DALLAS, Oct. 26,
2022 /PRNewswire/ -- Ashford Hospitality Trust, Inc.
(NYSE: AHT) ("Ashford Trust" or the "Company") announced today its
preliminary expectations for net loss attributable to common
stockholders, Adjusted EBITDAre, and Adjusted FFO for the third
quarter ended September 30, 2022.
The Company reported today a preliminary estimated range of net
loss attributable to common stockholders of approximately
$(26.2) million to $(24.2) million or $(0.76) to $(0.70)
per share, a preliminary estimated range of Adjusted EBITDAre of
$81.1 million to $83.1 million, and a preliminary estimated range
of Adjusted FFO available to common stockholders and OP unitholders
of $18.0 million to $20.0 million for the third quarter ended
September 30, 2022.
Additionally, for the nine months ended September 30, 2022, the Company reported a
preliminary estimated range of net loss attributable to common
stockholders of approximately $(94.0)
million to $(92.0) million or
$(2.74) to $(2.68) per share, a preliminary estimated range
of Adjusted EBITDAre of $217.5
million to $219.5 million, and
a preliminary estimated range of Adjusted FFO available to common
stockholders and OP unitholders of $60.9
million to $62.9 million.
Final results for the third quarter ended September 30, 2022 will be released on
November 1, 2022, as previously
announced.
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 used in this press release,
which should not be relied upon as a substitute for GAAP measures,
are FFO, AFFO, EBITDA, EBITDAre and Adjusted EBITDAre. 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 periods being reported.
The following tables are reconciliations of the Company's
preliminary estimated GAAP net income (loss) to the Company's
preliminary estimated EBITDA, EBITDAre, Adjusted EBITDAre, FFO and
Adjusted FFO:
ASHFORD HOSPITALITY
TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED
EBITDAre
(in
millions)
(unaudited)
|
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2022
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
Net income
(loss)
|
$
(23.3)
|
|
$
(21.3)
|
|
$
(85.4)
|
|
$
(83.4)
|
Interest expense and
amortization of discounts and loan costs, net
|
61.0
|
|
61.0
|
|
153.0
|
|
153.0
|
Depreciation and
amortization
|
49.4
|
|
49.4
|
|
152.4
|
|
152.4
|
Income tax expense
(benefit)
|
4.7
|
|
4.7
|
|
10.3
|
|
10.3
|
Equity in (earnings)
loss of unconsolidated entities
|
0.1
|
|
0.1
|
|
0.5
|
|
0.5
|
Company's portion of
EBITDA of unconsolidated entities
|
(0.1)
|
|
(0.1)
|
|
(0.5)
|
|
(0.5)
|
EBITDA
|
91.8
|
|
93.8
|
|
230.3
|
|
232.3
|
(Gain) loss on
disposition of assets and hotel properties
|
—
|
|
—
|
|
(0.3)
|
|
(0.3)
|
EBITDAre
|
91.8
|
|
93.8
|
|
230.0
|
|
232.0
|
Amortization of
unfavorable contract liabilities
|
—
|
|
—
|
|
0.1
|
|
0.1
|
Write-off of premiums,
loan costs and exit fees
|
1.4
|
|
1.4
|
|
3.1
|
|
3.1
|
Other (income)
expense, net
|
(0.2)
|
|
(0.2)
|
|
(0.4)
|
|
(0.4)
|
Transaction and
conversion costs
|
(3.4)
|
|
(3.4)
|
|
(1.8)
|
|
(1.8)
|
Legal, advisory and
settlement costs
|
(0.1)
|
|
(0.1)
|
|
(0.1)
|
|
(0.1)
|
Unrealized (gain) loss
on derivatives
|
(9.8)
|
|
(9.8)
|
|
(19.1)
|
|
(19.1)
|
Dead deal
costs
|
0.1
|
|
0.1
|
|
0.4
|
|
0.4
|
Stock/unit-based
compensation
|
1.3
|
|
1.3
|
|
5.3
|
|
5.3
|
Company's portion of
adjustments to EBITDAre of unconsolidated entities
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted
EBITDAre
|
$
81.1
|
|
$
83.1
|
|
$ 217.5
|
|
$ 219.5
|
ASHFORD HOSPITALITY
TRUST, INC. AND SUBSIDIARIES
RECONCILIATION OF
NET INCOME (LOSS) TO FFO AND ADJUSTED FFO
(in
millions)
(unaudited)
|
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2022
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
Net income
(loss)
|
$
(23.3)
|
|
$
(21.3)
|
|
$
(85.4)
|
|
$
(83.4)
|
Net (income) loss
attributable to redeemable noncontrolling interests
in operating partnership
|
0.2
|
|
0.2
|
|
0.7
|
|
0.7
|
Preferred
dividends
|
(3.1)
|
|
(3.1)
|
|
(9.3)
|
|
(9.3)
|
Net income (loss)
attributable to common stockholders
|
(26.2)
|
|
(24.2)
|
|
(94.0)
|
|
(92.0)
|
Depreciation and
amortization on real estate
|
49.4
