Ashford Hospitality Trust Reports Second Quarter Results (PR Newswire)
Wed, 5 Aug 2009 20:51:00 Etc/GMT
FINANCIAL HIGHLIGHTS AND LIQUIDITY
- Corporate unrestricted available cash at the end of the quarter was $236.6 million
- Total revenue decreased 21.7% to $239.9 million from $306.5 million
- Net loss to common shareholders was $165.9 million or $2.34 per share
- Excluding the impairment charges as well as the unrealized loss on our swap, net loss available to common shareholders was $9.2 million, or $0.13 per diluted share, compared with a net income of $17.5 million, or $0.15 per diluted share, in the prior-year quarter
- Adjusted funds from operations (AFFO) was $0.31 per diluted share
- Cash available for distribution (CAD) was $0.22 per diluted share
- Fixed charge ratio was 1.63x under the senior credit facility covenant versus required minimum of 1.25x
- Repurchased 5.7 million common shares in the quarter for a total of $17.7 million
- Capex invested in the quarter totaled $13.7 million
IMPAIRMENT CHARGES
On June 15, 2009, the Company received notice that Extended Stay Hotels LLC ("ESH") was seeking Chapter 11 bankruptcy protection from its creditors. The Company holds a $164 million par value mezzanine loan participation that is secured by interests in 681 hotels held by Extended Stay, which was initially scheduled to mature June 12, 2009, with three 1-year renewal options. Prior to Extended Stay's bankruptcy filing, all payments on this loan were current; however, the Company anticipates that Extended Stay, through its bankruptcy filing, may attempt to impose a plan of reorganization that eliminates the Company's and all the other mezzanine creditors' investment. Accordingly, the Company has elected to write off the full amount of its investment, $109.4 million as of June 30, 2009, resulting in a non-cash impairment charge of $1.18 per diluted share, in the second quarter of 2009. The cash impact to the Company of this write-off with current LIBOR is less than $5.5 million per year. The Company is a member of the ESH creditors' committee.
During the second quarter of 2009, the Company also elected to write off one-half of the full amount of its $18.2 million first mortgage participation in the Four Seasons Nevis, the full amount of its $4.0 million mezzanine loan secured by interests in the Sheraton Dallas and the full amount of its $7.0 million mezzanine loan secured by interests in the Le Meridien Dallas. These three write off's resulted in a non-cash impairment charge of $20.1 million, or $0.22 per diluted share, in the second quarter of 2009.
In June 2009, the Company notified the servicer, who administers the $29.1 million first mortgage on the Company's Hyatt Regency Dearborn, that the Company would not make its June loan payment and would fully cooperate with the lender for a consensual foreclosure or a deed in favor of lender in lieu of foreclosure. As a result, the company took a non-cash impairment charge of $10.9 million, or $0.12 per diluted share, in the second quarter of 2009.
In summary the Company took impairments totaling $140.3 million in the second quarter. Looking ahead with RevPAR at historically low levels on a comparative basis and the current general operating environment for hotels, more write downs are possible.
CAPITAL STRUCTURE
On June 8, 2009, the Company extended its $55.0 million first mortgage loan secured by the JW Marriott San Francisco to March 2011 with two 1-year extensions remaining with the final maturity March 2013 and paid down the loan balance by $2.5 million.
At June 30, 2009, the Company's net debt to total gross assets (defined by the corporate credit facility) was 57.3%. As of June 30, 2009, the Company had $2.8 billion of gross debt with a blended average interest rate of 3.3% (including the benefit of the swap and flooridors). Including its $1.8 billion interest rate swap, 97% of the Company's debt is variable-rate debt. The Company's weighted average debt maturity including extension options is 5.5 years.
On July 1, 2009, the Company purchased two, one-year "flooridors." The first flooridor, which is for a notional amount of $1.8 billion, is for the period commencing December 14, 2009 and ending December 13, 2010. Under this flooridor, the counterparty will make payments to the Company when LIBOR is below 1.75% but only down to LIBOR of 1.25% such that the counterparty's liability is capped at LIBOR of 1.25%.
The second flooridor, which is also for a notional amount of $1.8 billion, is for the period commencing December 13, 2010, and ending December 13, 2011. Under this flooridor, the counterparty will make payments to the Operating Partnership when LIBOR is below 2.75% but only down to LIBOR of 0.50% such that the counterparty's liability is capped at LIBOR of 0.50%.
The Company paid a total of $22.3 million in upfront costs for the two flooridors and has no further liability under the flooridors to the counterparties.
The Company has no debt maturing in 2009 and $104.1 million due in 2010, of which $29.1 million is secured by the Hyatt Regency Dearborn, Michigan. The Company is currently actively seeking to refinance the $75 million loan due next year which is secured by the Embassy Suites Arlington, Virginia, the Embassy Suites Orlando, Florida, the Embassy Suites Santa Clara, California and the Hilton Rye Town, New York.
