UPDATE - UBS Initiates Coverage on Ashford Hospitality Trust (AHT) with a Neutral; Levered REIT Play
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Price: $3.33 --0%
Rating Summary:
6 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - UBS initiates coverage on Ashford Hospitality Trust (NYSE: AHT) with a Neutral. PT $8.50.
UBS analyst says, "AHT focuses on Upper Upscale and Upscale U.S. hotels, mainly in top 25 metro areas. 95% of EBITDA comes from hotels branded with Starwood (NYSE: HOT), Hilton, Intercontinental (NYSE: IHG) and Marriott (NYSE: MAR) brands. (AHT is 3rd largest fee payer to MAR)."
"AHT is currently the most leveraged among peers based on net debt to gross assets, currently at 59% vs. peers at ~30%. The company has ~$167M in debt maturities due through Q2’12, and while we believe its liquidity could be sufficient, AHT may need to restructure the ’12 maturity similarly to how it restructured its ‘11 maturity, borrowing in order to pay its 5% dividend yield next year. While the leverage is a concern, it has allowed AHT historically to return cash flow to shareholders through share repurchases and dividends."
To see more ratings on AHT, Click Here
UBS analyst says, "AHT focuses on Upper Upscale and Upscale U.S. hotels, mainly in top 25 metro areas. 95% of EBITDA comes from hotels branded with Starwood (NYSE: HOT), Hilton, Intercontinental (NYSE: IHG) and Marriott (NYSE: MAR) brands. (AHT is 3rd largest fee payer to MAR)."
"AHT is currently the most leveraged among peers based on net debt to gross assets, currently at 59% vs. peers at ~30%. The company has ~$167M in debt maturities due through Q2’12, and while we believe its liquidity could be sufficient, AHT may need to restructure the ’12 maturity similarly to how it restructured its ‘11 maturity, borrowing in order to pay its 5% dividend yield next year. While the leverage is a concern, it has allowed AHT historically to return cash flow to shareholders through share repurchases and dividends."
To see more ratings on AHT, Click Here
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