Ashford Hospitality Trust Reports First Quarter Results and Significant Investment Pipeline.Business Editors DALLAS--(BUSINESS WIRE)--May 6, 2004 Ashford Ash·ford , Evelyn Born 1957. American athlete. A sprinter on five Olympic track teams, she won nine Olympic medals, including a gold medal in the 100-meter dash and three gold medals in the four-by-100-meter relay. Hospitality Trust, Inc. (NYSE NYSE See: New York Stock Exchange : AHT AHT Animal Health Trust (Suffolk, England) AHT American Hairless Terrier (dog breed) AHT After Hours Trading AHT Animal Health Technician AHT Anchor Handling Tug ), a hotel real estate investment trust focused exclusively on the hospitality industry, today reported results for the first quarter ended March 31, 2004. The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release. SUMMARY -- $384 million of closed or committed investments out of an estimated $500 to $550 million in buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. -- First quarter closed or announced $148.4 million in direct hotel investments and loans -- Amount of leverage approximates 33% of total investment -- Additional properties under conditional contracts Noun 1. conditional contract - a contract whose performance depends on a fact or event that affects legal relations contract - a binding agreement between two or more persons that is enforceable by law or letters of intent, together with mezzanine loans A mezzanine loan is a relatively large loan, typically unsecured (ie., not backed by a pledging of assets) or with a deeply subordinated security structure (e.g., third lien on the property but non-recourse vis-a-vis the borrower). in the Company's underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. process aggregate in excess of $200 million HIGHLIGHTS Direct Hotel Acquisitions -- Acquired and agreed to acquire assets in first quarter of $86.8 million, including planned capital improvements -- Completed acquisition in April for $23.1 million -- Including announced transactions, current portfolio expands to 19 hotels totaling 3,104 rooms from six hotels at IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. -- Current hotel portfolio closed or announced totals $312 million Mezzanine Loans and First Mortgage Participations -- Originated one mezzanine loan for a total of $15 million in first quarter -- Acquired two mezzanine loans and one subordinate first mortgage in first quarter for a total of $47 million -- Current hotel loan portfolio totals $72 million, $61.6 million of which closed in first quarter -- Weighted average unleveraged yield of financing portfolio stands at 11.5% Reporting Basis The financial results presented below and in the accompanying financial tables include the results of the Company for the first quarter ended March 31, 2004, and the results of the Predecessor for the first quarter ended March 31, 2003. Financial Results - First Quarter Total revenue for the first quarter ended March 31, 2004, increased 126.3% to $19,312,000 from $8,533,000 for the Predecessor's first quarter ended March 31, 2003, primarily as a result of the acquisition of a total of 10 properties since October October: see month. 2003, interest income from five notes receivable and asset management fees related to eight properties. The Company reported net income of $554,000, or $0.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with the Predecessor's net loss of $816,000. Funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations , as defined by NAREIT NAREIT National Association of Real Estate Investment Trusts ) was $2,435,000, or $0.08 per diluted share, compared with $299,000 for the Predecessor. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , which represents Earnings before Interest (except for interest related to our mezzanine loans), Income Taxes, Depreciation, and Amortization, and excludes the portion of these items attributable to minority interest, increased 78.9% to $3,209,000 compared with $1,794,000 for the Predecessor. Both FFO and EBITDA are non-GAAP financial measures within the meaning of the Securities and Exchange Commission rules Securities and Exchange Commission Rules Rules enacted by the SEC to assist in the regulation of US financial markets. . FFO is computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. 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 nor EBITDA represents cash generated from operating activities as determined by GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (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 is it indicative of funds available to fund our cash needs, including our ability to make cash distributions. However, management believes both FFO and EBITDA to be key 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. Operating Results - Direct Hotel Investments RevPAR RevPAR A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. for the Company's hotels for the first quarter of 2004 increased 2.2% to $72.24 from $70.70 due to a 21-basis point increase in occupancy to 69.75% and a 1.9% increase in ADR ADR - Astra Digital Radio to $103.57. This RevPAR increase is attributable to a 4.7% increase for the six contributed assets versus a 35 basis points increase for the acquired hotels on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis. Balance Sheet and Financing Strategy As of March 31, 2004, the Company had approximately $93.6 million of variable-rate Variable-rate A varible-rate agreement, as distinguished from a fixed-rate agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. debt outstanding at a weighted average interest rate of 4.67% and approximately $6.4 million of fixed-rate debt outstanding at an interest rate of 7.08%. The Company's $60 million credit facility currently has $10.2 million of availability, which is augmented by $37.1 million in cash, as well as additional borrowing capacity on the Company's unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. assets. The Company is currently pursuing the expansion of the credit facility by $15 million which is consistent with the agreement. The Company is also under negotiation with two sources for two mezzanine mez·za·nine n. 1. A partial story between two main stories of a building. 