Financial Performance - Net income for Q4 2024 was $29.8 million, a 43.6% increase from $20.8 million in Q4 2023; full year net income reached $214.1 million, up 20.6% from $177.5 million in 2023[2] - Adjusted EBITDAre for Q4 2024 was approximately $97 million, a 7% increase from the same period in 2023; full year Adjusted EBITDAre was $467 million, also up 7%[10] - Total revenue for the year ended December 31, 2024, was $1,431,468,000, an increase of 6.5% compared to $1,343,800,000 in 2023[35] - Operating income for the three months ended December 31, 2024, was $49,903,000, up 28.3% from $38,910,000 in the same period of 2023[37] - Operating margin for the year ended December 31, 2024, improved to 20.5%, up 210 basis points from 18.4% in 2023[37] Hotel Operations - Comparable Hotels RevPAR grew approximately 3% in Q4 2024 and over 1% for the full year 2024 compared to the same periods in 2023[5] - Comparable Hotels Adjusted Hotel EBITDA for Q4 2024 was approximately $108 million, a 3% increase from Q4 2023; full year Comparable Hotels Adjusted Hotel EBITDA was $509 million, a slight improvement over 2023[9] - Average Daily Rate (ADR) for Comparable Hotels was $152.97 in Q4 2024, up 0.6% from Q4 2023; full year ADR was $158.94, up 0.5%[9] - Occupancy rate for Comparable Hotels was 71.3% for the three months ended December 31, 2024, compared to 69.9% in 2023, reflecting a 2.0% increase[37] Capital Expenditures and Investments - The Company invested approximately $78 million in capital expenditures during 2024 and anticipates investing between $80 million and $90 million in 2025[18] - The Company acquired two hotels for approximately $196 million and sold six non-core hotels for over $63 million during 2024[6] - The Company sold six hotels in 2024 for a combined gross sales price of approximately $63.4 million, resulting in a gain of approximately $19.7 million[14] Debt and Financial Position - Total debt to total capitalization, net of cash and cash equivalents, was approximately 28% as of December 31, 2024[12] - The Company maintained a strong balance sheet with total debt outstanding of $0 as of December 31, 2024[2] - As of December 31, 2024, the Company had approximately $1.5 billion in total outstanding debt with a weighted-average interest rate of approximately 4.7%[19] - Total liabilities as of December 31, 2024, were $1,704,061,000, an increase from $1,613,317,000 in 2023[34] Shareholder Returns - Distributions paid per share remained stable at $0.24 for Q4 2024, with an annualized yield of approximately 6.5% based on the stock price of $14.76[12] - The Company paid distributions totaling $1.01 per common share for the year ended December 31, 2024, amounting to approximately $243.7 million[22] - The Company repurchased approximately 2.4 million common shares at a weighted-average price of approximately $14.16 per share, totaling approximately $34.7 million in 2024[20] Future Guidance - For 2025, the Company anticipates net income guidance between $173 million and $202 million, with Comparable Hotels RevPAR Change guidance of 1.0% to 3.0%[24] - The company's net income guidance for the year ending December 31, 2025, ranges from $173,214 thousand to $202,114 thousand[64] - EBITDA is projected to be between $443,422 thousand and $467,722 thousand for the same period[64] Market Performance - The overall performance in the top 20 markets indicates a recovery trend, with several markets showing significant growth in both occupancy and revenue metrics[71] - The average Adjusted ADR across all top 20 markets was $162.00, a slight increase of 0.2% from $161.61 in Q4 2023[71] - The hotel occupancy rate in the top 20 markets improved to 73.3%, up from 66.8% in the previous year, indicating a 9.7% increase[77] Operational Efficiency - The operating margin for Q1 2024 is 21.7%, an improvement from 15.8% in Q1 2023, indicating enhanced operational efficiency[49] - Total portfolio occupancy increased to 75.1% in 2024 from 74.4% in 2023, a change of 0.9%[80] - The suburban segment contributed 44.1% to the adjusted hotel EBITDA in YTD 2024, with an occupancy rate of 75.5%[96]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, particularly Apple Hospitality REIT (APLE) and Xenia Hotels & Resorts (XHR), as strong candidates for value investors based on their financial metrics and rankings [2][9]. Company Analysis - Apple Hospitality REIT (APLE) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - APLE's current P/E ratio is 9.46, significantly lower than the industry average of 15.14, suggesting it may be undervalued [4]. - The stock's Forward P/E has fluctuated between 8.35 and 10.93 over the past year, with a median of 9.42 [4]. - APLE's P/B ratio is 1.11, compared to the industry's average of 1.77, indicating an attractive valuation [5]. - The P/S ratio for APLE is 2.51, while the industry average is 4, further supporting the notion of undervaluation [6]. - APLE's P/CF ratio stands at 9.33, well below the industry's average of 16, reinforcing its appeal as a value stock [7]. Industry Comparison - Xenia Hotels & Resorts (XHR) also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another attractive option for value investors [8]. - XHR's P/B ratio is 1.13, which is lower than the industry average of 1.77, indicating potential undervaluation [8]. - The valuation metrics for both APLE and XHR suggest that they are likely undervalued compared to their peers, making them standout options in the current market [9].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Apple Hospitality REIT (APLE) as a strong candidate for value investors due to its favorable valuation metrics [2][4][8]. Company Overview - Apple Hospitality REIT (APLE) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 9.63, significantly lower than the industry average of 14.92, suggesting it may be undervalued [4]. Valuation Metrics - APLE has a P/B ratio of 1.14, which is below the industry average of 1.75, indicating a solid valuation compared to its peers [5]. - The P/S ratio for APLE stands at 2.62, compared to the industry's average of 3.95, further supporting the notion of undervaluation [6]. - The P/CF ratio for APLE is 9.59, which is attractive when compared to the industry average of 15.81, reinforcing its status as a potentially undervalued stock [7]. Investment Outlook - The combination of APLE's strong earnings outlook and favorable valuation metrics positions it as an impressive value stock in the current market [8].

