Investment Thesis
Apple Hospitality REIT demonstrates solid operational performance with strong revenue growth (+1833.4% YoY) and healthy free cash flow generation ($282M, 20% FCF margin). The company maintains conservative leverage (0.49x Debt/Equity) and generates robust operating margins (18.3%), though net income declined 18.1% YoY warranting monitoring of underlying operational drivers.
APLE Strengths
- Exceptional revenue growth of 1833.4% YoY indicating strong asset acquisition or portfolio expansion
- Strong free cash flow generation ($282M) with healthy 20% FCF margin supporting dividend sustainability
- Conservative capital structure with 0.49x Debt/Equity ratio and manageable 1.5B long-term debt relative to 3.1B equity base
- Solid operating margins of 18.3% demonstrating effective cost management in hospitality operations
APLE Risks
- Net income declined 18.1% YoY despite massive revenue growth, suggesting margin compression or elevated expenses from acquisition integration
- EPS dilution of 16.9% YoY indicates significant share issuance, potentially from acquisition financing or equity raises
- Minimal cash position ($8.5M) relative to $1.5B debt creates refinancing risk and limits financial flexibility
- Abnormally high revenue growth (1833%) suggests one-time portfolio acquisition rather than organic growth sustainability
Key Metrics to Watch
- Operating margin trends and underlying cost structure post-acquisition integration
- Cash flow generation sustainability and capital allocation priorities (debt reduction vs dividends)
- Same-property revenue growth (organic) to distinguish acquisition growth from operational performance
- Refinancing activities and debt maturity schedule given low cash balance relative to debt load
APLE Financial Metrics
APLE Profitability Ratios
APLE Balance Sheet & Liquidity
APLE 5-Year Financial Trend
5-Year Trend Summary: Apple Hospitality REIT, Inc.'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.77 reflects profitable operations.
APLE Growth Metrics (YoY)
APLE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $373.9M | $50.9M | $0.21 |
| Q2 2025 | $384.4M | $63.6M | $0.27 |
| Q1 2025 | $327.7M | $31.2M | $0.13 |
| Q3 2024 | $358.3M | $56.3M | $0.23 |
| Q2 2024 | $361.6M | $65.3M | $0.29 |
| Q1 2024 | $311.5M | $32.9M | $0.14 |
| Q3 2023 | $341.2M | $58.5M | $0.26 |
| Q2 2023 | $337.7M | $65.3M | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
APLE Capital Allocation
APLE SEC Filings
Access official SEC EDGAR filings for Apple Hospitality REIT, Inc. (CIK: 0001418121)