Ashford Hospitality Trust Reports Fourth Quarter Results
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Ashford Hospitality Trust Reports Fourth Quarter Results
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-02-25
Ashford Hospitality Trust, Inc. (NYSE: AHT) today reported the following results and performance measures for the fourth quarter ended December 31, 2009. The proforma performance measurements for Occupancy, Average Daily Rate (ADR), revenue per available room (RevPAR), and Hotel Operating Profit (or Hotel EBITDA) include the Company's 102 hotels owned and included in continuing operations as of December 31, 2009. Unless otherwise stated, all reported results compare the fourth quarter ended December 31, 2009, with the fourth quarter ended December 31, 2008 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
FINANCIAL HIGHLIGHTS AND LIQUIDITY
-- Corporate unrestricted cash at the end of the quarter was $165.2 million
-- Total revenue decreased 18.3% to $234.6 million from $287.3 million
-- RevPAR decreased 13.5% for the quarter
-- Operating profit margin decreased 297 basis points
-- Net loss available to common shareholders was $76.9 million, or $1.30
per diluted share, compared with net income of $135.1 million, or $1.34
per diluted share, in the prior-year quarter
-- Adjusted funds from operations (AFFO) was $0.32 per diluted share
-- Cash available for distribution (CAD) was $0.22 per diluted share
-- Fixed charge coverage ratio was 1.69x under the senior credit facility
covenant versus a required minimum of 1.25x
CAPITAL ALLOCATION
-- Repurchased 6.3 million common shares in the quarter for $28.0 million
and a total of 30.1 million shares for $81.3 million in 2009
-- Capex invested in the quarter was $17.4 million, for a total of $69.2
million in 2009
-- Capital market hedging strategies resulted in $52.3 million of interest
expense savings in 2009
IMPAIRMENT
During the fourth quarter, the Company recorded an impairment of $59.3 million related to its Westin O'Hare in suburban Chicago. The Company had suspended making mortgage payments pursuant to grace periods granted by the lender under a forbearance agreement and has been working with the special servicer on the $101 million loan for a consensual deed in lieu of foreclosure. The impairment represents the difference between the asset's net book value and the current fair market value. Once the deed in lieu of foreclosure to the lender is completed, which is anticipated to be in the first or second quarter of 2010, the Company will report a non cash gain of approximately $53.0 million to the level of the non-recourse debt on the asset and effectively a net impairment of $6.3 million.
CAPITAL STRUCTURE
At December 31, 2009, the Company's net debt to total gross assets (as defined by the corporate credit facility) was 59.0%. As of December 31, 2009, the Company had $2.8 billion of mortgage debt. Including the swap and flooridors its blended average interest rate was 2.95%. Including its $1.8 billion interest rate swap, 98% of the Company's debt is variable-rate debt. The Company's weighted average debt maturity including extension options is 5.2 years.
On November 19, 2009, the Company closed on the refinancing of its remaining 2010 debt maturity and made significant progress on the Company's 2011 maturities through transactions with Prudential Mortgage Capital Company and Wheelock Street Capital with a $145.0 million non-recourse loan. The loan includes an A-Note from Prudential and a B-Note from Wheelock Street with a combined interest rate of 12.26% and a term of six years. The loans are secured by the Embassy Suites Crystal City, Embassy Suites Orlando Airport, Embassy Suites Santa Clara, Embassy Suites Portland and the Hilton Costa Mesa. The proceeds paid off a $75.0 million loan maturing in 2010 and a $65.0 million loan maturing in 2011, and provide $4.0 million for capital improvements to be drawn over a 24-month period. The Hilton Auburn Hills and the Hilton Rye Town, which were included in the maturing loans, are now unencumbered.
On November 19, 2009, the Company also completed the sale of the Westin Westminster mezzanine loan that was defeased by the original borrower in 2007 as part of a refinancing. The total gross proceeds received by the Company amounted to $13.6 million before transaction costs. The loan had an outstanding balance of $11.0 million with a September 1, 2011 maturity. The Company negotiated for the release of the portfolio of government agency securities serving as the defeased loan collateral, and sold the actual securities via an auction. The Company obtained pricing in excess of the par amount due to the high pay coupon compared to current market rates.
