Financial Performance - For Q3 2025, Apple Hospitality reported net income of $50.88 million, a decrease of 9.6% compared to Q3 2024, and net income per share of $0.21, down 8.7%[2]. - Total revenue for the three months ended September 30, 2025, was $373,878,000, a decrease of 1.3% compared to $378,843,000 for the same period in 2024[41]. - Net income for the three months ended September 30, 2025, was $50,880,000, down 9.8% from $56,266,000 in the prior year[41]. - Operating income decreased by 6.7% to $72,497,000 for the three months ended September 30, 2025, compared to $77,726,000 in 2024[44]. - Comparable Hotels total revenue for the three months ended September 30, 2025, was $365,038,000, reflecting a 1.4% decline from $370,373,000 in 2024[44]. - Adjusted Hotel EBITDA for the three months ended September 30, 2025, was $128,577,000, a decrease of 6.7% from $137,824,000 in the same period last year[44]. - The company reported a basic and diluted net income per common share of $0.21 for the three months ended September 30, 2025, compared to $0.23 in 2024[41]. - Funds from operations (FFO) for the three months ended September 30, 2025, was $99,565, compared to $106,545 for the same period in 2024[73]. Operational Metrics - The average daily rate (ADR) for Comparable Hotels was approximately $163, down 0.6% from Q3 2024, while occupancy was 76.2%, down 1.2%[9]. - Comparable Hotels RevPAR was approximately $124 for Q3 2025, down 1.8% compared to Q3 2024, exceeding industry averages reported by STR[9]. - The occupancy rate for Comparable Hotels was 76.2% for the three months ended September 30, 2025, down from 77.1% in 2024[44]. - The total portfolio occupancy rate for Q3 2025 is 76.2%, a decline of 1.2% from 77.1% in Q3 2024[88]. - The ADR for the total portfolio in Q3 2025 is $162.68, a decrease of 0.6% from $163.71 in Q3 2024[88]. - RevPAR for the total portfolio in Q3 2025 is $124.01, down 1.8% from $126.29 in Q3 2024[88]. - The occupancy rate for Same Store Hotels in Q3 2025 was 76.2%, down 1.3% from 77.2% in Q3 2024[55]. - RevPAR for Same Store Hotels in Q3 2025 was $123.35, a decrease of 1.8% compared to $125.67 in Q3 2024[55]. Debt and Capital Management - Total debt outstanding as of September 30, 2025, was $1.515 billion, with a total debt to total capitalization ratio of approximately 34%[14]. - As of September 30, 2025, the Company had approximately $1.5 billion of total outstanding debt with a weighted-average interest rate of approximately 4.8%[23]. - The total debt as of September 30, 2025, is approximately $1.515 billion, with average interest rates around 4.8% to 5.0%[79]. - The Company repaid a secured mortgage loan of approximately $29 million, increasing the number of unencumbered hotels to 210 as of October 31, 2025[23]. - The Company has $500 million remaining under its at-the-market offering program as of September 30, 2025[27]. Strategic Acquisitions and Sales - The company sold three non-core assets for $37 million and acquired Homewood Suites Tampa-Brandon for approximately $19 million during the year[7]. - The company expects to close on the sale of four additional hotels for a combined price of $36 million and acquire Motto by Hilton Downtown Nashville for $98 million by year-end[7]. - Since the beginning of 2025, the Company has sold three hotels for a combined gross sales price of approximately $37.0 million, resulting in a gain of approximately $7.9 million[18]. - The Company has four hotels under contract for sale for a combined gross sales price of approximately $36.4 million[18]. - The Company entered into a fixed-price, forward-purchase contract for a dual-branded property in Las Vegas, with an anticipated total purchase price of approximately $143.7 million, expected to open in Q2 2028[17]. Future Guidance and Projections - The Company updated its 2025 guidance, decreasing Net Income by $5.5 million and Comparable Hotels RevPAR Change by 100 bps, while increasing Comparable Hotels Adjusted Hotel EBITDA Margin % by 20 bps[29]. - For the full year 2025, the Company anticipates Net Income in the range of $162 million to $175 million and Adjusted EBITDAre between $435 million and $444 million[30]. - The company is focused on strategic acquisitions and market expansion, which may influence future revenue and operational metrics[74]. - The company's net income guidance for the year ending December 31, 2025, ranges from $162.1 million to $175.3 million[75]. - EBITDA is projected to be between $436.8 million and $446.4 million for the same period[75]. - Adjusted Hotel EBITDA is expected to be in the range of $468.4 million to $483.0 million[75]. - Comparable Hotels Adjusted Hotel EBITDA guidance is set between $466.6 million and $480.2 million[75]. Capital Expenditures - The Company invested approximately $50 million in capital expenditures during the nine months ended September 30, 2025, and anticipates investing $80 million to $90 million in capital improvements for 2025[22].

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]