Group 1 - Investors are anticipating that interest rates will remain stable or gradually decline over the next year, with 87% expecting at least one rate cut in 2025 [1] Group 2 - A majority of investors are optimistic about the potential for interest rate reductions, indicating a shift in market sentiment [1]

Company Overview - Brad Thomas has over 30 years of real estate investing experience and has been involved in over $1B in commercial real estate transactions [2] - Brad Thomas is the author of four books, including "REITs For Dummies" [2] - Brad Thomas co-leads the investing group iREIT®+HOYA Capital, which covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives [1] - The iREIT®+HOYA Capital team has a combined 100+ years of experience, including former hedge fund managers, portfolio managers, and advisors to a former U.S. President [1] Services and Offerings - iREIT® on Alpha provides in-depth research on REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - The iREIT® Tracker offers data on over 250 tickers, including quality scores, buy targets, and trim targets [1] Historical Context - Around the end of 2002, Brad Thomas co-owned over $100 million of commercial real estate, primarily shopping centers and net lease buildings [1]

Core Viewpoint - The article highlights 11 REITs that provide high-yield and safe dividend payouts, targeting cautious investors focused on income generation rather than share price fluctuations [1]. Group 1 - The identified REITs are suitable for investors seeking stable income without significant concern for the underlying share price [1]. - The article emphasizes the importance of cautious investment strategies in the current market environment [1].

