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Ryman Hospitality (RHP) Ups Flexibility through Refinancing
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Lodging REIT, Ryman Hospitality Properties, Inc. (RHP - Free Report) revealed a number of refinancing transactions that helped the company achieve financial flexibility. The company extended earliest debt maturity, achieved favorable pricing and made additional capacity for investments in growth drivers.
Particularly, the company repriced and extended its $700 million revolving credit facility due 2021. Also, it closed a new $200 million term loan A due 2022 as well as repriced, extended and upsized its term loan B from $389 million to $500 million due 2024.
Per the company, these transactions have been leverage neutral with the proceeds of both the term loan A and the upsized term loan B being utilized for paying down balances on the revolving credit facility. In fact, the company has been able to lower cost of capital by improving pricing on its term loan B and revolver as well as extended its earliest debt maturity by two years to 2021 from 2019.
Further, the move has helped Ryman Hospitality to boost its capacity under revolver for funding growth needs. In fact, the company’s chairman and chief executive officer, Colin Reed, highlighted that, “the state of our large group hospitality business has never been better, with strong demand and bookings growth, limited competitive supply, and several major investments underway across the portfolio.” Amid this, with enhanced financial flexibility, the company is expected to effectively leverage on the market fundamentals and ride on the growth curve.
Earlier in May, this lodging REIT, which specializes in group-oriented, destination hotel assets in urban and resort markets, reported adjusted funds from operations (“FFO”) per share of $1.22, beating the Zacks Consensus Estimate by 4.27%. The company achieved solid growth in revenue per available room or RevPAR.
Over the past six months, shares of Ryman Hospitality outperformed the Zacks categorized REIT and Equity Trust – Other industry. During this time frame, shares of Ryman Hospitality ascended 13.8%, whereas the industry gained 7.8%.
Ryman Hospitality currently carries a Zacks Rank #3 (Hold).
Equity LifeStyle Properties currently has a long-term growth rate of 4.7%.
Prologis’ estimates for 2017 funds from operations (“FFO”) per share moved north nearly 3.8% to $2.76, over the past 60 days.
PS Business Parks’ estimates for 2017 FFO per share inched up 1.8% to $6.09, over the past seven days.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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Ryman Hospitality (RHP) Ups Flexibility through Refinancing
Lodging REIT, Ryman Hospitality Properties, Inc. (RHP - Free Report) revealed a number of refinancing transactions that helped the company achieve financial flexibility. The company extended earliest debt maturity, achieved favorable pricing and made additional capacity for investments in growth drivers.
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Particularly, the company repriced and extended its $700 million revolving credit facility due 2021. Also, it closed a new $200 million term loan A due 2022 as well as repriced, extended and upsized its term loan B from $389 million to $500 million due 2024.
Per the company, these transactions have been leverage neutral with the proceeds of both the term loan A and the upsized term loan B being utilized for paying down balances on the revolving credit facility. In fact, the company has been able to lower cost of capital by improving pricing on its term loan B and revolver as well as extended its earliest debt maturity by two years to 2021 from 2019.
Further, the move has helped Ryman Hospitality to boost its capacity under revolver for funding growth needs. In fact, the company’s chairman and chief executive officer, Colin Reed, highlighted that, “the state of our large group hospitality business has never been better, with strong demand and bookings growth, limited competitive supply, and several major investments underway across the portfolio.” Amid this, with enhanced financial flexibility, the company is expected to effectively leverage on the market fundamentals and ride on the growth curve.
Earlier in May, this lodging REIT, which specializes in group-oriented, destination hotel assets in urban and resort markets, reported adjusted funds from operations (“FFO”) per share of $1.22, beating the Zacks Consensus Estimate by 4.27%. The company achieved solid growth in revenue per available room or RevPAR.
Over the past six months, shares of Ryman Hospitality outperformed the Zacks categorized REIT and Equity Trust – Other industry. During this time frame, shares of Ryman Hospitality ascended 13.8%, whereas the industry gained 7.8%.
Ryman Hospitality currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Investors can also consider better-ranked stocks in the REIT space like Equity LifeStyle Properties, Inc. (ELS - Free Report) , Prologis, Inc. (PLD - Free Report) and PS Business Parks, Inc. . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Equity LifeStyle Properties currently has a long-term growth rate of 4.7%.
Prologis’ estimates for 2017 funds from operations (“FFO”) per share moved north nearly 3.8% to $2.76, over the past 60 days.
PS Business Parks’ estimates for 2017 FFO per share inched up 1.8% to $6.09, over the past seven days.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>