Terms

Series

7.375% Series F Cumulative Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.375%

Rate Type

Fixed

Annual Dividend

$1.84

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

July 15, 2021

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Any Future Senior Equity Securities; Pari Passu With: Series A Preferred Stock (8.55%), Series D Preferred Stock (8.45%), Series E Preferred Stock (9.00%), Any Future Parity Preferred Securities; Senior To: Common Stock, All Future Junior Equity Securities

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,800,000

Prospectus Summary

Ashford Hospitality Trust, Inc. (NYSE: AHT), a Maryland-based hotel REIT, is offering 4,800,000 shares of its 7.375% Series F Cumulative Preferred Stock at a $25.00 liquidation preference, callable at par on or after July 15, 2021. The stock pays a fixed annual dividend of $1.84375 per share ($0.4609 per quarter), equivalent to a 7.375% yield on the $25.00 liquidation preference. The preferred is cumulative, meaning any missed dividends accrue and must be paid in full before the company can resume distributions to common stockholders. The Series F Preferred Stock sits above Ashford Hospitality Trust's common stock and future junior equity in the capital stack, and ranks on a parity with the existing Series A, D, and E Preferred Stock. It is junior to all existing and future debt of the company. As a holding company issuer, the preferred is structurally subordinated to the obligations of operating subsidiaries. There is no regulatory capital call provision; however, the company retains the right to redeem shares without restriction to preserve its REIT tax status. A special optional redemption right also allows the company to redeem at $25.00 within 120 days of a qualifying Change of Control event. At the $25.00 offering price, the effective yield is 7.375%. Dividends are paid quarterly on January 15, April 15, July 15, and October 15, with record dates on the last day of the preceding March, June, September, and December. As a REIT, dividends are generally not eligible for the preferential qualified dividend income (QDI) rate; they are typically treated as ordinary income for individual investors (though a portion may be designated as capital gain dividends). The dividend stopper provision bars any cash distributions on common stock or junior/parity securities until all accumulated Series F dividends are fully paid or set aside, protecting preferred holders from being skipped in favor of common stockholders.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Ashford Hospitality Trust has not paid full cumulative dividends on the Series F Preferred Stock, it cannot pay dividends on or repurchase its common stock or other junior securities (with a limited exception to preserve REIT status).

Other Preferreds from Ashford Hospitality Trust Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 32 (Weak)