Ashford Restructures Mortgage Loan - Analyst Blog
December 14 2011 - 3:30AM
Zacks
Ashford Hospitality Trust
Inc. (AHT) recently announced that it has
restructured its $203.4 million mortgage loan and extended the
maturity date from December 2011 to March 2014. At the closing of
this deal, the company paid down the loan by $25 million to $178.4
million.
As per the terms of the deal, 85%
of excess cash flow after debt service, working capital and
approved capital expenditures will be used to pay down its debt
balance, thereby further deleveraging its portfolio.
The company’s strategic move
includes addressing future debt maturities with successful
restructuring of loan along with continued improvement in the
portfolio performance through RevPAR (Revenue per Available Room)
growth and gains in operating margin.
Ashford Hospitality reported
third-quarter 2011 adjusted FFO (funds from operations) of 39 cents
per share compared with 33 cents per share in the year-earlier
quarter. Fund from operations, 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.
At the end of the third quarter of
2011, Ashford Hospitality had cash and cash equivalents of $180.9
million.
Ashford Hospitality is a real
estate investment trust, engaged in investment and management of
properties in the hospitality industry. The company invests
in the real estate markets of the United States.
Ashford Hospitality currently
retains a Zacks #3 Rank, which translates into a short-term Hold
rating. We are also maintaining our long-term Neutral
recommendation on the stock. One of its competitors, Host
Hotels & Resorts Inc. (HST) holds a Zacks #4 Rank
which translates into a short-term Sell rating.
ASHFORD HOSPTLY (AHT): Free Stock Analysis Report
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