2. The lowest balcony in a theater or the first few rows of that balcony. warehouse lines with a total borrowing capacity of approximately $136 million. In addition, Ashford is in the market seeking long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. , fixed rate debt to finance its current and under contract investment portfolio. It is anticipated that the financing will be a pooled secured facility, which should provide additional liquidity for future investments. Monty (programming, abuse) monty - /mon'tee/ Any program with a ludicrously complex user interface that performs a trivial task. An example would be a menu-driven, button clicking, pulldown, pop-up windows program for listing directories. Bennett, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "We have been very proactive in managing our use of the debt capital markets. As we said at our IPO, we would borrow debt proceeds to fund future growth once we invested our equity. We have fully embarked on our financing campaign to leverage our direct hotel and mezzanine investments at what we see to be an opportune op·por·tune adj. 1. Suited or right for a particular purpose: an opportune place to make camp. 2. Occurring at a fitting or advantageous time: an opportune arrival. time in the capital markets. We've we've Contraction of we have. we've have focused on obtaining the most competitive terms and structural flexibility for these financings." First Quarter Investment Activity On January 23, 2004, the Company acquired a $15 million subordinated first-mortgage loan receivable related to the 1,225-room Adam's Mark Adam's Mark is a chain of five upscale hotels in the United States. The chain was founded in the early 1970s by Fred Kummer and the chain is currently owned by HBE, Inc., which was also founded by Kummer. Hotel in Denver, Colorado. The loan bears interest at 900 basis points over LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). , matures in February 2006, and provides for three one-year extension options subject to certain conditions. On March 4, 2004, the Company acquired a $25 million mezzanine loan receivable secured by 17 hotel properties totaling 5,354 rooms. The mezzanine loan bears interest at 870 basis points over LIBOR with a 2.5% LIBOR floor, matures in July 2005, and provides for three one-year extension options subject to certain conditions. On March 16, 2004, the Company announced a definitive agreement to acquire the 187-room Sheraton Bucks Bucks: see Buckinghamshire. County and adjacent office building complex near Philadelphia, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , for approximately $16.7 million in cash. As of the announcement of the transaction, the purchase price equated to a trailing 12-month EBITDA multiple of 7.6x including the office building and an EBITDA multiple of 6.5x after the planned sale of the office building. The acquisition is expected to close in June 2004. Ashford intends to invest approximately $5.65 million in renovating the asset with completion expected in the next 12 months. On March 19, 2004, the Company originated a $15 million mezzanine loan receivable related to the 273-suite Embassy Suites Logan Airport in Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New . The mezzanine loan bears interest at 1,025 basis points over LIBOR with a 1.75% LIBOR floor, matures in April 2007, and provides for two one-year extension options subject to certain conditions. On March 24, 2004, the Company reached a definitive agreement to acquire the 133-suite SpringHill Suites SpringHill Suites is part of the Marriott International family of hotels. In 1998, Marriott International announced plans to convert Fairfield Suites to SpringHill Suites by Marriott. at Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. Washington International Airport for total consideration of $15.9 million. The purchase price, as of the announcement, equated to a 10.3x trailing twelve month EBITDA multiple. The acquisition is expected to close in May 2004. The purchase price includes approximately $9.1 million in cash and approximately $6.8 million in non-recourse debt Non-Recourse Debt A loan that is secured by some sort of collateral, usually property. The issuer can seize the collateral if the borrower defaults. Notes: These types of projects are characterized by high capital expenditures, long loan periods, and uncertain revenue that bears interest at 350 basis points over the 30-day yield on Commercial Paper based upon a 20-year amortization schedule. The loan matures in April 2011, can be prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. subject to declining premiums and provides a one-time option to
borrow additional funds subject to certain conditions.