Effective December 1, 2009, the Company and the special servicer who is administering the $29.1 million first mortgage on the Company's Hyatt Regency Dearborn mutually agreed to transfer the Company's possession and control of the hotel to a court-appointed receiver. As a result of the transfer, the Company deconsolidated the hotel and its other net assets from its financial reporting in the amount of $32.0 million (previously impaired by $10.9 million in the second quarter of 2009) and the hotel's $29.1 million mortgage indebtedness, and recognized a loss on the deconsolidation of debt of $2.9 million in the fourth quarter. Additionally, the Company reclassified the hotel's results of operations through the effective date of the transfer to discontinued operations on its statement of operations.
Effective December 29, 2009, the Company refinanced its $19.74 million loan secured by the Hilton El Conquistador Hotel and Country Club in Tucson, Arizona. The loan was set to mature in June 2011. The new non-recourse financing with MetLife for the same amount bears interest at the greater of 5.5% or LIBOR plus 350 basis points and is interest only for a term of five years.
During 2009, the Company completed a total of $285 million in financings, re-financings and loan modifications. The Company has no debt maturities in 2010 and has $209 million of hard debt maturities in 2011, $203 million of which matures in December 2011 and is secured by a portfolio of hotels.
SUBSEQUENT EVENTS
On February 12, 2010, the Company completed the previously disclosed discounted payoff with the borrower on the Company's $33.6 million mezzanine loan, which was secured by interests in the Ritz Carlton Key Biscayne and set to mature in 2017. The Company received $20 million in cash and a $4 million note secured by interests in the property and that matures in 2017. The Company had previously recorded an impairment of $10.7 million to account for the discounted payoff in the third quarter of 2009.
PORTFOLIO REVPAR
As of December 31, 2009, the Company had a portfolio of direct hotel investments consisting of 102 properties classified in continuing operations. During the fourth quarter, 95 of the hotels included in continuing operations were not under renovation. The Company believes reporting its operating metrics for continuing operations on a proforma total basis (all 102 hotels) and proforma not-under-renovation basis (95 hotels) is a measure that reflects a meaningful and focused comparison of the operating results in its direct hotel portfolio. The Company's reporting by region and brand includes the results of all 102 hotels in continuing operations. Details of each category are provided in the tables attached to this release.
-- Proforma RevPAR decreased 13.3% for hotels not under renovation on a
10.8% decrease in ADR to $123.61 and a 181 basis point decline in
occupancy
-- Proforma RevPAR decreased 13.5% for all hotels on a 10.6% decrease in
ADR to $124.26 and a 214 basis point decline in occupancy
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
For the 95 hotels as of December 31, 2009, that were not under renovation, Proforma Hotel EBITDA decreased 24.4% to $50.3 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 276 basis points to 23.3%. For all 102 hotels included in continuing operations as of December 31, 2009, Proforma Hotel EBITDA decreased 25.5% to $55.8 million and Hotel EBITDA margin decreased 297 basis points to 23.3%.
Ashford believes year-over-year Hotel EBITDA and Hotel EBITDA margin comparisons are more meaningful to gauge the performance of the Company's hotels than sequential quarter-over-quarter comparisons. Given the substantial seasonality in the Company's portfolio and its active capital recycling, to help investors better understand this seasonality, the Company provides quarterly detail on its Proforma Hotel EBITDA and Proforma Hotel EBITDA margin for the current and certain prior-year periods based upon the number of core hotels in the portfolio as of the end of the current period. As Ashford's portfolio mix changes from time to time so will the seasonality for Proforma Hotel EBITDA and Proforma Hotel EBITDA margin. The details of the quarterly calculations for the previous four quarters for the current portfolio of 102 hotels included in continuing operations are provided in the tables attached to this release.
Monty J. Bennett, Chief Executive Officer, commented, "Our operations, capital markets, and share repurchase strategies continued to address many of our top priorities for the year such as offsetting declining RevPAR trends with interest expense savings, eliminating near-term debt maturities and creating value with a disciplined share repurchase strategy. Looking ahead to 2010, we still expect the operating environment to continue to be extremely challenging, requiring a continued cost control focus."
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, February 25, 2010, at 11 a.m. ET. The number to call for this interactive teleconference is (212) 231-2905. A replay of the conference call will be available through March 4, 2010, by dialing (402) 977-9140 and entering the confirmation number, 21449088.
The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2009 earnings release conference call. The live broadcast of Ashford's quarterly conference call will be available online at the Company's website at www.ahtreit.com on Thursday, February 25, 2010, beginning at 11 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year.
