VANCOUVER, Dec. 9, 2014 /CNW/ - American Hotel Income Properties REIT LP ("AHIP") (TSX: HOT.UN; OTCQX: AHOTF) announced today the completion of a new mortgage totaling US$11.2 million related to four new-build Oak Tree Inn railway properties acquired over the past few months. AHIP has also renewed its US$4.0 million revolving line of credit facility that can now be utilized for general working capital purposes, in addition to construction financing of new-build railway properties.
The new mortgage is for a 10-year term with a fixed interest rate of 4.76% and will be amortized over 20 years. Previous railway property mortgages had shorter 15-year amortization periods. This new mortgage will be secured by the recently acquired Brunswick, Maryland and Glendive, Montana railway properties as well as the previously acquired Santa Teresa, New Mexico and Livonia, Louisiana railway properties. The revolving line of credit facility is interest-only with a floating interest rate based on the 30-day LIBOR plus 3.0% (with a minimum interest rate of 4.0%), and matures on February 20, 2016.
All the Oak Tree Inn railway properties have long-term lodging facility arrangements with large, national U.S. railroad companies that guarantee a majority of their available room nights.
Rob O'Neill, AHIP's Chief Executive Officer, commented: "The ten-year, fixed interest rate financing highlights one of our key objectives of providing highly stable returns to our unitholders. The longer amortization period on the new mortgage will preserve free cash for acquisitions and value-added capital expenditure programs."
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 ability to deploy capital for acquisitions and value-added capital expenditure programs.
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. 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 26, 2014.
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 engaged primarily in the railroad employee accommodation, transportation and contract-focused lodging sectors. 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 RELEASE.
SOURCE: American Hotel Income Properties REIT LP
For further information: Andrew Greig, Investor Relations, American Hotel Income Properties REIT LP, Suite 1660 - 401 West Georgia Street, Vancouver, B.C. V6B 5A1, Tel: (604) 633-2857, Email: [email protected]