On March 24, 2004, the Company acquired a $6.6 million mezzanine loan receivable related to the 231-suite Northland north·land also North·land n. A region in the north of a country or an area. north land Inn and Executive
Conference Center in Brooklyn Park, Minnesota Brooklyn Park is a city in Hennepin County, Minnesota, United States. As of 2005, it had a population of 66,408. It is a northwestern suburb of Minneapolis, Minnesota. GeographyAccording to the United States Census Bureau, the city has a total area of 68.8 km² (26. . The mezzanine loan bears interest at 1,000 basis points over LIBOR with a 2% LIBOR floor and matures in January 2006. At maturity, an additional interest payment will be due to reflect an accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. rate that is the greater of 15% or LIBOR plus 1300 basis points. On March 24, 2004, the Company completed the previously announced acquisition of the 210-room Residence Inn in Lake Buena Vista, Florida Lake Buena Vista is a city in Orange County, Florida, United States. It is mostly known for being home to the Walt Disney World Resort. The population was 16 at the 2000 census. As of 2004, the population recorded by the U.S. Census Bureau is 15. , for approximately $25.3 million in cash. As of the announcement, the purchase price equated to a 9.7x trailing twelve month EBITDA multiple. Regarding the first quarter, Mr. Bennett stated, "The first quarter was our most active quarter to date in terms of acquisition and investment activity. For the most part, our core properties were already operating at a higher occupancy level than the national average and several of the newly acquired properties have not yet had time to benefit from new management, and are experiencing some impact from renovation activity. The more important statistic statistic, n a value or number that describes a series of quantitative observations or measures; a value calculated from a sample. statistic a numerical value calculated from a number of observations in order to summarize them. is that we were able to increase hotel operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , on a pro-forma basis, by 6% for same property comparison from a year ago. With a continued focus on improving the operations of our newly acquired properties, we expect this trend of hotel operating income growth to compliment Not to be confused with Complement. Compliment may be
Mr. Bennett further commented, "Our target to fully invest the capital raised on the initial public offering was within the first twelve months. We continue to see a strong deal flow from sellers, brokers, borrowers and lenders are alike. The quality of acquisition and lending opportunities has not diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. either. We are completing all transactions consistent with our investment criteria with diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. by brand, segment, geography and level of stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders . While the mezzanine origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and note purchase program has exceeded our expectations so far, we expect the majority of our investments for the near term to remain direct hotel investments." Subsequent Investment Activity On April 2, 2004, the Company completed the acquisition of the Sea Turtle sea turtle, name for several species of large marine turtles found in tropical and subtropical oceans. These turtles are modified for life in the ocean by having flipperlike forelimbs without toes and lightweight shells. Inn in Atlantic Beach, Florida Atlantic Beach is a city in Duval County, Florida, United States. When the majority of communities in Duval County consolidated with Jacksonville, Florida in 1968, Atlantic Beach, along with Jacksonville Beach, Neptune Beach, and Baldwin, Florida, remained quasi-independent. , for total consideration of $23,050,000, consisting of $6,275,000 in cash, approximately $15.7 million in assumed mortgage debt, and 106,675 limited partnership units valued at approximately $1,075,000, or $10.06 per unit. The purchase price, at the time of the announcement, equated to a 10.1x trailing twelve month EBITDA multiple. Investment Pipeline In addition to the $384 million of completed and committed investments, the Company is currently engaged in discussion or negotiations with several hotel owners and borrowers, most of which are evidenced through conditional contracts or letters of intent, with respect to possible acquisition or financing transactions exceeding $200 million. In the aggregate, if all of such proposed transactions meet the Company's criteria and are closed, the combined purchase price equates to a blended EBITDA multiple on a trailing 12 month basis consistent with the Company's prior transactions. However, for a limited number of these transactions, the trailing twelve month EBITDA is slightly less where significant growth is anticipated. The consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of any potential acquisition or financing transaction described above, including transactions under the conditional contracts or letters of intent which the Company has entered into, are subject to various significant conditions, including, but not limited to, the Company's approval of the underwriting of any property to be acquired or financed, completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , negotiation of terms