the Company continued to successfully dispose of legacy assets at what it believes are attractive valuations. In addition to the 11 hotels sold in the first and second quarters of 2016 with gross proceeds totaling $26.0 million, the Company sold four assets in the third quarter resulting in $8.8 million of gross proceeds. Subsequent to the close of the third quarter, the Company closed on the sale of three additional assets resulting in $8.6 million of gross proceeds. Thus, year-to-date as of the time of this press release, the Company has sold 18 legacy assets totaling $43.4 million in gross proceeds. The Company plans to dispose a total of 22 legacy hotels, including the aforementioned 18 closed dispositions, in 2016 and will utilize the net proceeds to continue to strategically reposition the portfolio. Summary Financial Results Revenue: Condor's third quarter 2016 revenue from continuing operations was $13.5 million compared to $15.9 million in the same 2015 period. Condor's year-to-date 2016 revenue from continuing operations was $40.2 million compared to $45.3 million in the same 2015 period. Revenue from newly acquired properties in the three months and nine months ended September 30, 2016 totaled $3.0 million and $9.5 million, respectively, which was offset by revenue declines from properties considered held for sale or sold of $5.0 million and $14.2 million, respectively, for these same 2015 periods. Net Earnings: Third quarter net earnings attributable to common shareholders was $1.8 million, or $0.37 per basic and $0.06 per diluted share, compared to net earnings of $10.3 million, or $2.09 per basic and $0.13 per diluted share for the same 2015 period, which included a substantial $7.9 million noncash derivative gain. Year-to-date net loss attributable to common shareholders was ($1.5) million, or ($0.31) per basic and diluted share compared to $6.1 million, or $1.25 per basic and ($0.02) per diluted share for the same 2015 period. The year-to-date 2016 results include dividends declared and undeclared and in kind distributions to preferred shareholders of $19.8 million which increased considerably over $2.7 million in the same period in 2015 as a result of the preferred stock redemptions and transactions in 2016. Increased gains on the sale of assets, decreased net gain on derivatives and convertible debt, and differences in impairment charges also drove the differences in net income between the periods. RevPAR: For the third quarter, Revenue per Available Room ("RevPAR") for the four hotels considered the new investment platform hotels (includes the three hotels acquired in 2015 and the Hilton Garden Inn acquired in 2012) increased to $81.56 from $80.89 for the same period in 2015 (comparable operating results given for these hotels include results prior to the Company's ownership based on information obtained from the prior owners). The increase is attributable to a 4.8% increase in Average Daily Rate ("ADR") over the same period 2015, partially offset by a decline in occupancy. ADR rose to $115.25 for the third quarter 2016 as compared to $109.93 for the same period in 2015. Occupancy declined to 70.77% for the third quarter 2016 as compared to 73.58% for the same period in 2015. For the nine months ended September 30, 2016, RevPAR increased 6.4% to $84.80 as compared to $79.72 for the same period in 2015 for these new investment platform hotels. The Company owned only one of the new investment platform hotels for the full respective same periods in 2015 and believes the increase in RevPAR across the new investment platform hotels is indicative of the Company's ability to effectively monitor its third party operators and identify intensive asset management strategies to achieve enhanced performance.