PORTFOLIO REVPAR
As of June 30, 2009, the Company had a portfolio of direct hotel investments consisting of 103 properties classified in continuing operations. During the second quarter, 101 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 103 hotels) and proforma not-under-renovation basis (101 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 103 hotels in continuing operations. Details of each category are provided in the tables attached to this release.
- Proforma RevPAR decreased 20.6% for hotels not under renovation on a 10.9% decrease in ADR to $129.87 and an 844-basis point decline in occupancy
- Proforma RevPAR decreased 21.0% for all hotels on a 11.1% decrease in ADR to $129.83 and an 859-basis point decline in occupancy
- Proforma RevPAR Yield Index increased 140-basis points for all hotels to 118.9%
HOTEL EBITDA MARGINS AND QUARTERLY SEASONALITY TRENDS
For the 101 hotels as of June 30, 2009, that were not under renovation, Proforma Hotel EBITDA decreased 35.8% to $61.3 million. Proforma Hotel EBITDA margin (expressed as a percentage of Total Hotel Revenue) declined 599 basis points to 26.1%. For all 103 hotels included in continuing operations as of June 30, 2009, Proforma Hotel EBITDA decreased 36.6% to $62.1 million and Hotel EBITDA margin decreased 612 basis points to 25.7%.
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 103 hotels included in continuing operations are provided in the tables attached to this release.
Monty J. Bennett, Chief Executive Officer, commented, "Every decision we make is based on our primary goals of long-term sustainability and enhanced long-term shareholder value. The ongoing decline of the lodging market dictates disciplined capital allocation to ensure actions taken in this environment today will enhance the Company's future. We believe our capital allocation, asset management strategies and disciplined stock buyback strategy, which are in some cases different than the capital market philosophy prevalent today, will best position us to achieve our goals over the long term."
INVESTOR CONFERENCE CALL AND SIMULCAST
Ashford Hospitality Trust, Inc. will conduct a conference call on Thursday, August 6, 2009, at 11 a.m. ET. The number to call for this interactive teleconference is (212) 231-2908. A replay of the conference call will be available through August 13, 2009, by dialing (402) 977-9140 and entering the confirmation number, 21428096.
The Company will also provide an online simulcast and rebroadcast of its second 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, August 6, 2009, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for approximately one year. A direct link to the live broadcast can be found at: http://www.videonewswire.com/event.asp?id=59525.
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)
June 30, December 31,
2009 2008
---- ----
(Unaudited)
ASSETS
Investment in hotel
properties, net $3,509,856 $3,568,215
Cash and cash equivalents 236,577 241,597
Restricted cash 67,283 69,806
Accounts receivable, net 43,088 41,110
Inventories 3,281 3,341
Notes receivable 86,395 212,815
Investment in
unconsolidated joint
venture 19,888 19,122
Deferred costs, net 21,427 24,211
Prepaid expenses 17,818 12,903
Interest rate derivatives 77,657 88,603
Other assets 5,340 6,766
Intangible assets, net 3,033 3,077
Due from third-party hotel
managers 49,127 48,116
------ ------
Total assets $4,140,770 $4,339,682
========== ==========
LIABILITIES AND EQUITY
Liabilities
Indebtedness $2,803,383 $2,790,364
Capital leases payable 125 207
Accounts payable and
accrued expenses 107,975 93,476
Dividends payable 5,527 6,285
Unfavorable management
contract liabilities 19,821 20,950
Due to related parties 1,040 2,378
Due to third-party hotel
managers 4,287 3,855
Other liabilities 7,981 8,124
----- -----
Total liabilities 2,950,139 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 85,433 107,469
Equity:
Shareholders' 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 June 30, 2009 and December
31, 2008 15 22
Series D Cumulative Preferred
Stock, 5,666,797 shares and
6,394,347 shares issued and outstanding
at June 30, 2009 and December
31, 2008 57 64
Common stock, $0.01 par
value, 200,000,000
shares authorized,
122,748,859 shares issued,
70,194,803 shares and
86,555,149 shares
outstanding at June 30, 2009 and
December 31, 2008 1,227 1,227
Additional paid-in capital 1,433,420 1,450,146
Accumulated other
comprehensive loss (771) (860)
Accumulated deficit (283,845) (124,782)
Treasury stock, at cost
(52,554,056 shares and
36,193,710 shares at
June 30, 2009 and December
31, 2008) (139,181) (113,598)
-------- --------
Total shareholders' equity of the