Substantially all of our non-current assets consist of real estate investments and debt investments secured by real estate. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, most industry investors consider supplemental measures of performance, which are not measures of operating performance under GAAP, to assist in evaluating a real estate company's operations. These supplemental measures include FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD. FFO is computed in accordance with our interpretation of standards established by NAREIT, which may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the NAREIT definition differently than us. Neither FFO, AFFO, EBITDA, Hotel Operating Profit, nor CAD represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to a) GAAP net income (loss) as an indication of our financial performance or b) GAAP cash flows from operating activities as a measure of our liquidity, nor are such measures indicative of funds available to satisfy our cash needs, including our ability to make cash distributions. However, management believes FFO, AFFO, EBITDA, Hotel Operating Profit, and CAD to be meaningful measures of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance.
Ashford Hospitality Trust is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, second mortgages, mezzanine loans and sale-leaseback transactions. Additional information can be found on the Company's web site at www.ahtreit.com.
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 forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford'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's filings with the Securities and Exchange Commission. EBITDA is defined as net income before interest, taxes, depreciation and amortization. EBITDA yield is defined as trailing twelve month EBITDA divided by the purchase price. A capitalization rate is determined by dividing the property's annual net operating income by the purchase price. Net operating income is the property's funds from operations minus a capital expense reserve of either 4% or 5% of gross revenues. Funds from operations ("FFO"), as defined by the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in April 2002, represents net income (loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales or properties and extraordinary items as defined by GAAP, plus depreciation and amortization of real estate assets, and net of adjustments for the portion of these items related to unconsolidated entities and joint ventures.
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.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
December 31,
--------------
2009 2008
---- ----
(Unaudited)
ASSETS
Investment in hotel properties, net $3,383,759 $3,568,215
Cash and cash equivalents 165,168 241,597
Restricted cash 77,566 69,806
Accounts receivable, net 31,503 41,110
Inventories 2,975 3,341
Notes receivable 55,655 212,815
Investment in unconsolidated joint venture 20,736 19,122
Deferred costs, net 20,960 24,211
Prepaid expenses 13,234 12,903
Interest rate derivatives 94,645 88,603
Other assets 3,471 6,766
Intangible assets, net 2,988 3,077
Due from third-party hotel managers 41,838 48,116
------ ------
Total assets $3,914,498 $4,339,682
========== ==========
LIABILITIES AND EQUITY
Liabilities
Indebtedness $2,772,396 $2,790,364
Capital leases payable 83 207
Accounts payable and accrued expenses 91,387 93,476
Dividends payable 5,566 6,285
Unfavorable management contract liabilities 18,504 20,950
Due to related parties 1,009 2,378
Due to third-party hotel managers 1,563 3,855
Other liabilities 7,932 8,124
----- -----
Total liabilities 2,898,440 2,925,639
--------- ---------
Series B-1 Cumulative Convertible Redeemable
Preferred stock, 7,447,865 issued and outstanding 75,000 75,000
Redeemable noncontrolling interests in operating
partnership 85,167 107,469
Equity:
Stockholders' equity of the Company
Preferred stock, $0.01 par value, 50,000,000
shares authorized:
Series A Cumulative Preferred Stock,
1,487,900 shares and 2,185,000 shares issued
and outstanding at December 31, 2009 and 2008 15 22
Series D Cumulative Preferred Stock, 5,666,797
shares and 6,394,347 shares issued and
