Overview

* Apple Hospitality Q3 net income falls 9.6% yr/yr, operating income down 6.7%

* Comparable Hotels RevPAR decreases 1.8% yr/yr, affected by government travel pullback

* Company repurchased 3.8 mln shares, invested $50 mln in capital improvements

Outlook

* Apple Hospitality lowers 2025 net income guidance by $5.5 mln

* Company expects 2025 RevPAR to decline by 1%-2%

* Apple Hospitality raises 2025 Adjusted EBITDAre guidance by $0.3 mln

Result Drivers

* GOVERNMENT TRAVEL PULLBACK - Co attributes decline in RevPAR and occupancy to reduced government travel

* STRATEGIC ASSET MANAGEMENT - Co sold non-core assets and reinvested in capital improvements to optimize portfolio

* PORTFOLIO OPTIMIZATION - Co engaged in asset sales and acquisitions to manage portfolio CapEx needs and drive returns

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

9M EPS $0.61

9M Net $145.74

Income mln

9M $375.05

Hotels mln

Adjusted

EBITDA

9M FFO $287.99

mln

9M 35.20%

Hotels

Adjusted

EBITDA

Margin

9M $121.67

Hotels

Adjusted

RevPAR

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialized reits peer group is "hold."

* Wall Street's median 12-month price target for Apple Hospitality REIT Inc ( APLE ) is $13.50, about 17.1% above its October 31 closing price of $11.19

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)