Terms

Series

7.50% Series I Cumulative Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.5%

Rate Type

Fixed

Annual Dividend

$1.88

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

November 17, 2022

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 D Preferred Stock, Series F Preferred Stock, Series G Preferred Stock, Series H Preferred Stock, Any Future Parity Preferred Securities; Senior To: Common Stock, Any Future Junior Equity Securities

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

5,400,000

Prospectus Summary

Ashford Hospitality Trust, Inc. — a hotel-focused REIT — is offering 5,400,000 shares of its 7.50% Series I Cumulative Preferred Stock at a $25.00 liquidation preference, with a fixed annual dividend of $1.875 per share ($0.46875 quarterly), payable on January 15, April 15, July 15, and October 15. The first call date is November 17, 2022, at $25.00 per share. Dividends are cumulative, meaning any missed payments accrue and must be paid in full before the company can resume distributions to common stockholders — providing holders a measure of protection against temporary cash shortfalls. The Series I Preferred Stock sits above common stock but below all existing and future debt in the capital stack. It ranks on a parity with the company's other outstanding preferred series (Series D, F, G, and H). As a holding company issuer, all debt obligations of Ashford Hospitality Trust and its operating partnership subsidiaries are structurally senior to the preferred. There is no bank regulatory capital call (Tier 1) provision; however, the issuer may redeem shares prior to the first call date solely to preserve REIT qualification. A special optional redemption right also permits the company to call the shares within 120 days of a qualifying Change of Control. At the $25.00 offering price, the Series I Preferred Stock yields 7.50%. As a REIT, dividends are generally not expected to qualify for the preferential 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD); they are typically treated as ordinary income, though a portion may be characterized as capital gain dividends. Dividends are paid quarterly on the 15th of January, April, July, and October, with record dates on the last day of March, June, September, and December. If cumulative dividends fall into arrears, the company is blocked from paying any dividends on common or parity stock until all arrears are cleared.

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 I Preferred Stock for all past periods, it cannot pay dividends on or repurchase its common stock or other junior/parity securities, except as needed to maintain REIT qualification.

Other Preferreds from Ashford Hospitality Trust Inc

Div Score Breakdown

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