Vendors feel the support local push during Kelligrews Soiree market
Coates is the artist behind Route 60 Art — named after the town's main road — where he sells prints of his original Newfoundland-themed paintings.
"We've been here many times supporting local vendors, so it's nice to be on this side of the table," he told CBC News.
Coates has lived in CBS for 25 years. He said he's been involved in the soiree to some degree every year since.
"It's a great community event and one that I hope all residents come out to," he said.
With an emphasis on supporting local businesses through the ongoing Canada-U.S. trade war, vendors at the market this year say they are feeling the community's passion.
"People want to see local images and paintings and things that remind them of something. So it's been a great response so far to our summer season," Coates said.
Jessica Holmes, co-owner of Salt and Spruce Mobile Beverage Company, said her business uses locally foraged ingredients to create specialty beverages.
"We use Newfoundland-inspired ingredients like flowers, herbs, and shrubs to make our syrups," Holmes said. "So it's a focus on Newfoundland products and a real focus on craft cocktails and mocktails."
From Labrador, Holmes said Sunday was her first time at the market.
"Today has exceeded all of my expectations. I think we're really seeing a strong focus on supporting local small businesses," she said. "I'm so happy to see so many people here. I think it really just goes to show that Newfoundlanders support Newfoundlanders."
Stephanie Blackwood, owner and operator of Blackwood Events, organized Sunday's market, but also hosts other events around the St. John's area.
Blackwood said she sees the effect of supporting local businesses first hand.
"What I get from people is I can't believe the level of talent we have here in the province," she said. "This is why it's great to hold these events, so people can come out and see them in person and support them."
The Kelligrews Soiree runs until Saturday, with events happening each day.
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New York Times
9 minutes ago
- New York Times
Live Updates: U.S. Tariffs To Take Effect, a New Step in Trump's Trade War
President Trump has called the word tariff 'the most beautiful word in the dictionary.' He imposed hefty tariffs during his first term and promised expansive new ones as he pursued his second. On his first day back in the White House, he issued an executive order signaling that more tariffs were coming, and in April he unveiled expansive levies that touched almost every country on earth. It's been hard to keep track of the state of tariffs ever since. Mr. Trump has frequently issued updates over social media, threatening new tariffs on countries and companies alike, leveraging them to insert himself into foreign affairs and celebrating 'deals' that were often far from complete. Mr. Trump's strategy has upended diplomatic ties, shaken markets and confounded entire industries. The tariffs target nations that supply a wide variety of goods to the United States, and Americans are likely to see higher prices on cars, electronics, groceries, liquors, lumber and gas. And Mr. Trump's tariff campaign shows no signs of slowing down. On July 27, the European Union and the United States reached a preliminary trade deal after weeks of negotiations. On Aug. 1, he is set to impose another round of taxes on imports from many countries, including Canada and Mexico. Here's a timeline of President Trump's widening — and constantly shifting — tariffs. Jan. 20 🇨🇦 🇲🇽 Hours after he was sworn in, Mr. Trump announced that he would implement additional 25 percent tariffs on imports from Canada and Mexico starting on Feb. 1, accusing both countries of not doing enough to stop the flow of drugs and migrants into the United States. Read more › Jan. 26 🇨🇴 Surprising even some of his own staff members, Mr. Trump announced on social media that he would immediately impose 25 percent tariffs on all goods from Colombia — and would raise them to 50 percent in one week — after its government turned back planes carrying deported immigrants. Colombia's president, Gustavo Petro, briefly threatened tariffs of his own. But he quickly backed down, and soon so did Mr. Trump. That evening, the White House released a statement saying the government of Colombia had 'agreed to all of President Trump's terms' and the 'tariffs and sanctions will be held in reserve.' Read more › Feb. 1 🇨🇦 🇲🇽 🇨🇳 Mr. Trump signed an executive order imposing 25 percent tariffs on nearly all goods from Canada and Mexico, and a 10 percent tariff on China. The president said the tariffs were levied in response to his concerns about fentanyl smuggling and illegal immigration. Canada and Mexico said they would retaliate with tariffs of their own. China threatened 'countermeasures.' Read more › Video transcript Back bars 0:00 / 1:06 - 0:00 transcript Trudeau Announces Retaliatory Tariffs Against the U.S. Prime Minister Justin Trudeau of Canada laid out plans to impose more than $100 billion in retaliatory tariffs against the United States, and made clear that Canada was doing so reluctantly. I want to speak directly to Americans, our closest friends and neighbors. This is a choice that, yes, will harm Canadians, but beyond that, it will have real consequences for you. Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities. They will raise costs for you, including food at the grocery stores and gas at the pump. We don't want to be here. We didn't ask for this. But we will not back down in standing up both for Canadians and for the incredible, successful relationship and partnership between Canada and the United States. Prime Minister Justin Trudeau of Canada laid out plans to impose more than $100 billion in retaliatory tariffs against the United States, and made clear that Canada was doing so reluctantly. Credit Credit... Justin Tang/The Canadian Press, vía Associated Press Feb. 2 🌎 Facing widespread criticism over his tariff threats and their possible consequences for the economy, Mr. Trump acknowledged the possible negative consequences of the tariffs on social media. 'WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),' he said. Feb. 3 🇨🇦 🇲🇽 🇪🇺 Mr. Trump agreed to a 30-day pause of his tariffs on Mexico and Canada while at the same time threatening new tariffs against the European Union. Read more › Video Credit Credit... Mexican Government TV via Reuters Feb. 4 🇨🇳 Mr. Trump's 10 percent tariffs on Chinese imports went into effect, and China responded with a series of retaliatory steps, including additional tariffs on products from the United States. Read more › Feb. 7 🌎 Mr. Trump said he would broaden his trade war and introduce reciprocal tariffs on other countries but did not specify which countries would be affected. Read more › Feb. 10 🌎 Mr. Trump resurrected a 25 percent tariff on all foreign steel and aluminum, restarting an old fight from his first term. Read more › Feb. 13 🌎 Mr. Trump described a plan for broad reciprocal tariffs on America's trading partners, moves that would represent a dramatic overhaul of the global trading system. The goal, he said, was to force companies to bring manufacturing back to the United States. Read more › Feb. 14 🌎 Mr. Trump said he would proceed with a plan to impose unspecified tariffs on foreign cars on April 2. He said he had planned to announce the tariffs April 1, which is April Fools' Day, but pushed it because he was 'a little superstitious.' Read more › Feb. 25 🌎 An executive order directed Mr. Trump's commerce secretary, Howard Lutnick, to investigate whether foreign production of copper posed a risk to national security, raising the prospects of tariffs on the material. White House officials did not share how much those tariffs would be, or when the inquiry could conclude. Read more › Feb. 27 🇨🇦 🇲🇽 🇨🇳 The president said the tariffs against Canada and Mexico — and an additional 10 percent tariff on Chinese goods — would go into effect on March 4 'as scheduled.' He said on social media that the action was necessary because 'Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels,' a claim not always supported by U.S. government reports. Read more › March 1 🇨🇦 Mr. Trump directed Mr. Lutnick to investigate whether imports of lumber threaten American national security. The results of the inquiry could lead to more tariffs on Canada, the largest exporter of wood to the United States. Read more › March 4 🇨🇦 🇲🇽 🇨🇳 Tariffs on imports from Canada, Mexico and China — the largest U.S. trading partners — went into effect. Prime Minister Justin Trudeau of Canada responded with tariffs of 25 percent on $155 billion of American goods. Read more › Video transcript Back bars 0:00 / 1:09 - 0:00 transcript The United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same time, they're talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense. Canadians are reasonable and we are polite, but we will not back down from a fight. Not when our country and the well-being of everyone in it is at stake. At the moment, the U.S. tariffs came into effect in the early hours of this morning, and so did the Canadian response. Canada will be implementing 25 percent tariffs against $155 billion worth of American goods, starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion of American products in 21 days time. Credit Credit... CTV, via Associated Press March 5 🇨🇦 🇲🇽 Under fire from U.S. automakers, Mr. Trump said he would pause tariffs on cars coming into the United States from Canada and Mexico for one month. The announcement came after he held a call with representatives from General Motors, the Ford Motor Company and Stellantis. In a news conference, President Claudia Sheinbaum of Mexico said that if tariffs remained in place, the Mexican government would announce retaliatory measures on March 9. Video Credit Credit... Mexico Government TV, via Reuters March 6 🇨🇦 🇲🇽 Just as they were in Mr. Trump's first term, many of the tariffs placed on Canadian and Mexican products are suspended. Mr. Trump said that his reversal on tariffs he had framed as vital to America's security had 'nothing to do with the market' after the tariff news sent shock waves through the economy. He said he would still impose 25 percent tariffs on imports of steel and aluminum on March 12, and that reciprocal tariffs on all U.S. trading partners were still on track for April 2. Read more › March 10 🇨🇳 🇨🇦 The Chinese government began imposing tariffs on many farm products from the United States. The tariffs included an additional 15 percent on American farm products like chicken and corn, and a 10 percent on products like soybeans and fruit. Ontario, Canada's most populous province, announced its own tariffs, including a 25 percent surcharge on the electricity exported to Michigan, Minnesota and New York. Read more › March 11 🇨🇦 Furious at what he labeled an 'abusive threat from Canada,' Mr. Trump threatened to double tariffs on Canadian steel and aluminum imports in response to the electricity surcharge. Both sides backed down after several hours. Doug Ford, the premier of Ontario, said he would suspend the electricity surcharge, and Mr. Trump said he would 'probably' reduce the tariff on Canadian metals. Read more › March 12 🇨🇦 🇪🇺 The European Union and Canada announced billions of dollars in retaliatory tariffs on U.S. goods, but European leaders said they would hold back on their tariffs until April 1 — making it clear that they would prefer not to enact them, and would like to negotiate with Mr. Trump instead. 