for specific properties Specific properties of a substance are derived from other intrinsic and extrinsic properties (or intensive and extensive properties) of that substance. For example, the density of steel (a specific and intrinsic property) can be derived from measurements of the mass of a steel bar and execution of definitive agreements, if under letters of intent. Accordingly, there can be no assurance that any such potential transactions will be completed, or, if completed, what the terms or timing of any such transactions will be. First Quarter 2004 Dividend On March 15, 2004, the Company declared its first dividend of $0.06 per fully diluted share to shareholders of record as of March 31, 2004. The dividend was paid on April 15, 2004, three months earlier than the Company had originally anticipated. Conclusion Mr. Bennett concluded, "The Travel Industry Association of America's Spring 2004 travel forecast is bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish , predicting Americans will take 270.2 million trips during March, April and May, an increase of 3.3% over last year. The forecast calls for the strongest spring travel season since the spring of 2001. TIA (1) (Telecommunications Industry Association, Arlington, VA, www.tiaonline.org) A membership organization founded in 1988 that sets telecommunications standards worldwide. It was originally an EIA working group that was spun off and merged with the U.S. predicts 2004 leisure travel will show a positive growth of 3.1% over last spring, the highest volume in five years. On the business side, TIA forecasts a 5% hike in business and convention travel volume this spring compared with last year. American business travelers plan on taking nearly 45 million trips, going more than 50 miles, the highest number since spring of 2001. "These strong demand statistics are combined with recent low supply data to establish a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. macro economic balance. Lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a Econometrics econometrics, technique of economic analysis that expresses economic theory in terms of mathematical relationships and then tests it empirically through statistical research. forecasts new supply of 1.2% for 2004 and 1.3% of 2005, which are well below historical averages. Our diversified diversified (di·verˑ·s investment strategy positions us, we believe, as the premier capital provider to the lodging industry." Investor Conference Call and Simulcast Ashford Hospitality Trust, Inc. will conduct a conference call at 3:00 p.m. eastern time on May 6, 2004, to discuss the first quarter results. The number to call for this interactive teleconference is 913-981-5522. A seven-day replay of the conference call will be available by dialing 719-457-0820 and entering the pass code: 515439. The Company will also provide an online simulcast and rebroadcast of its first quarter 2004 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 as well as www.firstcallevents.com/service/ajwz405951813gf12.html on May 6, 2004, beginning at 3:00 p.m. eastern time. The online replay will follow shortly after the call and continue through June 6, 2004. Ashford Hospitality Trust is a self-administered real estate investment trust focused exclusively on investing in the hospitality industry across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages, mezzanine loans, and sale-leaseback transactions. Additional information can be found on the Company's website 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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, our business and investment strategy, our understanding of our competition, 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 the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" in Ashford's Registration Statement on Form S-11, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. (File Number 333-114283), and from time to time, in Ashford's other 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. Investors should not place undue reliance on these forward-looking statements. We are not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , changes in expectations or otherwise.
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
The Company The Predecessor
-------------- ---------------
Three Months Three Months
Ended Ended
March 31, 2004 March 31, 2003
-------------- ---------------
REVENUE
Rooms $ 15,460,509 $ 6,978,893
Food and beverage 2,110,885 1,322,097
Other 576,072 231,766
------------- --------------
Total hotel revenue 18,147,466 8,532,756
Interest income from notes
receivable 844,461 -
Asset management fees from related
parties 319,695 -
------------- --------------
Total Revenue 19,311,622 8,532,756
EXPENSES
Hotel operating expenses
Rooms 3,546,217 1,636,661
Food and beverage 1,538,193 1,042,455
Other direct 356,456 171,435
Indirect 6,386,027 3,009,456
Management fees 580,731 256,006
------------- --------------
Total hotel expenses 12,407,624 6,116,013
Property taxes, insurance, and other 1,186,870 623,196
Depreciation and amortization 1,762,065 1,115,000
Corporate general and administrative:
Stock-based compensation 595,699 -
Other corporate and administrative 1,912,516 -
------------- --------------
Total Operating Expenses 17,864,774 7,854,209
-------------- ---------------
OPERATING INCOME 1,446,848 678,547
Interest income 92,240 8,398
Interest expense (862,913) (1,503,198)
-------------- --------------