Company 1,010,922 1,212,219
Noncontrolling
interests in
consolidated joint
ventures 19,276 19,355
------ ------
Total equity 1,030,198 1,231,574
--------- ---------
Total liabilities and equity $4,140,770 $4,339,682
========== ==========
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
---------- ----------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited)
REVENUE
Rooms $176,405 $223,915 $349,159 $433,408
Food and beverage 47,850 63,410 95,234 122,009
Rental income from
operating leases 1,405 1,526 2,594 2,873
Other 11,663 13,522 23,642 26,321
------ ------ ------ ------
Total hotel revenue 237,323 302,373 470,629 584,611
Interest income from notes
receivable 2,421 3,216 8,636 6,471
Asset management fees and
other 205 921 379 1,443
--- --- --- -----
Total Revenue 239,949 306,510 479,644 592,525
------- ------- ------- -------
EXPENSES
Hotel operating expenses
Rooms 40,607 47,840 79,747 93,272
Food and beverage 33,527 43,196 67,535 84,769
Other direct 6,439 7,447 12,621 14,492
Indirect 69,712 79,456 138,259 158,294
Management fees 9,333 11,796 18,584 23,037
----- ------ ------ ------
Total hotel expenses 159,618 189,735 316,746 373,864
Property taxes, insurance,
and other 16,189 16,234 30,579 30,858
Depreciation and
amortization 38,573 39,013 79,992 81,999
Impairment charges 140,327 - 140,327 -
Corporate general and administrative:
Stock-based compensation 1,201 1,860 2,757 3,469
Other general and
administrative 5,710 6,505 11,000 12,600
----- ----- ------ ------
-
Total Operating Expenses 361,618 253,347 581,401 502,790
------- ------- ------- -------
OPERATING INCOME (LOSS) (121,669) 53,163 (101,757) 89,735
Equity in earnings of
unconsolidated joint
venture 617 1,287 1,221 1,813
Interest income 92 351 197 897
Other income 11,214 2,569 21,912 2,865
Interest expense (34,586) (36,393) (69,076) (73,566)
Amortization of loan costs (1,984) (1,638) (4,042) (3,334)
Write-off of loan costs,
premiums and exit fees - - 930 -
Unrealized loss on
derivatives (37,723) (55,438) (19,691) (51,389)
------- ------- ------- -------
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND
REDEEMABLE NONCONTROLLING
INTERESTS (184,039) (36,099) (170,306) (32,979)
Income tax expense (172) (319) (393) (657)
Loss from continuing operations attributable to redeemable
noncontrolling interests
in operating partnership 22,702 3,059 21,144 2,729
------ ----- ------ -----
LOSS FROM CONTINUING
OPERATIONS (161,509) (33,359) (149,555) (30,907)
Income from discontinued
operations attributable to
controlling interests - 9,572 - 13,372
- ----- - ------
NET LOSS (161,509) (23,787) (149,555) (17,535)
Loss (income) from
consolidated joint ventures
attributable to
noncontrolling interests 450 (2,717) 153 (2,784)
--- ------ --- ------
NET LOSS ATTRIBUTABLE TO THE
COMPANY (161,059) (26,504) (149,402) (20,319)
Preferred dividends (4,831) (7,018) (9,661) (14,036)
------ ------ ------ -------
NET LOSS ATTRIBUTABLE TO
COMMON SHAREHOLDERS $(165,890) $(33,522) $(159,063) $(34,355)
========= ======== ========= ========
INCOME (LOSS) PER SHARE - Basic and Diluted:
Loss from continuing
operations attributable to
common shareholders $(2.34) $(0.36) $(2.10) $(0.40)
Income from discontinued
operations attributable to
common shareholders - 0.08 - 0.11
- ---- - ----
Net loss attributable to
common shareholders $(2.34) $(0.28) $(2.10) $(0.29)
====== ====== ====== ======
Weighted average common
shares outstanding - basic
and diluted 70,882 118,911 75,685 118,870
====== ======= ====== =======
Amounts attributable to common shareholders:
Loss from continuing
operations, net of tax $(161,059) $(36,076) $(149,402) $(33,691)
Income from discontinued
operations, net of tax - 9,572 - 13,372
Preferred dividends (4,831) (7,018) (9,661) (14,036)
------ ------ ------ -------
Net loss attributable to
common shareholders $(165,890) $(33,522) $(159,063) $(34,355)
========= ======== ========= ========
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO EBITDA
(in thousands, except per share amounts and ratios)
Three Months Ended Six Months Ended
June 30, June 30,
---------- ----------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited)
Net loss $(161,509) $(23,787) $(149,555) $(17,535)
Loss (income) from
consolidated joint
ventures attributable
to noncontrolling
interests 450 (2,717) 153 (2,784)
--- ------ --- ------
Net loss attributable to
the Company (161,059) (26,504) (149,402) (20,319)
Interest income (91) (351) (191) (897)
Interest expense and
amortization of loan
costs 36,090 39,148 72,162 79,738
Depreciation and
amortization 37,783 41,203 78,426 87,528
Net loss
attributable to
noncontrolling
interests in
operating
