EHT distribution ‘highly unlikely' for 2020

Investors will be left out, as prospects of EHT’s consensual restructuring remain uncertain.

Eagle Hospitality Trust (EHT) will most likely not have any income available for distribution for 2020. Its management has stated that this is in accordance with their distribution policy, and comes because of the trust’s loans and liquidity, as well as the master lessees’ inability to make rental payments.

In its Q3 financial results, EHT did not declare an income available for distribution for Q3, against last year’s US$14.4m. They also did not declare any distribution per stapled security for Q3 compared with the 1.649 US cents payout over the same period last year.

Meanwhile, the trust’s net property income crashed 29.4% YoY to US$14.2m, whilst revenue sank 22.9% YoY to US$16.6m.

EHT said that due to the COVID-19 outbreak, “the operations of and revenue stream from EHT’s properties have been severely disrupted and its full impact cannot be meaningfully and reliably assessed.”

Consequently, the prospects of consensual restructuring of EHT remains uncertain and the trust’s 18 full service hotels in the US remain at risk upon enforcement action by EHT lenders.