American Lodge Revenue Properties REIT LP Publicizes Extension of Its Revolving Credit score Facility and Time period Loans and Replace on Property Inclinations

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VANCOUVER, British Columbia, Dec. 03, 2024 (GLOBE NEWSWIRE) — American Lodge Revenue Properties REIT LP (“AHIP”) (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB. V), right this moment introduced the extension of the maturity date for its revolving credit score facility (the “RCF”) and sure time period loans to June 2025 in accordance with the phrases of the settlement governing such credit score amenities (the “Sixth Modification”) and supplied an replace on beforehand introduced property tendencies.

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All quantities offered on this information launch are in United States {dollars} (“U.S. {dollars}”) except in any other case indicated.

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AHIP has happy the situations within the Sixth Modification for the extension of the maturity date for the RCF and time period loans, which major situations embrace: (i) discount of the mixture most facility dimension to $148.2 million from and after December 3, 2024; (ii) acquiring up to date value determinations for the Borrowing Base Properties (outlined under) so as to decide the worth of such properties for functions of setting the utmost borrowing availability beneath the Sixth Modification, which is about primarily based on a most mortgage to worth ratio of 67.5%; and (iii) compliance with the phrases of the Sixth Modification on the time of the extension, which incorporates amongst different issues compliance with monetary covenants together with payout ratio and glued cost protection ratio. For additional particulars, see a duplicate of the Sixth Modification, which
has been filed beneath AHIP’s profile on SEDAR+ at www.sedarplus.com.

As of the date of the information launch, the stability of the RCF and time period loans beneath the Sixth Modification has been diminished to $133.2 million. The whole appraised worth of the 16 lodge properties (the “Borrowing Base Properties”) is $249.2 million, which leads to a loan-to-value ratio of 53.4%. The present most borrowing availability beneath the RCF and time period loans is $148.2 million. The appraised worth of $249.2 million for the 16 Borrowing Base Properties (1,678 keys) is equal to $149 thousand per key, which is considerably increased than AHIP’s enterprise worth per key⁽¹⁾ of $95 thousand, primarily based on the U.S. greenback closing worth of US$0.36 per unit on the TSX on December 2, 2024.

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In November and December 2024, AHIP accomplished the beforehand introduced tendencies of three lodge properties, in Kingsland, Georgia, Ocala, Florida, and Corpus Christi, Texas, for gross proceeds of $5.2 million, $7.7 million, and $10.3 million, respectively. A portion of the entire internet proceeds from these tendencies, $18.0 million, was used to partially repay the time period loans ruled by the Sixth Modification in the identical interval.

As of the date of the information launch, AHIP had two lodge properties beneath buy and gross sales agreements in Dallas, Texas, and Amarillo, Texas for gross proceeds of $27.0 million and $2.6 million, respectively, with anticipated time limits in December 2024.

As beforehand introduced, AHIP signed a non-binding time period sheet with a significant US Financial institution to refinance sure Borrowing Base Properties. Because of the finished RCF extension and the extra time out there to maturity, administration is presently evaluating a lot of refinancing choices for the credit score amenities ruled by the Sixth Modification, which embrace closing this refinancing within the close to time period. This refinancing, if accomplished, is predicted to cut back the mixture facility stability beneath the Sixth Modification by roughly $60.0 million.

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ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP

American Lodge Revenue Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, is a restricted partnership fashioned to put money into lodge actual property properties throughout the US. AHIP’s portfolio of premium branded, select-service lodges are situated in secondary metropolitan markets that profit from various and steady demand. AHIP lodges function beneath manufacturers affiliated with Marriott, Hilton, IHG and Selection Resorts by means of license agreements. AHIP’s long-term targets are to construct on its confirmed observe report of profitable funding, ship month-to-month U.S. greenback denominated distributions to unitholders, and generate worth by means of the continued progress of its diversified lodge portfolio. Extra data is on the market at www.ahipreit.com.

NON-IFRS AND OTHER FINANCIAL MEASURES

Administration believes the next supplementary monetary measures are related measures to watch and consider AHIP’s monetary and working efficiency. These measures would not have any standardized which means prescribed by IFRS and are due to this fact unlikely to be corresponding to comparable measures offered by different issuers. These measures are included to supply traders and administration further data and various strategies for assessing AHIP’s monetary and working outcomes and shouldn’t be thought-about in isolation or as an alternative to efficiency measures ready in accordance with IFRS.

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Enterprise worth: is a supplementary monetary measure and is calculated as (i) the sum of complete debt obligations as mirrored on the September 30, 2024 stability sheet, AHIP’s market capitalization (which is calculated because the U.S. greenback closing worth of the items on the TSX as of December 2, 2024, multiplied by the entire variety of items issued and excellent), and face worth of sequence C most well-liked shares, much less (ii) the amount of money and money equivalents mirrored on the September 30, 2024 stability sheet.

Enterprise worth per key: is a supplementary monetary measure and is calculated as enterprise worth divided by the entire variety of lodge keys/rooms within the portfolio.

NON-IFRS RECONCILIATION

The next calculation is for the AHIP portfolio of 63 lodge properties:

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FORWARD-LOOKING INFORMATION

Sure statements on this information launch could represent “forward-looking data” and “monetary outlook” inside the which means of relevant securities legal guidelines. Ahead-looking data and monetary outlook typically may be recognized by phrases reminiscent of “anticipate”, “consider”, “proceed”, “count on”, “estimates”, “intend”, “could”, “outlook”, “goal”, “plans”, “ought to”, “will” and comparable expressions suggesting future outcomes or occasions. Ahead-looking data and monetary outlook embrace, however should not restricted to, statements made or implied referring to the targets of AHIP, AHIP’s methods to attain these targets and AHIP’s beliefs, plans, estimates, projections and intentions and comparable statements regarding anticipated future occasions, outcomes, circumstances, efficiency, or expectations that aren’t historic information. Ahead-looking data and monetary outlook on this information launch embrace, however isn’t restricted to, statements with respect to: AHIP’s deliberate disposition of lodges in Dallas, Texas and Amarillo, Texas and the anticipated proceeds therefrom and timing thereof; AHIP administration considering a lot of refinancing choices for the credit score amenities ruled by the Sixth Modification, together with completion of the refinancing for sure of the Borrowing Base Properties contemplated by the non-binding time period sheet signed with a significant US Financial institution within the close to time period and the estimated discount within the mortgage amenities ruled by the Sixth Modification to outcome therefrom; and AHIP’s said long-term targets.

