Group 1: Inflation and Economic Impact - The recent inflation reading of 3% indicates moderate price growth, above the Federal Reserve's long-term target of 2% but below the elevated rates seen in 2022 and early 2023 [1] - The 3% inflation figure was below expectations of 3.1%, leading to speculation on potential rate cuts by the Federal Reserve in December [1] - A reduction in the Fed Funds rate by 50 basis points over the rest of 2025 could lower the rate from the current 4%-4.25% to 3.50%-3.75% [1] Group 2: High-Yield Dividend Stocks - High-yield dividend stocks provide a reliable source of passive income, appealing to investors seeking to diversify income streams or achieve financial independence [4] - A screening of a blue-chip dividend stock database identified four companies yielding 7% or more, which are often overlooked by growth and income investors [2] Group 3: Apple Hospitality REIT - Apple Hospitality REIT owns a large portfolio of upscale, select-service hotels in the U.S., comprising 224 hotels with over 30,066 guest rooms across 87 markets in 37 states [5] - The company offers a monthly dividend yield of 8.34%, distinguishing itself in the market [5] - The hotel portfolio includes 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels, primarily operated under Marriott or Hilton brands [6]

Core Insights - The recent inflation reading stands at 3%, indicating moderate price growth, which is above the Federal Reserve's long-term target of 2% but significantly lower than the elevated rates observed in 2022 and early 2023 [1] Inflation Analysis - Current inflation rate of 3% reflects a shift from the higher rates experienced previously, suggesting a potential stabilization in the economy [1] - The inflation rate is still above the Federal Reserve's target, indicating ongoing monitoring and potential policy implications [1]

Core Insights - Reaching retirement age presents both advantages and challenges for individuals in the U.S. [1] Group 1 - The transition to retirement can lead to financial uncertainty, impacting lifestyle choices and healthcare access [1] - Many individuals may underestimate the costs associated with retirement, leading to potential financial strain [1] - The reliance on Social Security benefits may not be sufficient for a comfortable retirement, necessitating additional savings [1]

Group 1 - The article highlights Apple Hospitality REIT's compelling dividend yield, strong financials, and trading below book value, which provides a margin of safety for income-focused investors [1] - The author has over 10 years of experience researching various companies across multiple sectors, including commodities and technology, which enhances the credibility of the analysis [2] Group 2 - The author has transitioned from writing a blog to a value investing-focused YouTube channel, indicating a shift in content delivery while maintaining a focus on in-depth company research [2]

Core Insights - Apple Hospitality REIT, Inc. (NYSE:APLE) is recognized as one of the 10 safest monthly dividend stocks to buy, highlighting its stability and reliability in the market [1]. Company Overview - Apple Hospitality REIT, Inc. is a Virginia-based real estate investment trust that owns and operates hotel properties across the United States, featuring well-known brands such as Courtyard, Fairfield, and Residence Inn [2]. Operational Strategy - The management of Apple Hospitality REIT has focused on enhancing efficiency, reducing operating costs, and upgrading its portfolio by replacing older hotels with newer ones. These strategies, combined with steady improvements in occupancy rates, position the REIT for long-term value creation for investors [3]. Dividend Performance - The company has established a strong reputation among investors due to its consistent dividend payments since 2008, including supplemental payouts at times. As of September 23, the monthly dividend stands at $0.08 per share, resulting in a dividend yield of 7.79% [4].

Core Viewpoint - Apple Hospitality REIT (APLE) is currently identified as a strong value stock, exhibiting attractive valuation metrics compared to its industry peers [4][8]. Valuation Metrics - APLE has a P/E ratio of 8.28, significantly lower than the industry average of 15.73, indicating potential undervaluation [4]. - The company's P/B ratio stands at 0.91, compared to the industry average of 1.79, suggesting a solid valuation relative to its book value [5]. - APLE's P/S ratio is 2.05, while the industry average is 3.89, further supporting the notion of undervaluation based on sales performance [6]. - The P/CF ratio for APLE is 7.86, which is attractive when compared to the industry's average of 15.14, indicating a favorable cash flow outlook [7]. Earnings Outlook - The strength of APLE's earnings outlook, combined with its favorable valuation metrics, positions it as a compelling investment opportunity for value investors [8].

