Company highlights and distribution update

Hotel Property Investments (ASX:HPI) has announced an expected distribution of 3.3 cents per stapled security for the two months ending December 31, 2024. This increase contributes to a total distribution of 9.8 cents for the six-month period, representing a 3.2% rise compared to the same period in 2023.

Overview of HPI's recent financial announcement

Hotel Property Investments (ASX:HPI) has detailed its financial expectations for the remainder of 2024. The company anticipates a distribution of 3.3 cents per stapled security for December 2024, leading to a total of 9.8 cents for the half-year period, which is a 3.2% increase from the previous year. HPI has kept the Distribution Reinvestment Plan suspended, meaning securityholders will receive cash distributions. The company has also highlighted key dates for financial announcements and tax components. Furthermore, HPI's directors have expressed that a takeover offer by Charter Hall and Hostplus undervalues their portfolio. The company reported a property portfolio valuation increase to approximately $1,259 million as of December 2024. Looking ahead, HPI aims for a final distribution of 9.9 cents per stapled security for the half-year ending June 2025, culminating in a 3.7% increase for the full year.

Executive commentary on recent developments

The Directors of HPI believe that the offer from Charter Hall and Hostplus undervalues the company’s portfolio and does not adequately compensate securityholders.