'Tariffs are taxes,' said Ursula von der Leyen, the president of the European Commission, the bloc's executive arm. Read more › March 13 🇪🇺 Citing the European Union's plans for 50 percent tariffs on U.S. whiskey and several other American products, set to kick in on April 1, Mr. Trump floated one of his largest tariff threats to date: a 200 percent charge on all wines, Champagnes and alcoholic products from the E.U.'s member nations. Read more › March 24 🌎 Countries who purchase oil from Venezuela — either directly or from a third party — faced tariffs of 25 percent on their exports to the United States, to begin on or after April 2. Read more › March 26 🌎 Mr. Trump said he would impose a 25 percent tariff on all cars and car parts shipped into the United States, including American brands assembled overseas. Read more › Video transcript Back bars 0:00 / 1:38 - 0:00 transcript World Leaders React to Trump's Auto Tariffs President Trump's announcement of 25 percent tariffs on imported cars and auto parts prompted world leaders to rebuke the decision. 'It's my solemn promise that when President Trump threatens us again, we will fight back. We will fight back with everything we have to get the best deal for Canada.' President Trump's announcement of 25 percent tariffs on imported cars and auto parts prompted world leaders to rebuke the decision. Credit Credit... Nic Antaya for The New York Times April 2 🌎 A 10 percent tariff was applied to all nations importing goods to the United States — unless a tariff had already been announced on a product or industry. But that base line 10 percent was to be supplemented in certain cases by additional reciprocal tariffs that vary by nation. That meant dozens of countries, including many U.S. allies, faced tariffs far higher than they expected. Read more › Video transcript Back bars 0:00 / 1:17 - 0:00 transcript Trump Announces Tariffs on Global Trading Partners During a news conference, President Trump announced that he would impose a baseline 10 percent tariff on all trading partners, as well as double-digit 'reciprocal tariffs' on dozens of other countries. This is one of the most important days, in my opinion, in American history. It's our declaration of economic independence. Jobs and factories will come roaring back into our country. China — first row, China 67 percent, that's tariffs charged to the U.S.A., including currency manipulation and trade barriers. So 67 percent, so we're going to be charging a discounted reciprocal tariff of 34 percent, I think. In other words, they charge us, we charge them. We charge them less. So how can anybody be upset? They will be because we never charge anybody anything. But now we're going to charge. European Union, they're very tough, very, very tough traders. You think of European Union, very friendly. They rip us off. It's so sad to see. It's going to be 'Liberation Day' in America. And it's going to be a day that hopefully you're going to look back in years to come and you're going to say, you know, he was right. This has turned out to be one of the most important days in the history of our country. During a news conference, President Trump announced that he would impose a baseline 10 percent tariff on all trading partners, as well as double-digit 'reciprocal tariffs' on dozens of other countries. Credit Credit... Doug Mills/The New York Times April 4 🇨🇳 China's Finance Ministry announced a 34 percent tariff on imports from the United States, matching Mr. Trump's plans for 34 percent tariffs on exports from China. The Chinese Commerce Ministry also barred a group of 11 American companies from doing business in China. Read more › April 5 🇻🇳 Vietnam asked Mr. Trump to delay imposing tariffs for at least 45 days. The United States is Vietnam's largest export market, and the 46 percent tariff rate was among the highest any country faced. Read more › April 7 🇧🇩🇨🇳 Bangladesh asked for a three-month reprieve before any tariffs would be imposed on its exports to the United States. Read more › Mr. Trump threatened to counter Beijing's retaliatory tariffs with an additional 50 percent tariff on China. Those tariffs would be additive, meaning that China could face 104 percent taxes on all exports. Read more › Video Lin Jian, the spokesman for the Chinese Foreign Ministry, accused the United States of 'economic bullying' after President Trump threatened an additional 50 percent tariff on Chinese imports. Credit Credit... Associated Press April 9 🌎 Mr. Trump's punishing tariffs on some of America's biggest trading partners took effect. Chinese goods were subject to a 104 percent tariff, European goods faced a 20 percent import tax, Japanese goods were taxed 24 percent and Vietnamese products 46 percent. China responded with an additional 50 percent tariff on U.S. goods, meaning they faced an additional 84 percent import tax. China's new tariffs took effect 12 hours after Mr. Trump's tariffs went into place. Read more › The European Union also approved new tariffs against the United States, to take effect the following week. Read more › Video transcript Back bars 0:00 / 1:37 - 0:00 transcript Trump Pauses 'Reciprocal' Tariffs for Most Countries President Trump decided to pause his 'reciprocal' tariffs on most countries, excluding China, just hours after they went into effect. 'Hello, everybody.' [clapping] 'Can you walk us through your thinking about why you decided to put a 90-day pause.' 'Well, I thought that people were jumping a little bit out of line. They were getting yippy, you know. They were getting a little bit yippy, a little bit afraid.' 'Well, I'm not calling it a trade war, but I am saying that China has escalated, and President Trump responded very courageously to that. And we are going to work on a solution with our trading partners. You might even say that he goaded China into a bad position. They responded — they have shown themselves to the world to be the bad actors. And we are willing to cooperate with our allies and with our trading partners who did not retaliate. It wasn't a hard message. Don't retaliate. Things will turn out well.' [unclear] 'I'll take a look at this. As time goes by, we're going to take a look at it. There are some that have been hard. There are some that, by the nature of the company, get hit a little bit harder. And we'll take a look at that.' [unclear] 'Just instinctively, more than anything else. I mean, you almost can't take a pencil to paper. It's really more of an instinct, I think, than anything else.' President Trump decided to pause his 'reciprocal' tariffs on most countries, excluding China, just hours after they went into effect. Credit Credit... Eric Lee/The New York Times … later on April 9 🌎 In an abrupt reversal, Mr. Trump said he would back down on his reciprocal tariffs for the next 90 days, bringing tariff levels to a universal 10 percent. China would not be included in that pause, he said. Instead, he raised tariffs on its exports to 125 percent after Beijing announced a new round of retaliation. April 10 🇨🇳🇪🇺 The White House clarified that the 125 percent tariff on Chinese goods was in addition to a 20 percent tariff that Mr. Trump had already imposed on China, bringing the total tariffs on China imposed by the Trump administration to 145 percent. The European Union announced a plan to pause its own reciprocal tariffs in response to Mr. Trump's reversal. Read more › April 11 🌎 Mr. Trump issued a ruling that spared many electronics — including smartphones, computers, semiconductors and routes and modems — from some new tariffs. The long list of imports, which include Chinese products, would be exempt from reciprocal tariffs, but other levies would still apply. Read more › April 13 🌎 The electronics exceptions announced on April 11 were recast as temporary by Mr. Trump and his top aides. Mr. Trump said he would be pursuing new tariffs on computer chips. Read more › April 29 🌎 Mr. Trump signed two executive orders that reversed course on some tariffs for carmakers. The 25 percent tariffs were modified so they would not be 'stacked' with other tariffs such as those on steel and aluminum, a White House official said. Read more › Video transcript Back bars 0:00 / 0:50 - 0:00 transcript U.S. and British Leaders Celebrate Agreement on Trade Framework President Trump and Prime Minister Keir Starmer announced an agreement for a trade framework over speakerphone. 'With this deal, the U.K. joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade. We really do, we have a great relationship. I want to just say that the representatives of U.K. have been so professional, and it's been an honor doing business with all of them, and in particular the prime minister. And I'd like to introduce him now to say a few words. Mr. Prime Minister, please take it away.' 