Apple Hospitality REIT(US:APLE)2025-11-03 21:15Financial 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].