outstanding at December 31, 2009 and 2008 57 64
Common stock, $0.01 par value, 200,000,000 shares
authorized, 122,748,859 shares issued, 57,596,878
shares and 86,555,149 shares outstanding at
December 31, 2009 and 2008 1,227 1,227
Additional paid-in capital 1,436,009 1,450,146
Accumulated other comprehensive loss (897) (860)
Accumulated deficit (412,011) (124,782)
Treasury stock, at cost (65,151,981 shares and
36,193,710 shares at December 31,
2009 and 2008) (186,424) (113,598)
-------- --------
Total stockholders' equity of the Company 837,976 1,212,219
Noncontrolling interests in consolidated
joint ventures 17,915 19,355
------ ------
Total equity 855,891 1,231,574
------- ---------
Total liabilities and equity $3,914,498 $4,339,682
========== ==========
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited)
REVENUE
Rooms $171,462 $204,562 $678,278 $831,029
Food and beverage 49,095 58,772 175,351 221,826
Rental income from
operating leases 1,820 1,979 5,650 6,218
Other 11,571 13,138 45,714 51,324
------ ------ ------ ------
Total hotel revenue 233,948 278,451 904,993 1,110,397
Interest income from notes
receivable 479 8,777 10,876 24,050
Asset management fees and
other 174 60 726 2,013
--- --- --- -----
Total Revenue 234,601 287,288 916,595 1,136,460
------- ------- ------- ---------
EXPENSES
Hotel operating expenses
Rooms 42,054 46,546 158,647 181,957
Food and beverage 34,175 41,374 125,343 156,540
Other direct 6,436 7,418 25,383 28,359
Indirect 70,843 81,850 269,879 313,141
Management fees 9,654 11,507 36,431 44,518
----- ------ ------ ------
Total hotel expenses 163,162 188,695 615,683 724,515
Property taxes, insurance,
and other 15,871 16,335 61,113 60,739
Depreciation and
amortization 38,027 40,383 155,458 164,055
Impairment charges 58,735 - 208,007 -
Gain on insurance
settlement (1,329) - (1,329) -
Corporate general and
administrative:
Stock-based compensation 1,141 1,646 5,037 6,834
Other general and
administrative 5,796 2,152 24,914 21,868
----- ----- ------ ------
Total Operating Expenses 281,403 249,211 1,068,883 978,011
------- ------- --------- -------
OPERATING (LOSS) INCOME (46,802) 38,077 (152,288) 158,449
Equity (loss) in earnings of
unconsolidated joint venture 623 (4,509) 2,486 (2,205)
Interest income 44 468 297 2,062
Other income 21,416 3,910 56,556 10,153
Interest expense (35,329) (37,433) (137,871) (148,162)
Amortization of loan costs (1,816) (1,732) (7,679) (6,420)
Write-off of premiums,
loan costs, premiums and
exit fees, net (1,111) - (181) (1,226)
Unrealized (loss) gain on
derivatives (17,616) 118,481 (31,782) 79,620
------- ------- ------- ------
(LOSS) INCOME FROM
CONTINUING OPERATIONS BEFORE
INCOME TAXES (80,591) 117,262 (270,462) 92,271
Income tax (expense) benefit (1,097) 238 (1,521) (657)
------ --- ------ ----
(LOSS) INCOME FROM
CONTINUING OPERATIONS (81,688) 117,500 (271,983) 91,614
(Loss) income from
discontinued operations (2,577) 37,522 (16,677) 54,057
------ ------ ------- ------
NET (LOSS) INCOME (84,265) 155,022 (288,660) 145,671
Loss (income) from
consolidated joint ventures
attributable to
noncontrolling interests 136 1,463 765 (1,444)
Net loss (income)
attributable to redeemable
noncontrolling interests in
operating partnership 12,085 (15,771) 37,653 (15,033)
------ ------- ------ -------
NET (LOSS) INCOME
ATTRIBUTABLE TO THE COMPANY (72,044) 140,714 (250,242) 129,194
Preferred dividends (4,830) (5,588) (19,322) (26,642)
------ ------ ------- -------
NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(76,874) $135,126 $(269,564) $102,552
======== ======== ========= ========
(LOSS) INCOME PER SHARE:
Basic
(Loss) income from
continuing operations
attributable to common
stockholders $(1.26) $1.09 $(3.72) $0.47
(Loss) income from
discontinued operations
attributable to common
stockholders (0.04) 0.36 (0.21) 0.44
----- ---- ----- ----
Net (loss) income
attributable to common
stockholders $(1.30) $1.45 $(3.93) $0.91
====== ===== ====== =====
Diluted
(Loss) income from
continuing operations
attributable to Ashford
common stockholders $(1.26) $1.01 $(3.72) $0.47
(Loss) income from
discontinued operations
attributable to Ashford
common stockholders (0.04) 0.33 (0.21) 0.44
----- ---- ----- ----
Net (loss) income
