Ryman Hospitality Properties, Inc. (NYSE: RHP) today announced that its Board of Directors has approved its dividend policy, pursuant to which the Company plans to pay a quarterly cash dividend to shareholders in an amount equal to at least 50% of Adjusted Funds from Operations (AFFO) or 100% of REIT taxable income, whichever is greater. The declaration, timing and amount of dividends will be determined by future Board action.
Ryman Hospitality Properties also announced today that its Board of Directors has authorized a share repurchase program for up to $100 million of the Company's common stock using cash on hand and borrowings under its revolving credit line. The repurchases are intended to be implemented through open market transactions on U.S. exchanges or in privately negotiated transactions, in accordance with applicable securities laws, and any market purchases will be made during open trading window periods or pursuant to any applicable Rule 10b5-1 trading plans. The timing, prices, and sizes of repurchases will depend upon prevailing market prices, general economic and market conditions and other considerations. The repurchase program does not obligate the Company to acquire any particular amount of stock.
“After thorough analysis and in consultation with our Board of Directors, we are putting in place a capital allocation policy that we believe is in the best interest of our shareholders and our business. As we look towards 2013 and our successful conversion to a real estate investment trust, we believe establishing a sustainable dividend policy and using additional capital to repurchase our shares represents the right strategic use of capital given our present trading multiple and hotel valuation,” said Colin Reed, chairman, CEO and president of Ryman Hospitality Properties. “These actions reflect the strength of our balance sheet and our continued confidence in the stability and cash flow generation capabilities of our business model, especially as we realize cost and revenue synergies from our transaction with Marriott. We are committed to a disciplined capital deployment strategy to create value for our shareholders through dividends, share repurchases, and when valuations are compelling, asset acquisitions.”