American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures AHOTF

Not good

[tylerreddick]

The Globe and Mail reports in its Friday edition that CIBC analyst Dean Wilkinson cut his rating for American Hotel Income Properties REIT to "underperformer" from "neutral." The Globe's David Leeder writes that Mr. Wilkinson gave his share target a 25-cent trim to 50 cents (all figures U.S.). Analysts on average target the shares at 66 cents. Mr. Wilkinson says in a note: "American Hotel Income Properties reported Q4 results that reflected a challenging economic environment, reporting diluted normalized FFO per unit of three cents below consensus estimates of six cents. While some of the near-term balance sheet issues were addressed, the REIT still faces a myriad of headwinds not limited to a nearly fully utilized revolving credit facility, near-term debt maturities, an arguably difficult operating environment, and covenants that may limit the REIT's financial flexibility. With the delay in the filing of the REIT's financial statements, we preliminarily adjust our estimates and price target down based on the initial information provided in the REIT's press release, with amendments to be made following the release of the full set of financials. Management expects to have such filings ready in the coming week(s)."