All amounts presented in this news release are in
AHIP has now satisfied the conditions to extend the maturity of the RCF to
“We are pleased with the outcome of the independent appraisals. These appraisals recognize the significant value of our portfolio with per key values for the subject properties being significantly higher than the implied value per key based on the recent trading price of our units. Further, the incremental liquidity under the RCF allows us to patiently pursue the disposition of non-core assets, using proceeds to pay down debt and recycle capital into new acquisitions.” said
The total appraised value of the 20 hotel properties (the "Borrowing Base Properties") is
The appraised value of
For further details, see a copy of the Sixth Amendment, which has been filed under AHIP’s profile on SEDAR+ at www.sedarplus.com.
ABOUT
NON-IFRS AND OTHER FINANCIAL MEASURES
Management believes the following supplementary financial measures are relevant measures to monitor and evaluate AHIP’s financial and operating performance. These measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures are included to provide investors and management additional information and alternative methods for assessing AHIP’s financial and operating results and should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS.
Enterprise Value: is a supplementary financial measure and is calculated as (i) the sum of total debt obligations as reflected on the
Enterprise Value per Key: is a supplementary financial measure and is calculated as enterprise value divided by the total number of hotel keys/rooms in the portfolio.
NON-IFRS RECONCILIATION
(thousands of dollars) | |
Unrestricted cash – (D) | 17,386 |
Term loans and revolving credit facility | 636,282 |
Face value of convertible debenture | 50,000 |
Total debt – (A) | 686,282 |
Number of units outstanding – (a) | 78,893 |
Unit price at | 0.49 |
Market capitalization – (B) = (a) * (b) | 38,658 |
Face value of Series C preferred shares – (C) | 50,000 |
Total Capitalization = (A) + (B) + (C) | 774,940 |
Total Enterprise Value = (A) + (B) + (C) – (D) | 757,554 |
Number of keys | 7,917 |
Enterprise Value per key | 96 |
FORWARD-LOOKING INFORMATION
Certain statements in this news release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information generally can be identified by words such as “anticipate”, “believe”, “continue”, “expect”, “estimates”, “intend”, “may”, “outlook”, “objective”, “plans”, “should”, “will” and similar expressions suggesting future outcomes or events. Forward-looking information includes, but is not limited to, statements made or implied relating to the objectives of AHIP, AHIP’s strategies to achieve those objectives and AHIP’s beliefs, plans, estimates, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts. Forward-looking information in this news release includes, but is not limited to, statements with respect to: the incremental liquidity under the RCF allowing AHIP to patiently pursue the disposition of non-core assets, using proceeds to pay down debt and recycle capital into new acquisitions; and AHIP’s stated long-term objectives.
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 information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: inflation, labor shortages, and supply chain disruptions will negatively impact the
Forward-looking information involves significant risks and uncertainties and should not be read as a guarantee of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking information, accordingly undue reliance should not be placed on such forward-looking information. Those risks and uncertainties include, among other things, risks related to: AHIP may not achieve its expected performance levels in 2023 and beyond; inflation, labor shortages, supply chain disruptions; AHIP’s brand partners may impose revised service standards and capital requirements which are adverse to AHIP; AHIP’s strategic initiatives with respect to liquidity, addressing near-term debt maturities and providing AHIP with financial stability may not be successful and may not achieve their intended outcomes; AHIP’s strategies for divesting assets to recycle proceeds into new acquisitions and reduce debt may not be successful; AHIP may not be successful in reducing its leverage; AHIP may not be able to refinance debt obligations as they become due or may do so on terms less favorable to AHIP than under AHIP’s existing loan agreements; general economic conditions and consumer confidence; the growth in the
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.
For additional information, please contact:
Investor Relations
ir@ahipreit.com
(1) Non-IFRS and other financial measures. See “NON-IFRS AND OTHER FINANCIAL MEASURES” section of this news release.
Source: American Hotel Income Properties
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