APLE - Apple Hospitality: Strong Q1 Performance Enhancing The Bull Story

2024-05-07 17:32:57 ET

Summary

• Apple Hospitality's performance has been closely correlated with the overall REIT market, which has been depressed due to struggles in the office segment.
• Despite the subpar performance, APLE has registered an improved cash generation, while maintaining single digit P/FFO multiple and a fortress balance sheet.
• Despite challenging year-over-year comparisons, Apple Hospitality delivered solid financial results in Q1 2024, driven by inorganic growth and strong demand for its properties.
• I outline the key dynamics of Q1'24 and comment on why I still consider APLE an attractive investment case.

Back in June 2023, I wrote my first bullish piece on Apple Hospitality REIT, Inc. ( APLE ) which since then has not played out how I projected at first....

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