Group 1 - The focus of the REIT sector is to maximize distributions, which is a priority for many investors [1] - Crude Value Insights provides an investment service centered on oil and natural gas, emphasizing cash flow and growth potential [1] - The service includes a model account with over 50 stocks and detailed cash flow analyses of exploration and production firms [2] Group 2 - Subscribers have access to live chat discussions regarding the oil and gas sector [2] - A two-week free trial is available for new subscribers to explore the offerings [3]

Group 1 - The investment approach has received over 500 five-star reviews, indicating high satisfaction among members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - Current economic conditions show high interest rates and a potential recession, alongside an impending AI revolution that may significantly impact the market [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, providing real-time insights into his REIT portfolio and transactions [2] - The group offers features such as multiple portfolios (core, retirement, international), buy/sell alerts, and direct access to analysts for inquiries [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment firm that consults various investment entities on REIT investing [2]

Financial Data and Key Metrics Changes - Comparable hotels total revenue was $380 million for the quarter, down slightly from the same period in 2024 [17] - Comparable hotels adjusted hotel EBITDA was $142 million for the quarter, down approximately 5% year-over-year [17] - Second quarter comparable hotels RevPAR was $129, down 1.7% compared to Q2 2024 [17] - Comparable hotels adjusted hotel EBITDA margin was 37.4% for the quarter, down 200 basis points from the same period in 2024 [25] Business Line Data and Key Metrics Changes - Group business mix improved by 150 basis points to 17%, offsetting declines in government and negotiated segments [22] - Other revenues increased by 6% on a comparable basis during the quarter, primarily driven by parking revenue [23] - Total hotel expenses increased by 2.8% for the second quarter compared to the same period last year [23] Market Data and Key Metrics Changes - RevPAR declines improved each month, with preliminary results for July showing approximately 1% growth compared to July 2024 [20] - Weekend occupancy was positive year-over-year in June, up 1.1% [21] - Market performance varied significantly, with some markets experiencing strong RevPAR gains while others faced headwinds [20] Company Strategy and Development Direction - The company continues to focus on optimizing the mix of business at hotels to strengthen market share [5] - The strategy includes maintaining a strong balance sheet and reinvesting in hotels to enhance value [14] - The company is positioned to benefit from favorable supply-demand dynamics, with nearly 60% of hotels having no new competitive products under construction nearby [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improvements in consumer sentiment and easing economic uncertainty [30] - The company anticipates a potential reacceleration in economic growth, which could positively impact performance [7] - Adjustments to full-year guidance reflect current booking trends, which may prove conservative if macroeconomic conditions improve [30] Other Important Information - The company paid distributions totaling approximately $57 million or $0.24 per common share during the second quarter [8] - The company has completed the sale of two hotels for a total of approximately $21 million and has additional sales under contract [9] - Capital expenditures for the year are expected to be between $80 million and $90 million, with major renovations planned for approximately 20 hotels [14] Q&A Session Summary Question: Guidance on RevPAR - Management indicated that if positive booking trends continue, they might have been comfortable maintaining the prior midpoint of RevPAR guidance [33] Question: Booking Strategy - Group business has been beneficial for ADR, and management plans to continue layering on group business where it makes sense [35] Question: July Performance - July showed improvement in RevPAR growth and market share, but August and September bookings are down [39] Question: Market Performance in Sunbelt Areas - Specific markets like Dallas and Phoenix faced challenges due to various factors, including convention cancellations and business pullbacks [43] Question: Confidence in 4Q RevPAR Pickup - Management expressed confidence in 4Q RevPAR growth due to positive booking positions and calendar