'Thank you, Mr. President — Donald — and this is a really fantastic historic day in which we can announce this deal between our two great countries. And I think it's a real tribute to the history that we have of working so closely together.' President Trump and Prime Minister Keir Starmer announced an agreement for a trade framework over speakerphone. Credit Credit... Eric Lee/The New York Times May 8 🇬🇧 The United States and Britain reached a deal that would reduce tariffs on some imports. Under the agreement, Britain would drop its tariffs on some U.S. products and the United States would pare back tariffs on cars and steel, while keeping a 10 percent levy in place for all British exports. But the deal has not been finalized, and there could be weeks of negotiations to come. Read more › May 12 🇨🇳 The White House agreed to back off, for now, from its steepest tariffs against China. Under the agreement, the United States would cut tariffs on Chinese imports to 30 percent from 145 percent, and China would reduce its levies on American goods to 10 percent from 125 percent. Read more › May 23 🇪🇺 In a post on social media, Mr. Trump threatened higher tariffs on the European Union, saying that discussions 'are going nowhere.' He recommended a 50 percent tariff on European imports that would begin June 1. Read more › May 25 🇪🇺 After a phone call with Ursula von der Leyen, the president of the European Commission, Mr. Trump said he would delay imposing his threatened 50 percent tariffs on all imports from the European Union until July 9 to allow more time for trade negotiations. Read more › May 30 🌎 Speaking to steelworkers near Pittsburgh, Mr. Trump pledged to double tariffs on steel to 50 percent, from 25 percent. He also endorsed a 'planned partnership' between U.S. Steel and Nippon Steel before conceding that he had not seen or signed off on the details of the deal. Read more › June 4 🌎 Tariffs on steel and aluminum imports rose to 50 percent from 25 percent just after midnight. The White House said the increase would address 'trade practices that undermine national security.' Read more › June 16 🇬🇧 The United States and Britain finalized their trade agreement to lower tariffs on British cars, steel and aluminum, and aerospace equipment. Read more › June 27 🇨🇳 China confirmed the details of a trade framework with the Trump administration a day after Mr. Trump said his administration had 'signed' a deal with China. The deal, China's Ministry of Commerce said, would loosen exports of rare earth minerals to the United States and lift some restrictions on U.S. goods to China. Read more › July 2 🇻🇳 The United States agreed to a trade deal with Vietnam that would indirectly affect China, an important trading partner of Vietnam. The provision, Mr. Trump said, would impose a 20 percent tariff on all imports and a 40 percent tariff on any 'transshipping.' Read more › Video transcript Back bars 0:00 / 1:00 - 0:00 transcript Trump Says Countries Will Receive Letters About New Tariffs Speaking to the press after arriving at Joint Base Andrews, President Trump said the tariffs would range from 10 to 70 percent. 'It's a lot of money, but we're giving them a bargain,' Mr. Trump said. Reporter: 'For countries that don't get a letter right away and that you haven't made a deal —' 'No, we're going to start sending letters out to various countries starting tomorrow. We'll probably have 10 or 12 go out tomorrow and over the next few days, I think by the 9th they'll be fully covered and they'll range in value from maybe 60 or 70 percent tariffs to 10 and 20 percent tariffs.' And it's very important. It's a lot of money for the country. But we're giving them a bargain. Because if I went by the true deficits or by other ways of measuring, it could be a lot more. We don't want to, I don't want to stretch it too much. We want to keep it pretty reasonable. And I think it's actually I think it's very reasonable.' Speaking to the press after arriving at Joint Base Andrews, President Trump said the tariffs would range from 10 to 70 percent. 'It's a lot of money, but we're giving them a bargain,' Mr. Trump said. Credit Credit... Haiyun Jiang/The New York Times July 9 🌎 Mr. Trump informed at least 21 countries that their exports will face tariffs of at least 20 percent starting Aug. 1 unless they reach new trade deals with the United States. He threatened to raise rates further if countries tried to evade the U.S. duties or retaliated with their own import taxes. Read more › He also issued a 50 percent tariff on copper, effective Aug. 1. The move sent U.S. copper prices surging, and has caused concern in some of the industries Mr. Trump has said he wants to protect. Read more › Mr. Trump also said he planned to impose a 50 percent tariff on all Brazilian imports. President Luiz Inácio Lula da Silva of Brazil promised to reciprocate. Read more › July 11 🇪🇺🇲🇽 Months of careful negotiations were upended when Mr. Trump said he would place a 30 percent tariff on goods from the European Union and Mexico. The tariffs would take effect on Aug. 1, he said in two letters posted on social media. He threatened to raise those rates even higher should the E.U. or Mexico issue retaliatory tariffs. Read more › July 14 🇪🇺 Maros Sefcovic, the European Union's key negotiator, said that Mr. Trump's about-face on tariffs was disappointing given he felt that the two sides were 'very close to an agreement.' Mr. Sefcovic spoke with his American counterparts almost every day last week, he said, and Mr. Trump's letter created 'a whole different dynamic.' Read more › President Claudia Sheinbaum of Mexico said her country is hoping to reach an agreement with the United States before Aug. 1. 'We do our part; they have to do their part as well,' she said. Read more › July 16 🇮🇩 Indonesia agreed to roll back multiple trade barriers to reach an agreement with the United States. U.S. exports to Indonesia would not be charged tariffs, and Indonesian goods would face a 19 percent tariff in the United States. 'We understand their interests, and they understand ours,' President Prabowo Subianto of Indonesia said. Read more › July 22 🇯🇵 In a social media post, Mr. Trump said he had reached a trade deal with Japan, calling it 'perhaps the largest deal ever made.' The Japanese government agreed to invest $550 billion in the United States, with the U.S. government receiving 90 percent of the profits. Japanese exports to the country would be charged a 15 percent tariff, instead the 25 percent tariff threatened by Mr. Trump. Read more › Video transcript Back bars 0:00 / 1:04 - 0:00 transcript U.S. and Europe Reach Preliminary Trade Deal With 15% Tariffs The deal, which would set a 15 percent tariff on most E.U. goods, averted what could have become a painful trade war with the United States' biggest source of imports. 'We are agreeing that the tariff straight across for automobiles and everything else will be a straight-across tariff of 15 percent.' 'Indeed, basically, the European market is open. It's 450 million people. So, it's a good deal. It's a huge deal. It was tough negotiations. I knew it at the beginning and it was indeed very tough. But we came to a good conclusion for both sides.' 'I think it's great that we made a deal today instead of playing games and maybe not making a deal at all. I think it's a — I'm going to let you say, but I think it's the biggest deal ever made. Thank you very much. Congratulations.' [clapping] The deal, which would set a 15 percent tariff on most E.U. goods, averted what could have become a painful trade war with the United States' biggest source of imports. Credit Credit... Tierney L. Cross/The New York Times July 27 🇪🇺 The United States and the European Union reached a trade deal that set a 15 percent base tariff on most E.U. exports, including cars. Mr. Trump said that the European Union had agreed to increase its investment in the United States by more than $600 billion and to purchase $750 billion of American energy. The sides also agreed to drop tariffs to zero on some goods, including aircraft, certain chemicals and generic drugs, and some agricultural products, said Ursula von der Leyen, the president of the European Commission, the bloc's executive arm. The agreement will 'rebalance, but enable trade on both sides,' she said. Read more › July 30 🇮🇳🇧🇷🇰🇷🇹🇭🇰🇭 Mr. Trump announced that imports from India to the United States would be subjected to a 25 percent tariff as of Aug. 1, and he berated India over trade barriers and its purchases of energy and military equipment from Russia. Read more › The United States also applied tariffs of 50 percent on Brazilian goods two days ahead of schedule and issued sanctions on the Brazilian judge who is overseeing the criminal case against former President Jair Bolsonaro, an ally of Mr. Trump. Read more › At the end of the day, Mr. Trump announced a trade deal with South Korea that placed 15 percent tariffs on South Korean goods. As part of the agreement, South Korea committed to investing $350 billion in the United States and will spend $100 billion on liqufieid natural gas. More announcements will be made when South Korea's president, Lee Jae Myung, visits Washington in two weeks, Mr. Trump said. Read more › Thailand and Cambodia also reached trade agreements with the United States, Commerce Secretary Howard Lutnick said on Wednesday night. He declined to elaborate on details of the new tariff rates. Both nations had been facing a potential tariff rate of 36 percent. Read more › July 31 🇲🇽 Mexico was granted a 90 day extension to try and reach a trade deal, Mr. Trump said after having a phone call with President Claudia Sheinbaum of Mexico. The agreement came on the eve of Mr. Trump's Aug. 1 tariff deadline. Read more › … later on July 31 🌎 The White House issued a long list of new tariffs hours before the Aug. 1 trade deadline. Switzerland will face a 39 percent tariff, while Syria, Laos and Myanmar will face rates of up to 41 percent. Read more › The new tariffs apply to dozens of nations and will take effect on Aug. 7. Most of those nations will face tariffs between 15 and 50 percent. Read more ›
