Ashford Hospitality Trust (AHT) Q2 2024 earnings summary

Executive summary

• Achieved significant deleveraging, paying down nearly $90 million in principal since March and targeting full repayment of strategic corporate financing in 2024, with the outstanding loan balance reduced by nearly 53% from the original amount.

• Sold multiple assets for over $310 million, including Hilton Boston Back Bay for $171 million and One Ocean Resort for $87 million, with proceeds used primarily for debt reduction.

• Raised $147 million in gross proceeds from non-traded preferred stock since Q3 2022, with $24 million raised in Q2.

• CEO transition: Stephen Zsigray appointed President and CEO effective June 30, 2024.

• Key priorities include preserving capital, disposing of non-core assets, accessing cost-effective capital, and enhancing shareholder value.

Financial highlights

• Q2 2024 net income attributable to common stockholders was $44.3 million, or $0.25 per diluted share; company net income was $50.3 million, up from a net loss of $24.6 million in Q2 2023.

• Adjusted EBITDAre was $78.7 million; AFFO per diluted share was $0.27.

• Ended Q2 with $121.8 million in cash and $124.5 million in restricted cash.

• Net working capital stood at $187.4 million.

• Total revenue for Q2 2024 was $316.5 million, down 15.8% year-over-year due to hotel dispositions and asset derecognition.

Outlook and guidance

• Confident in ability to pay off strategic financing in 2024, supported by asset sales, refinancings, and preferred capital.

• No plans to reinstate a common dividend in 2024; preferred dividends continue to be paid.

• Company expects to continue asset sales, focus on refinancing, and maintain liquidity.