NexPoint Hospitality Trust Announces First Quarter 2020 Financial Results
NexPoint Hospitality Trust Announces First Quarter 2020 Financial Results |
[06-July-2020] |
DALLAS and TORONTO, July 6, 2020 /CNW/ -- NexPoint Hospitality Trust, ("NHT"1), (TSX-V: NHT.U) announced today the release of NHT's financial results for the three months ended March 31, 2020. All amounts are expressed in U.S. dollars. Results for the three months ended March 31, 2020:
Additional information on first quarter 2020 financial and operational results can be found at www.sedar.com in our 2020 unaudited consolidated interim financial statements and management discussion and analysis ("MD&A"). Entering the traditionally busy summer travel season, the COVID-19 pandemic continues to severely impact the lodging sector worldwide. It is still not yet known when economic and societal conditions in the U.S., and the lodging sector in particular, will return to normalcy. Due to the COVID-19 outbreak, NHT has made additional material changes to its forecasts for 2020 and assumed much lower occupancies across each property through the summer, with gradual increases thereafter. As of March 31, 2020, NHT had a working capital deficiency of $41.58 million, which was primarily the result of NHT's $35 million mezzanine facility that originally matured on April 8, 2020 (which was further extended by the lender until July 8, 2020) and the impact of the COVID-19 pandemic. As we enter the second quarter of 2020, Management is actively working towards addressing NHT's liquidity concerns, including the following: (i) negotiating with lenders to extend or otherwise restructure the terms of our loans and obtain relief from covenants in the near term; and (ii) converting payables to an affiliate into Class B Units of NHT's operating partnership. In addition, subject to market conditions, NHT may seek to raise funding through new debt and equity financing, including sale-leaseback and ground lease arrangements. The particular characteristics of the underlying assets and the present environment of the debt and equity markets, which may continue for some period of time, may impact the ability to obtain financing. About NHT Forward-Looking Information Forward-looking information contained in this press release is based on certain key expectations and assumptions made by NHT, including, without limitation, a reasonably stable North American economy and stock market. Although the forward-looking information contained in this press release is based upon what the NHT's management believes to be reasonable assumptions, NHT cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in NHT's final prospectus dated March 27, 2019, NHT's final short form base shelf prospectus dated November 15, 2019 and Management's Discussion and Analysis dated July 6, 2020, which are available on SEDAR (www.sedar.com). The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to NHT. The forward-looking information is made as of the date of this press release and NHT assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Contact: Chief Financial Officer Media Inquiries 1 In this release, "we," "us," "our," and "NHT" each refer to NexPoint Hospitality Trust.
SOURCE NexPoint Hospitality Trust | ||
Company Codes: TorontoVE:NHT.U |
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