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Ashford Hospitality Trust Inc.

01/24/2020 | Press release | Distributed by Public on 01/24/2020 17:10

Ashford Trust Announces Tax Reporting Information For 2019 Common And Preferred Share Distributions

DALLAS, Jan. 24, 2020 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ('Ashford Trust' or the 'Company') today announced the tax reporting (Federal Form 1099-DIV) information for the 2019 distributions on its common shares and its Series D, F, G, H and I preferred shares.

The income tax treatment for 2019 distributions for Ashford Hospitality Trust, Inc. Common Stock CUSIP #044103109 traded on the NYSE under ticker symbol 'AHT' is as follows:

Distribution Type

Distributions
Per Share

Ordinary
Taxable
Dividend

Capital Gain
Distribution

Unrecaptured
1250 Gain

Return of
Capital

Total Cash Per
Share

$0.3600000

$0.0000000

$0.0000000

$0.0000000

$0.3600000

Total Stock per
Share (NYSE:
AINC)

$0.0380223

$0.0000000

$0.0000000

$0.0000000

$0.0380223

Total
Distributions

$0.3980223

$0.0000000

$0.0000000

$0.0000000

$0.3980223

Percent

100%

0%

0 %

0%

100%

The income tax treatment for the 2019 distributions for Ashford Hospitality Trust, Inc. Series D Preferred Stock CUSIP #044103406 traded on the NYSE under ticker symbol 'AHTPrD' is as follows:

Distribution Type

Distributions
Per Share

Ordinary
Taxable
Dividend

Capital Gain
Distribution

Unrecaptured
1250 Gain

Return of
Capital

Total Cash Per
Share

$2.1124000

$0.0000000

$0.0000000

$0.0000000

$2.1124000

Percent

100%

0%

0 %

0%

100%

The income tax treatment for the 2019 distributions for Ashford Hospitality Trust, Inc. Series F Preferred Stock CUSIP #044103604 traded on the NYSE under ticker symbol 'AHTPrF' is as follows:

Distribution Type

Distributions
Per Share

Ordinary
Taxable
Dividend

Capital Gain
Distribution

Unrecaptured
1250 Gain

Return of
Capital

Total Cash Per
Share

$1.8436000

$0.0000000

$0.0000000

$0.0000000

$1.8436000

Percent

100%

0%

0 %

0%

100%

The income tax treatment for the 2019 distributions for Ashford Hospitality Trust, Inc. Series G Preferred Stock CUSIP #044103703 traded on the NYSE under ticker symbol 'AHTPrG' is as follows:

Distribution Type

Distributions
Per Share

Ordinary
Taxable
Dividend

Capital Gain
Distribution

Unrecaptured
1250 Gain

Return of
Capital

Total Cash Per
Share

$1.8436000

$0.0000000

$0.0000000

$0.0000000

$1.8436000

Percent

100%

0%

0 %

0%

100%

The income tax treatment for the 2019 distributions for Ashford Hospitality Trust, Inc. Series H Preferred Stock CUSIP # 044103802 traded on the NYSE under ticker symbol 'AHTPrH' is as follows:

Distribution Type

Distributions
Per Share

Ordinary
Taxable
Dividend

Capital Gain

Distribution

Unrecaptured
1250 Gain

Return of
Capital

Total Cash Per
Share

$1.8750000

$0.0000000

$0.0000000

$0.0000000

$1.8750000

Percent

100%

0%

0 %

0%

100%

The income tax treatment for the 2019 distributions for Ashford Hospitality Trust, Inc. Series I Preferred Stock CUSIP # 044103885 traded on the NYSE under ticker symbol 'AHTPrI' is as follows:

Distribution Type

Distributions
Per Share

Ordinary
Taxable
Dividend

Capital Gain
Distribution

Unrecaptured
1250 Gain

Return of
Capital

Total Cash Per
Share

$1.8750000

$0.0000000

$0.0000000

$0.0000000

$1.8750000

Percent

100%

0%

0 %

0%

100%

The common and preferred distributions that the Company paid on January 15, 2019 to shareholders of record as of December 31, 2018 are reportable in 2019. The common and preferred distributions that the company paid on January 15, 2020 to shareholders of record as of December 31, 2019 will be reportable in 2020.

On November 5, 2019 Ashford Trust distributed its remaining shares of common stock in Ashford, Inc. (NYSE: AINC) to the common shareholders of record as of the close of business of the New York Stock Exchange on October 29, 2019 (each an 'AHT Shareholder'). AHT Shareholders were entitled to receive approximately 0.0017 shares of AINC common stock for every share of Ashford Trust common stock held as of October 29, 2019. Ashford Trust is reporting the distribution of AINC common stock as a return of capital dividend for U.S. federal income tax purposes. AHT Shareholders are treated as receiving a return of capital dividend upon this distribution equal to the fair market value of the AINC common stock (and cash in lieu of fractional shares of such common stock) received in the distribution. The fair market value for federal income tax purposes of AINC common stock was $22.65 per share based on the closing price on November 5, 2019. After the distribution, Ashford Trust no longer has any ownership interest in AINC.

The above income tax discussion contains a general explanation of certain U.S. federal income tax consequences of the distribution of the AINC shares to AHT Shareholders. The information represents Ashford Trust's general understanding of the application of certain existing U.S. federal income tax laws and regulations relating to the distribution. It does not constitute tax advice and does not purport to be complete. Shareholders are urged to consult their tax advisors regarding the particular consequences of the distribution, including the applicability and effect of all U.S. federal, state and local, and foreign tax laws.

In accordance with IRS Code Section 6045B, the Company will post Form 8937, Report of Organizational Actions Affecting Basis of Securities, which may be found in the Corporate Actions section of the company's website. This form provides detailed information on the return of capital portion of the preferred and common share distributions. The Company encourages shareholders to consult with their own tax advisors with respect to the federal, state and local, and foreign income tax effects of these dividends.

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.

Ashford has created an Ashford App for the hospitality REIT investor community. The Ashford App is available for free download at Apple's App Store and the Google Play Store by searching 'Ashford.'

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 provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company's strategy and future plans. These forward-looking statements 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 statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Trust'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 Ashford Trust's 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 to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise.

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SOURCE Ashford Hospitality Trust, Inc.