DALLAS, June 14, 2019 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company")
announced today that its Board of Directors declared a quarterly
cash dividend of $0.06 per diluted
share for the Company's common stock for the second quarter ending
June 30, 2019. The dividend, which
equates to an annual rate of $0.24
per share, will be distributed on July 15,
2019, to shareholders of record as of June 28, 2019.
"Our Board of Directors set the quarterly common dividend at a
level that it believes is competitive with our lodging REIT peers,"
said Douglas A. Kessler, Ashford
Trust's President and Chief Executive Officer. "For some
time, our dividend has significantly exceeded what we would have
needed to distribute from a taxable income standpoint. This
adjustment effectively preserves capital for more advantageous
purposes including strengthening our balance sheet and enhancing
our ability to pursue more opportunistic growth such as
acquisitions that qualify for our Enhanced Return Funding Program
("ERFP"). One of the intended purposes of the ERFP is to make good
deals, great deals. We believe we are having success in achieving
that goal. To date, we have been pleased with the strong
performance and attractive initial results from our recent
ERFP acquisitions, namely the Hilton Alexandria Old Town, La Posada
de Santa Fe, Embassy Suites New
York Midtown Manhattan, and Hilton Santa
Cruz/Scotts Valley."
The Company also reported(1) certain operating
metrics on the four ERFP investments. The Embassy Suites New
York Midtown Manhattan continues to gain market share each month
since acquisition, and RevPAR has increased 35% year-to-date,
significantly exceeding the underwritten growth for the first year.
At La Posada de Santa Fe,
year-to-date Hotel EBITDA has increased 182% over the prior year
period and year-to-date RevPAR has increased 16%. The hotel
is already exceeding the Company's underwritten first year and
stabilized RevPAR penetration index. At Hilton Alexandria Old
Town, group revenue pace for the 3rd and 4th
quarter of 2019 is 24% greater than the prior year, and the
property has achieved positive gross operating profit flow-through
in eight of the ten months since acquisition. Hilton Santa Cruz/Scotts Valley, the Company's
most recent acquisition, is already achieving TTM RevPAR index
gains, while TTM NOI and NOI margin are approaching the first year
underwritten projections.
"We see the wisdom of this greater access to capital to maximize
our shareholder returns over time," stated Mr. Kessler.
"We remain focused on opportunistic hotel purchases and sales,
value-added asset management, and diligent efforts to improve our
balance sheet."
The Board declared a dividend of $0.5281 per diluted share for the Company's 8.45%
Series D Cumulative Preferred Stock for the second quarter ending
June 30, 2019. The dividend, which
equates to an annual rate of $2.1125
per share, is payable on July 15,
2019, to shareholders of record as of June 28, 2019.
The Board declared a dividend of $0.4609 per diluted share for the Company's
7.375% Series F Cumulative Preferred Stock for the second quarter
ending June 30, 2019. The
dividend, which equates to an annual rate of $1.8438 per share, is payable on July 15, 2019, to shareholders of record as of
June 28, 2019.
The Board declared a dividend of $0.4609 per diluted share for the Company's
7.375% Series G Cumulative Preferred Stock for the second quarter
ending June 30, 2019. The
dividend, which equates to an annual rate of $1.8438 per share, is payable on July 15, 2019, to shareholders of record as of
June 28, 2019.
The Board declared a dividend of $0.46875 per diluted share for the Company's
7.50% Series H Cumulative Preferred Stock for the second quarter
ending June 30, 2019. The
dividend, which equates to an annual rate of $1.875 per share, is payable on July 15, 2019, to shareholders of record as of
June 28, 2019.
The Board declared a dividend of $0.46875 per diluted share for the Company's
7.50% Series I Cumulative Preferred Stock for the second quarter
ending June 30, 2019. The dividend,
which equates to an annual rate of $1.875 per share, is payable on July 15, 2019, to shareholders of record as of
June 28, 2019.
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry in upper upscale, full-service hotels.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
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. Forward looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. 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.
Notes:
(1) Year-to-date and trailing 12-month
("TTM") RevPAR figures are as of May
2019, whereas net operating income ("NOI"), Hotel EBITDA,
and group pace figures are as of April
2019.
Ashford
Hospitality Trust, Inc.
La Posada de Santa Fe
Reconciliation of Hotel Net Income to Hotel EBITDA
(Unaudited, in millions)
|
|
|
|
|
|
4
Months
|
|
4
Months
|
|
Ended April
30,
|
|
Ended April
30,
|
|
2019
|
|
2018
|
Hotel Net Income
(Loss)
|
$
(0.9)
|
|
$
(0.4)
|
|
|
|
|
Adjustment:
|
|
|
|
Depreciation and
amortization
|
$
0.7
|
|
$
0.3
|
Interest
expense
|
$
0.5
|
|
$
0.2
|
|
|
|
|
Hotel
EBITDA
|
$
0.3
|
|
$
0.1
|
|
All information in
this table is based upon unaudited operating financial data for the
four months ended April 30, 2019 and 2018. This data has not
been audited or reviewed by the Company's independent registered
public accounting firm. The financial information presented
could change.
|
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SOURCE Ashford Hospitality Trust, Inc.