partnership (22,702) (2,225) (21,144) (1,594)
Income tax expense 172 528 393 938
--- --- --- ---
EBITDA (109,807) 51,799 (19,756) 145,394
Amortization of
unfavorable
management contract
liabilities (564) (564) (1,129) (1,129)
Gain on sale of
properties, net of
related income taxes - (6,015) - (6,903)
Write-off of loan
costs, premiums and
exit fees (1) - 515 (930) (1,347)
Impairment charges 140,327 - 140,327 -
Unrealized loss on
derivatives 37,723 55,438 19,691 51,389
------- -------- -------- --------
Adjusted EBITDA $67,679 $101,173 $138,203 $187,404
======= ======== ======== ========
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS ("FFO")
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
---------- ----------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited)
Net loss $(161,509) $(23,787) $(149,555) $(17,535)
Loss (income) from
consolidated joint
ventures
attributable to
noncontrolling interests 450 (2,717) 153 (2,784)
Preferred dividends (4,831) (7,018) (9,661) (14,036)
------ ------ ------ -------
Net loss attributable to
common shareholders (165,890) (33,522) (159,063) (34,355)
Depreciation and
amortization on real
estate 37,713 41,443 78,279 86,742
Gain on sales of
hotel properties,
net of related
income taxes - (6,015) - (6,903)
Net loss attributable
to noncontrolling
interests in
operating partnership (22,702) (2,225) (21,144) (1,594)
------- ------ ------- ------
FFO available to common
shareholders (150,879) (319) (101,928) 43,890
Dividends on
convertible
preferred stock 1,043 1,564 2,085 3,128
Write-off of loan
costs, premiums and
exit fees (1) - 515 (930) (1,347)
Impairment charges 140,327 - 140,327 -
Unrealized loss on
derivatives 37,723 55,438 19,691 51,389
------ ------ ------ ------
Adjusted FFO $28,214 $57,198 $59,245 $97,060
======= ======= ======= =======
Adjusted FFO per diluted
share available to common
shareholders $0.31 $0.41 $0.61 $0.69
===== ===== ===== =====
Weighted average diluted
shares 92,284 140,757 96,829 140,250
====== ======= ====== =======
(1) The amounts include write-off of debt premiums of $1,341 for the
refinancing of a mortgage loan for the six months ended June 30,
2009 and $2,086 for the sale of a hotel property for the six months
ended June 30, 2008.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
CASH AVAILABLE FOR DISTRIBUTION ("CAD")
(in thousands, except per share amounts)
(Unaudited)
Three Three
Months Months
Ended Per Ended Per
June 30, Diluted June 30, Diluted
2009 Share 2008 Share
---- ----- ---- -----
Net loss attributable to
common shareholders $(165,890) $(1.80) $(33,522) $(0.24)
Dividends on convertible
preferred stock 1,043 0.01 1,564 0.01
----- ---- ----- ----
Total (164,847) (1.79) (31,958) (0.23)
Depreciation and
amortization on
real estate 37,713 0.41 41,443 0.30
Net loss attributable to
noncontrolling
interests in operating
partnership (22,702) (0.25) (2,225) (0.01)
Stock-based compensation 1,201 0.01 1,860 0.01
Amortization of loan
costs 1,914 0.02 1,682 0.01
Write-off of loan costs,
premiums and exit fees (1) - - 515 -
Amortization of unfavorable
management contract
liabilities (564) (0.01) (564) -
Gain on sales of
properties, net
of related income
taxes - - (6,015) (0.04)
Impairment charge 140,327 1.52 - -
Unrealized loss on
derivatives 37,723 0.41 55,438 0.39
Capital improvements
reserve (10,415) (0.11) (14,014) (0.10)
------- ----- ------- -----
CAD $20,350 $0.22 $46,162 $0.33
======= ===== ======= =====
Six Six
Months Months
Ended Per Ended Per
June 30, Diluted June 30, Diluted
2009 Share 2008 Share
---- ----- ---- -----
Net loss attributable to
common
shareholders $(159,063) $(1.64) $(34,355) $(0.24)
Dividends on convertible
preferred stock 2,085 0.02 3,128 0.02
----- ---- ----- ----
Total (156,978) (1.62) (31,227) (0.22)
Depreciation and
amortization on
real estate 78,279 0.81 86,742 0.62
Net loss attributable to
noncontrolling
interests in operating
partnership (21,144) (0.22) (1,594) (0.01)
Stock-based compensation 2,757 0.03 3,469 0.03
Amortization of loan
costs 3,903 0.04 3,485 0.02
Write-off of loan costs,
premiums and exit fees (1) (930) (0.01) (1,347) (0.01)
Amortization of unfavorable
management contract
liabilities (1,129) (0.01) (1,129) (0.01)
Gain on sales of
properties, net
of related income
taxes - - (6,903) (0.05)
Impairment charge 140,327 1.45 - -
Unrealized loss on
derivatives 19,691 0.20 51,389 0.37
Capital improvements
reserve (20,699) (0.21) (26,113) (0.19)
------- ----- ------- -----
CAD $44,077 $0.46 $76,772 $0.55
======= ===== ======= =====
(1) The amounts include write-off of debt premiums of $1,341 for the
refinancing of a mortgage loan for the six months ended June 30,