Yahoo
2 hours ago
- Yahoo
American Hotel Income Properties REIT LP Reports Q2 2025 Results with 2.9% RevPAR Growth and Provides Corporate Update
VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) -- American Hotel Income Properties REIT LP ('AHIP', or the 'Company') (TSX: TSX: HOT.U, TSX: V), today announced its financial results for the three and six months ended June 30, 2025. All amounts presented in this news release are in United States dollars ('U.S. dollars') unless otherwise indicated. 2025 SECOND QUARTER HIGHLIGHTS Diluted FFO per unit(1) and normalized diluted FFO per unit(1) were $0.06 for the second quarter of 2025, compared to $0.12 and $0.10 respectively, for the same period of 2024. ADR(1) increased 2.2% to $140 for the second quarter of 2025, compared to $137 for the same period of 2024. Occupancy(1) was 75.7% for the second quarter of 2025, an increase of 30 bps compared to 75.4% for the same period of 2024. RevPAR(1) increased by 2.9% to $106 for the second quarter of 2025, compared to $103 for the same period of 2024. Same property NOI was $15.1 million for the second quarter of 2025, a decrease of 5.4% compared to $15.9 million for the same period of 2024. Same property NOI margin was 32.9% for the second quarter of 2025, a decrease of 150 bps compared to 34.4% for the same period of 2024. Completed the dispositions of eight hotel properties during the quarter for total gross proceeds of $32.2 million at a blended Cap Rate of 6.9% on 2024 annual hotel EBITDA. AHIP has no debt maturities until the fourth quarter of 2026. AHIP intends to continue its strategy to sell hotel properties to enhance liquidity, reduce debt and manage future financial obligations with approximately 20 hotels currently being marketed. 'AHIP continues to make significant progress on our plan to reduce debt and high-grade the portfolio through asset sales and loan refinancings,' said Jonathan Korol, CEO. 'In 2025, AHIP completed the dispositions of 11 hotel properties for total gross proceeds of $73.5 million. AHIP currently has 2 further hotel properties under purchase and sale agreements for estimated total gross proceeds of $25.2 million.' 'Dispositions completed and under contract in 2024 and 2025 have a combined Cap Rate(1) of 7.3%, demonstrating value beyond AHIP's current trading levels on its remaining assets. AHIP currently has approximately 20 hotels being marketed. While it is too early to make any conclusions about value, we are seeing strong interest in most of the properties we have in the market.' 'With the recently completed asset sales and refinancings, AHIP has sufficient time with a stable cash position to consider alternatives to address these future obligations in an orderly manner. AHIP has no debt maturing until the fourth quarter of 2026. Alternatives may include further hotel sales, or full or partial recapitalization of the Series C Shares and/or the Debentures or a combination thereof. We will be considering all opportunities to deliver value to unitholders.' (1) Non-IFRS and other financial measures. See 'NON-IFRS AND OTHER FINANCIAL MEASURES' section of this news release. INITIATIVES TO STRENGTHEN FINANCIAL POSITION AND IMPROVE UNITHOLDER VALUE The Board of Directors (the 'Board'), together with management, have implemented a plan to strengthen AHIP's financial position and to improve unitholder value. Certain initiatives, and progress made to date, are outlined below. ADDRESSING 2026 BALANCE SHEET OBLIGATIONS In 2024, AHIP made significant progress on its plan to reduce debt and improve the quality of its portfolio through asset sales and loan refinancings. AHIP disposed of 16 hotel properties in 2024 for total gross proceeds of $165.2 million, which has improved the overall portfolio asset quality with pro forma increases in RevPAR, NOI margin and EBITDA per hotel, while also significantly reducing leverage. In the first half of 2025, AHIP completed the disposition of 11 hotel properties for total gross proceeds of $73.4 million and two loan refinancings for total gross proceeds of $144.3 million. The net proceeds from these sales along with a portion of the proceeds from the recent loan refinancings, were used to repay the CMBS loans secured by those properties. Of the 9 hotel properties under purchase sale and agreements at the end of the first quarter of 2025, AHIP completed the disposition of 8 hotel properties for total gross proceeds of $32.2 million. The net proceeds from these sales were used to repay a CMBS loan secured by these properties. The remaining hotel property under a purchase and sale agreement is expected to close in the third quarter of 2025. AHIP has no secured debt maturing until the fourth quarter of 2026, with a $22.3 million CMBS loan maturing in November 2026 and a $30.6 million CMBS loan maturing in December 2026. Effective January 28, 2026, the dividend rate on the $50.0 million outstanding Series C Preferred Shares of U.S. REIT ('Series C Shares') increases from 9.0% to 14.0% per annum and certain other provisions under the Investor Rights Agreement with HCI-BGO Victoria JV LP (the 'Investor') will be triggered on such date, which will reduce AHIP's operational flexibility if the Series C Shares have not been fully redeemed as of such date. AHIP's 6.0% unsecured subordinated convertible debentures (the 'Debentures') are due December 31, 2026. With the recently completed asset sales and refinancings, AHIP is in a stable cash position and has sufficient time to consider alternatives to address these future obligations in an orderly manner. Alternatives may include further hotel sales, full or partial recapitalization of the Series C Shares and/or the Debentures or a combination thereof. Regarding potential dispositions, AHIP currently has approximately 20 additional hotels being marketed. Over the remainder of 2025, AHIP will assess which of the marketed hotels will provide the most attractive combination of certainty, valuation and net proceeds to address these future obligations. The number of potential hotel dispositions will be dependent on, among other things, regional market factors, hotel performance, hotel size, nature and value of offers and whether any portion of the Series C Shares and/or the Debentures are recapitalized. 2025 SECOND QUARTER REVIEW FINANCIAL AND OPERATIONAL HIGHLIGHTS For the three months ended June 30, 2025, ADR increased 2.2% to $140, and occupancy increased by 30 bps to 75.7%, compared to the three months ended June 30, 2024. Overall, improved ADR and occupancy resulted in an increase of 2.9% in RevPAR to $106, compared to the three months ended June 30, 2024. The improved performance is primarily attributable to the disposition of hotel properties with lower-than-average portfolio RevPAR. NOI and normalized NOI were $17.4 million for the three months ended June 30, 2025, a decrease of 30.5%, compared to NOI and normalized NOI of $25.1 million for the three months ended June 30, 2024. The decrease in NOI was primarily due to the disposition of the 16 hotel properties completed in 2024 and the 11 hotel properties in the six months ended June 30, 2025. NOI margin was 34.1% for the three months ended June 30, 2025, a decrease of 100 bps compared to 35.1% for the same period of 2024. The decrease in NOI margin was due to higher operating expenses as a result of general cost inflation, utilities and repair and maintenance expenses offset by the disposal of underperforming hotels in 2024. Diluted FFO per unit and normalized diluted FFO per unit for the three months ended June 30, 2025, was $0.06 compared to diluted FFO per unit of $0.12 and normalized diluted FFO per unit of $0.10 for the three months ended June 30, 2024. The decrease in diluted FFO per unit and normalized diluted FFO per unit was mainly due to lower NOI as a result of sold properties and higher operating expenses on same properties, partially offset by lower corporate and administrative expenses in the current year. While RevPar on a same property basis declined in the second quarter, management expects this measure to improve on a year over year basis for the balance of the year. This will be accompanied by continued challenges with margins due to elevated costs. In July 2025, ADR was $143, the same as July 2024. Occupancy increased 180bps to 76.8% in July 2025, compared to 75% for the same period of 2024. RevPAR increased to $110 in July 2025, compared to $107 for the same period of 2024. SAME PROPERTY KPIs The following table summarizes key performance indicators ('KPIs') for the portfolio for the five most recent quarters with a comparison to the same period in the prior year on a same-property basis. KPIs Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 ADR $140 $139 $134 $140 $141 Change compared to same period in prior year - % increase/(decrease) (0.7%) (0.6%) 1.0% 1.5% 2.4% Occupancy 76.4% 69.7% 70.5% 74.6% 76.7% Change compared to same period in prior year - bps increase/(decrease) (30) 218 256 71 126 RevPAR $107 $97 $94 $104 $108 Change compared to same period in prior year - % increase/(decrease) (0.9%) 2.6% 4.8% 2.4% 4.1% NOI $ 15,073 $ 12,466 $ 11,223 $ 15,396 $ 15,927 Change compared to same period in prior year - % increase/(decrease) (5.4%) (2.3%) (2.2%) 0.6% 1.3% NOI Margin 32.9% 28.9% 26.0% 32.5% 34.4% Change compared to same period in prior year - bps increase/(decrease) (150 ) (105) (186) (61) (87) In the second quarter of 2025, same property ADR was $140, a decrease of 0.7% compared to the same period in 2024. Same property occupancy decreased by 30 bps to 76.4% in the current quarter, compared to the same period in 2024. The decrease in occupancy is primarily attributable to weaker group and government demand, along with localized challenges. Overall, the decrease in ADR and occupancy resulted in a 0.9% decrease in RevPAR. Same property NOI decreased by 5.4% and same property NOI margin decreased by 150 bps in the current quarter, compared to the same period in 2024. The decrease in same property NOI and NOI margin