UPDATE: Stifel Nicolaus Initiates Hold on Ashford Hospitality Trust
Stifel Nicolaus initiates a Hold rating on Ashford Hospitality Trust (NYSE: AHT) on the company's high leverage.
Stifel Nicolaus says, "Ashford has one of the most unique capital structures in the REIT sector. The equity portion only accounts for 19.0% of enterprise value (compared to the lodging REIT average of 51.0%). Net-debt accounts for 72.0% (compared to the lodging REIT average of 41.0%) and preferreds account for 9.0%. Therefore, a small swing of 5.0% in asset price can have a 25.0% impact on the value of the common equity."
AHT closed at $9.59 a share on Monday.
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