2009 and $2,086 for the sale of a hotel property for the six
months ended June 30, 2008.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT SUMMARY
JUNE 30, 2009
(dollars in thousands)
(Unaudited)
Fixed-Rate Floating-Rate Total
Debt Debt Debt
------ ------ ------
Mortgage loan secured by ten
hotel properties, matures
July 2015, at an interest
rate of 5.22% $160,490 $- $160,490
Mortgage loan secured by five
hotel properties, matures
February 2016, at an interest
rate of 5.53% 115,645 - 115,645
Mortgage loan secured by five
hotel properties, matures
February 2016, at an interest
rate of 5.53% 95,905 - 95,905
Mortgage loan secured by five
hotel properties, matures
February 2016, at an interest
rate of 5.53% 83,075 - 83,075
Mortgage loan secured by eight
hotel properties, matures
December 2014, at an interest
rate of 5.75% 110,899 - 110,899
Mortgage loan secured by eight
hotel properties, matures
December 2015, at an interest
rate of 5.70% 100,576 - 100,576
Secured credit facility,
matures April 2010, at an
interest rate of LIBOR
plus a range of 2.75% to 3.5%
depending on the loan-to-
value ratio, with two one-
year extension options - 250,000 250,000
Mortgage loan secured by one
hotel property, matures
December 2016, at an
interest rate of 5.81% 101,000 - 101,000
Mortgage loan secured by five
hotel properties, matures
December 2009, at an
interest rate of LIBOR plus
1.72%, with two one-year
extension options - 203,400 203,400
Mortgage loan secured by five
hotel properties, matures
April 2017, at an interest
rate of 5.95% 115,600 - 115,600
Mortgage loan secured by seven
hotel properties, matures
April 2017, at an interest
rate of 5.95% 126,466 - 126,466
Mortgage loan secured by two
hotel properties, matures
April 2017, at an interest
rate of 5.95% 128,408 - 128,408
Mortgage loan secured by five
hotel properties, matures
April 2017, at an interest
rate of 5.95% 103,906 - 103,906
Mortgage loan secured by five
hotel properties, matures
April 2017, at an interest
rate of 5.95% 158,105 - 158,105
Mortgage loan secured by three
hotel properties, matures
April 2017, at an interest
rate of 5.95% 260,980 - 260,980
Mortgage loan secured by one
hotel properties, matures
April 2017, at an interest
rate of 5.91% 31,150 - 31,150
Mortgage loan secured by 10
hotel properties, matures
May 2010, at an interest
rate of LIBOR plus
1.65%, with two one-
year extension options - 167,202 167,202
Mortgage loan secured by one
hotel property, matures
January 2011, at an
interest rate of 8.32% 5,018 - 5,018
Mortgage loan secured by one
hotel property, matures
January 2023, at an
interest rate of 7.78% 4,454 - 4,454
TIF loan secured by one
hotel property, matures
June 2018, at an interest
rate of 12.85% 6,927 - 6,927
Mortgage loan secured by one
hotel property, matures
March 2010, at an interest
rate of 5.6% 29,135* - 29,135
Mortgage loan secured by
three hotel properties,
matures April 2011, at an
interest rate of 5.47% 65,644 - 65,644
Mortgage loan secured by
four hotel properties,
matures March 2010, at an
interest rate of 5.95% 75,000 - 75,000
Mortgage loan secured by
one hotel property,
matures June 2011, at an
interest
rate of LIBOR plus 2% - 19,740 19,740
Mortgage loan secured by two
hotel properties, matures
August 2011, at an
interest rate of LIBOR plus
2.75%, with two one-year
extension options - 118,500 118,500
Mortgage loan secured by
one hotel properties,
matures March 2011, at an
interest rate of LIBOR
plus 3.75% with a
LIBOR floor of 2.5%
and two one-
year extension options - 52,500 52,500
Mortgage loan secured
by one hotel property,
matures March 2012, at
an interest rate of LIBOR
plus 4%, with two one-
year extension options 60,800 60,800
Mortgage loan secured
by one hotel property,
matures April 2034, at
an interest rate at the
greater of 6% or prime
plus 1% 6,980 6,980
----- -----
Total debt excluding debt
attributable to joint
venture partners 1,878,383 879,122 2,757,505
Plus: Debt attributable to
joint venture partners 6,378 39,500 45,878
----- ------ ------
Total debt $1,884,761 $918,622 $2,803,383
========== ======== ==========
Percentage 67.2% 32.8% 100.0%
==== ==== =====
Weighted average interest
rate at June 30, 2009 5.81% 2.97% 4.88%
==== ==== ====
Total with the effect of
interest rate swap $84,761 $2,718,622 $2,803,383
======= ========== ==========
Percentage with the effect of
interest rate swap 3.0% 97.0% 100.0%
=== ==== =====
Weighted average
interest rate with the
effect of interest rate
swap 3.47% 2.97% 3.30%
==== ==== ====
* We have received a notice of default and acceleration of the loan and
are cooperating with the lender for a deed-in-lieu or consensual
foreclosure.
