Core Viewpoint - The article emphasizes the importance of value investing and highlights Apple Hospitality REIT (APLE) as a strong candidate for value investors due to its favorable valuation metrics [2][4][8]. Company Overview - Apple Hospitality REIT (APLE) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 9.63, significantly lower than the industry average of 14.92, suggesting it may be undervalued [4]. Valuation Metrics - APLE has a P/B ratio of 1.14, which is below the industry average of 1.75, indicating a solid valuation compared to its peers [5]. - The P/S ratio for APLE stands at 2.62, compared to the industry's average of 3.95, further supporting the notion of undervaluation [6]. - The P/CF ratio for APLE is 9.59, which is attractive when compared to the industry average of 15.81, reinforcing its status as a potentially undervalued stock [7]. Investment Outlook - The combination of APLE's strong earnings outlook and favorable valuation metrics positions it as an impressive value stock in the current market [8].

Group 1 - Investors are anticipating that interest rates will remain stable or gradually decline over the next year, with 87% expecting at least one rate cut in 2025 [1] Group 2 - A majority of investors are optimistic about the potential for interest rate reductions, indicating a shift in market sentiment [1]

Company Overview - Brad Thomas has over 30 years of real estate investing experience and has been involved in over $1B in commercial real estate transactions [2] - Brad Thomas is the author of four books, including "REITs For Dummies" [2] - Brad Thomas co-leads the investing group iREIT®+HOYA Capital, which covers REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives [1] - The iREIT®+HOYA Capital team has a combined 100+ years of experience, including former hedge fund managers, portfolio managers, and advisors to a former U.S. President [1] Services and Offerings - iREIT® on Alpha provides in-depth research on REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - The iREIT® Tracker offers data on over 250 tickers, including quality scores, buy targets, and trim targets [1] Historical Context - Around the end of 2002, Brad Thomas co-owned over $100 million of commercial real estate, primarily shopping centers and net lease buildings [1]

Core Viewpoint - The article highlights 11 REITs that provide high-yield and safe dividend payouts, targeting cautious investors focused on income generation rather than share price fluctuations [1]. Group 1 - The identified REITs are suitable for investors seeking stable income without significant concern for the underlying share price [1]. - The article emphasizes the importance of cautious investment strategies in the current market environment [1].

Financial Data and Key Metrics Changes - Comparable hotels RevPAR growth was approximately 1% compared to Q3 2023, driven entirely by improvement in rate [8][10] - Third quarter adjusted EBITDAre was $129 million, up approximately 6% compared to Q3 2023, while modified funds from operations was $107 million, up approximately 3% [10][37] - Total revenue for comparable hotels was $378 million for Q3, up approximately 2% year-to-date through September [28] Business Line Data and Key Metrics Changes - Comparable hotels ADR was $163, up more than 1%, and occupancy was 77%, essentially flat compared to Q3 2023 [28] - Total hotel expenses increased year-over-year by 2.7% for Q3, decelerating from previous quarters [34] - Comparable Hotels Adjusted Hotel EBITDA margin was 36.8% for the quarter, down only 60 basis points compared to Q3 2023 [37] Market Data and Key Metrics Changes - Supply-demand dynamics remain favorable, with approximately 54% of hotels not having new upper upscale or upper midscale products under construction within a five-mile radius [11] - Actual rooms under construction within the same radius decreased by 7% year-over-year [11] - October preliminary results showed RevPAR up approximately 4% compared to October 2023 [10] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, optimizing portfolio concentration through strategic dispositions and acquisitions [13][21] - Recent acquisitions have produced strong yields, with the seven hotels acquired since June yielding an unlevered 9% [19] - The company plans to continue investing in capital expenditures, expecting to spend between $75 million and $85 million during 2024 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of leisure travel and the continued improvement in business travel demand [25][26] - The operating environment is stable with favorable supply and demand dynamics, positioning the company for continued strong performance [45] - Management anticipates continued growth in midweek occupancy and rates, with a positive outlook for 2025 [54][56] Other Important Information - The company repurchased approximately 1.4 million common shares at an average price of $14.02 per share during Q3 [17] - Total debt outstanding as of September 30, 2024, was approximately $1.5 billion, with a weighted average interest rate of 4.9% [39] - The company has approximately $301 million remaining under its share repurchase program [41] Q&A Session Summary Question: Update on the disconnect between business transient and leisure rates - Management noted that the gap continues to shrink, with weekday ADR up about 6% relative to 2019 and weekend ADR up about 18% [49] Question: Assumptions for November and December RevPAR - Management projected some RevPAR growth for both November and December based on positive booking trends [51] Question: Expectations for 2025 expense growth - Management indicated that current trends are likely to continue into the coming year [52] Question: Excitement for 2025 and changes expected - Management highlighted the resilience of leisure travel and improvements in midweek occupancy as key factors for optimism [54] Question: Midweek occupancy growth potential - Management indicated there is still room for occupancy growth midweek, with 300 to 750 basis points of opportunity relative to 2019 [64] Question: Overall transaction marketplace and interest in acquisitions - Management noted that while there are ample opportunities, sellers remain reluctant to adjust pricing, leading to fewer transactions [70][72] Question: Group business performance and bookings for next year - Management stated that group business has consistently performed well, with no significant fluctuations expected [74] Question: Impact of shorter booking windows on staffing and planning - Management acknowledged that shorter booking windows require close monitoring of staffing and scheduling [78] Question: Capital allocation strategy regarding asset sales - Management expressed intent to be more aggressive in selling assets if the market remains favorable [82]