was primarily driven by a decline in government demand and operational disruptions such as high general manager turnover and elevated labour costs. LEVERAGE AND LIQUIDITY KPIs Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Restated Restated Debt-to-GBV 48.7% 48.7% 49.3% 50.0% 52.2% Debt-to-EBITDA 8.1x 7.9x 8.0x 9.1x 9.7x Debt to gross book value was 48.7% as at June 30, 2025, a decrease of 60 bps compared to December 31, 2024. Debt to EBITDA as at June 30, 2025 was 8.1x, an increase of 0.1x compared to December 31, 2024. The change in debt to gross book value and debt to EBITDA ratios was driven by net proceeds from completed dispositions used to reduce outstanding debt. As at June 30, 2025, AHIP had an unrestricted cash balance of $18.6 million compared to $27.8 million as at December 31, 2024. The reduction in cash was primarily due to net outflows from completed refinancings and debt repayment, which resulted in one property becoming unencumbered during the first quarter of 2025. As at June 30, 2025, AHIP held a restricted cash balance of $25.4 million and had an additional $24.7 million available under the Portfolio Loan for capital improvements related to the properties secured by the loan. HOTEL DISPOSITIONS 2025 Hotel Dispositions Summary Hotel Location Gross Proceeds (millions of dollars) Keys Gross proceeds per key Cap Rate (1)on 2024 annual hotel EBITDA Actual/Estimated Closing Date Completed Dispositions: Homewood Suites Allentown Bethlehem Airport Bethlehem, Pennsylvania $11.7 113 $104,000 7.5% March 27, 2025 Residence Inn Arundel Mills BWI Airport Hanover, Maryland $18.0 131 $137,000 8.5% March 27, 2025 TownePlace Suites Arundel Mills BWI Airport Hanover, Maryland $11.5 109 $106,000 3.9% March 27, 2025 Total completed in Q1 2025 $41.2 353 $117,000 6.9% Hampton Inn Chickasha Chickasha, Oklahoma $4.0 63 $63,000 5.2% May 22, 2025 Holiday Inn Express & Suites Chickasha Chickasha, Oklahoma $4.4 62 $71,000 4.3% May 22, 2025 Holiday Inn Express & Suites Dubuque West Dubuque, Iowa $3.0 87 $34,000 16.6% May 22, 2025 Holiday Inn Express & Suites Nevada Nevada, Missouri $5.2 68 $76,000 10.1% May 22, 2025 Holiday Inn Express & Suites Mattoon Mattoon, Illinois $4.0 69 $58,000 9.8% May 22, 2025 Holiday Inn Express & Suites Emporia Emporia, Kansas $5.9 68 $87,000 11.4% May 22, 2025 Holiday Inn Express & Suites Jacksonville South Jacksonville, Illinois $3.9 69 $57,000 (0.4%) May 22, 2025 Holiday Inn Express & Suites Oklahoma City Bethany Bethany, Oklahoma $1.8 69 $28,000 (12.7%) June 20, 2025 Total completed in Q2 2025 $32.2 555 $58,000 6.9% Dispositions Under Contract: Homewood Suites Kalamazoo Portage Portage, Michigan $17.4 97 $179,000 6.9% Q3 2025 Fairfield Inn & Suites Asheboro Asheboro, North Carolina $7.8 87 $90,000 11.40% Q4 2025 Total under contract $25.2 184 $137,000 8.3% Total completed and under contract $98.6 1,092 $90,000 7.3% (1) See 'Non-IFRS and Other Financial Measures' During the six months ended June 30, 2025, AHIP completed the dispositions of 11 hotel properties for total gross proceeds of $73.4 million. After adjusting for an industry standard 4% FF&E reserve, the combined sales price for the 11 hotel properties sold in the first half of 2025 represents a blended Cap Rate of 6.9% on 2024 annual hotel EBITDA. The net proceeds from these dispositions were used to repay certain CMBS mortgage loans. AHIP's enterprise value as at June 30, 2025 reflects an implied Cap Rate of 9.8% on 2024 annual hotel EBITDA for the portfolio of 38 hotel properties, based on the Canadian dollar closing price of $0.45 per unit on the TSX on June 30, 2025, and converted to US dollars at a foreign exchange rate of CDN$1.37 to US$1. As of the date of this news release, AHIP has two hotel properties under purchase and sale agreements for estimated total gross proceeds of $25.2 million. These sales are expected to close in the third and fourth quarter of 2025, respectively. AHIP intends to use the net proceeds from the sale of these hotels to repay the allocated loan balance for such hotels under the Portfolio Loan. CAPITAL IMPROVEMENTS AHIP's capital projects include hotel brand mandated property improvement plans ('PIPs') and FF&E improvements. Select projects may generate positive return on investment through the refreshment and upgrade of guest-facing items, ensuring that each property maintains its competitive advantage in the marketplace. AHIP currently has four hotel projects in the design phase for future renovations. AHIP's 2025 capital expenditures are estimated at $1.9 million in PIPs and $7.5 million in FF&E improvements. PIP expenditures have been revised down from the prior estimate of $6.9 million mainly due to the planned disposition of certain hotels. PIP and FF&E expenditures will be funded through existing restricted cash and cash flow from operating activities. Actual capital spend on PIPs and FF&E was $0.3 million and $4.6 million, respectively, for the six months ended June 30, 2025. The majority of this capital spend will be funded through restricted cash contributed by AHIP in prior periods. SELECTED INFORMATION Three months ended June 30 Six months ended June 30 (thousands of dollars, except per Unit amounts) 2025 2024(restated) 2025 2024(restated) Revenue 51,145 71,521 99,760 136,781 Income from operating activities 11,841 19,345 18,525 27,074 Loss and comprehensive loss (7,406) (2,138) (29,776) (11,668) NOI(2) 17,435 25,101 30,118 41,380 NOI Margin(2) 34.1% 35.1% 30.2% 30.3% Hotel EBITDA (1) 16,204 23,541 27,706 38,303 Hotel EBITDA Margin (1) 31.7% 32.9% 27.8% 28.0% EBITDA (1) 13,919 19,396 23,049 32,729 EBITDA Margin (1) 27.2% 27.1% 23.1% 23.9% Cashflow from operating activities 1,943 10,644 2,992 10,687 Dividends declared to Series C holders 1,172 1,138 2,332 2,237 FFO diluted (1) 5,193 10,887 3,404 12,309 FFO per unit - diluted (1) 0.06 0.12 0.04 0.15 Normalized FFO per unit - diluted (1) 0.06 0.10 0.04 0.12 AFFO diluted (1) 2,990 9,058 (1,425) 7,478 AFFO per unit - diluted (1) 0.04 0.10 (0.02) 0.09 (1) See 'Non-IFRS and Other Financial Measures'(2) NOI and NOI margin included the IFRIC 21 property taxes adjustment. SELECTED INFORMATION (thousands of dollars) June 30, 2025 December 31, 2024 Total assets 575,040 685,110 Total liabilities 425,716 501,091 Total non-current liabilities 391,909 275,501 Term loans, revolving credit facility and Portfolio Loan 342,316 384,809 Debt to gross book value (1) 48.7% 49.3% Debt to EBITDA (times) (1) 8.1 8.0 Interest coverage ratio (times) (1) 1.6 1.7 Term loans, revolving credit facility and Portfolio Loan: Weighted average interest rate 6.43% 5.72% Weighted average term to maturity (years) 2.0 1.7 Number of rooms 4,537 5,445 Number of properties 38 49 Number of restaurants 14 14 (1) See 'Non-IFRS and Other Financial Measures' 2025 SECOND QUARTER OPERATING RESULTS Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 (restated) 2025 2024 (restated) ADR (1) 140 137 138 134 Occupancy (1) 75.7% 75.4% 71.6% 70.7% RevPAR (1) 106 103 99 95 Revenue 51,145 71,521 99,760 136,781 Operating expenses 26,679 36,883 53,280 72,501 Energy 1,861 2,659 4,547 5,569 Property maintenance 2,936 3,804 6,209 7,884 Property taxes, insurance and ground lease 2,234 3,074 5,606 9,447 Total expenses 33,710 46,420 69,642 95,401 NOI(2) 17,435 25,101 30,118 41,380 NOI Margin %(2) 34.1% 35.1% 30.2% 30.3% Depreciation and amortization 5,594 5,756 11,593 14,306 Income from operating activities 11,841 19,345 18,525 27,074 Other expenses 13,857 20,521 43,234 39,513 Current income tax expense (recovery) 1 (51) 29 36 Deferred income tax expense (recovery) 5,389 1,013 5,038 (807) Loss and comprehensive loss (7,406) (2,138) (29,776) (11,668) (1) See 'Non-IFRS and Other Financial Measures'(2) NOI and NOI margin included the IFRIC 21 property taxes adjustment. For the three months ended June 30, 2025, ADR, occupancy and RevPAR all increased compared to the same period in the prior year. The improved performance is primarily attributable to the disposition of hotel properties with lower-than-average portfolio RevPAR. Revenue in the current quarter decreased by 28.5% compared to the same period in the prior year. The decrease in revenue was due to the disposition of 16 hotel properties in 2024 and 11 hotel properties during the six months ended June 30, 2025. For the three months ended June 30, 2025, NOI decreased by 30.5% and NOI margin decreased by 100 bps, respectively, compared to the same period in the prior year. The decrease in NOI was primarily due to the disposition of 16 hotel properties in 2024 and 11 hotel properties during the six months ended June 30, 2025. The decrease in NOI margin was largely driven by higher operating expenses as a result of general cost inflation, utilities and repair and maintenance expenses, partially offset by disposition of hotels with lower than average NOI margin. Income tax expense is comprised of current and deferred income taxes. Current income taxes and deferred income taxes are recognized in loss and comprehensive loss, except to the extent that it relates to a business combination, or items recognized directly in equity. Current income tax is the expected tax payable or receivable on the taxable income or loss for the period using tax rates enacted or substantively enacted by the reporting date, and any adjustment to tax payable in respect of previous years. Deferred income tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. CORPORATE UPDATES CHANGE IN AUDITOR At the request of AHIP, KPMG LLP ('KPMG') has provided notice of its resignation as auditor of AHIP effective August 7, 2025. In conjunction therewith, the Audit Committee of the Board completed a comprehensive request for proposal process for the 2025 external audit engagement. The Board on the recommendation of the Audit Committee, selected MNP LLP ('MNP') to replace KPMG as its external auditor for fiscal 2025. The decision was based on careful consideration of the qualifications of MNP's audit team, staffing model, technology and independence. MNP will commence a transition process during the remainder of the year ending December 31, 2025 to ensure an orderly transfer. There