PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 13, 2001--Innkeepers USA Trust (NYSE: KPA), a hotel real estate investment trust (REIT) and the nation's leading REIT owner of upscale, extended-stay hotel properties throughout the U.S., today announced that its Board of Trustees had declared a regular quarterly cash dividend of $0.53906 per share on Innkeepers' Series A cumulative convertible preferred stock.
In addition, the board declared a nominal cash dividend of $0.01 per common share for the fourth quarter. In October, the company said that it would suspend payment of a regular quarterly cash dividend to common shareholders for the fourth quarter.
The regular Series A preferred dividend and the nominal $0.01 common share dividend are payable January 29, 2002 to shareholders of record on December 28, 2001.
The tragic events of September 11 have had a devastating impact on the travel industry and created uncertainty about the short-term outlook, said Jeffrey H. Fisher, Innkeepers chief executive officer and president. As a result of these events, our board of trustees and management made a prudent decision in October to suspend payment of our regular $0.30 common stock dividend for the fourth quarter.
However, in response to requests by some of our larger institutional shareholders whose REIT investments must meet certain minimum dividend and yield requirements to remain in their portfolios, the board decided to pay a nominal cash dividend of $0.01 per share.
Fisher noted that during the first three quarters Innkeepers paid out a total of $0.90 per share in common share dividends, which represents an annualized dividend yield of approximately 9.5 percent based on the closing share price on December 12. Our policy has been to pay out approximately 100 percent of our taxable income, compared to the 90 percent level required by the IRS for REIT qualification purposes. The $0.91 per share in common share dividends for the full year exceeds 100 percent of our taxable income.
We expect to resume paying regular common share dividends in 2002 and will review our dividend policy and levels on a quarterly basis, beginning in the first quarter, Fisher said. Future common share dividends will be based on a number of factors, including the company's actual results of operations, economic conditions, capital expenditure requirements and the IRS dividend payout requirement.
Florida-based Innkeepers USA Trust is a hotel real estate investment trust and the nation's leading REIT owner of upscale, extended-stay hotel properties throughout the U.S. The company owns 67 hotels with a total of 8,131 suites or rooms in 23 states and focuses on acquiring and/or developing Residence Inns and other upscale extended-stay hotels in markets with high barriers to entry and the rebranding and repositioning of other hotel properties.
This release contains forward-looking statements within the meaning of federal securities law. Known and unknown risks and other factors may cause actual results to materially differ from any future results expressed or implied by such forward-looking statements. Cautionary statements set forth in reports filed by the company from time to time with the Securities and Exchange Commission discuss important factors with respect to such forward-looking statements. These factors include, without limitation, (i) risks that changes in domestic or international political environments, war, terrorism or similar activity would have results that could affect the company in ways that cannot be anticipated, (ii) the relative strength and performance of businesses and industries that are important demand generators in the company's key bi-coastal markets, (iii) international, national, regional and local economic conditions that will, among other things, affect demand for the company's hotel rooms and the availability and terms of financing, (iv) the company's ability to maintain its properties in competitive condition, (v) the company's ability to acquire or develop additional properties and risks that potential acquisitions or developments may not perform in accordance with expectations, (vi) changes in travel patterns or the prevailing means of commerce, i.e., e-commerce, and (vii) the complex tax rules that the company must satisfy to qualify as a REIT, and other governmental regulation. Although we believe that the expectations reflected in the forward-looking statements are based on reasonable assumptions, we can give no assurances that our expectations will be attained or that any deviations will not be material. We are not obligated to release results of revisions to forward-looking statements made to reflect future circumstances.
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