Core Insights - Apple Hospitality REIT reported revenue of $378.84 million for the quarter ended September 2024, marking a year-over-year increase of 5.8% [1] - The earnings per share (EPS) for the same period was $0.45, compared to $0.26 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $377.56 million, resulting in a surprise of +0.34% [1] Revenue Breakdown - Room revenue was $346.06 million, slightly above the estimated $344.82 million, reflecting a +5.8% change year-over-year [3] - Other revenue was reported at $16.94 million, below the average estimate of $18.02 million, indicating a -3.5% year-over-year change [3] - Food and beverage revenue reached $15.84 million, surpassing the average estimate of $14.43 million, with a year-over-year increase of +16.7% [3] Earnings Performance - The diluted net earnings per share was $0.23, slightly below the average estimate of $0.25 [3] - The company has not delivered an EPS surprise, as the consensus EPS estimate was also $0.45 [1][3] Stock Performance - Over the past month, shares of Apple Hospitality REIT have returned -3.4%, while the Zacks S&P 500 composite has seen a +0.4% change [4] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance compared to the broader market in the near term [4]

Apple Hospitality REIT (APLE) came out with quarterly funds from operations (FFO) of $0.45 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.45 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this hotel-owning real estate investment trust would post FFO of $0.44 per share when it actually produced FFO of $0.50, delivering a surprise of 13.64%.Over the last four quarters, the company has surpassed consensus FFO estima ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO _______ Commission File Number 001-37389 APPLE HOSPITALITY REIT, INC. (Exact name of registrant as specified in its charter) Virginia 26-1379210 (State or ot ...

Exhibit 99.1 Apple Hospitality REIT Reports Results of Operations for Third Quarter 2024 RICHMOND, Va. (November 4, 2024) – Apple Hospitality REIT, Inc. (NYSE: APLE) (the "Company" or "Apple Hospitality") today announced results of operations for the third quarter ended September 30, 2024. Apple Hospitality REIT, Inc. Selected Statistical and Financial Data As of and For the Three and Nine Months Ended September 30 (Unaudited) (in thousands, except statistical and per share amounts) (1) Three Months Ended N ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of EPR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. A Buy, Sell, or Hold rating in this article does not constitute a Buy, Sell, or Hold recommendation. All investors should exercise their own du ...