David Lerner Associates Welcomes Merger Announcement of Apple Hospitality REIT and Apple REIT Ten
Merger Creates One of the Largest Hospitality REITs in the United States; Combined Portfolio Approximately $5.7 Billion
Syosset, NY (April 27, 2016) – David Lerner Associates, a privately held securities broker dealer headquartered in Syosset, New York and the managing dealer of the SEC registered Apple Real Estate Investment Trust (REIT) programs, announced today that it welcomes the recent merger announcement of Apple REIT Ten and Apple Hospitality REIT, Inc. (NYSE: APLE). The transaction forms one of the largest hospitality REITs in the United Sates, comprising 234 hotels with more than 30,017 guestrooms throughout 33 states. According to the press release issued by Apple Hospitality REIT on April 14, 2016, the Pro Forma Combined Company will have an enterprise value of approximately $5.7 billion and a total equity market capitalization of approximately $4.4 billion, based on the 20-day Volume Weighted Average Price (VWAP) of Apple Hospitality’s common shares ending April 12, 2016. David Lerner Associates was the exclusive dealer of Apple REIT 10 and the entities that combined to become Apple Hospitality REIT, Inc.
“David Lerner Associates has a long standing and successful history working with select nontraded REITs, and we are proud of the opportunities we’ve provided clients by offering these investment products,” said John Dempsey, president of David Lerner Associates.
David Lerner Associates was the exclusive managing dealer for Apple REIT Ten, Inc., created in 2011. The Apple REIT Ten, Inc. portfolio currently includes 55 hotels in 17 states. Apple REIT Ten, Inc.’s 23,000 shareholders are all David Lerner Associates clients and, in its role, David Lerner Associates raised more than $1.05 billion.
The publicly traded Apple Hospitality REIT, Inc. was created in March 2014 following the merger of Apple REIT Seven, Inc, Apple REIT Eight, Inc., and Apple REIT Nine, Inc. David Lerner Associates also held the position of exclusive managing dealer for each of the individual entities. The transaction consolidates the last remaining Apple REIT portfolios. Apple Hospitality REIT, Inc. owns one of the largest portfolios of upscale, select service hotels in the United States. The Company’s portfolio consists of 179 hotels, with approximately 22,950 guestrooms, diversified across the Hilton® and Marriot® families of brands with locations in urban, high‐end suburban and developing markets throughout 32 states.
Please call David Lerner Associates at 1-800-367-300 or visit the David Lerner Associates website, www.davidlerner.com, for more information.
About David Lerner Associates:
Founded in 1976, David Lerner Associates (DLA) is a privately held securities broker/dealer. DLA’s headquarters are in Syosset, New York, and the firm has branch offices in Boca Raton, FL; Lawrenceville, NJ; Teaneck, NJ; Westport, CT; and White Plains, NY.
About Apple Hospitality REIT
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest portfolios of upscale, select service hotels in the United States. The Company’s portfolio consists of 179 hotels, with approximately 22,950 guestrooms, diversified across the Hilton® and Marriot® families of brands with locations in urban, high‐end suburban and developing markets throughout 32 states. For more information, please visit www.applehospitalityreit.com.
About Apple REIT Ten
Apple REIT Ten, Inc. is a real estate investment trust (REIT) focused on the ownership of income-producing real estate that generates attractive returns for shareholders. The Apple REIT Ten portfolio consists of 55 hotels with a total of 7,056 guestrooms.
Forward‐Looking Statements Disclaimer
This press release contains forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward‐looking statements are predictions and generally can be identified by use of statements that include phrases such as “may,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” “likely,” or other words, phrases or expressions of similar import. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of Apple Hospitality, Apple Ten or the Pro Forma Combined Company to be materially different from future results, performance or achievements expressed or implied by such forward‐looking statements. Such factors include, but are not limited to, the ability of the companies to obtain the required shareholder approvals to consummate the proposed merger; the satisfaction or waiver of other conditions in the merger agreement; the risk that the merger or the other transactions contemplated by the merger agreement may not be completed in the time frame expected by the parties or at all; the ability of Apple Hospitality to effectively acquire and dispose of properties; the ability of Apple Hospitality to successfully integrate pending transactions and implement its operating strategy; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the real estate and real estate capital markets; financing risks; the outcome of current and future litigation, including any legal proceedings that may be instituted against Apple Hospitality, Apple Ten or others related to the merger agreement; regulatory proceedings or inquiries; and changes in laws or regulations or interpretations of current laws and regulations that impact Apple Hospitality’s or Apple Ten’s business, assets or classification as a real estate investment trust. Although Apple Hospitality and Apple Ten believe that the assumptions underlying the forwardlooking statements contained herein are reasonable, any of the assumptions could be inaccurate, and Page | 5 therefore there can be no assurance that such statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward‐looking statements included herein, the inclusion of such information should not be regarded as a representation by Apple Hospitality, Apple Ten or any other person that the results or conditions described in such statements or the objectives and plans of Apple Hospitality or Apple Ten will be achieved. In addition, Apple Hospitality’s and Apple Ten’s qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code. Readers should carefully review Apple Hospitality’s and Apple Ten’s financial statements and the notes thereto, as well as the risk factors described in Apple Hospitality’s and Apple Ten’s filings with the Securities and Exchange Commission (“SEC”), including, but not limited to, in the section entitled “Item 1A. Risk Factors” in the Annual Report on Form 10‐K filed by Apple Hospitality with the SEC on February 25, 2016, and in the section entitled “Item 1A. Risk Factors” in the Annual Report on Form 10‐K filed by Apple Ten with the SEC on March 4, 2016. Any forward‐looking statement speaks only as of the date of this press release. Neither Apple Hospitality nor Apple Ten undertakes any obligation to update or revise any forward‐looking statements, whether as a result of new information or developments, future events, or otherwise, except as required by law.
Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com