Financial Data and Key Metrics Changes - Comparable hotels RevPAR growth was approximately 1% compared to Q3 2023, driven entirely by improvement in rate [8][10] - Third quarter adjusted EBITDAre was $129 million, up approximately 6% compared to Q3 2023, while modified funds from operations was $107 million, up approximately 3% [10][37] - Total revenue for comparable hotels was $378 million for Q3, up approximately 2% year-to-date through September [28] Business Line Data and Key Metrics Changes - Comparable hotels ADR was $163, up more than 1%, and occupancy was 77%, essentially flat compared to Q3 2023 [28] - Total hotel expenses increased year-over-year by 2.7% for Q3, decelerating from previous quarters [34] - Comparable Hotels Adjusted Hotel EBITDA margin was 36.8% for the quarter, down only 60 basis points compared to Q3 2023 [37] Market Data and Key Metrics Changes - Supply-demand dynamics remain favorable, with approximately 54% of hotels not having new upper upscale or upper midscale products under construction within a five-mile radius [11] - Actual rooms under construction within the same radius decreased by 7% year-over-year [11] - October preliminary results showed RevPAR up approximately 4% compared to October 2023 [10] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, optimizing portfolio concentration through strategic dispositions and acquisitions [13][21] - Recent acquisitions have produced strong yields, with the seven hotels acquired since June yielding an unlevered 9% [19] - The company plans to continue investing in capital expenditures, expecting to spend between $75 million and $85 million during 2024 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of leisure travel and the continued improvement in business travel demand [25][26] - The operating environment is stable with favorable supply and demand dynamics, positioning the company for continued strong performance [45] - Management anticipates continued growth in midweek occupancy and rates, with a positive outlook for 2025 [54][56] Other Important Information - The company repurchased approximately 1.4 million common shares at an average price of $14.02 per share during Q3 [17] - Total debt outstanding as of September 30, 2024, was approximately $1.5 billion, with a weighted average interest rate of 4.9% [39] - The company has approximately $301 million remaining under its share repurchase program [41] Q&A Session Summary Question: Update on the disconnect between business transient and leisure rates - Management noted that the gap continues to shrink, with weekday ADR up about 6% relative to 2019 and weekend ADR up about 18% [49] Question: Assumptions for November and December RevPAR - Management projected some RevPAR growth for both November and December based on positive booking trends [51] Question: Expectations for 2025 expense growth - Management indicated that current trends are likely to continue into the coming year [52] Question: Excitement for 2025 and changes expected - Management highlighted the resilience of leisure travel and improvements in midweek occupancy as key factors for optimism [54] Question: Midweek occupancy growth potential - Management indicated there is still room for occupancy growth midweek, with 300 to 750 basis points of opportunity relative to 2019 [64] Question: Overall transaction marketplace and interest in acquisitions - Management noted that while there are ample opportunities, sellers remain reluctant to adjust pricing, leading to fewer transactions [70][72] Question: Group business performance and bookings for next year - Management stated that group business has consistently performed well, with no significant fluctuations expected [74] Question: Impact of shorter booking windows on staffing and planning - Management acknowledged that shorter booking windows require close monitoring of staffing and scheduling [78] Question: Capital allocation strategy regarding asset sales - Management expressed intent to be more aggressive in selling assets if the market remains favorable [82]

Core Insights - Apple Hospitality REIT reported revenue of $378.84 million for the quarter ended September 2024, marking a year-over-year increase of 5.8% [1] - The earnings per share (EPS) for the same period was $0.45, compared to $0.26 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $377.56 million, resulting in a surprise of +0.34% [1] Revenue Breakdown - Room revenue was $346.06 million, slightly above the estimated $344.82 million, reflecting a +5.8% change year-over-year [3] - Other revenue was reported at $16.94 million, below the average estimate of $18.02 million, indicating a -3.5% year-over-year change [3] - Food and beverage revenue reached $15.84 million, surpassing the average estimate of $14.43 million, with a year-over-year increase of +16.7% [3] Earnings Performance - The diluted net earnings per share was $0.23, slightly below the average estimate of $0.25 [3] - The company has not delivered an EPS surprise, as the consensus EPS estimate was also $0.45 [1][3] Stock Performance - Over the past month, shares of Apple Hospitality REIT have returned -3.4%, while the Zacks S&P 500 composite has seen a +0.4% change [4] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance compared to the broader market in the near term [4]

Apple Hospitality REIT (APLE) came out with quarterly funds from operations (FFO) of $0.45 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.45 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this hotel-owning real estate investment trust would post FFO of $0.44 per share when it actually produced FFO of $0.50, delivering a surprise of 13.64%.Over the last four quarters, the company has surpassed consensus FFO estima ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO _______ Commission File Number 001-37389 APPLE HOSPITALITY REIT, INC. (Exact name of registrant as specified in its charter) Virginia 26-1379210 (State or ot ...