DALLAS, Aug. 1, 2023
/PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT)
("Ashford Trust" or the "Company") today reported financial results
and performance measures for the second quarter ended June 30, 2023. The comparable performance
measurements for Occupancy, Average Daily Rate (ADR), Revenue Per
Available Room (RevPAR), and Hotel EBITDA assume each of the hotel
properties in the Company's hotel portfolio as of June 30, 2023 was owned as of the beginning of
each of the periods presented. Unless otherwise stated, all
reported results compare the second quarter ended June 30, 2023 with the second quarter ended
June 30, 2022 (see discussion below).
The reconciliation of non-GAAP financial measures is included in
the financial tables accompanying this press release.
SECOND QUARTER 2023 FINANCIAL HIGHLIGHTS
- Comparable RevPAR for all hotels increased 6.7% to
$144.25 during the quarter on a 3.8%
increase in Comparable ADR and a 2.8% increase in Comparable
Occupancy.
- Net loss attributable to common stockholders was $(30.3) million or $(0.88) per diluted share for the quarter.
- Adjusted EBITDAre was $104.0
million for the quarter, reflecting a growth rate of 8% over
the prior year quarter.
- Adjusted funds from operations (AFFO) was $0.78 per diluted share for the quarter.
- Comparable Hotel EBITDA was $117.5
million for the quarter, reflecting a growth rate of 5% over
the prior year quarter.
- The Company ended the quarter with cash and cash equivalents of
$254.1 million and restricted cash of
$150.5 million. The vast majority of
the restricted cash is comprised of lender and manager held
reserves. At the end of the quarter, there was also
$19.0 million in due from third-party
hotel managers, which is primarily the Company's cash held by one
of its property managers and is also available to fund hotel
operating costs.
- Net working capital at the end of the quarter was $344.0 million.
- Capex invested during the quarter was $34.0 million.
RECENT OPERATING HIGHLIGHTS
- During the quarter, the Company extended its BAML Highland Pool
Loan until April 2024. As part of
this extension, the Company paid down the existing loan balance by
$45 million.
- During the quarter, the Company refinanced its mortgage loans
for the 157-room La Posada de Santa
Fe in Santa Fe, New Mexico,
which had a final maturity date in November
2023, and the 252-room Hilton
Alexandria in Alexandria,
Virginia, which had a final maturity date in June
2023. These two loans were the Company's only final debt
maturities in 2023.
- To date, the Company has issued approximately $51 million of its non-traded preferred
stock.
- During the quarter, the Company extended its KEYS Pool C loan.
Subsequent to quarter end, the Company extended its KEYS Pool D
loan and its KEYS Pool E loan. In the interest of protecting
stockholder value and liquidity, the Company elected not to make
the required paydowns to extend its KEYS Pool A loan, its KEYS Pool
B loan and its KEYS Pool F loan.
CAPITAL STRUCTURE
As of June 30, 2023, the Company had total loans of
$3.7 billion with a blended average
interest rate of 7.8%, taking into account in-the-money interest
rate caps. Excluding the non-extended KEYS loans, based on the
current level of LIBOR and SOFR and the
corresponding interest rate caps, approximately 95% of the
Company's debt is effectively fixed and approximately 5% is
effectively floating. Excluding the non-extended KEYS loans,
currently twelve of the Company's hotels are in cash
traps.
During the quarter, the Company extended its BAML Highland Pool
Loan until April 2024. As part of
this extension, the Company paid down the existing loan balance by
$45 million.
Also, during the quarter, the Company successfully refinanced
its mortgage loans for the 157-room La Posada de Santa Fe in Santa
Fe, New Mexico, which had a final maturity date in
November 2023, and the 252-room
Hilton Alexandria in Alexandria, Virginia, which had a final
maturity date in June 2023. These two
loans were the Company's only final debt maturities in 2023. The
new, non-recourse loan totals $98.5
million and has a three-year initial term with two one-year
extension options, subject to the satisfaction of certain
conditions. The loan is interest only and provides for a floating
interest rate of SOFR + 4.00%.
