Host Hotels and Resorts Inc (NYSE:HST) announced plans to temporarily suspend quarterly cash dividend in order to preserve liquidity.
The company, based in Bethesda, Md., and which purports to be the nation's largest lodging real estate investment trust today announced that its Board of Directors has temporarily suspended the Company’s regular quarterly dividend, commencing with the second quarter dividend that would have been paid in July.
The Company previously paid a quarterly cash dividend of $0.20 per share on its common stock on April 15, to stockholders of record as of March 31. The company estimates that the suspension of the dividend will preserve approximately $140 million in cash during the second quarter.
CEO James F. Risoleo said, "The Board’s decision to suspend the quarterly dividend is consistent with the other measures the Company has implemented to preserve liquidity and maintain balance sheet flexibility, including reducing capital expenditures by $100 to $125 million and corporate expenses by 10% to 15%.
"The Board will continue to monitor the Company’s financial performance and operating environment to determine the appropriate time to reinstate a regular quarterly dividend.”
HST currently owns 75 properties in the United States and five properties internationally totaling approximately 46,700 rooms. The Company also holds non-controlling interests in six domestic join ventures and one international joint venture.
HST shares forfeited 53 cents, or 4.5%, to $11.14.
