Apple Hospitality REIT Inc. recently revealed that its board of directors declared a regular monthly cash distribution of $0.10 per common share for the month of June 2017. The distribution is payable on June 15, 2017, to shareholders of record as of June 2, 2017.
Based on the company’s common stock closing price of $18.69 on May 18, 2017, the annualized distribution of $1.20 per common share represents an annual yield of approximately 6.4%.
Apple Hospitality REIT Inc. is a publicly traded real estate investment trust that owns one of the largest portfolios of upscale, select service hotels in the US.
Justin Knight, president and CEO, recently said in a prepared statement that “We are pleased with our results for the first quarter, which highlight the benefits of our broad geographic diversification. Comparable Hotels RevPAR grew by 1.4%, in line with our expectations, despite a 16% decline in Los Angeles, one of our largest markets, due to the outsized growth from the Porter Ranch gas leak in 2016. We continue to believe that our large, geographically diversified, upscale portfolio of Marriott and Hilton branded hotels and our strong, flexible balance sheet position us well as we continue throughout the year.”
Apple Hospitality owns a highly diversified hotel portfolio, which helps insulate the revenue stream of the company from regional economic dislocations that may occur from time to time, according to a prepared statement. As of March 31, 2017, Apple Hospitality owned 236 hotels with 30,203 rooms, comprised of 116 Marriott® branded hotels and 120 Hilton® branded hotels, with locations in 87 markets throughout 33 states.
The company’s Q1 activity included the newly constructed 124-room Courtyard by Marriott Fort Worth Historic Stockyards on February 2, 2017, for a purchase price of approximately $18 million.
Effective September 1, 2016, Apple Hospitality completed its merger with Apple REIT Ten Inc. The merger added 56 Marriott and Hilton branded primarily select service and extended stay hotels with 7,209 guestrooms to the company’s portfolio. As consideration in the merger, the company issued approximately 49 million common shares and paid approximately $94 million to the Apple Ten shareholders, and assumed approximately $257 million of debt.