were no reservations in KPMG's previously issued audit reports. In accordance with National Instrument 51-102 – Continuous Disclosure Obligations, AHIP will file a Change of Auditor Notice (the "Notice") on SEDAR+ together with letters from both the former auditor and successor auditor in due course. AMENDMENT TO THE LP AGREEMENT TO FACILITATE CHANGE IN U.S. TAX STATUS On June 26, 2025, unitholders approved an amendment to AHIP's Amended and Restated Limited Partnership Agreement (the 'LP Agreement') to clarify that the Board has the discretion to cause AHIP's direct subsidiary American Hotel Income Properties REIT Inc. ('U.S. REIT') to cease to qualify as a real estate investment trust ('REIT') under the United States Internal Revenue Code of 1986, as amended (the 'Code') if the Board determines doing so would be in the best interests of AHIP. On August 6, 2025, the Board determined that it is no longer in the best interests of AHIP for the U.S. REIT to continue to qualify as a REIT under the Code (the 'Board Determination'). In reaching this determination, the Board considered, among other things: (i) the timing and transaction limitations on AHIP's potential hotel dispositions that would be imposed if the U.S. REIT sought to maintain its status as a REIT under the Code, and (ii) the related tax risks that could reduce available cash to AHIP, and in turn unitholders, from such hotel sales if the U.S. REIT sought to maintain its status as a REIT under the Code. These risks are summarized in further detail in AHIP's management information circular dated May 16, 2025 (a copy of which is available on SEDAR+ at The U.S. REIT being treated as a taxable C corporation rather than a REIT will provide AHIP with the necessary flexibility to manage its financial obligations and efficiently pursue potential alternatives for maximizing the value of AHIP's portfolio of assets, including asset sales or a series of asset sales. This flexibility is critical given AHIP is in the process of marketing approximately 20 hotel properties as part of its strategy to manage its future financial obligations (see 'Addressing 2026 Balance Sheet Obligations' above). The Board intends to cause the U.S. REIT to take such action as is necessary prior to the end of 2025 to cause the U.S. REIT to cease to qualify as a REIT under the Code. As a result of such action, the U.S. REIT will not be subject to the REIT rules under the Code in respect of its 2025 fiscal year or future years, including among other rules the requirement to distribute at least 90% of U.S. REIT's taxable income to its stockholders. As a result of the Board Determination, the 9.8% Unit ownership limit in the LP Agreement, which previously existed to protect the U.S. REIT's status as a REIT under the Code, no longer applies to the Units as of August 6, 2025. AHIP obtained the consent of the Investor under the Investor Rights Agreement prior to making the Board Determination. In connection with the Board Determination, AHIP and the Investor will enter into an amended and restated Investor Rights Agreement and the articles of the U.S. REIT will be amended, in each case, to reflect that U.S. REIT will cease to qualify as a REIT under the Code. A copy of the amended and restated investor rights agreement will be posted under AHIP's profile on SEDAR+ at in due course. FINANCIAL INFORMATION This news release should be read in conjunction with AHIP's unaudited condensed consolidated interim financial statements, and management's discussion and analysis for the three and six months ended June 30, 2025 and 2024, that are available on AHIP's website at and under AHIP's profile on SEDAR+ at RESTATEMENT OF PRIOR PERIODS AHIP restated certain amounts in the 2024 comparative column in its unaudited condensed consolidated interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2025. The amounts included in the news release reflect the restatements retroactively. For further details, see Note 20 of the unaudited condensed consolidated interim financial statements and management's discussion and analysis for the three and six months ended June 30, 2025. Q2 2025 CONFERENCE CALL Management will host a webcast and conference call at 10:00 a.m. Pacific time on Thursday, August 7, 2025, to discuss the financial and operational results for the three and six months ended June 30, 2025 and 2024. To participate in the conference call, participants should register online via AHIP's website. A dial-in and unique PIN will be provided to join the call. Participants are requested to register a minimum of 15 minutes before the start of the call. An audio webcast of the conference call may be accessed on AHIP's website at ABOUT AMERICAN HOTEL INCOME PROPERTIES REIT LP American Hotel Income Properties REIT LP (TSX: TSX: HOT.U, TSX: or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, and IHG Hotels through license agreements. AHIP's long-term objectives are to increase the value of its hotel properties through operating excellence, active asset management and value-adding capital expenditures and increase unitholder value and distributions to unitholders. More information is available at NON-IFRS AND OTHER FINANCIAL MEASURES Management believes the following non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures are relevant measures to monitor and evaluate AHIP's financial and operating performance. These measures and ratios do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures and ratios are included to provide investors and management additional information and alternative methods for assessing AHIP's financial and operating results and should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. NON-IFRS FINANCIAL MEASURES FFO: FFO measures operating performance and is calculated in accordance with Real Property Association of Canada's ('REALPAC') definition. FFO – basic is calculated by adjusting income (loss) and comprehensive income (loss) for depreciation and amortization, gain or loss on disposal of property, IFRIC 21 property taxes, fair value gain or loss, impairment of property, deferred income tax, and other applicable items. FFO – diluted is calculated as FFO – basic plus the interest, accretion, and amortization on convertible debentures if convertible debentures are dilutive. The most comparable IFRS measure to FFO is income (loss) and comprehensive income (loss), for which a reconciliation is provided in this news release. AFFO: AFFO is defined as a recurring economic earnings measure and calculated in accordance with REALPAC's definition. AFFO – basic is calculated as FFO – basic less maintenance capital expenditures. AFFO – diluted is calculated as FFO – diluted less maintenance capital expenditures. The most comparable IFRS measure to AFFO is income (loss) and comprehensive income (loss), for which a reconciliation is provided in this news release. Normalized FFO: calculated as FFO adjusting for non-recurring items. For the three and six months ended June 30, 2025, normalized FFO was equal to FFO as there were no non-recurring items. For the three months ended June 30, 2024, normalized FFO is calculated as FFO excluding the non-recurring insurance proceeds of $1.6 million for property damage incurred in the second quarter of 2024. For the six months ended June 30, 2024, normalized FFO is calculated as FFO excluding the non-recurring insurance proceeds of $2.7 million for property damage. The most comparable IFRS measure to normalized FFO is income (loss) and comprehensive income (loss), for which a reconciliation is provided in this news release. Normalized NOI: calculated as NOI adjusting for non-recurring items. For the three and six months ended June 30, 2025, normalized NOI was equal to NOI as there were no non-recurring items. For the three and six months ended June 30, 2024, normalized NOI included the non-recurring insurance proceeds of nil and $0.1 million, respectively, for business interruption claims related to the weather-related damage at several hotel properties in late December 2022. The most comparable IFRS measure to normalized NOI is NOI, for which a reconciliation is provided in this news EBITDA: calculated by adjusting NOI for hotel management fees. The most comparable IFRS measure to hotel EBITDA is NOI, for which a reconciliation is provided in this news release. EBITDA: calculated by adjusting NOI for hotel management fees and general administrative expenses. The sum of hotel management fees and general administrative expenses is equal to corporate and administrative expenses in the Financial Statements. The most comparable IFRS measure to EBITDA is NOI, for which a reconciliation is provided in this news release. Debt: calculated as the sum of term loans, revolving credit facility (where applicable) and Portfolio Loan, the face value of convertible debentures, unamortized portion of debt financing costs, and lease liabilities. The most comparable IFRS measure to debt is total liabilities, for which a reconciliation is provided in this news release. Gross book value: calculated as the sum of total assets, accumulated depreciation and impairment on property, buildings and equipment, and accumulated amortization on intangible assets. The most comparable IFRS measure to gross book value is total assets, for which a reconciliation is provided in this news release. Interest expense: calculated by adjusting finance costs for gain/loss on debt settlement, amortization of debt financing costs, accretion of debenture liability, amortization of debenture costs, dividends on series B preferred shares, and accretion of management fee because interest expense excludes certain non-cash accounting items and dividends on preferred shares. The most comparable IFRS measure to interest expense is finance costs, for which a reconciliation is provided in this news release. NON-IFRS RATIOS: FFO per unit – basic/diluted: calculated as FFO – basic/diluted divided by weighted average number of units outstanding - basic/diluted respectively for the reporting periods. Normalized FFO per unit – basic/diluted: calculated as normalized FFO – basic/diluted divided by