Apple Hospitality REIT Announces Monthly Distribution and Date for 2024 Annual Meeting of Shareholders

Rhea-AI Summary

Apple Hospitality REIT, Inc. (NYSE: APLE) declared a monthly cash distribution of $0.08 per common share, payable on April 15, 2024. The annualized distribution of $0.96 per share offers a 5.9% yield based on the closing price of $16.18 on March 15, 2024. The 2024 Annual Meeting of Shareholders is scheduled for May 23, 2024, in Richmond, Virginia.

Insights

Financial Analyst

Assessing the recent announcement by Apple Hospitality REIT regarding its monthly cash distribution, it's essential to consider the distribution yield, which stands at approximately 5.9% based on the closing price on March 15, 2024. This yield is a significant figure for income-focused investors and compares favorably to the average dividend yield in the Real Estate Investment Trust (REIT) sector, which generally hovers around 4%. Such a yield can be attractive in a low-interest-rate environment, potentially drawing more investors to the stock, which could support the share price.

However, investors should also be wary of the sustainability of such distributions. A high yield can sometimes indicate that the market believes the distribution might be cut in the future. It is imperative to analyze the company's payout ratio, which is the proportion of earnings paid out as dividends, to evaluate if the current distribution level is sustainable in the long term. Furthermore, considering the broader economic context, such as interest rate trends and real estate market conditions, is crucial, as they can significantly impact REITs' performance.

Real Estate Market Analyst

From a real estate market perspective, the distribution announcement by Apple Hospitality REIT is a reflection of its operational performance, specifically its ability to generate sufficient rental income from its properties. The health of the hospitality sector, which includes hotels and resorts, is directly tied to consumer discretionary spending and travel trends. Given that the distribution has been maintained, it suggests that the company's portfolio of properties is performing well, with stable occupancy rates and possibly increasing average daily rates (ADRs).

It's also important to note the strategic significance of the meeting location, the Courtyard and Residence Inn Richmond Downtown. By choosing one of their properties for the annual meeting, Apple Hospitality REIT is showcasing its assets to shareholders, which can be a subtle yet effective marketing strategy. Hosting shareholders in their own property provides a tangible experience of the company's offerings and may positively influence investors' perception of the company's asset quality and management.

RICHMOND, Va.--(BUSINESS WIRE)-- Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple Hospitality”) today announced that its Board of Directors declared a regular monthly cash distribution of $0.08 per common share. The distribution is payable on April 15, 2024, to shareholders of record as of March 28, 2024.

Based on the Company’s common stock closing price of $16.18 on March 15, 2024, the annualized distribution of $0.96 per common share represents an annual yield of approximately 5.9%.

In addition, the Company today announced that its 2024 Annual Meeting of Shareholders will be held at 9:00 a.m. Eastern Time on Thursday, May 23, 2024. The meeting will take place at the Courtyard and Residence Inn Richmond Downtown, located at 1320 East Cary Street, Richmond, Virginia 23219, and is open to shareholders of record as of March 26, 2024.

About Apple Hospitality REIT, Inc.

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (“REIT”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality’s portfolio consists of 223 hotels with more than 29,600 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company’s hotel portfolio consists of 100 Marriott-branded hotels, 118 Hilton-branded hotels and five Hyatt-branded hotels. For more information, please visit www.applehospitalityreit.com.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are typically identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “outlook,” “strategy,” and similar expressions that convey the uncertainty of future events or outcomes. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, but are not limited to, the ability of the Company to effectively acquire and dispose of properties and redeploy proceeds; the anticipated timing and frequency of shareholder distributions; the ability of the Company to fund capital obligations; the ability of the Company to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions (including the potential effects of inflation or a recessionary environment); reduced business and leisure travel due to geopolitical uncertainty, including terrorism and acts of war; travel-related health concerns, including widespread outbreaks of infectious or contagious diseases in the U.S.; inclement weather conditions, including natural disasters such as hurricanes, earthquakes and wildfires; government shutdowns, airline strikes or equipment failures or other disruptions; adverse changes in the real estate and real estate capital markets; financing risks; changes in interest rates; litigation risks; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact the Company’s business, assets or classification as a REIT. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company will be achieved. In addition, the Company’s qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, as amended. Readers should carefully review the risk factors described in the Company’s filings with the Securities and Exchange Commission, including but not limited to those discussed in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Any forward-looking statement that the Company makes speaks only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements or cautionary factors, as a result of new information, future events, or otherwise, except as required by law.

For additional information or to receive press releases by email, visit www.applehospitalityreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240317898864/en/

Apple Hospitality REIT, Inc.

Kelly Clarke, Vice President, Investor Relations

804‐727‐6321

kclarke@applereit.com

Source: Apple Hospitality REIT, Inc.

FAQ

What is the monthly cash distribution declared by Apple Hospitality REIT, Inc.?

Apple Hospitality REIT, Inc. declared a monthly cash distribution of $0.08 per common share.

When is the distribution payable?

The distribution is payable on April 15, 2024.

What is the annualized distribution per common share?

The annualized distribution is $0.96 per common share.

What is the annual yield based on the closing price on March 15, 2024?

The annual yield is approximately 5.9% based on the closing price of $16.18 on March 15, 2024.

When and where will the 2024 Annual Meeting of Shareholders take place?

The 2024 Annual Meeting of Shareholders will be held at 9:00 a.m. Eastern Time on Thursday, May 23, 2024, at the Courtyard and Residence Inn Richmond Downtown, located at 1320 East Cary Street, Richmond, Virginia 23219.