This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Ashford Hospitality Trust's CEO Hosts Analyst/Investor Day (Transcript)

Stocks in this article: AHT

And portfolio A has about $1.4 billion of non-recourse debt in it and when you buy a share of our stock at say 9 buck where and that where is trading now, about 90% of that value is attributable to this portfolio A. It's lower levered, it's safer, it's good quality assets et cetera. Portfolio B has about $1.7 billion worth of debt on it. When you pay $9 for a share of stock about 10% of that is attributed to this value in this portfolio. All non-recourse debt and the idea is that since when you have non-recourse debt on asset, you can't have negative equity. You have the ability to just hand properties back if times go tough which we did during the great recession. We handed a couple back and you really have to look at our company with these two pools, so the first pool is safer, it's lower leveraged. It's where most of our value is.

The second pool is higher leveraged, but it is non-recourse and it has a small amount of equity value in it. So if we get into tough times we can take that portfolio be so called and push it off and get rid of it and we are lower leveraged. But right now since portfolio be as cash-flow positive, it makes all the sense in the world to hang on to it for its optionality and it has got great optionality and great upside and it has all the benefits of being higher leveraged.

So the point I am trying to make is that we have a unique situation where we had the benefits of all the upside in a higher leverage platform, but also if downside happens in the industry, we can just shove off some of these assets and still be in great shape. So it’s an optionality that I want to emphasize and I think it is important.

6 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs