Ashford Hospitality Whacks Distribution

AHT has chopped their distribution by 50%–from 12 cents to 6 cents.

The large lodging REIT has had a very dicey balance sheet for a very long time, and it looks like this will continue as the common shares are now trading at $3.65–down 65 cents meaning the ability to raise equity with common shares is pretty limited.

We had written about Ashford Hospitality way back in January–simply outlining our negative outlook on the REIT. You can see that article here.

Of course I don’t own the common shares, but because they have 5 preferred issues outstanding I kind of keep an eye on them.

The preferred shares are trading off 1-2% today so we are seeing some reaction to the common distribution cut.

You can see there outstanding preferreds with charts here.

3 thoughts on “Ashford Hospitality Whacks Distribution”

  1. AHT had a ton of debt and makes no money. If they can’t make money in this environment I would question their survival in a downturn.

    So glad I have no money in this company.

    1. Down 30% in the last month…Whew! What a disaster when the debt comes home to be answered for.

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