Q1 2025 Apple Hospitality REIT Inc Earnings Call Transcript
Key Points
- Apple Hospitality REIT Inc (APLE) reported strong demand across its portfolio, with growth in average daily rate (ADR) largely offsetting a slight pullback in occupancy.
- The company has a diversified portfolio across 85 different markets, which helps mitigate risks associated with demand fluctuations.
- Apple Hospitality REIT Inc (APLE) continues to pay an attractive dividend, with a distribution of $0.29 per share in the first quarter, representing an annual yield of approximately 8.2%.
- The company successfully executed select asset sales, using proceeds to fund share repurchases and reduce debt, demonstrating effective capital allocation.
- Apple Hospitality REIT Inc (APLE) maintains a strong and flexible balance sheet, with a low leverage ratio of approximately 3.3 times trailing 12 months EBITDA and significant liquidity available under its revolving credit facility.
- Comparable hotels RevPAR declined by 0.5% in the first quarter compared to the same period in 2024, indicating a slight decrease in revenue performance.
- Occupancy rates fell by 1.5% year-over-year, reflecting challenges in maintaining guest levels.
- Adjusted EBITDAre decreased by approximately 5% compared to the first quarter of 2024, indicating pressure on profitability.
- The company tempered its full-year guidance due to current demand and expense trends, suggesting potential challenges in achieving initial projections.
- Variable expense growth has moderated, but higher fixed costs and lower-than-expected top-line growth negatively impacted bottom-line performance.
Greetings, and welcome to the Apple Hospitality REIT first quarter 2025 earnings conference call. (Operator instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Kelly Clarke, Vice President of Investor Relations. Thank you. You may begin.
Thank you, and good morning. Welcome to Apple Hospitality REIT's first quarter 2025 earnings call. Today's call will be based on the earnings release and Form 10-Q, which we distributed and filed yesterday afternoon.
Before we begin, please note that today's call may include forward-looking statements as defined by federal securities laws. These forward-looking statements are based on current views and assumptions, and as a result, are subject to numerous risks, uncertainties and the outcome of future events that could cause actual results performance or achievements to materially differ from those expressed, projected or implied.
Any such forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