INCOME (LOSS) BEFORE MINORITY INTEREST 676,175 (816,253)
Provision for income taxes - -
Minority interest (121,797) -
-------------- --------------
NET INCOME (LOSS) $ 554,378 $ (816,253)
============= ==============
Net Income Per Share:
Basic $ 0.02
=============
Fully diluted $ 0.02
=============
Weighted Average Shares Outstanding:
Basic 25,024,246
=============
Fully diluted 30,868,256
=============
ASHFORD HOSPITALITY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2004 2003
------------ ------------
ASSETS
Investment in hotel properties, net $198,958,220 $173,723,998
Cash and cash equivalents 37,081,577 76,254,052
Restricted cash 1,910,032 1,373,591
Accounts receivable, net of allowance of
$16,468 and $19,408, respectively 2,766,541 1,534,843
Inventories 260,748 262,619
Notes receivable 71,626,689 10,000,000
Deferred costs, net 4,198,314 2,386,937
Prepaid expenses 1,432,613 1,577,628
Other assets 2,713,745 550,636
Due from affiliates 234,037 218,113
------------ ------------
Total assets $321,182,516 $267,882,417
============ ============
LIABILITIES AND OWNERS' EQUITY
Indebtedness $ 99,976,121 $ 50,201,779
Capital leases payable 417,880 456,869
Accounts payable 3,914,778 2,127,611
Accrued expenses 4,643,003 4,572,594
Dividends payable 1,887,502 -
Deferred income 224,329 -
Due to affiliates 795,610 584,643
------------ ------------
Total liabilities 111,859,223 57,943,496
Minority interest 37,428,995 37,646,673
Commitments and contingencies
Preferred stock, $0.01 par value,
50,000,000 shares authorized, none issued
or outstanding - -
Common stock, $0.01 par value, 200,000,000
shares authorized, 25,800,447 and
25,730,047 shares issued and outstanding
at March 31, 2004 and December 31, 2003,
respectively 258,004 257,300
Additional paid-in capital 179,958,827 179,226,668
Unearned compensation (5,701,565) (5,564,401)
Accumulated deficit (2,620,968) (1,627,319)
------------ ------------
Total owners' equity 171,894,298 172,292,248
------------- --------------
Total liabilities and owners' equity $321,182,516 $267,882,417
============ ============
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
KEY PERFORMANCE INDICATORS
The Company The Predecessor
--------------- ---------------
Three Months Three Months
Ended Ended
March 31, 2004 March 31, 2003
--------------- ---------------
Consolidated (Pro Forma)
Hotel Revenues $17,026,258 $16,480,891
Rev Par $ 72.24 $ 70.70
Occupancy 69.75% 69.54%
ADR $ 103.57 $ 101.67
NOTE: The above pro forma table assumes the ten hotel properties
acquired since the Company's formation in August 2003 were owned as
of the beginning of the periods presented.
Comparative Hotels (Actual)
Hotel Revenues $ 7,384,571 $ 6,978,893
Rev Par $ 74.18 $ 70.88
Occupancy 65.65% 66.01%
ADR $ 112.99 $ 107.38
NOTE: The above table relates only to the six hotel properties that
the Company owned throughout the entire comparative three-month
periods presented.
Newly-Acquired Hotels (Pro Forma)
Hotel Revenues $ 9,641,687 $ 9,501,998
Rev Par $ 70.82 $ 70.57
Occupancy 72.75% 72.13%
ADR $ 97.35 $ 97.85
NOTE: The above pro forma table relates to the ten hotel properties
acquired since the Company's formation in August 2003.
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
FFO
(Unaudited)
The Company The Predecessor
--------------- ---------------
Three Months Three Months
Ended Ended
March 31, 2004 March 31, 2003
--------------- ---------------
NET INCOME (LOSS) $ 554,378 $ (816,253)
Plus real estate depreciation and
amortization 1,759,218 1,115,000
Plus minority interest 121,797 -
----------- -----------
Gross FFO $ 2,435,393 $ 298,747
=========== ===========
Fully diluted weighted average shares
outstanding 30,868,256 NA
----------- -----------
FFO per fully diluted share $ 0.08 NA
=========== ===========
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
EBITDA
(Unaudited)
The Company The Predecessor
-------------- ---------------
Three Months Three Months
Ended Ended
March 31, 2004 March 31, 2003
-------------- ---------------
NET INCOME (LOSS) $ 554,378 $ (816,253)
Add back:
Interest income (92,240) (8,398)
Interest expense 862,913 1,503,198
Minority interest 121,797 -
Depreciation and amortization 1,762,065 1,115,000
Provision for income taxes - -
---------- ----------
2,654,535 2,609,800
---------- ----------
Gross EBITDA $3,208,913 $1,793,547
========== ==========
ASHFORD HOSPITALITY TRUST, INC. AND PREDECESSOR
HOTEL OPERATING INCOME
(Unaudited)
The Company The Predecessor
-------------- ---------------
Three Months Three Months
Ended Ended
March 31, 2004 March 31, 2003
-------------- ---------------
(Pro Forma) (Pro Forma)
REVENUE
Rooms $17,026,258 $16,480,891
Food and beverage 2,110,885 2,069,351
Other 610,309 619,548
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Total hotel revenue 19,747,452 19,169,790
EXPENSES
Hotel operating expenses
Rooms 3,839,819 3,730,963
Food and beverage 1,538,193 1,718,523
Other direct 364,220 352,137
Indirect 6,752,550 6,451,372
Management fees 658,040 579,582
----------- -----------
Total hotel operating expenses 13,152,822 12,832,577
Property taxes, insurance, and other 1,238,479 1,284,938
-------------- ---------------
HOTEL OPERATING INCOME $ 5,356,151 $ 5,052,275
=========== ===========
NOTE: The above pro forma table assumes the ten hotel properties
acquired since the Company's formation in August 2003 were owned as
of the beginning of the periods presented.
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