shifts [49] Question: Capital Allocation and Dispositions - The company plans to continue pursuing dispositions to fund share repurchases while maintaining balance sheet capacity for future acquisitions [51] Question: Nashville Acquisition - The Nashville acquisition is expected to be funded primarily through balance sheet capacity and proceeds from sales [55]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended June 30, 2025, reflect decreased revenue and net income, with total assets slightly down and debt up [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$4.93 billion** as of June 30, 2025, while total liabilities and net debt increased Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,929,092** | **$4,969,920** | | Investment in real estate, net | $4,764,731 | $4,820,748 | | Cash and cash equivalents | $7,896 | $10,253 | | **Total Liabilities** | **$1,730,307** | **$1,704,061** | | Debt, net | $1,525,866 | $1,471,452 | | **Total Shareholders' Equity** | **$3,198,785** | **$3,265,859** | [Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q2 2025 total revenue decreased to **$384.4 million**, with net income falling to **$63.6 million** or **$0.27 per share** Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $384,370 | $390,077 | $712,072 | $719,589 | | Operating Income | $84,851 | $93,515 | $135,710 | $165,130 | | Net Income | $63,648 | $73,931 | $94,869 | $127,981 | | Basic and Diluted EPS | $0.27 | $0.31 | $0.40 | $0.53 | [Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity decreased to **$3.20 billion** by June 30, 2025, primarily due to distributions and share repurchases - For the six months ended June 30, 2025, the company repurchased approximately **3.4 million** common shares for **$43.2 million**[15](index=15&type=chunk) - Distributions declared to shareholders totaled **$114.6 million** for the first six months of 2025, at a rate of **$0.48 per share**[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$157.9 million** for H1 2025, with significant cash used in investing and financing activities Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $157,935 | $181,955 | | Net cash used in investing activities | ($39,818) | ($202,226) | | Net cash (used in) provided by financing activities | ($120,361) | $15,172 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, hotel portfolio (221 hotels), recent acquisitions/dispositions, and future commitments - As of June 30, 2025, the Company owned **221 hotels** with **29,893 guest rooms** in 37 states and D.C., including one hotel classified as held for sale[20](index=20&type=chunk) - Acquired one Homewood Suites in Tampa, Florida for a gross purchase price of approximately **$18.8 million** during the first six months of 2025[30](index=30&type=chunk) - Sold two hotels for a combined gross sales price of approximately **$21.0 million**, resulting in a gain of **$3.6 million** during the first six months of 2025[34](index=34&type=chunk) - As of June 30, 2025, the company had an outstanding contract to purchase a hotel under development in Nashville, Tennessee for an expected price of approximately **$98.2 million**[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes H1 2025 performance decline to travel disruptions and macroeconomic uncertainty, with RevPAR down and expenses up [Hotel Operations](index=30&type=section&id=Hotel%20Operations) Hotel performance declined in H1 2025, with total revenue down **1.0%** and RevPAR down **0.2%**, impacted by external factors Key Operating Metrics (Total Portfolio) | Metric | Q2 2025 | Q2 2024 | % Change | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | ADR | $163.56 | $162.98 | 0.4% | $160.11 | $158.34 | 1.1% | | Occupancy | 78.6% | 79.8% | -1.5% | 74.9% | 75.9% | -1.3% | | RevPAR | $128.59 | $130.07 | -1.1% | $119.88 | $120.18 | -0.2% | Comparable Hotels Operating Results (219 hotels) | Metric | Q2 2025 | Q2 2024 | % Change | YTD 2025 | YTD 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | RevPAR | $128.68 | $130.89 | -1.7% | $120.18 | $121.49 | -1.1% | - Management expects RevPAR for Comparable Hotels to moderately improve, but full-year 2025 RevPAR is expected to be slightly lower than 2024, assuming the current macroeconomic environment continues[99](index=99&type=chunk) [Results of Operations Analysis](index=33&type=section&id=Results%20of%20Operations%20Analysis) H1 2025 revenue declined due to external factors, while operating expenses rose from labor and utility costs, and interest expense increased - The decline in revenue for H1 2025 was primarily due to weather-related travel disruption, reduced