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Though the forward-looking data and monetary outlook contained on this information launch is predicated on what AHIP’s administration believes to be cheap assumptions, AHIP can not guarantee traders that precise outcomes shall be in line with such data. Ahead-looking data and monetary outlook is predicated on a lot of key expectations and assumptions made by AHIP, together with, with out limitation: AHIP will full its deliberate disposition of lodges in Dallas, Texas and Amarillo, Texas in accordance with the phrases and timing presently contemplated; AHIP will full the refinancing for sure of the Borrowing Base Properties contemplated by the non-binding time period sheet signed with a significant US Financial institution in accordance with the phrases and timing presently contemplated; AHIP shall be profitable in refinancing the credit score amenities ruled by the Sixth Modification previous to their revised maturity date; inflation, labor shortages, and provide chain disruptions will negatively influence the U.S. economic system, U.S. lodge business and AHIP’s enterprise; AHIP will proceed to have adequate funds to fulfill its monetary obligations; AHIP’s methods with respect to completion of capital initiatives, liquidity, addressing near-term debt maturities, and divestiture of property shall be profitable and obtain their meant results; AHIP will proceed to have good relationships with its lodge model companions; capital markets will present AHIP with available entry to fairness and/or debt financing on phrases acceptable to AHIP, together with the flexibility to refinance maturing debt because it turns into due on phrases acceptable to AHIP; AHIP’s future stage of indebtedness and its future progress potential will stay in line with AHIP’s present expectations; and AHIP will obtain its long run targets.

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Ahead-looking data and monetary outlook contain important dangers and uncertainties and shouldn’t be learn as a assure of future efficiency or outcomes as precise outcomes could differ materially from these expressed or implied in such forward-looking data and monetary outlook, accordingly undue reliance shouldn’t be positioned on such forward-looking data and monetary outlook. These dangers and uncertainties embrace, amongst different issues, dangers associated to: AHIP could not full its deliberate disposition of lodges in Dallas, Texas and Amarillo, Texas in accordance with the phrases and timing presently contemplated, or in any respect; AHIP could not full the mortgage refinancing for sure of the Borrowing Base Properties contemplated by the non-binding time period sheet signed with a significant US Financial institution in accordance with the timing or on the phrases presently contemplated or in any respect; AHIP is probably not profitable in refinancing the credit score amenities ruled by the Sixth Modification previous to their revised maturity date; AHIP could not obtain its anticipated efficiency ranges in 2024 and past; inflation, labor shortages, provide chain disruptions; AHIP’s model companions could impose revised service requirements and capital necessities that are hostile to AHIP; AHIP’s strategic initiatives with respect to liquidity, addressing near-term debt maturities and offering AHIP with monetary stability is probably not profitable and will not obtain their meant outcomes; AHIP’s methods for divesting property to cut back debt is probably not profitable; AHIP is probably not profitable in lowering its leverage; AHIP could not be capable of refinance debt obligations as they develop into due or could achieve this on phrases much less favorable to AHIP than beneath AHIP’s present mortgage agreements; normal financial situations and shopper confidence; the expansion within the U.S. lodge and lodging business; costs for AHIP’s items and its debentures; liquidity; tax dangers; capability to entry debt and capital markets; financing dangers; modifications in rates of interest; the monetary situation of, and AHIP’s relationships with, its exterior lodge supervisor and franchisors; actual property dangers, together with environmental dangers; the diploma and nature of competitors; capability to accumulate accretive lodge investments; capability to combine new lodges; environmental issues; elevated geopolitical instability; and modifications in laws and AHIP could not obtain its long run targets. Administration believes that the expectations mirrored within the forward-looking data and monetary outlook are primarily based upon cheap assumptions and knowledge presently out there; nevertheless, administration may give no assurance that precise outcomes shall be in line with the forward-looking data and monetary outlook contained herein. Extra details about dangers and uncertainties is contained in AHIP’s administration’s dialogue and evaluation for the three and 9 months ended September 30, 2024 and 2023, and AHIP’s annual data kind for the yr ended December 31, 2023, copies of which can be found on SEDAR+ at www.sedarplus.com.

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To the extent any forward-looking data constitutes a “monetary outlook” inside the which means of relevant securities legal guidelines, such data is being supplied to traders to help of their understanding of: estimated proceeds from the deliberate disposition of sure lodge properties and the anticipated influence of the potential refinancing with a US Financial institution on the credit score amenities ruled by the Sixth Modification.

The forward-looking data and monetary outlook contained herein is expressly certified in its entirety by this cautionary assertion. Ahead-looking data and monetary outlook replicate administration’s present beliefs and are primarily based on data presently out there to AHIP. The forward-looking data and monetary outlook are made as of the date of this information launch and AHIP assumes no obligation to replace or revise such data to replicate new occasions or circumstances, besides as could also be required by relevant regulation.

For added data, please contact:

Investor Relations
ir@ahipreit.com

(1) Non-IFRS and different monetary measures. See “NON-IFRS AND OTHER FINANCIAL MEASURES” part of this information launch.

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