OTCPK:AHOT.F

Stock Analysis Report

American Hotel Income Properties REIT

Executive Summary

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties located in the United States.


Snowflake Analysis

Proven track record average dividend payer.

Share Price & News

How has American Hotel Income Properties REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AHOT.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

AHOT.F

-0.07%

US REITs

-1.1%

US Market


1 Year Return

-5.3%

AHOT.F

16.0%

US REITs

17.9%

US Market

Return vs Industry: AHOT.F underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: AHOT.F underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

AHOT.FIndustryMarket
7 Day1.3%-0.07%-1.1%
30 Day-2.0%3.6%1.4%
90 Day10.1%7.8%6.9%
1 Year7.2%-5.3%20.7%16.0%20.3%17.9%
3 Year-9.8%-33.8%37.9%20.6%47.8%38.3%
5 Year-3.7%-40.3%60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

How volatile is American Hotel Income Properties REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is American Hotel Income Properties REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AHOT.F ($5.37) is trading below our estimate of fair value ($15.42)

Significantly Below Fair Value: AHOT.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AHOT.F is poor value based on its PE Ratio (60.1x) compared to the REITs industry average (37.2x).

PE vs Market: AHOT.F is poor value based on its PE Ratio (60.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AHOT.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AHOT.F is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is American Hotel Income Properties REIT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AHOT.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if AHOT.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AHOT.F's revenue (1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AHOT.F's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AHOT.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has American Hotel Income Properties REIT performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AHOT.F has a large one-off loss of $5.1M impacting its September 30 2019 financial results.

Growing Profit Margin: AHOT.F's current net profit margins (2.1%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: AHOT.F's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: AHOT.F's earnings growth over the past year (106%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: AHOT.F earnings growth over the past year (106%) exceeded the REITs industry 7.6%.


Return on Equity

High ROE: AHOT.F's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Hotel Income Properties REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AHOT.F has a high level of physical assets or inventory.

Debt Coverage by Assets: AHOT.F's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: AHOT.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AHOT.F has a sufficient allowance for bad loans.

Low Risk Liabilities: AHOT.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AHOT.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AHOT.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AHOT.F has an appropriate level of bad loans.


Next Steps

Dividend

What is American Hotel Income Properties REIT's current dividend yield, its reliability and sustainability?

12.03%

Current Dividend Yield


Dividend Yield vs Market

company12.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years12.1%

Current dividend yield vs market & industry

Notable Dividend: AHOT.F's dividend (12.03%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AHOT.F's dividend (12.03%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AHOT.F has been paying a dividend for less than 10 years.

Growing Dividend: AHOT.F has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (92.1%), AHOT.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AHOT.F's dividends in 3 years are forecast to be thoroughly covered by earnings (1.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

John O'Neill (56yo)

1.3yrs

Tenure

US$539,075

Compensation

Mr. John Christopher O’Neill has been Chief Executive Officer of American Hotel Income Properties REIT GP Inc. since October 1, 2018. He is President and Chief Executive Officer of O’Neill Hotels & Resorts ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD407.97K) is below average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Insufficient data to compare John's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
John O'Neill
Chief Executive Officer of American Hotel Income Properties REIT GP Inc.1.3yrsUS$539.08k0.56% $2.4m
Azim Lalani
CFO & Corporate Secretary of American Hotel Income Properties REIT (GP) Inc.5.8yrsUS$446.73k0.14% $568.8k
Bruce Pittet
Senior VP of Asset Management & COO0.8yrsno data0.039% $165.9k
Chris Cameron
Chief Investment Officer1yrsno data0.031% $129.9k
Jamie Kokoska
Directorof Investor Relations - American Hotel Income Properties REIT GP Inc3.1yrsno datano data
Pankaj Maharjan
Managing Director of Asset Management - American Hotel Income Properties Reit GP Inc0yrsno datano data

1.3yrs

Average Tenure

Experienced Management: AHOT.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
W. Murphy
Chairman of American Hotel Income Properties REIT (GP) Inc.7.3yrsUS$113.88k0.054% $229.0k
Minaz Abji
Director of American Hotel Income Properties REIT (GP) Inc.2.8yrsUS$81.95k0.035% $148.2k
Tamara Lawson
Director of American Hotel Income Properties REIT (GP) Inc.7.2yrsUS$118.97k0.029% $121.2k
Charles van der Lee
Lead Independent Director of American Hotel Income Properties REIT (GP) Inc.2yrsUS$134.92k0.042% $176.9k
Richard Frank
Director of American Hotel Income Properties REIT (GP) Inc.4.1yrsUS$144.78k0.038% $161.7k
Stephen Evans
Director of American Hotel Income Properties REIT (GP) Inc.7.3yrsUS$71.19k0.037% $154.3k
Robert O'Neill
Director of American Hotel Income Properties Reit GP Inc.7.4yrsUS$1.08m0.88% $3.7m
Elizabeth Walters
Director of American Hotel Income Properties REIT (GP) Inc.4.1yrsUS$100.06k0.023% $98.3k

5.6yrs

Average Tenure

65.5yo

Average Age

Experienced Board: AHOT.F's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AHOT.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American Hotel Income Properties REIT LP's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Hotel Income Properties REIT LP
  • Ticker: AHOT.F
  • Exchange: OTCPK
  • Founded: 2012
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: CA$556.267m
  • Listing Market Cap: CA$420.978m
  • Shares outstanding: 78.13m
  • Website: https://www.ahipreit.com

Location

  • American Hotel Income Properties REIT LP
  • 925 West Georgia Street
  • Suite 800
  • Vancouver
  • British Columbia
  • V6C 3L2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOT.UNTSX (The Toronto Stock Exchange)YesCommon UnitsCACADFeb 2013
AHOT.FOTCPK (Pink Sheets LLC)YesCommon UnitsUSUSDFeb 2013

Biography

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties located in the United States. AHIP is engaged in growing its portfolio of premium branded, select-service hotels in larger secondary markets that have diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. The Company's long-term objectives are to build on its proven track record of successful investment, deliver reliable and consistent U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:38
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.