weighted average number of units outstanding - basic/diluted respectively for the reporting periods. AFFO per unit – basic/diluted: calculated as AFFO – basic/diluted divided by weighted average number of units outstanding - basic/diluted respectively for the reporting periods. NOI margin: calculated as NOI divided by total revenue. Hotel EBITDA margin: calculated as hotel EBITDA divided by total revenue. EBITDA margin: calculated as EBITDA divided by total revenue. Capitalization rate ('Cap Rate'): calculated as 2024 annual hotel EBITDA, after adjusting for an industry standard 4% furniture, fixtures, and equipment ('FF&E') reserve, divided by the actual and estimated gross proceeds of the asset dispositions. Implied capitalization rate ('Implied Cap Rate'): calculated as 2024 annual hotel EBITDA, after adjusting for an industry standard 4% FF&E reserve, for the portfolio of 38 hotel properties divided by the enterprise value. CAPITAL MANAGEMENT MEASURES: Debt to gross book value: calculated as debt divided by gross book value. Debt to gross book value is a primary measure of capital management and leverage. Debt to EBITDA: calculated as debt divided by the trailing twelve months ('TTM') EBITDA. Debt to EBITDA measures the amount of income generated and is available to pay down debt before covering interest, taxes, depreciation, and amortization expenses. Interest coverage ratio: calculated as TTM EBITDA divided by interest expense for the trailing twelve months. The interest coverage ratio is a measure of AHIP's ability to service the interest requirements of its outstanding debt. SUPPLEMENTARY FINANCIAL MEASURES: Occupancy is a major driver of room revenue as well as food and beverage revenues. Fluctuations in occupancy are normally accompanied by fluctuations in most categories of variable hotel operating expenses, including housekeeping and other labor costs. Higher ADR increases room revenue with limited impact on hotel operating expenses. Increase in RevPAR attributable to increase in occupancy may reduce EBITDA and EBITDA margins, while increase in RevPAR attributable to increase in ADR typically result in increases in EBITDA and EBITDA margins. Occupancy: calculated as the total number of hotel rooms sold divided by the total number of rooms available for the reporting periods. Occupancy is a metric commonly used in the hotel industry to measure the utilization of hotels' available capacity. Average daily rate ('ADR'): calculated as total room revenue divided by total number of rooms sold for the reporting periods. ADR is a metric commonly used in the hotel industry to indicate the average revenue earned per occupied room in a given time period. Revenue per available room ('RevPAR'): calculated as occupancy multiplied by ADR for the reporting periods. Same property ADR, occupancy, RevPAR, and NOI margin: measured for properties owned by AHIP for both the current reporting periods and the same periods in 2024. In Q2 2023, the same property ADR, occupancy, RevPAR and NOI margin calculations excluded the Residence Inn Neptune and Courtyard Wall in New Jersey as these two hotels had limited availability. In Q2 2025 and Q2 2024, the same property ADR, occupancy, RevPAR and NOI margin calculations excluded the same two hotels for comparison purposes. Enterprise value: is a supplementary financial measure and is calculated as the sum of (i) total debt obligations as reflected on the June 30, 2025 Statement of Financial Position (ii) AHIP's market capitalization (which is calculated as the Canadian dollar closing price of the units on the TSX as of June 30, 2025, converted to US dollars at a foreign exchange rate of CDN$1.37 to US$1, multiplied by the total number of units issued and outstanding as at such date), and (iii) face value of series C preferred shares, less (iv) the amount of cash and cash equivalents reflected on the June 30, 2025 Statement of Financial Position. NON-IFRS RECONCILIATION INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) TO FFO Three months ended June 30 Six months ended June 30 (thousands of dollars, except per unit amounts) 2025 2024(restated) 2025 2024(restated) Loss and comprehensive loss (7,406) (2,138) (29,776) (11,668) Adjustments: Income attributable to non-controlling interest (1,172) (1,138) (2,332) (2,237) Depreciation and amortization 5,594 5,756 11,593 14,306 Impairment of cash-generating units - 5,070 14,790 9,173 Write-off of property, building and equipment - 2,220 4 2,220 Loss (gain) on sale of properties 3,480 - 4,858 (242) IFRIC 21 property taxes adjustment (780) (1,388) (858) (496) Change in fair value of financial instruments 88 (18) 87 (138) Gain on convertible debenture conversion - (245) - (245) Deferred income tax expense (recovery) 5,389 1,013 5,038 (807) Loss on deconsolidation of subsidiary - 627 - 2,443 FFO basic(1) 5,193 9,759 3,404 12,309 Interest, accretion and amortization on convertible debentures - 1,128 - - FFO diluted(1) 5,193 10,887 3,404 12,309 FFO per unit – basic(1) 0.07 0.12 0.04 0.15 FFO per unit – diluted(1) 0.06 0.12 0.04 0.15 Non-recurring items: Other income - (1,587) - (2,689) Measurements excluding non-recurring items: Normalized FFO diluted(1) 5,193 9,300 3,404 9,620 Normalized FFO per unit – diluted(1) 0.06 0.10 0.04 0.12 Weighted average number of units outstanding: Basic (000's) 78,030 79,186 78,384 79,115 Diluted (000's)(2) 80,567 91,598 80,922 80,723 (1) See 'Non-IFRS and Other Financial Measures'(2) The calculation of FFO diluted, FFO per unit – diluted, normalized FFO diluted, normalized FFO per unit – diluted, weighted average number of units outstanding – diluted for the three and six months ended June 30, 2025, and the six months ended June 30, 2024, excluded the convertible debentures because they were anti-dilutive, while the calculation for the three months ended June 30, 2024, included the convertible debentures because they were dilutive. RECONCILIATION OF FFO TO AFFO Three months ended June 30 Six months ended June 30 (thousands of dollars, except per Unit amounts) 2025 2024(restated) 2025 2024(restated) FFO basic (1) 5,193 9,759 3,404 12,309 FFO diluted (1) 5,193 10,887 3,404 12,309 Maintenance capital expenditures (2,203) (1,829) (4,829) (4,831) AFFO basic (1) 2,990 7,930 (1,425) 7,478 AFFO diluted (1) 2,990 9,058 (1,425) 7,478 AFFO per unit - basic (1) 0.04 0.10 (0.02) 0.09 AFFO per unit - diluted (1) 0.04 0.10 (0.02) 0.09 Measurements excluding non-recurring items: AFFO diluted (1) 2,990 7,471 (1,425) 4,789 AFFO per unit - diluted (1) 0.04 0.08 (0.02) 0.06 (1) See 'Non-IFRS and Other Financial Measures' DEBT TO GROSS BOOK VALUE (thousands of dollars) June 30, 2025 December 31, 2024 Debt 404,967 476,552 Gross Book Value 831,348 967,433 Debt-to-Gross Book Value 48.7% 49.3% DEBT (thousands of dollars) June 30, 2025 December 31, 2024 Term loans, revolving credit facility and Portfolio Loan 350,190 423,949 2026 debentures (at face value) 49,730 49,730 Unamortized portion of debt financing costs 4,309 2,177 Lease liabilities 738 696 Debt 404,967 476,552 GROSS BOOK VALUE (thousands of dollars) June 30, 2025 December 31, 2024 Total assets 575,040 685,110 Accumulated depreciation and impairment on property, buildings and equipment 250,048 275,424 Accumulated amortization on intangible assets 6,260 6,899 Gross Book Value 831,348 967,433 DEBT TO EBITDA (thousands of dollars) June 30, 2025 December 31, 2024 Debt 404,967 476,552 EBITDA (trailing twelve months) 49,776 59,456 Debt-to-EBITDA (times) 8.1x 8.0x INTEREST COVERAGE RATIO (thousands of dollars) June 30, 2025 December 31, 2024 EBITDA (trailing twelve months) 49,776 59,456 Interest expense (trailing twelve months) 30,238 35,572 Interest Coverage Ratio (times) 1.6x 1.7x The reconciliation of NOI to hotel EBITDA and EBITDA is shown below: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024(restated) 2025 2024(restated) NOI 17,435 25,101 30,118 41,380 Management fees (1,231) (1,560) (2,412) (3,077) Hotel EBITDA 16,204 23,541 27,706 38,303 General administrative expenses (1,505) (2,757) (3,799) (5,078) EBITDA 14,699 20,784 23,907 33,225 The reconciliation of NOI to normalized NOI is shown below: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024(restated) 2025 2024(restated) NOI 17,435 25,101 30,118 41,380 Business interruption insurance proceeds - - - 92 Normalized NOI 17,435 25,101 30,118 41,472 The reconciliation of finance costs to interest expense is shown below: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024(restated) 2025 2024(restated) Finance costs 7,627 10,212 17,417 21,057 Amortization of debt financing costs (482) (653) (1,252) (1,314) Accretion of debenture liability (284) (260) (570) (523) Amortization of debenture costs (126) (120) (255) (233) Debt defeasance (13) - (1,017) - Loss on debt settlement (13) - (683) (11) Interest Expense 6,709 9,179 13,640 18,976 For information on the most directly comparable IFRS measures, composition of the measures, a description of how AHIP uses these measures, and an explanation of how these measures provide useful information to investors, please refer to AHIP's management discussion and analysis for the three and six months ended June 30, 2025 and 2024, available on AHIP's website at and under AHIP's profile on SEDAR+ at FORWARD-LOOKING INFORMATION Certain statements in this news release may constitute 'forward-looking information' and 'financial outlook' within the meaning of applicable securities laws. Forward-looking information and financial outlook generally can be identified by words such as 'anticipate', 'believe', 'continue', 'expect', 'estimates', 'intend', 'may', 'outlook', 'objective', 'plans', 'should', 'will' and similar expressions suggesting future outcomes or events. Forward-looking information and financial outlook include, but are not limited to, statements made or implied relating to the objectives of AHIP, AHIP's strategies to achieve those objectives and AHIP's beliefs, plans, estimates, projections and intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information and financial outlook in this news release include, but are not limited to, statements with respect