attributable to Ashford
common stockholders $(1.30) $1.34 $(3.93) $0.91
====== ===== ====== =====
Weighted average common
shares outstanding – basic 59,101 91,905 68,597 111,295
====== ====== ====== =======
Weighted average common
shares outstanding –
diluted 59,101 112,801 68,597 111,295
====== ======= ====== =======
Amounts attributable to common
stockholders:
(Loss) income from
continuing operations, net
of tax $(69,835) $106,958 $(235,655) $80,199
(Loss) income from
discontinued operations,
net of tax (2,209) 33,756 (14,587) 48,995
Preferred dividends (4,830) (5,588) (19,322) (26,642)
------ ------ ------- -------
Net (loss) income
attributable to common
stockholders $(76,874) $135,126 $(269,564) $102,552
======== ======== ========= ========
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO EBITDA
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited)
Net (loss) income $(84,265) $155,022 $(288,660) $145,671
Loss (income) from
consolidated joint
ventures attributable to
noncontrolling interests 136 1,463 765 (1,444)
Net loss (income)
attributable to redeemable
noncontrolling interests
in operating partnership 12,085 (15,771) 37,653 (15,033)
------ ------- ------ -------
Net (loss) income
attributable to the
Company (72,044) 140,714 (250,242) 129,194
Interest income (44) (456) (289) (2,020)
Interest expense and
amortization
of loan costs 36,945 38,885 145,171 157,274
Depreciation and
amortization 37,341 40,545 153,907 172,262
Net loss (income)
attributable to
redeemable noncontrolling
interests in operating
partnership (12,085) 15,771 (37,653) 15,033
Income tax expense
(benefit) 979 (267) 1,565 1,093
--- ---- ----- -----
EBITDA (8,908) 235,192 12,459 472,836
Amortization of unfavorable
management contract
liabilities (752) (753) (2,446) (2,446)
Loss (gain) on sale of note
receivable/properties,
net of taxes 511 (40,199) 511 (48,514)
Gain on insurance
settlement (1,329) - (1,329) -
Write-off of loan costs,
premiums and exit fees(1) 1,111 789 181 798
Non-recurring severance
payments - 582 - 582
Impairment charges 58,735 5,461 218,878 5,461
Income from interest rate
derivatives (2) (19,079) (4,108) (52,282) (10,352)
Unrealized loss (gain) on
derivatives 17,616 (118,481) 31,782 (79,620)
------- ------- -------- --------
Adjusted EBITDA $47,905 $78,483 $207,754 $338,745
======= ======= ======== ========
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ("FFO")
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited)
Net (loss) income $(84,265) $155,022 $(288,660) $145,671
Loss (income) from
consolidated joint
ventures attributable to
noncontrolling interests 136 1,463 765 (1,444)
Net loss (income)
attributable to redeemable
noncontrolling interests in
operating partnership 12,085 (15,771) 37,653 (15,033)
Preferred dividends (4,830) (5,588) (19,322) (26,642)
------ ------ ------- -------
Net loss attributable to
common stockholders (76,874) 135,126 (269,564) 102,552
Depreciation and
amortization on
real estate 37,271 40,441 153,621 171,791
Loss (gain) on sale of
note receivable/properties,
net of taxes 511 (40,199) 511 (48,514)
Gain on insurance
settlement (1,329) - (1,329) -
Net loss (income)
attributable to
redeemable noncontrolling
interests in
operating partnership (12,085) 15,771 (37,653) 15,033
------- ------ ------- ------
FFO available to common
stockholders (52,506) 151,139 (154,414) 240,862
Dividends on convertible
preferred stock 1,043 1,043 4,171 5,735
Write-off of loan costs,
premiums and exit fees(1) 1,111 789 181 798
Non-recurring severance
payments - 582 - 582
Impairment charges 58,735 5,461 218,878 5,461
Unrealized loss (gain) on
derivatives 17,616 (118,481) 31,782 (79,620)
------ -------- ------ -------
Adjusted FFO $25,999 $40,533 $100,598 $173,818
======= ======= ======== ========
Adjusted FFO per diluted
share available to common
stockholders $0.32 $0.36 $1.12 $1.31
===== ===== ===== =====
Weighted average
diluted shares 80,892 112,802 89,987 132,677
====== ======= ====== =======
(1) The amounts include write-off of debt premiums of $1,341 for the
refinancing of a mortgage loan for the year ended December 31, 2009
and $2,086 for the sale of a hotel property for the year ended
December 31, 2008.
