VANCOUVER, Jan. 22, 2016 /PRNewswire/ – American Hotel Income Properties REIT LP (“AHIP“) (TSX: HOT.UN; OTCQX: AHOTF) announced today that its Board of Directors has approved a change to U.S. dollar denominated cash distributions (based on the Bank of Canada’s closing U.S. dollar exchange rate as at January 22, 2016). The change will take effect for the April 2016 distribution payable on May 13, 2016 to unitholders of record on April 29, 2016. Accordingly, AHIP’s monthly cash distributions will become US$0.054 per unit compared with Cdn$0.075 per unit prior to the change in currency denomination.
Mr. Rob O’Neill, Chief Executive Officer of AHIP commented, “We believe that with the recent strength of the U.S. dollar, adopting this strategy at this time will yield a number of benefits including: (i) better alignment of distributions to AHIP’s cash flows, which are all generated in the United States; (ii) eliminate the requirement for costly currency hedging strategies; and (iii) will reduce the pro-forma AFFO ratio to approximately 75%.”
Unitholders may elect to receive their distributions in Canadian dollars by informing their broker.
RELEASE OF 2015 FINANCIAL RESULTS AND CONFERENCE CALL
AHIP also intends to release its financial results for the year ended December 31, 2015 after market close on Tuesday March 8, 2016. Management will host a conference call at 4:00 p.m. Eastern (1:00 p.m. Pacific) on Wednesday March 9, 2016 to review the financial results and corporate developments for the year ended December 31, 2015.
To participate in this conference call, please dial one of the following numbers approximately 10 minutes prior to the commencement of the call, and ask to join the AHIP conference call.
CONFERENCE CALL REPLAY
If you cannot participate on March 9, 2016, a replay of the conference call will be available two hours after the call by dialing one of the numbers listed below. The replay will be available until Wednesday March 16, 2016.
Please enter the replay PIN number 37451212 followed by the # key.
An audio recording of this conference call will also be available at www.ahipreit.com under the “Presentations and Calls” tab.
Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “plan”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements in this news release include, without limitation, the references to AHIP’s change to U.S. dollar denominated cash distributions, the effective timing thereof, the ability of unitholders to receive distributions in Canadian dollars and the benefits of adopting a change to U.S. dollar denominated cash distributions.
Forward-looking information is based on a number of key expectations and assumptions made by AHIP, including, without limitation: a reasonably stable North American economy and stock market and the continued strength of the U.S. lodging industry. Although the forward-looking information contained in this news release is based on what AHIP’s management believes to be reasonable assumptions, AHIP cannot assure investors that actual results will be consistent with such information.
Forward-looking information reflects current expectations of AHIP’s management regarding future events and operating performance as of the date of this news 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, without limitation, those factors that can be found under “Risk Factors” in AHIP’s Annual Information Form dated March 27, 2015 and under “Risks and Uncertainties” in AHIP’s Management’s Discussion and Analysis dated November 12, 2015, both of which are available on SEDAR at www.sedar.com.
The forward-looking statements contained herein represent AHIP’s expectations as of the date of this news release, and are subject to change after this date. AHIP assumes no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP
AHIP is a limited partnership formed under the Limited Partnerships Act (Ontario) to invest in hotel real estate properties located substantially in the United States and is engaged primarily in the rail crew lodging, transportation-oriented, and select-service lodging sectors. AHIP’s properties are mostly located in secondary and tertiary markets in the United States in close proximity to railroads, airports, highway interchanges, and other demand generators. AHIP’s long-term objectives are to: (i) generate stable and growing cash distributions from hotel properties substantially in the U.S.; (ii) enhance the value of its assets and maximize the long-term value of the hotel properties through active management; and (iii) expand its asset base and increase its AFFO per unit through an accretive acquisition program, participation in strategic development opportunities and improvements to its properties through targeted value-added capital expenditure programs.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS NEWS RELEASE.
SOURCE American Hotel Income Properties REIT LP