ASHFORD TRUST DECLARES PREFERRED DIVIDENDS FOR THE FIRST QUARTER OF 2024
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Insights
Ashford Hospitality Trust's declaration of dividends across multiple series of preferred stock is a strong signal of the company's current liquidity and commitment to shareholder returns. The declared dividends are consistent with the company's capital allocation strategy and indicate a stable cash flow position. Preferred stock dividends are generally viewed as a fixed-income investment and the yields offered by Ashford Trust seem competitive within the REIT sector.
Investors should note the varying dividend rates among the series, which reflect different levels of risk and seniority in the capital structure. The consistent payment of dividends could suggest that Ashford Trust is managing its hotel portfolio effectively, despite the cyclical nature of the hospitality industry. However, investors should also consider the broader market conditions, including interest rate trends and the health of the travel and hospitality sectors, which can impact REIT performance.
The preferred stock dividends announced by Ashford Hospitality Trust are indicative of the company's strategic positioning within the upscale, full-service hotel segment. The REIT's focus on upper upscale properties may provide a degree of resilience against economic downturns, as these properties typically cater to a more affluent clientele with less elastic demand for travel and accommodation.
Given the competitive landscape of the hospitality industry, Ashford Trust's ability to maintain dividend payouts may also reflect effective asset management and operational efficiencies. Potential investors and stakeholders should evaluate the company's performance relative to its peers, considering factors such as occupancy rates, average daily rates (ADR) and revenue per available room (RevPAR), which are critical metrics in the hospitality industry.
The announcement by Ashford Hospitality Trust, a REIT specializing in upper upscale, full-service hotels, to maintain its dividend payouts for various series of preferred stock signifies a commitment to delivering shareholder value. This approach aligns with the typical REIT model, which often prioritizes high dividend payouts due to their structure, where they are required to distribute at least 90% of taxable income to shareholders.
Investors should assess the sustainability of these dividends in the context of the REIT's operational performance, debt levels and the capital expenditure required to maintain and upgrade hotel properties. Additionally, the impact of macroeconomic factors such as changes in travel patterns and economic cycles on the hospitality sector should be considered when evaluating the long-term prospects of Ashford Trust's dividends.
The Board declared a dividend of
The Board declared a dividend of
The Board declared a dividend of
The Board declared a dividend of
The Board declared a monthly cash dividend for the Company's Series J Redeemable Preferred Stock equal to a quarterly rate of
The Board declared a monthly cash dividend for CUSIPs 04410D867 and 04410D792 of the Company's Series K Redeemable Preferred Stock equal to a quarterly rate of
The Board declared a monthly cash dividend for all remaining CUSIPs of the Company's Series K Redeemable Preferred Stock equal to a quarterly rate of
As of December 31, 2023, there were 3,475,318 shares of the Company's Series J Redeemable Preferred Stock and 194,193 shares of the Company's Series K Redeemable Preferred Stock issued and outstanding.
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
Forward-Looking Statements
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; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board's decision whether to pay further dividends at levels previously disclosed or to use available cash to pay dividends; 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.
FAQ
What dividends were declared by Ashford Hospitality Trust, Inc. (NYSE: AHT) for the first quarter ending March 31, 2024?
When will the dividends be payable to stockholders?
How many shares of Series J and Series K Redeemable Preferred Stock were issued and outstanding as of December 31, 2023?
What is the business focus of Ashford Hospitality Trust, Inc. (NYSE: AHT)?
