NexPoint Hospitality Trust Announces First Quarter 2019 Financial Results and Declares Distribution

DALLAS and TORONTO, May 30, 2019 /CNW/ -- NexPoint Hospitality Trust, ("NHT" or the "REIT"¹), (TSX-V: NHT.U) announced today the release of the REIT's financial results for the three months ended March 31, 2019.  Additionally, the board of trustees announced the REIT's first quarterly distribution of $0.075 per outstanding trust unit ("Unit") payable to unitholders of the REIT ("Unitholders") as of the record date June 28, 2019 on or about July 15, 2019.  All amounts are expressed in U.S. dollars.

Highlights

• NHT began operations on January 8, 2019, when it acquired eleven hotel assets located throughout the continental United States with a gross value of $383.7 million.
• NHT successfully closed its initial public offering ("IPO") on March 29, 2019, through the issuance of 917,700 units for gross proceeds of $4.6 million and began trading on the TSX Venture Exchange on April 3, 2019 under the ticker NHT.U.
• For the three months ended March 31, 2019, NHT reported Net Loss, FFO², Core FFO² and AFFO² of $(3.2) million, $(.1) million, $1.7 million and $1.2 million, respectively, attributable to unitholders.
• The portfolio averaged occupancy of 71.6% for the 82-day period from January 8, 2019 to March 31, 2019, Average Daily Rate of $145.73 and Revenue per Available Room of $118.43.
• The portfolio generated total revenues for the 82 day period of $15.9 million, operating and general and administrative expenses of $9.6 million and NOI² of $6.3 million, generating an NOI Margin² of 39.7%.
• NHT had debt to gross real estate value ratio² as at March 31, 2019 of 65%.
• The board declared the REIT's first quarterly distribution of $0.075 per Unit payable to Unitholders of record on June 28, 2019 with payment on or about July 15, 2019, representing a 62% Core FFO payout ratio².
• Additional information on first quarter 2019 financial and operational results can be found at www.sedar.com in our quarterly consolidated interim financial statements and Management Discussion and & Analysis ("MD&A").

"We are extremely excited to successfully list NHT and close our initial public offering.  We believe our strategy can produce superior results and compelling current yields and are looking forward to continually expanding our Unitholder base in the coming year," said chief executive officer James Dondero.

About NHT
NexPoint Hospitality Trust is a publicly traded real estate investment trust, with its Units listed on the TSX Venture Exchange under the ticker NHT.U. NHT is focused on acquiring, owning and operating well-located hospitality properties in the United States that offer a high current yield and in many cases, that are underperforming assets with the potential to increase in value through investments in capital improvements, a market-based recovery, brand repositioning, revenue enhancements, operational improvements, reducing expense inefficiencies, and exploiting excess land or underutilized space. NHT owns 11 branded properties sponsored by Marriott, Hilton and Intercontinental Hotels Group, located across the U.S., specifically in the Seattle, Portland, Dallas, Nashville and St. Petersburg markets. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P., an affiliate of Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information
Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.

Forward-looking information contained in this press release is based on certain key expectations and assumptions made by NHT, including, without limitation, expectations and assumptions respecting the amount of the expected monthly cash distributions and annual yield for the Units and the timing to pay such cash distributions to unitholders, and a reasonably stable North American economy and stock market. Although the forward-looking information contained in this press release is based upon what the NHT's management believes to be reasonable assumptions, NHT cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in NHT's final prospectus dated March 27, 2019 and Management's Discussion and Analysis dated May 30, 2019, which are available on SEDAR (www.sedar.com).

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 NHT. The forward-looking information is made as of the date of this press release and NHT assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

¹ In this release, "we," "us," "our," , the "REIT," "NexPoint Hospitality Trust," and "NHT" each refer to NexPoint Hospitality Trust.
² FFO, Core FFO, AFFO NOI, NOI Margin Debt to Gross Real Estate Value Ratio and Core FFO payout ratio are non-IFRS measures.  See "Non-IFRS Financial Measures" in our MD&A for definitions of each of these measures and a reconciliation to Net Income.

Contact: 
Jackie Graham
Investor Relations
972-628-4024

SOURCE NexPoint Hospitality Trust, Inc.