government travel, and the additional day of revenues in 2024 from the leap year[101](index=101&type=chunk) - Hotel operating expenses increased in H1 2025 due to higher labor costs, utility costs, and general inflationary pressures[102](index=102&type=chunk) - General and administrative expenses decreased in H1 2025 primarily due to lower accruals for the executive incentive compensation plan[105](index=105&type=chunk) - Interest expense increased due to higher average borrowings on variable-rate debt and a decrease in the amount of variable-rate debt fixed by interest rate swaps[108](index=108&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Key non-GAAP metrics for H1 2025, including FFO (**$185.8 million**) and MFFO (**$187.5 million**), showed a year-over-year decrease FFO and MFFO Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $63,648 | $73,931 | $94,869 | $127,981 | | Funds from operations (FFO) | $110,910 | $120,434 | $185,755 | $202,777 | | Modified funds from operations (MFFO) | $111,803 | $121,329 | $187,542 | $204,569 | EBITDA and Adjusted Hotel EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $63,648 | $73,931 | $94,869 | $127,981 | | EBITDA | $132,975 | $141,332 | $231,877 | $259,872 | | Adjusted EBITDAre | $133,006 | $140,916 | $228,384 | $241,726 | | Adjusted Hotel EBITDA | $141,070 | $151,680 | $246,335 | $261,473 | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$1.5 billion** in debt and **$474.9 million** available on its credit facility, with recent refinancing activities - As of June 30, 2025, the company had **$1.5 billion** of total outstanding debt and unused borrowing capacity under its Revolving Credit Facility of approximately **$474.9 million**[133](index=133&type=chunk) - Subsequent to quarter end, on July 24, 2025, the company entered into a new **$385 million** term loan facility with a maturity date of July 31, 2030, using proceeds to repay a **$225 million** facility and pay down its revolver[133](index=133&type=chunk)[144](index=144&type=chunk) - The company repurchased **3.4 million** common shares for approximately **$43.2 million** in the first six months of 2025. As of June 30, 2025, **$257.6 million** remained available under the Share Repurchase Program[141](index=141&type=chunk) - The company anticipates spending approximately **$80 million to $90 million** on capital expenditures during 2025, including renovations for approximately 20 properties[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with **39%** (**$603.0 million**) of its debt at variable rates, impacting net income by **$6.0 million** per 100 bps change - The company is exposed to interest rate risk, with approximately **$603.0 million**, or **39%** of its total debt, subject to variable interest rates as of June 30, 2025 (after giving effect to interest rate swaps)[155](index=155&type=chunk) - A **100 basis point** change in interest rates is estimated to impact the company's annual net income by approximately **$6.0 million**[155](index=155&type=chunk) - The company utilizes nine interest rate swap agreements to effectively fix the interest payments on approximately **$585.0 million** of its variable-rate debt[156](index=156&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[159](index=159&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) No current or threatened litigation is expected to materially impact the company's financial position or operations - The company reports no current or threatened litigation that would have a material adverse effect on its consolidated financial position or results of operations[161](index=161&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **1,432,127** common shares in Q2 2025, with **$257.6 million** remaining under the repurchase program Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 493,988 | $12.18 | | May 2025 | 505,964 | $11.57 | | June 2025 | 432,175 | $11.57 | | **Total Q2** | **1,432,127** | | [Other Information](index=51&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading arrangements were adopted or terminated, and new tax legislation impacts REIT dividends and TRS asset limits - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[164](index=164&type=chunk) - New tax legislation effective July 4, 2025, permanently extended the **20%** deduction for qualified REIT dividends and increased the TRS asset test limit to **25%** from **20%** for taxable years beginning after December 31, 2025[165](index=165&type=chunk) [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including corporate governance documents and officer certifications