Q4 2024 Apple Hospitality REIT Inc Earnings Call Transcript
Key Points
- Apple Hospitality REIT Inc (APLE) achieved a comparable hotels RevPAR growth of approximately 3% for the fourth quarter and more than 1% for the full year 2024.
- Fourth quarter adjusted EBITDAre increased by approximately 7%, and modified funds from operations rose by approximately 6% compared to the fourth quarter of 2023.
- The company paid an attractive dividend, with a total distribution of $0.24 per common share in the fourth quarter, resulting in an annual yield of approximately 6.5%.
- Recent acquisitions have contributed positively to the overall portfolio performance, with the seven hotels acquired since June of last year producing an unlevered 9% yield after CapEx.
- Apple Hospitality REIT Inc (APLE) has maintained a strong balance sheet, with approximately $1.5 billion of total debt outstanding and a weighted average interest rate of 4.7%.
- The transaction market remains challenging, with industry deal volume at historical lows and down meaningfully year over year.
- The recently opened Embassy Suites in Madison underperformed expectations in the fourth quarter, impacting overall portfolio results.
- Fixed expenses were particularly challenging, with real estate taxes up 11% during the quarter and property insurance costs increasing.
- The company faces a challenging fixed cost expense comparison for 2025, with several onetime tax benefits and decreased property insurance premiums in 2024 not expected to recur.
- Weather-related disruptions negatively impacted performance in January 2025, particularly outside of the LA market.
Greetings and welcome to Apple Hospitality fourth-quarter and full-year 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kelly Clarke. Thank you. You may begin.
Thank you and good morning. Welcome to Apple Hospitality REIT's fourth-quarter and full-year 2024 earnings call. Today's call will be based on the earnings release and form 10-K 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 statements are qualified by the risk
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