American Hotel Income Properties REIT LP (AHIP) has announced a normal course issuer bid (NCIB) that has been accepted by the Toronto Stock Exchange (TSX) as of December 23, 2024. Under this NCIB, AHIP may purchase up to 7,521,189 units, which represents 10% of the public float, from December 30, 2024, to December 29, 2025. Daily purchases will be limited to 17,803 units. Notably, AHIP has not purchased any units in the last 12 months, indicating a strategic shift in their approach to managing their equity. To facilitate purchases during blackout periods, an Automatic Securities Purchase Plan (ASPP) has been established. Strategic investor HCI-BGO Victora JB LP has consented to the NCIB, with a purchase price cap set at CAD$5.0 million. Currently, AHIP's unit count stands at 79,233,573, with 75,211,895 units in public float. The company aims to enhance unitholder value through these strategic purchases. [64dbcaf3]
In addition to the NCIB, AHIP has recently increased liquidity under its revolving credit facility (RCF). Following new hotel appraisals, the appraised value of the Borrowing Base Properties has resulted in maximum borrowing availability under the RCF. This increased liquidity will enable AHIP to pursue the disposition of non-core assets, pay down debt, and invest in new acquisitions. AHIP is a limited partnership that invests in hotel real estate properties across the United States, focusing on premium branded, select-service hotels located in secondary metropolitan markets. The hotels operate under brands affiliated with Marriott, Hilton, IHG, and Choice Hotels. AHIP's long-term objectives include delivering monthly U.S. dollar denominated distributions to unitholders and generating value through the growth of its diversified hotel portfolio. [359ea978]