The following is a summary of the American Hotel Income Properties REIT LP Common Units (AHOTF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 2024 total revenue grew by 2.3% with RevPAR finishing at $98, a 2% improvement over Q3 2023.
Normalized diluted funds from operations (FFO) was $0.07 per unit for the quarter, compared to $0.11 per unit in Q3 2023.
Debt to gross book value decreased by 180 basis points so far this year, and debt to trailing 12-month EBITDA decreased by 1.0 times.
Business Progress:
Completed dispositions of 11 properties for gross proceeds of $112 million; five other properties under sales agreements expected before year-end for $53 million.
Initiatives for cost control and efficiency, including reducing dependency on contract labor, stabilizing room costs, and executing capital improvements.
Ongoing refinancing efforts with a major US bank to address the revolving credit facility and upcoming debt maturities.
Opportunities:
Dispositions focused on properties in markets with low demand growth, allowing capital reallocation to more profitable opportunities.
Reduction in leverage and debt providing potential for improved financial stability and operational flexibility.
Risks:
Continued elevated operating expenses impacting NOI margin, which finished at 30.2%, roughly 50 basis points below the same period in 2023.
High levels of employee turnover and a tight labor market leading to increased labor expenses and potential for inconsistent operating performance.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
