SMTHP - I'm Adding To My 6.5% Yielding Preferred Securities Of Summit Hotel Properties
- Summit Hotel Properties likely has seen the worst of the COVID crisis: the Q3 2021 AFFO represented 90% of the 9M 2021 AFFO.
- I expect the FY 2021 and 2022 AFFO to show the preferred dividends are very well covered. I wouldn't be surprised to see a 500% coverage ratio.
- I like the balance sheet structure with a relatively low LTV and the senior ranking of preferred shares compared to the common shares.
- The two series of preferred shares are currently yielding 6.5-6.55% and I like the risk/reward at these levels.
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I'm Adding To My 6.5% Yielding Preferred Securities Of Summit Hotel Properties