(2) Cash income from interest rate derivatives is excluded from the
adjusted EBITDA calculations for all periods presented.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CASH AVAILABLE FOR DISTRIBUTION ("CAD")
(in thousands, except per share amounts)
(Unaudited)
Three Months Three Months
Ended Per Ended Per
December 31, Diluted December 31, Diluted
2009 Share 2008 Share
------------ ------- ------------ -------
Net (loss) income
attributable to common
stockholders $(76,874) $(0.95) $135,126 $1.20
Dividends on convertible
preferred stock 1,043 0.01 1,043 0.01
----- ---- ----- ----
Total (75,831) (0.94) 136,169 1.21
Depreciation and
amortization on real estate 37,271 0.46 40,441 0.36
Net (loss) income
attributable to redeemable
noncontrolling interests in
operating partnership (12,085) (0.15) 15,771 0.14
Stock-based compensation 1,141 0.02 1,646 0.02
Amortization of loan costs 1,748 0.02 1,686 0.01
Write-off of loan costs,
premiums and exit fees (1) 1,111 0.01 789 0.01
Amortization of unfavorable
management contract
liabilities (752) (0.01) (753) (0.01)
Loss (gain) on sale of note
receivable/properties, net
of taxes 511 0.01 (40,199) (0.36)
Gain on insurance settlement (1,329) (0.02) - -
Non-recurring severance
payments - - 582 0.01
Impairment charges 58,735 0.73 5,461 0.05
Unrealized loss (gain) on
derivatives 17,616 0.22 (118,481) (1.05)
Capital improvements reserve (10,311) (0.13) (12,047) (0.11)
------- ----- ------- -----
CAD $17,825 $0.22 $31,065 $0.28
======= ===== ======= =====
Year Year
Ended Per Ended Per
December 31, Diluted December 31, Diluted
2009 Share 2008 Share
----------- ------- ----------- -----
Net (loss) income
attributable to common
stockholders $(269,564) $(3.00) $102,552 $0.77
Dividends on convertible
preferred stock 4,171 0.05 5,735 0.05
----- ---- ----- ----
Total (265,393) (2.95) 108,287 0.82
Depreciation and
amortization on real
estate 153,621 1.71 171,791 1.30
Net (loss) income
attributable to redeemable
noncontrolling interests in
operating partnership (37,653) (0.42) 15,033 0.11
Stock-based compensation 5,037 0.06 6,834 0.05
Amortization of loan costs 7,427 0.08 6,610 0.05
Write-off of loan costs,
premiums and exit fees (1) 181 - 798 0.01
Amortization of unfavorable
management contract
liabilities (2,446) (0.03) (2,446) (0.02)
Loss (gain) on sale of note
receivable/properties, net
of taxes 511 0.01 (48,514) (0.36)
Gain on insurance
settlement (1,329) (0.01) - -
Non-recurring severance
payments - - 582 -
Impairment charges 218,878 2.43 5,461 0.04
Unrealized loss (gain) on
derivatives 31,782 0.35 (79,620) (0.60)
Capital improvements
reserve (40,580) (0.45) (50,108) (0.38)
------- ----- ------- -----
CAD $70,036 $0.78 $134,708 $1.02
======= ===== ======== =====
(1) The amounts include write-off of debt premiums of $1,341 for the
refinancing of a mortgage loan for the year ended December 31, 2009
and $2,086 for the sale of a hotel property for the year ended
December 31, 2008.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT SUMMARY
DECEMBER 31, 2009
(dollars in thousands)
(Unaudited)
Indebtedness Collateral Maturity Interest Rate
------------ ---------- -------- -------------
Senior credit
facility Notes receivable April 2010 LIBOR + 2.75% to 3.5%
Mortgage loan 10 hotels May 2010 LIBOR + 1.65%
Mortgage loan 5 hotels December 2010 LIBOR + 1.72%
Mortgage loan 1 hotel January 2011 8.32%
Mortgage loan 1 hotel March 2011 LIBOR (floor at 2.5%)
+ 3.75%
Mortgage loan 2 hotel August 2011 LIBOR + 2.75%
Mortgage loan 1 hotel March 2012 LIBOR + 4%
Mortgage loan 1 hotel December 2014 Greater of 5.5% or
LIBOR + 3.5%
Mortgage loan 8 hotels December 2014 5.75%
