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Real estate investment trust $HPT reported a rise in 1Q16 earnings driven by continued strong performance from its hotel and travel center portfolios. Net income rose to $46.88MM or $0.31 per share from $36.42MM or $0.24 per share last year. Revenue grew to $474.12MM from $435.51MM.
Comparable hotel RevPAR grew 1% for $HPT to $89.40 in 1Q17, while occupancy rose by 0.1 percentage point to 71.2% and RevPAR increased 0.9% to $89.45. As of March 31, 2017, HPT had nine operating agreements with seven hotel operating companies for 308 hotels with 47,187 rooms.
Total revenues for $HPT inched 3% up in 1Q17 to $489MM, with the REIT posting a 45% slump in net attributable income of $26MM from last year's $47MM. Earnings fell 48% to $0.16 a share, on a declined normalized FFO available to common shareholders of $0.91 per share from $0.93 a share a year ago.
$HPT announced redemption all of its 11.6MM outstanding 7.125% Series D Cumulative Redeemable Preferred Shares. Dividends will cease to accrue on the Series D Preferred Shares as of the redemption date. Holders who hold Series D Preferred Shares through the Depository Trust Company (DTC) will be redeemed in accordance with DTC's procedures.
$HPT announced redemption all of its 11.6MM outstanding 7.125% Series D Cumulative Redeemable Preferred Shares at the stated liquidation preference price of $25 per share plus accrued and unpaid dividends to the date of redemption. The expected redemption date is on or about Feb. 10, 2017.
During 3Q16, $HPT was notified by $MAR that it does not intend to extend its lease with the company for the Marriot Kauai resort hotel when it expires on December 31, 2019. $HPT intends to have discussions with $MAR about the future of this hotel. The impact of any changes in this lease are not material to $HPT's performance, the company said.
On Sept. 30, $HPT acquired a travel center in Caryville, TN for $16.6MM. In Oct., the company entered into a revised contract to acquire an independent full service hotel in Milpitas, CA for $46MM. Also, $HPT agreed to acquire a full service hotel in Addison, TX for $9MM and a full service hotel in Chicago for $86.7MM.
$HPT's normalized funds from operations for 3Q16 increased to $162.14MM or $1.03 per share from $149.69MM or $0.99 per share in the previous year quarter. $HPT's average daily rate increased 3.3% to $126.58, occupancy rose 0.4 percentage points to 80.4% and revenue per available room, or RevPAR, on comparable basis grew 3.8% to $101.77.
Real estate investment trust $HPT declared a regular quarterly cash distribution of $0.51 per common share. This distribution will be paid to the company's common shareholders of record as of October 21, 2016 and distributed on or about November 17, 2016.
$HPT announced early redemption of its 5.625% Senior Notes due 2017 at redemption price equal to amount of $300MM, plus accrued and unpaid interest to, but excluding date of redemption. This redemption is expected to occur on or about Sept. 26, 2016. $HPT now sees to fund this by cash on hand and borrowings under revolving credit facility.
$HPT said the underwriters of its recent public offering of common shares have exercised in full their option to buy an additional 1.65MM common shares of beneficial interest, raising additional net proceeds of about $48.6MM. The settlement for such shares is expected to occur on Aug. 26, 2016.
Massachusetts-based REIT $HPT said it has priced a public offering of 11,000,000 common shares at a price of $30.75 per common share. The settlement of this offering is expected to occur on August 19, 2016. $HPT expects to use the proceeds to repay amounts outstanding under its unsecured revolving credit facility and for general business purposes.
In July, $HPT entered into an agreement to acquire a full service hotel located in Silicon Valley for a purchase price of $52MM. This hotel offers 236 guest rooms, a popular restaurant and over 4,000 square feet of meeting space. The company is conducting due diligence on this project at present.
Massachusetts-based REIT $HPT said in 2Q16, cash available for minimum rents and returns for the comparable hotel portfolio increased by 7.6%. Normalized FFO payout ratio declined to approx. 47%. The company acquired three full service centers for total consideration of $46.2MM.
Real estate investment trust $HPT reported a higher Normalized FFO and an increase in RevPAR for 2Q16, but profit fell on higher expenses. The company reported NFFO of $1.09 per share, up from $0.99 per share a year ago. Hotel RevPAR rose 4.9%. Quarterly profit fell to $0.34 from $0.52 per share.
$HPT said on March 3, 2016 it issued $750MM of unsecured senior notes, which included $400MM of 4.25% notes due in 2021 and $350MM of 5.25% notes due in 2026. The net proceeds from these offerings were approx. $732MM. On March 11, all $275MM of its 6.3% senior notes were redeemed at par and $HPT has no additional debt maturities until March 2017.