Ashford Hospitality Trust Inc. (AHT, Financial) filed Quarterly Report for the period ended 2010-06-30.
Ashford Hospitality Trust Inc. has a market cap of $494.3 million; its shares were traded at around $9.39 with a P/E ratio of 8.3 and P/S ratio of 0.5. AHT is in the portfolios of John Paulson of Paulson & Co., Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
Repurchases of Common Shares and Units of Operating Partnership During the three and six months ended June 30, 2010, we repurchased 2.1 million and 7.2 million shares of our common stock for a total cost of $16.0 million and $45.1 million, respectively. We have ceased the repurchase of our preferred stock indefinitely. During the three months ended June 30, 2010, 519,000 operating partnership units were redeemed at $7.25 per unit, we elected the option to pay cash, instead of common shares, of $3.8 million to the unit holders.
Net Cash Flows Used in Investing Activities. For the six months ended June 30, 2010, investing activities used net cash flows of $11.5 million. Principal payments on notes receivable generated total cash of $22.0 million. Capital improvements made to various hotel properties used $33.5 million of cash. For the same period of 2009, investing activities used $33.5 million of cash for capital improvements to various hotel properties.
Net Cash Flows Used in Financing Activities. For the six months ended June 30, 2010, net cash flows used in financing activities were $35.6 million. Cash outlays consisted of $45.1 million for purchases of common stock, $11.1 million for dividend payments to preferred shareholders and unit holders, $2.5 million payment for loan modification and extension fees, $5.4 million for repayments of indebtedness and capital leases, $3.8 million for the redemption of operating partnership units, $181,000 distribution to a noncontrolling interest joint venture partner, and $52,000 for purchasing an interest rate cap agreement. These cash outlays were partially offset by cash inflows of $31.4 million from the counterparties of our interest rate derivatives and $1.0 million of contributions from a noncontrolling interest joint venture partner. For the same period of 2009, net cash flow used in financing activities was $30.8 million. Cash outlays consisted of $53.5 million for indebtedness and capital leases payments, $33.9 million for repurchase of common stock, $10.7 million for repurchase of Series A and Series D preferred stocks, $11.8 million for dividend payments to preferred shareholders and unit holders, $8.7 million for entering into interest rate derivatives, and $1.8 million for loan costs. These cash outlays were partially offset by $67.8 million from debt refinancings, and $21.7 million cash payments from the counterparties of the interest rate derivatives.
Property Taxes, Insurance and Other. Property taxes, insurance and other decreased $1.5 million for the 2010 quarter to $14.1 million. The decrease is primarily due to a $1.1 million reduction in property taxes resulting from our successful appeals as we secured significant assessed value reductions related to certain of our hotel properties. The reduction in real estate taxes was partially offset by the tax rate increases in some jurisdictions as city/county and state governments try to maintain their tax base. In addition, insurance costs decreased by $300,000 due to fewer uninsured losses being incurred during the 2010 quarter. The decrease in insurance costs was partially offset by higher premiums for property policies renewed since June 30, 2009.
Corporate General and Administrative. Corporate general and administrative expense increased to $8.3 million for the 2010 quarter compared to $6.9 million for the 2009 quarter. The non-cash stock/unit-based compensation expense increased $866,000 primarily due to certain restricted stock/unit-based awards granted in the current year at a higher cost per share. Other corporate general and administrative expenses increased $546,000 primarily attributable to increased salaries and benefits, compensation consulting fees, and charitable donations during the 2010 quarter.
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Ashford Hospitality Trust Inc. has a market cap of $494.3 million; its shares were traded at around $9.39 with a P/E ratio of 8.3 and P/S ratio of 0.5. AHT is in the portfolios of John Paulson of Paulson & Co., Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Effective April 1, 2010, we completed the modification of the $156.2 million mortgage loan secured by two hotel properties in Washington D.C. and La Jolla, California. Pursuant to the modified loan agreement, we obtained the full extension of the loan to August 2013 without any extension tests in exchange for a $5.0 million paydown, of which $2.5 million was paid at closing and the remaining $2.5 million is payable quarterly in four consecutive installments of $625,000 each with the first installment due in three months after the closing date of April 1, 2010. We paid a modification fee of $1.5 million in lieu of the future extension fees. The modification also modifies covenant tests to minimize the likelihood of additional cash being trapped.Repurchases of Common Shares and Units of Operating Partnership During the three and six months ended June 30, 2010, we repurchased 2.1 million and 7.2 million shares of our common stock for a total cost of $16.0 million and $45.1 million, respectively. We have ceased the repurchase of our preferred stock indefinitely. During the three months ended June 30, 2010, 519,000 operating partnership units were redeemed at $7.25 per unit, we elected the option to pay cash, instead of common shares, of $3.8 million to the unit holders.
Net Cash Flows Used in Investing Activities. For the six months ended June 30, 2010, investing activities used net cash flows of $11.5 million. Principal payments on notes receivable generated total cash of $22.0 million. Capital improvements made to various hotel properties used $33.5 million of cash. For the same period of 2009, investing activities used $33.5 million of cash for capital improvements to various hotel properties.
Net Cash Flows Used in Financing Activities. For the six months ended June 30, 2010, net cash flows used in financing activities were $35.6 million. Cash outlays consisted of $45.1 million for purchases of common stock, $11.1 million for dividend payments to preferred shareholders and unit holders, $2.5 million payment for loan modification and extension fees, $5.4 million for repayments of indebtedness and capital leases, $3.8 million for the redemption of operating partnership units, $181,000 distribution to a noncontrolling interest joint venture partner, and $52,000 for purchasing an interest rate cap agreement. These cash outlays were partially offset by cash inflows of $31.4 million from the counterparties of our interest rate derivatives and $1.0 million of contributions from a noncontrolling interest joint venture partner. For the same period of 2009, net cash flow used in financing activities was $30.8 million. Cash outlays consisted of $53.5 million for indebtedness and capital leases payments, $33.9 million for repurchase of common stock, $10.7 million for repurchase of Series A and Series D preferred stocks, $11.8 million for dividend payments to preferred shareholders and unit holders, $8.7 million for entering into interest rate derivatives, and $1.8 million for loan costs. These cash outlays were partially offset by $67.8 million from debt refinancings, and $21.7 million cash payments from the counterparties of the interest rate derivatives.
Property Taxes, Insurance and Other. Property taxes, insurance and other decreased $1.5 million for the 2010 quarter to $14.1 million. The decrease is primarily due to a $1.1 million reduction in property taxes resulting from our successful appeals as we secured significant assessed value reductions related to certain of our hotel properties. The reduction in real estate taxes was partially offset by the tax rate increases in some jurisdictions as city/county and state governments try to maintain their tax base. In addition, insurance costs decreased by $300,000 due to fewer uninsured losses being incurred during the 2010 quarter. The decrease in insurance costs was partially offset by higher premiums for property policies renewed since June 30, 2009.
Corporate General and Administrative. Corporate general and administrative expense increased to $8.3 million for the 2010 quarter compared to $6.9 million for the 2009 quarter. The non-cash stock/unit-based compensation expense increased $866,000 primarily due to certain restricted stock/unit-based awards granted in the current year at a higher cost per share. Other corporate general and administrative expenses increased $546,000 primarily attributable to increased salaries and benefits, compensation consulting fees, and charitable donations during the 2010 quarter.
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