|
|
49.4
|
|
152.4
|
|
152.4
|
(Gain) loss on
disposition of assets and hotel properties
|
—
|
|
—
|
|
(0.3)
|
|
(0.3)
|
Net income (loss)
attributable to redeemable noncontrolling interests
in operating partnership
|
(0.2)
|
|
(0.2)
|
|
(0.7)
|
|
(0.7)
|
Equity in (earnings)
loss of unconsolidated entities
|
0.1
|
|
0.1
|
|
0.5
|
|
0.5
|
Company's portion of
FFO of unconsolidated entities
|
(0.1)
|
|
(0.1)
|
|
(0.5)
|
|
(0.5)
|
FFO available to
common stockholders and OP unitholders
|
23.0
|
|
25.0
|
|
57.4
|
|
59.4
|
Write-off of premiums,
loan costs and exit fees
|
1.4
|
|
1.4
|
|
3.1
|
|
3.1
|
Other (income)
expense, net
|
(0.1)
|
|
(0.1)
|
|
(0.3)
|
|
(0.3)
|
Transaction and
conversion costs
|
(3.4)
|
|
(3.4)
|
|
(1.8)
|
|
(1.8)
|
Legal, advisory and
settlement costs
|
(0.1)
|
|
(0.1)
|
|
(0.1)
|
|
(0.1)
|
Unrealized (gain) loss
on derivatives
|
(9.8)
|
|
(9.8)
|
|
(19.1)
|
|
(19.1)
|
Dead deal
costs
|
0.1
|
|
0.1
|
|
0.4
|
|
0.4
|
Stock/unit-based
compensation
|
1.3
|
|
1.3
|
|
5.3
|
|
5.3
|
Amortization of term
loan exit fee
|
3.1
|
|
3.1
|
|
8.7
|
|
8.7
|
Amortization of loan
costs
|
2.5
|
|
2.5
|
|
7.3
|
|
7.3
|
Advisory services
incentive fee
|
—
|
|
—
|
|
—
|
|
—
|
Company's portion of
adjustments to FFO of unconsolidated entities
|
—
|
|
—
|
|
—
|
|
—
|
Adjusted FFO
available to common stockholders and OP
unitholders
|
$
18.0
|
|
$
20.0
|
|
$
60.9
|
|
$
62.9
|
Weighted average
diluted shares
|
36.4
|
|
36.4
|
|
36.3
|
|
36.3
|
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
The preliminary estimated results for the third quarter ended
September 30, 2022 included in this
release, which are the responsibility of management, were prepared
by the Company's management in connection with the preparation of
the Company's financial statements and are based upon preliminary
hotel operating results, preliminary corporate level expenses, and
a number of subjective judgements and assumptions. Additional items
that may require adjustments to the Company's preliminary estimated
financial information may be identified and could result in
material changes to the Company's preliminary estimated results.
The Company has provided ranges, rather than specific amounts, for
the preliminary estimated results described above, primarily
because the Company's closing procedures for the third quarter
ended September 30, 2022 are not yet
complete and, as a result, the Company's final results upon
completion of the closing procedures may vary from the preliminary
estimates set forth above. The Company's independent registered
public accounting firm, BDO USA,
LLP, has not audited, reviewed, compiled or performed any
procedures with respect to the preliminary estimated financial
information, nor have they expressed any opinion or any other form
of assurance on such information or its achievability, and assume
no responsibility for, and disclaim any association with, such
preliminary estimated financial information. Further, these
preliminary estimated results are not a comprehensive statement or
estimate of the Company's financial condition or operating results
for the third quarter ended September 30,
2022. These preliminary estimated results should not be
viewed as a substitute for complete quarterly financial statements
prepared in accordance with generally accepted accounting
principles ("GAAP") or as a measure of the Company's performance.
In addition, the preliminary estimated financial information is not
necessarily indicative of the results to be achieved for any future
period. Accordingly, investors are cautioned not to place undue
reliance on this preliminary estimated financial information. See
the information below under the heading "Forward-Looking
Statements" and "Risk Factors" and "Management's Discussion of
Financial Condition and Results of Operations" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2021.
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: the impact of COVID-19, and the rate of adoption and
efficacy of vaccines to prevent COVID-19, on our business and
investment strategy; 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.