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Press Release

Ashford Hospitality Trust Announces Tax Reporting Information For 2014 Common And Preferred Share Distributions

Company Release - 2/2/2015 1:45 PM ET

DALLAS, Feb. 2, 2015 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced the tax reporting (Federal Form 1099-DIV) information for the 2014 distributions on its common shares and its Series A, D, and E preferred shares. 

The income tax treatment for 2014 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

Total Capital Gain
Distribution

Return of Capital

Total Cash Per Share

$0.4800

$0

$0

$0.4800

Total Stock Per Share (NYSE
MKT: AINC)

$0.6437

$0

$0

$0.6437

Total Distributions

$1.1237

$0

$0

$1.1237

Percent

100.00%

0%

0%

100.00%

The income tax treatment for the 2014 distributions for Ashford Hospitality Trust, Inc. Series A Preferred Stock CUSIP #044103208 traded on the NYSE under ticker symbol "AHTPrA" is as follows:       

Distribution Type



Distributions
Per Share

Ordinary Taxable
Dividend

Total Capital Gain
Distribution

Return of Capital

Total Per Share

$1.6031

$0

$0.0000

$1.6031

Percent

100.00%

0%

0%

100.00%

The income tax treatment for the 2014 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

Total Capital Gain
Distribution

Return of Capital

Total Per Share

$1.5844

$0

$0

$1.5844

Percent

100.00%

0%

0%

100.00%

The income tax treatment for the 2014 distributions for Ashford Hospitality Trust, Inc. Series E Preferred Stock CUSIP #044103505 traded on the NYSE under ticker symbol "AHTPrE" is as follows:  

Distribution Type



Distributions
Per Share

Ordinary Taxable
Dividend

Total Capital Gain
Distribution

Return of Capital

Total Per Share

$1.6875

$0

$0

$1.6875

Percent

100.00%

0%

0%

100.00%

The common distributions that the Company paid on January 15, 2014 to shareholders of record as of December 31, 2013, are reportable in 2014. The common and preferred distributions that the company paid on January 15, 2015 to shareholders of record as of December 31, 2014 will be reportable in 2015.

On November 12, 2014, AHT distributed shares in Ashford, Inc. (NYSE MKT: AINC) to the shareholders of record as of the close of business on November 11, 2014 (each an "AHT Shareholder"). AHT shareholders were entitled to receive one share of AINC common stock for each eighty seven shares of AHT common stock held as of November 11, 2014. AHT is reporting the distribution of AINC common stock as a return of capital dividend for U.S. federal income tax purposes. 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 and will take an adjusted basis, for federal income tax purposes, in such shares equal to the fair market value of such shares based on the market price on the date of the distribution. The fair market value for federal income tax purposes of AINC common stock based on the opening price on November 13, 2014, the first day of trading on the NYSE MKT, was $56.00 per share.  

The above income tax discussion contains a general explanation of certain U.S. federal income tax consequences of the distribution of AINC shares to AHT shareholders. This information represents AHT'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. AHT urges shareholders to read the November 11, 2014, Information Statement distributed to AHT shareholders and as filed by AINC as Exhibit 99.1 to its Amendment Number 7 of Form 10 dated October 30, 2014, noting especially the discussion under the heading "Our Separation From Ashford Trust – Certain U.S. Federal Income Tax Consequences of the Separation".

In accordance with IRS Code Section 6045B, the Company has posted 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.

IRS CIRCULAR 230 NOTICE:  TO ENSURE COMPLIANCE WITH IRS CIRCULAR 230, SHAREHOLDERS ARE HEREBY NOTIFIED THAT: (A) ANY DISCUSSION OF U.S. FEDERAL TAX ISSUES CONTAINED OR REFERRED TO IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY SHAREHOLDERS FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THEM UNDER THE INTERNAL REVENUE CODE; (B) SUCH DISCUSSION IS WRITTEN IN CONNECTION WITH THE PROMOTION OR MARKETING BY AHT OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN; AND (C) SHAREHOLDERS SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.

Ashford is a self-administered real estate investment trust focused on investing in the hospitality industry across all segments and at all levels of the capital structure.  Additional information can be found on the Company's website at www.ahtreit.com.

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.  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 forward-looking statements include, but are not limited to, the timing for closing, the impact of the transaction on our business and future financial condition, our business and investment strategy, our understanding of our competition and current market trends and opportunities and projected capital expenditures.  Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford'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'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.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-tax-reporting-information-for-2014-common-and-preferred-share-distributions-300029271.html

SOURCE Ashford Hospitality Trust, Inc.

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