ASHFORD HOSPITALITY TRUST, INC. AND SUBSIDIARIES
DEBT BY MATURITY ASSUMING EXTENSION OPTIONS NOT SUBJECT TO COVERAGE
TESTS ARE EXERCISED
JUNE 30, 2009
(in thousands)
(Unaudited)
2009 2010 2011 2012
---- ---- ---- ----
Mortgage loan secured by
Dearborn Hyatt Regency $- $29,135* $- $-
Mortgage loan secured by Rye Town
Hilton and three Embassy Suites
hotels in Arlington, VA;
Orlando, FL; and Santa
Clara, CA - 75,000 - -
Mortgage loan secured by
Manchester Courtyard - - 5,018 -
Mortgage loan secured by Auburn
Hills Hilton Suites, Costa Mesa
Hilton and Portland Embassy
Suites - - 65,644 -
Mortgage loan secured by
El Conquistador Hilton - - 19,740 -
Mortgage loan secured by
Anchorage Sheraton,
Minneapolis Airport Hilton,
San Diego Sheraton and
Walnut Creek Embassy
Suites - - 203,400 -
Secured credit facility - 250,000 ** - -
Mortgage loan secured by
10 hotel properties,
Wachovia Floater 7 - - - 167,202
Mortgage loan secured by
JW Marriott San Francisco - - 52,500 ** -
Mortgage loan secured by
La Jolla Hilton and
Capital Hilton - - 118,500 ** -
Mortgage loan secured by
eight hotel properties,
UBS Pool 1 - - - -
Mortgage loan secured by
eight hotel properties,
UBS Pool 2 - - - -
Mortgage loan secured by
25 hotel properties, Merrill
Lynch Pool 1 - - - -
Mortgage loan secured by
Westin O'Hare - - - -
Mortgage loan secured by
25 hotel properties, Merrill
Lynch Pool 2, 3 and 7 - - - -
Mortgage loan secured by
Arlington Marriott - - - -
Mortgage loan secured by
five hotel properties,
Wachovia pool 1 - - - -
Mortgage loan secured by
seven hotel properties,
Wachovia pool 2 - - - -
Mortgage loan secured by two
hotel properties, Wachovia pool
3 - - - -
Mortgage loan secured by
five hotel properties,
Wachovia pool 4 - - - -
Mortgage loan secured by
five hotel properties,
Wachovia pool 5 - - - -
Mortgage loan secured by
three hotel properties,
Wachovia pool 6 - - - -
Mortgage loan secured by
Philly Courtyard,
Wachovia
Stand-Alone - - - -
TIF loan secured by
Philly Courtyard - - - -
Mortgage loan secured by
Houston Hampton Inn - - - -
Mortgage loan secured by
Jacksonville Residence
Inn - - - -
- ------- ------- -------
- 354,135 464,802 167,202
Debt attributable to joint
venture partners - - 40,386 -
-- -------- -------- --------
Total $- $354,135 $505,188 $167,202
== ======== ======== ========
2013 Thereafter Total
---- -------------- ---------
Mortgage loan secured by Dearborn Hyatt
Regency $- $- $29,135
Mortgage loan secured by Rye Town Hilton
and three Embassy Suites hotels
in Arlington, VA; Orlando, FL; and
Santa Clara, CA - - 75,000
Mortgage loan secured by Manchester
Courtyard - - 5,018
Mortgage loan secured by Auburn Hills
Hilton Suites,Costa Mesa Hilton and
Portland Embassy Suites - - 65,644
Mortgage loan secured by El Conquistador
Hilton - - 19,740
Mortgage loan secured by Anchorage
Sheraton, Minneapolis Airport Hilton,
San Diego Sheraton and Walnut Creek
Embassy Suites - - 203,400
Secured credit facility - - 250,000
Mortgage loan secured by 10 hotel
properties, Wachovia Floater 7 - - 167,202
Mortgage loan secured by JW Marriott San
Francisco - - 52,500
Mortgage loan secured by La Jolla