to: AHIP management's expectation as to the impacts on AHIP's business of the seasonal nature of the lodging industry, inflation, competition and weather conditions; AHIP's planned capital expenditures, including the estimated amount and timing of such expenditures and AHIP's expected means of funding such expenditures; AHIP's expectations regarding the effects of its planned capital expenditures; AHIP's expectations with respect to the performance of its hotel portfolio; AHIP's expectations with respect to inflation, labor supply, labor costs, interest rates, supply chain and other market financial and macroeconomic conditions in 2025 and the expected impacts thereof on AHIP's financial position and performance, including on ADR, occupancy and RevPAR, NOI and NOI margins; AHIP's strategic initiatives and the intended outcomes thereof, including strengthening AHIP's financial position and preserving unitholder value; AHIP's expectations with respect to the macroeconomic and operating environment, including certain specific expectations for the 2025 fiscal year; AHIP continuing to execute its strategy to sell hotel properties to enhance liquidity, reduce debt and manage future financial obligations; AHIP's objective to raise sufficient capital to address the Series C Shares and the Debentures and the potential strategies for doing so; AHIP's continued marketing of approximately 20 hotels, and the factors that are expected to impact the number of hotels sold; AHIP's planned property dispositions, including the expected terms and timing thereof and the financial impact thereof on AHIP (including the estimated amount and uses of the proceeds from such dispositions); AHIP having any debt maturities until the fourth quarter of 2026; AHIP's intention to cause the U.S. REIT to cease to qualify as a REIT under the Code in respect of the U.S. REIT's 2025 fiscal year and instead be treated as taxable C corporation, and the anticipated benefits and risks to AHIP of doing so; AHIP entering into an amended and restated Investor Rights Agreement with the Investor and the amendment of U.S. REIT's articles to reflect that the U.S. REIT will cease to qualify as a REIT under the Code; KPMG's resignation as auditor of AHIP effective August 7, 2025, MNP commencing a transition process to ensure an orderly transfer and certain filings to be made by AHIP on SEDAR+ in connection with the change in AHIP's auditor to MNP; the key liquidity risks facing AHIP and its planned strategies for dealing with same; and AHIP's stated long-term objectives. Although AHIP believes that the expectations reflected in the forward-looking information and financial outlook contained in this news release are reasonable, AHIP can give no assurance that these expectations will prove to be correct. The estimates and assumptions, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth in this news release as well as the following: inflation, labor shortages, and supply chain disruptions will negatively impact the U.S. economy, U.S. hotel industry and AHIP's business; the U.S. will not enter an economic recession; AHIP will continue to have sufficient funds to meet its financial obligations; AHIP's strategies with respect to completion of capital projects, addressing future financial obligations, and divestiture of assets will be successful and achieve their intended effects; AHIP will complete its currently planned divestitures on the terms currently contemplated and in accordance with the timing currently contemplated; AHIP will meet its objective of raising sufficient capital to address the Series C Shares and the Debentures; AHIP will not sell all of the additional hotels it is currently marketing; AHIP's will cause the U.S. REIT to cease to qualify as a REIT under the Code in respect of the U.S. REIT's 2025 fiscal year and instead be treated as taxable C corporation, and AHIP will realize the anticipated benefits of doing so; AHIP will enter into an amended and restated Investor Rights Agreement with the Investor and will amend the U.S. REIT's articles to reflect that the U.S. REIT will cease to qualify as a REIT under the Code on the terms currently contemplated by AHIP; AHIP will continue to have good relationships with its Brand partners; capital markets will provide AHIP with readily available access to equity and/or debt financing on terms acceptable to AHIP, including the ability to refinance maturing debt as it becomes due on terms acceptable to AHIP; AHIP's future level of indebtedness will remain consistent with AHIP's current expectations; the useful lives and replacement cost of AHIP's assets being consistent with management's estimates thereof; the impact of the current economic climate and the current global financial conditions on AHIP's operations, including AHIP's financing capability and asset value, will remain consistent with AHIP's current expectations; there will be no material changes to tax laws, government and environmental regulations adversely affecting AHIP's operations, financing capability, structure or distributions; conditions in the international and, in particular, the U.S. hotel and lodging industry, including competition for acquisitions, will be consistent with the current economic climate; and AHIP will achieve its long-term objectives. Forward-looking information and financial outlook involve significant risks and uncertainties and should not be read as guarantees of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking information and financial outlook, accordingly undue reliance should not be placed on such forward-looking information or financial outlook. Those risks and uncertainties include, among other things, risks related to: AHIP may not achieve its expected performance levels in 2025; inflation, labor shortages, supply chain disruptions may continue to negatively impact AHIP's financial performance and position; risk of an economic recession in the U.S.; AHIP's brand partners may impose revised service standards and capital requirements which are adverse to AHIP; PIP renovations may not commence or complete in accordance with currently expected timing and may suffer from increased material and labor costs; AHIP's strategic initiatives with respect to strengthening AHIP's financial position, addressing future financial obligations and divestures of assets may not be successful and may not achieve their intended outcomes; AHIP may not complete its currently planned divestures on the terms currently contemplated or in accordance with the timing currently contemplated, or at all; AHIP may not meet its objective raising sufficient capital to address the Series C Shares and the Debentures; AHIP may not receive acceptable offers on some or all of the properties it is currently marketing; AHIP's intention to cause the U.S. REIT to cease to qualify as a REIT under the Code in respect of the U.S. REIT's 2025 fiscal year and instead be treated as taxable C corporation, may not be successful and the benefits thereof may be less than anticipated; AHIP may not enter into an amended and restated Investor Rights Agreement with the Investor or amend the U.S. REIT's articles on the terms currently contemplated; AHIP may incur costs related to the change in its auditor, which costs may be greater than anticipated; AHIP may not be successful in reducing its leverage; there is no guarantee that monthly distributions will be reinstated, and if reinstated, as to the timing thereof or what the amount of the monthly distribution will be; AHIP may not be able to refinance debt obligations as they become due or may do so on terms less favorable to AHIP than under AHIP's existing loan agreements; refinanced loans are expected to be refinanced at significantly higher interest rates; general economic conditions and consumer confidence; the growth in the U.S. hotel and lodging industry; prices for the Units and debentures; liquidity; tax risks; ability to access debt and capital markets; financing risks; changes in interest rates; the financial condition of, and AHIP's relationships with, its external hotel manager and franchisors; real property risks, including environmental risks; the degree and nature of competition; ability to acquire accretive hotel investments; environmental matters; and changes in legislation. Additional information about risks and uncertainties is contained in this news release and in AHIP's most recently filed annual information form, a copy of which is available on SEDAR+ at To the extent any forward-looking information constitutes a 'financial outlook' within the meaning of applicable securities laws, such information is being provided to investors to assist in their understanding of: AHIP's 2025 capital plan; estimated proceeds from the planned disposition of certain hotel properties and the expected use thereof and impact thereon on AHIP's financial position; and management's expectations for certain aspects of AHIP's financial performance for the remainder of 2025. The forward-looking information and financial outlook contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information and financial outlook reflect management's current beliefs and are based on information currently available to AHIP. The forward-looking information and financial outlook are made as of the date of this news release and AHIP assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law. For additional information, please contact: Investor Relationsir@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 hours ago
- Bloomberg
Energy Capital Emerges as Frontrunner on $3.1 Billion GFL Deal
Energy Capital Partners is in advanced negotiations to buy a minority stake in GFL Environmental Inc. 's infrastructure affiliate, with the deal expected to value the business at around C$4.25 billion ($3.1 billion) including debt, according to people familiar with the matter. The proposed transaction would allow shareholders in the business, which is known as Green Infrastructure Partners or GIP, to partially cash out while also raising capital for growth, the people said, asking not to be identified discussing private deliberations.