Mortgage loan 1 hotel January 2015 7.78%
Mortgage loan 10 hotels July 2015 5.22%
Mortgage loan 8 hotels December 2015 5.70%
Mortgage loan 5 hotels December 2015 12.26%
Mortgage loan 5 hotels February 2016 5.53%
Mortgage loan 5 hotels February 2016 5.53%
Mortgage loan 5 hotels February 2016 5.53%
Mortgage loan 1 hotel December 2016 5.81%
Mortgage loan 1 hotel April 2017 5.91%
Mortgage loan 2 hotels April 2017 5.95%
Mortgage loan 3 hotels April 2017 5.95%
Mortgage loan 5 hotels April 2017 5.95%
Mortgage loan 5 hotels April 2017 5.95%
Mortgage loan 5 hotels April 2017 5.95%
Mortgage loan 7 hotels April 2017 5.95%
TIF loan 1 hotel June 2018 12.85%
Mortgage loan 1 hotel April 2034 Greater of 6%
or Prime + 1%
Indebtedness Fixed-Rate Debt Floating-Rate Debt Total Debt
------------ --------------- ------------------ ----------
Senior credit $- $250,000 (1)(2) $250,000
facility - 167,202 (1) 167,202
Mortgage loan - 203,400 (3) 203,400
Mortgage loan 5,816 - 5,816
Mortgage loan - 52,500 (1) 52,500
Mortgage loan - 156,600 (1) 156,600
Mortgage loan - 60,800 (1) 60,800
Mortgage loan - 19,740 19,740
Mortgage loan 110,899 - 110,899
Mortgage loan 4,345 - 4,345
Mortgage loan 160,490 - 160,490
Mortgage loan 100,576 - 100,576
Mortgage loan 141,402 - 141,402
Mortgage loan 115,645 - 115,645
Mortgage loan 95,905 - 95,905
Mortgage loan 83,075 - 83,075
Mortgage loan 101,000 (4) - 101,000
Mortgage loan 35,000 - 35,000
Mortgage loan 128,251 - 128,251
Mortgage loan 260,980 - 260,980
Mortgage loan 115,600 - 115,600
Mortgage loan 103,906 - 103,906
Mortgage loan 158,105 - 158,105
Mortgage loan 126,466 - 126,466
TIF loan 7,783 - 7,783
Mortgage loan - 6,910 6,910
---------- ---------- ----------
Total debt $1,855,244 $917,152 $2,772,396
========== ========== ==========
Percentage 66.9% 33.1% 100.0%
========== ========== ==========
Weighted average
interest rate
at December
31, 2009 6.30% 2.97% 5.19%
========== ========== ==========
Total debt with
the effect of
interest
rate swap $55,244 $2,717,152 $2,772,396
========== ========== ==========
Percentage with
the effect of
interest
rate swap 2.0% 98.0% 100.0%
========== ========== ==========
Weighted average
interest rate
with the effect
of interest
rate swap 2.95% 2.97% 2.95%
========== ========== ==========
(1) Each of these loans has two one-year extension options.
(2) Based on the debt-to-assets ratio defined in the loan agreement,
interest rate on this debt was at LIBOR plus 3% as of December 31,
2009.
(3) This loan has a one-year extension option remaining.
(4) We are currently working with the lender for a deed-in-lieu of
foreclosure.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO
COVERAGE/LTV TESTS ARE EXERCISED
DECEMBER 31, 2009
(in thousands)
(Unaudited)
2010 2011 2012 2013 2014 Thereafter Total
---- ---- ---- ---- ---- ------------ -------
Secured
credit
facility $250,000(1) $- $- $- - $- $250,000
Mortgage
loan secured
by 10 hotel
properties,
Wachovia
Floater - - 167,202 - - - 167,202
Mortgage loan
secured by
five hotel
properties - 203,400 - - - - 203,400
Mortgage loan
secured by
Manchester
Courtyard - 5,816 - - - - 5,816
Mortgage loan
secured by JW
Marriott San
Francisco - - 52,500(1) - - - 52,500
Mortgage loan
secured by two
hotel
properties - 156,600(2) - - - - 156,600
Mortgage loan
secured by
Arlington
Marriott - - - - 60,800 - 60,800
Mortgage loan
secured by El
Conquistador
Hilton - - - - 19,740 - 19,740
Mortgage loan
secured by
eight hotel
properties,
UBS Pool 1 - - - - 110,899 - 110,899
Mortgage loan
secured by 10
hotel
properties,
Merrill
Lynch Pool 1 - - - - - 160,490 160,490
Mortgage loan
secured by
eight hotel
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