Apple Hospitality REIT(APLE)2025-02-24 21:16Financial Performance - The Company reported an ADR of $158.94 for 2024, a 0.5% increase from $158.09 in 2023[22] - Occupancy rate improved to 75.1% in 2024, up from 74.4% in 2023, reflecting a 0.9% increase[22] - RevPAR increased by 1.4% to $119.36 in 2024, compared to $117.67 in 2023[22] - The Company anticipates low single-digit RevPAR growth for its Comparable Hotels in 2025 compared to 2024[22] Acquisitions and Sales - The Company acquired two hotels in 2024 for a total of $196.3 million, funded through property sales and a $650 million revolving credit facility[23] - Six hotels were sold in 2024 for a combined gross sales price of approximately $63.4 million, resulting in a gain of approximately $19.7 million[26] Capital Expenditures and Investments - The Company plans to invest approximately $80 million to $90 million in capital improvements during 2025, following $78.3 million in 2024[36] - The Company plans to use future net proceeds from the ATM Program for acquisitions, debt repayment, capital expenditures, and working capital[43] Debt and Financing - As of December 31, 2024, the Company had approximately $1.5 billion in total outstanding debt with a weighted-average interest rate of 4.71%[39] - The unused borrowing capacity under the Revolving Credit Facility was $567.5 million as of December 31, 2024, available for acquisitions and renovations[40] - Approximately $362.5 million, or 25% of total debt, was subject to variable interest rates as of December 31, 2024, with a potential $3.6 million impact on annual net income for every 100 basis points change in interest rates[230] - The Company has 12 interest rate swap agreements that fix interest payments on approximately $735.0 million of variable-rate debt, with maturities ranging from May 2025 to December 2029[231] - Total debt maturities are projected to reach $1,476.8 million by 2029, with an average interest rate decreasing from 4.7% in 2025 to 3.6% in 2029[233] - Variable-rate debt maturities total $1,097.5 million, with the average interest rate declining from 5.0% in 2025 to 3.3% in 2029[233] - Fixed-rate debt maturities amount to $379.3 million, with average interest rates ranging from 4.0% to 3.6% over the years 2025 to 2029[233] Shareholder Returns - Approximately $300.8 million remained available for share repurchases under the Share Repurchase Program as of December 31, 2024[29] - The Company entered into an equity distribution agreement allowing the sale of up to $500 million of common shares under the ATM Program, with no shares sold in 2024[42] - In 2023, the Company sold approximately 12.8 million shares under the Prior ATM Program at an average price of $17.05 per share, generating gross proceeds of approximately $218.6 million[42] - The annualized distribution rate was $0.96 per common share as of December 31, 2024, with a combined distribution of $0.13 per common share paid in January 2025[44] Risk Management and Corporate Responsibility - The Company maintains insurance coverage for various risks, including general liability and property, but certain catastrophic losses may not be insurable[45] - The hotel industry is seasonal, with higher occupancy and revenues typically in the second and third quarters, which may lead to quarterly revenue fluctuations[56] - The Company is committed to corporate responsibility, focusing on sustainable practices and community engagement through initiatives like Apple Gives[51] Workforce and Diversity - As of December 31, 2024, the Company had 65 team members, emphasizing a diverse and inclusive work environment with competitive benefits[52]