Hilton and Capital Hilton - - 118,500
Mortgage loan secured by eight hotel
properties, UBS Pool 1 - 110,899 110,899
Mortgage loan secured by eight hotel
properties, UBS Pool 2 - 100,576 100,576
Mortgage loan secured by 25 hotel
properties, Merrill Lynch Pool 1 - 160,490 160,490
Mortgage loan secured by Westin
O'Hare - 101,000 101,000
Mortgage loan secured by 25 hotel
properties, Merrill Lynch Pool 2,
3 and 7 - 294,625 294,625
Mortgage loan secured by Arlington
Marriott - 60,800 60,800
Mortgage loan secured by five hotel
properties, Wachovia pool 1 - 115,600 115,600
Mortgage loan secured by seven hotel
properties, Wachovia pool 2 - 126,466 126,466
Mortgage loan secured by two hotel
properties, Wachovia pool 3 - 128,408 128,408
Mortgage loan secured by five hotel
properties, Wachovia pool 4 - 103,906 103,906
Mortgage loan secured by five hotel
properties, Wachovia pool 5 - 158,105 158,105
Mortgage loan secured by three hotel
properties, Wachovia pool 6 - 260,980 260,980
Mortgage loan secured by Philly
Courtyard, Wachovia Stand-Alone - 31,150 31,150
TIF loan secured by Philly Courtyard - 6,927 6,927
Mortgage loan secured by Houston Hampton
Inn - 4,454 4,454
Mortgage loan secured by
Jacksonville Residence Inn - 6,980 6,980
- --------- ---------
- 1,771,366 2,757,505
Debt attributable to joint venture
partners - 5,492 45,878
-- ---------- ----------
Total $- $1,776,858 $2,803,383
== ========== ==========
NOTE: These maturities assume no event of default would occur.
* We have received a notice of default and acceleration of the loan
and are cooperating with the lender for a deed-in-lieu or consensual
foreclosure.
** Extensions available but certain coverage tests have to be met.
ASHFORD HOSPITALITY TRUST, INC.
KEY PERFORMANCE INDICATORS - PRO FORMA
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
% %
2009 2008 Variance 2009 2008 Variance
---- ---- -------- ---- ---- --------
ALL
HOTELS
INCLUDED
IN CONTINUING
OPERATIONS:
Room revenues
(in
thousands) $181,515 $229,703 -20.98% $358,169 $444,083 -19.35%
RevPAR $88.62 $112.18 -21.01% $87.72 $108.43 -19.10%
Occupancy 68.25% 76.84% -8.59% 65.29% 73.51% -8.23%
ADR $129.83 $145.99 -11.07% $134.36 $147.50 -8.91%
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
% %
2009 2008 Variance 2009 2008 Variance
---- ---- -------- ---- ---- --------
ALL HOTELS
NOT UNDER
RENOVATION
INCLUDED IN
CONTINUING
OPERATIONS:
Room revenues
(in
thousands) $177,056 $223,006 -20.60% $349,753 $432,061 -19.05%
RevPAR $89.18 $112.35 -20.62% $88.36 $108.83 -18.81%
Occupancy 68.67% 77.11% -8.44% 65.73% 73.89% -8.16%
ADR $129.87 $145.71 -10.87% $134.44 $147.28 -8.72%
Excluded Hotels Under Renovation: Hilton Rye Town, Hilton Nassau Bay
NOTE:
As the Company's Courtyard by Marriott hotel in Philadelphia,
Pennsylvania, is leased to a third-party tenant on a triple-net lease
basis, the Company only records rental income related to this operating
lease for GAAP purposes. However, in the above pro forma table, all room
revenues related to this hotel are reflected, which is consistent with
the Company's other hotels.
ASHFORD HOSPITALITY TRUST, INC.
