DALLAS, Jan. 29, 2014 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today
announced the tax reporting (Federal Form 1099-DIV) information for
the 2013 distributions on its common shares and its Series A, D,
and E preferred shares.
The income tax treatment for 2013 for Ashford Hospitality Trust,
Inc. Common Stock CUSIP #044103109 traded on the NYSE under ticker
symbol "AHT" is as follows:
Distribution Type
|
Distributions
Per Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Cash Per
Share
|
$0.4700
|
$0
|
$0.1245
|
$0.3455
|
Total Stock Per
Share (AHP)
|
$4.2700
|
$0
|
$1.1310
|
$3.1390
|
Total
Distributions
|
$4.7400
|
$0
|
$1.2555
|
$3.4845
|
Percent
|
100.00%
|
0%
|
26.4860%
|
73.5140%
|
The income tax treatment for the 2013 distributions for Ashford
Hospitality Trust, Inc. Series A Preferred Stock CUSIP #044103208
traded on the NYSE under ticker symbol "AHTPrA" is as follows:
Distribution Type
|
Distributions Per
Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Per
Share
|
$2.6719
|
$0
|
$2.6719
|
$0
|
Percent
|
100.00%
|
0%
|
100.00%
|
0%
|
The income tax treatment for the 2013 distributions for Ashford
Hospitality Trust, Inc. Series D Preferred Stock CUSIP #044103406
traded on the NYSE under ticker symbol "AHTPrD" is as follows:
Distribution Type
|
Distributions
Per Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Per
Share
|
$2.6406
|
$0
|
$2.6406
|
$0
|
Percent
|
100.00%
|
0%
|
100.00%
|
0%
|
The income tax treatment for the 2013 distributions for Ashford
Hospitality Trust, Inc. Series E Preferred Stock CUSIP #044103505
traded on the NYSE under ticker symbol "AHTPrE" is as follows:
Distribution Type
|
Distributions
Per Share
|
Ordinary Taxable
Dividend
|
Total Capital
Gain
Distribution
|
Return of
Capital
|
Total Per
Share
|
$2.8125
|
$0
|
$2.8125
|
$0
|
Percent
|
100.00%
|
0%
|
100.00%
|
0%
|
The distributions that the Company paid on January 15, 2013 to shareholders of record as of
December 31, 2012, are reportable in
2013. The preferred distributions that the company paid on
January 15, 2014 to shareholders of
record as of December 31, 2013 are
reportable in 2013. The common distributions that the company
paid on January 15, 2014 to
shareholders of record as of December 31,
2013 will be reportable in 2014.
On November 19, 2013, AHT
distributed its shares in Ashford Hospitality Prime, Inc. (NYSE:
AHP) to the shareholders of record as of the close of business on
November 8, 2013 (each an "AHT
Shareholder"). AHT shareholders were entitled to receive one share
of AHP common stock for each five shares of AHT common stock held
as of November 8, 2013. AHT is
reporting the distribution of AHP common stock as a taxable
dividend for U.S. federal income tax purposes. Shareholders are
treated as receiving a taxable dividend upon this distribution
equal to the fair market value of the AHP common stock (and cash in
lieu of fractional shares of such common stock) received in the
distribution and will take an adjusted basis, for federal income
tax purposes, in such shares equal to the fair market value of such
shares based on the market price on the date of the distribution.
The fair market value for federal income tax purposes of AHP common
stock based on the opening price on November
8, 2013, the first day of trading on the New York Stock
Exchange, was $21.35 per
share.
The above income tax discussion contains a general explanation
of certain U.S. federal income tax consequences of the distribution
of AHP shares to AHT shareholders. This information represents
AHT's general understanding of the application of certain existing
U.S. federal income tax laws and regulations relating to the
distribution. It does not constitute tax advice and does not
purport to be complete. Shareholders are urged to consult their tax
advisors regarding the particular consequences of the distribution,
including the applicability and effect of all U.S. federal, state
and local, and foreign tax laws. AHT urges shareholders to read the
Information Statement dated as of November
8, 2013 as filed by AHP as Exhibit 99.1 to its Form 10 on
November 8, 2013, noting especially
the discussion under the heading "Our Separation From Ashford Trust – Certain U.S. Federal Income Tax
Consequences of the Separation".
In accordance with IRS Code Section 6045B, the Company has
posted Form 8937, Report of Organizational Actions Affecting Basis
of Securities, which may be found in the Corporate Actions section
of the company's website. This form provides detailed information
on the return of capital portion of the common share distributions.
The Company encourages shareholders to consult with their own tax
advisors with respect to the federal, state and local, and foreign
income tax effects of these dividends.
IRS CIRCULAR 230 NOTICE: TO ENSURE COMPLIANCE WITH IRS
CIRCULAR 230, SHAREHOLDERS ARE HEREBY NOTIFIED THAT: (A) ANY
DISCUSSION OF U.S. FEDERAL TAX ISSUES CONTAINED OR REFERRED TO IN
THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND
CANNOT BE USED, BY SHAREHOLDERS FOR THE PURPOSE OF AVOIDING
PENALTIES THAT MAY BE IMPOSED ON THEM UNDER THE INTERNAL REVENUE
CODE; (B) SUCH DISCUSSION IS WRITTEN IN CONNECTION WITH THE
PROMOTION OR MARKETING BY AHT OF THE TRANSACTIONS OR MATTERS
ADDRESSED HEREIN; AND (C) SHAREHOLDERS SHOULD SEEK ADVICE BASED ON
THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry across all segments and at all levels of the capital
structure primarily within the United
States.
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and
uncertainties. When we use the words "will likely result,"
"may," "anticipate," "estimate," "should," "expect," "believe,"
"intend," or similar expressions, we intend to identify
forward-looking statements. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside
Ashford Trust's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: general volatility of the capital markets and the
market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; and the degree and nature of our competition. These
and other risk factors are more fully discussed in Ashford Trust's
filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We are not obligated to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or circumstances, changes in
expectations or otherwise.
SOURCE Ashford Hospitality Trust, Inc.