During the quarter, the Company extended its KEYS Pool C loan –
secured by five hotels with a paydown of approximately $62 million. Subsequent to quarter end, the
Company extended its KEYS Pool D loan – secured by five hotels with
a paydown of approximately $26
million, and its KEYS Pool E loan – secured by five hotels
with a paydown of approximately $41
million. In the interest of protecting stockholder
value and liquidity, the Company elected not to make the required
paydowns to extend its KEYS Pool A loan – secured by seven hotels,
its KEYS Pool B loan – secured by seven hotels, and its KEYS Pool F
loan – secured by five hotels. The Company noted that proactively
choosing not to extend three of these loan pools improves its
balance sheet by lowering leverage and materially improves future
cash flows. The combination of the paydowns and the removal of the
debt associated with the pools the Company did not extend will
lower the Company's debt by approximately $700 million.
The Company did not pay a dividend on its common stock and
common units for the second quarter ended June 30, 2023. The Board of Directors will
continue to monitor the situation and assess future quarterly
common dividend declarations. The Company is current on the
dividends on its outstanding preferred stock and plans to pay
dividends on its outstanding preferred stock on a current basis
going forward.
The Company commenced the offering of its Non-Traded Preferred
Equity during the third quarter of 2022. To date, the Company
has issued 1,935,377 shares of its Series J and 90,323 shares of
its Series K non-traded preferred stock raising approximately
$50.6 million of gross proceeds. The
expected use of proceeds for the Non-Traded Preferred Equity is
acquisitions, paying down debt, and other general corporate
purposes.
"During the second quarter, our portfolio delivered strong
operating results," commented Rob
Hays, Ashford Trust's President and Chief Executive Officer.
"We've been extremely encouraged with the growth in both occupancy
and ADR that we've been able to achieve and believe that strong
performance reflects our high-quality, geographically diverse
portfolio. Further, we're encouraged that the vast majority of our
hotels are now out of their cash traps." Mr. Hays added, "On the
capital management front, proactively choosing not to extend three
of the KEYS loan pools improves our balance sheet by lowering
leverage and materially improves our future cash flows. Looking
ahead, our portfolio remains well positioned to outperform and,
from a capital structure and balance sheet perspective, we will
continue to focus on paying off our corporate financing and raising
capital through our non-traded preferred stock."
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford
Hospitality Trust, Inc. will conduct a conference call on
Wednesday, August 2, 2023, at
11:00 a.m. ET. The number to call for
this interactive teleconference is (201) 389-0920. A replay of the
conference call will be available through Wednesday, August 9, 2023, by dialing (412)
317-6671 and entering the confirmation number, 13739435.
The Company will also provide an online simulcast and
rebroadcast of its second quarter 2023 earnings release conference
call. The live broadcast of Ashford Hospitality Trust's quarterly
conference call will be available online at the Company's website,
www.ahtreit.com, on Wednesday, August 2,
2023, beginning at 11:00 a.m.
ET. The online replay will follow shortly after the call and
continue for approximately one year.
We use certain non-GAAP measures, in addition to the required
GAAP presentations, as we believe these measures improve the
understanding of our operational results and make comparisons of
operating results among peer real estate investment trusts more
meaningful. Non-GAAP financial measures, which should not be relied
upon as a substitute for GAAP measures, used in this press release
are FFO, AFFO, EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel
EBITDA. Please refer to our most recently filed Annual Report on
Form 10-K for a more detailed description of how these non-GAAP
measures are calculated. The reconciliations of non-GAAP
measures to the closest GAAP measures are provided below and
provide further details of our results for the period being
reported.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities. Securities
will be offered only by means of a registration statement and
prospectus which can be found at www.sec.gov.
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
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: our ability to repay, refinance, or restructure our
debt and the debt of certain of our subsidiaries; anticipated or
expected purchases or sales of assets; our projected operating
results; completion of any pending transactions; our understanding
of our competition; market trends; projected capital expenditures;
the impact of technology on our operations and business; general
volatility of the capital markets and the market price of our
common stock and preferred stock; availability, terms and
deployment of capital; availability of qualified personnel; changes
in our industry and the markets 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. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider these risks when you make an investment decision
concerning our securities. Investors should not place undue
reliance on these forward-looking statements. The Company can give
no assurance that these forward-looking statements will be attained
or that any deviation will not occur. 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, except to the extent
required by law.
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SOURCE Ashford Hospitality Trust, Inc.