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8-K - APPLE REIT SIX INC | c70641_8-k.htm |
Exhibit 99.1
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FOR IMMEDIATE RELEASE |
For information contact: |
August 14, 2012 |
Kelly C. Clarke |
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(804) 727-6321 |
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Apple REIT Six, Inc. Reports Results for the Second Quarter of 2012
Richmond, Va., August 14, 2012 Apple REIT Six, Inc. (Apple Six or the Company), a real estate investment trust (REIT) that owns 66 Marriott®- and Hilton®-branded hotels, has reported results of operations for the second quarter of 2012 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC). Apple Six encourages the review of all of the Companys filings with the SEC, including the second quarter 2012 10-Q, which are available online at www.applereitsix.com or www.sec.gov.
Highlights include:
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Modified funds from operations (MFFO) for the second quarter of 2012 totaled $23.7 million, or $0.26 per share, up approximately 10 percent as compared to MFFO for the same period in 2011 of $21.5 million, or $0.24 per share. For the six-month period ending June 30, 2012, MFFO totaled $41.6 million, or $0.46 per share, up approximately seven percent as compared to MFFO for the same period last year of $38.8 million, or $0.42 per share.1 |
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Net income from continuing operations was $15.7 million for the second quarter of this year, or $0.17 per share, up 23 percent as compared to the same period in 2011 of $12.7 million, or $0.14 per share. Net income from continuing operations for the six-month period ending June 30, 2012 was $24.9 million, or $0.27 per share, up approximately 15 percent as compared to the same period in 2011 of $21.7 million, or $0.23 per share. |
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For the three- and six-month periods ending June 30, 2012, Apple Six hotels reported for continuing operations an average occupancy of 78 percent and 74 percent, average daily rate (ADR) of $115 and $113, and revenue per available room (RevPAR) of $89 and $83, respectively. As compared to results for the six-month period ending June 30, 2011, occupancy increased by three percent, ADR increased by approximately four percent, and RevPAR increased by approximately six percent. |
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At June 30, 2012, Apple Sixs debt to total initial capitalization ratio was less than seven percent. This amount is well below average debt levels for the hotel industry. |
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The Companys current annualized distribution rate is $0.792 per share. |
About Apple REIT Six, Inc.
Apple REIT Six, Inc.
is a real estate investment trust (REIT) focused on the ownership of hotels
that generate attractive returns for our shareholders. Our hotels operate under
the Courtyard® by Marriott®, Fairfield Inn® by Marriott®, Residence Inn® by
Marriott®, SpringHill Suites® by Marriott®, TownePlace Suites® by Marriott®,
Marriott® Hotels & Resorts, Homewood Suites by Hilton®, Hilton Garden Inn®,
Hampton Inn®, and Hampton Inn & Suites® brands. Our portfolio consists of
66 hotels, containing a total of 7,658 guestrooms in 18 states. Apple Six is a
premier real estate investment company committed to providing maximum value for
our shareholders.
Disclosures
Certain statements
contained in this press release other than historical facts may be considered
forward-looking statements. These forward-looking statements are predictions
and generally can be identified by use of statements that include phrases such
as believe, expect, anticipate, estimate, intend, plan, foresee,
looking ahead, is confident, should be, will, predicted, likely, or
other words or phrases of similar import. Such statements involve known and
unknown risks, uncertainties, and other factors which may cause the actual
results, performance, or achievements of Apple Six 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 Apple Six to implement its operating strategy; Apple Sixs ability
to manage planned growth; the outcome of current and future litigation and
regulatory proceedings or inquiries; changes in economic cycles; and
competition within the hotel industry. Although Apple Six 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 Apple Six or any other person
that the results or conditions described in such statements or the objectives
and plans of Apple Six will be achieved. In addition, Apple Sixs qualification
as a real estate investment trust involves the application of highly technical
and complex provisions of the Internal Revenue Code. Certain factors that could
cause actual results to differ materially from these forward-looking statements
are listed from time to time in Apple Sixs SEC reports, including, but not
limited to, in the section entitled Item 1A. Risk Factors in the Annual
Report on Form 10-K filed by Apple Six with the SEC on March 12, 2012. Any
forward-looking statement speaks only as of the date of this news release and
we undertake no obligation to update or revise any forward-looking statements,
whether as a result of new developments or otherwise.
1Funds from operations (FFO) is defined as net income (computed in accordance with generally accepted accounting principles GAAP) excluding gains and losses from sales of depreciable property plus depreciation and amortization. Modified funds from operations (MFFO) excludes costs associated with the evaluation of a potential consolidation transaction and public listing. The Company considers FFO and MFFO in evaluating operating performance and believes FFO and MFFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of the Companys activities in accordance with GAAP. FFO and MFFO are not necessarily indicative of cash available to fund cash needs.
Below is a reconciliation of FFO and MFFO to net income as reported in the Companys second quarter 2012 10-Q:
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(in thousands, except per share amounts) |
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Three
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Three
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Six
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Six
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Net Income |
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$ |
15,669 |
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$ |
12,894 |
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$ |
24,949 |
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$ |
22,350 |
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Depreciation of real estate owned |
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7,862 |
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8,600 |
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15,869 |
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16,457 |
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Funds from operations (FFO) |
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$ |
23,531 |
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$ |
21,494 |
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$ |
40,818 |
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$ |
38,807 |
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Costs related to potential merger |
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141 |
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823 |
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Modified funds from operations (MFFO) |
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$ |
23,672 |
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$ |
21,494 |
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$ |
41,641 |
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$ |
38,807 |
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Net income per share |
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$ |
0.17 |
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$ |
0.14 |
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$ |
0.27 |
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$ |
0.24 |
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FFO per share |
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$ |
0.26 |
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$ |
0.24 |
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$ |
0.45 |
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$ |
0.42 |
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MFFO per share |
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$ |
0.26 |
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$ |
0.24 |
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$ |
0.46 |
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$ |
0.42 |
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