PRO FORMA HOTEL OPERATING PROFIT
(dollars in thousands)
(Unaudited)
ALL HOTELS INCLUDED IN CONTINUING
OPERATIONS:
Three Months Ended
June 30,
------------
2009 2008 % Variance
---- ---- --------------
REVENUE
Rooms $181,515 $229,703 -21.0%
Food and beverage 48,680 64,323 -24.3%
Other 11,488 13,664 -15.9%
------ ------ -----
Total hotel revenue 241,683 307,690 -21.5%
------- ------- -----
EXPENSES
Rooms 41,692 48,960 -14.8%
Food and beverage 34,072 43,791 -22.2%
Other direct 6,495 7,510 -13.5%
Indirect 69,091 78,765 -12.3%
Management fees, includes
base and
incentive fees 11,891 14,565 -18.4%
------ ------ -----
Total hotel operating
expenses 163,241 193,591 -15.7%
Property taxes, insurance,
and other 16,388 16,227 1.0%
------ ------ ---
HOTEL OPERATING PROFIT
(Hotel
EBITDA) 62,054 97,872 -36.6%
Hotel EBITDA Margin 25.68% 31.80% -6.12%
Minority interest in
earnings of consolidated
joint ventures 1,839 2,906 -36.7%
----- ----- -----
HOTEL OPERATING PROFIT (Hotel
EBITDA),
excluding minority interest
in joint ventures $60,215 $94,966 -36.6%
======= ======= =====
Six Months Ended
June 30,
------------
2009 2008 % Variance
---- ---- --------------
REVENUE
Rooms $358,169 $444,083 -19.3%
Food and beverage 96,737 123,637 -21.8%
Other 23,339 26,525 -12.0%
------ ------ -----
Total hotel revenue 478,245 594,245 -19.5%
------- ------- -----
EXPENSES
Rooms 81,760 95,476 -14.4%
Food and beverage 68,587 85,926 -20.2%
Other direct 12,739 14,617 -12.8%
Indirect 139,020 157,986 -12.0%
Management fees, includes
base and
incentive fees 21,147 27,420 -22.9%
------ ------ -----
Total hotel operating
expenses 323,253 381,425 -15.3%
Property taxes, insurance,
and other 31,009 30,887 0.4%
------ ------ ---
HOTEL OPERATING PROFIT
(Hotel
EBITDA) 123,983 181,933 -31.9%
Hotel EBITDA Margin 25.92% 30.61% -4.69%
Minority interest in
earnings of consolidated
joint ventures 3,409 4,691 -27.3%
----- ----- -----
HOTEL OPERATING PROFIT (Hotel
EBITDA),
excluding minority interest
in joint ventures $120,574 $177,242 -32.0%
======== ======== =====
ALL HOTELS NOT UNDER RENOVATION INCLUDED IN CONTINUING
OPERATIONS:
Three Months Ended
June 30,
------------
2,009 2,008 % Variance
----- ----- --------------
REVENUE
Rooms (1) $177,056 $223,006 -20.6%
Food and beverage 46,314 60,874 -23.9%
Other 11,372 13,362 -14.9%
------ ------ -----
Total hotel revenue 234,742 297,242 -21.0%
------- ------- -----
EXPENSES
Rooms (1) 40,558 47,450 -14.5%
Food and beverage 32,372 41,362 -21.7%
Other direct 6,405 7,382 -13.2%
Indirect 66,571 75,741 -12.1%
Management fees, includes
base and
incentive fees 11,629 14,253 -18.4%
------ ------ -----
Total hotel operating
expenses 157,535 186,188 -15.4%
Property taxes, insurance,
and other 15,925 15,654 1.7%
------ ------ ---
HOTEL OPERATING PROFIT
(Hotel
EBITDA) 61,282 95,400 -35.8%
Hotel EBITDA Margin 26.11% 32.10% -5.99%
Minority interest in
earnings of consolidated
joint ventures 1,839 2,906 -36.7%
----- ----- -----
HOTEL OPERATING PROFIT (Hotel
EBITDA),
excluding minority interest
in joint ventures $59,443 $92,494 -35.7%
======= ======= =====
Six Months Ended
June 30,
------------
2,009 2,008 % Variance
----- ----- --------------
REVENUE
Rooms (1) $349,753 $432,061 -19.1%
Food and beverage 92,633 117,712 -21.3%
Other 23,095 25,939 -11.0%
------ ------ -----
Total hotel revenue 465,481 575,712 -19.1%
------- ------- -----
EXPENSES
Rooms (1) 79,510 92,581 -14.1%
Food and beverage 65,248 81,201 -19.6%
Other direct 12,549 14,369 -12.7%
Indirect 133,867 152,175 -12.0%
Management fees, includes
base and
incentive fees 20,712 26,867 -22.9%
------ ------ -----
Total hotel operating
expenses 311,886 367,193 -15.1%
Property taxes, insurance,
and other 30,031 29,543 1.7%
------ ------ ---
HOTEL OPERATING PROFIT
(Hotel
EBITDA) 123,564 178,976 -31.0%
Hotel EBITDA Margin 26.55% 31.09% -4.54%
Minority interest in
earnings of consolidated
joint ventures 3,409 4,691 -27.3%
----- ----- -----
HOTEL OPERATING PROFIT (Hotel
EBITDA),
excluding minority interest
in joint ventures $120,155 $174,285 -31.1%
======== ======== =====
(1) Excluded hotels under renovation: Hilton Rye Town, Hilton Nassau
Bay
NOTE:
As the Company's Courtyard by Marriott hotel in Philadelphia,
Pennsylvania, is leased to a third-party tenant on a triple-net
lease basis, the Company only records rental income related to this
operating lease for GAAP purposes. However, in the above pro forma
table, all room revenues related to this hotel are reflected, which
is consistent with the Company's other hotels.
ASHFORD HOSPITAL
source: http://biz.yahoo.com/prnews/090805/cl57466.html?.v=1
Add comment