RLJ - RLJ Lodging Trust: I Like The 7.75% Yielding Preferred Shares
2024-03-28 10:30:00 ET
Summary
- RLJ Lodging Trust's Q4 results showed robust FFO and AFFO performance, with an increase in revenue per available room and occupancy.
- The company's net interest expenses decreased, resulting in a significant expansion of AFFO per share.
- RLJ Lodging Trust's 'busted' preferred shares offer an attractive fixed yield of 7.75% and have a strong margin of safety based on the balance sheet.
Introduction
Sometimes ‘busted’ preferred shares (preferred securities which cannot [easily] be called by the issuer) are an interesting addition to an income-focused portfolio. Of course it remains important to keep an eye on how well the preferred dividends are covered, and if the balance sheet poses any risks. RLJ Lodging Trust ( RLJ ) owns 97 hotel properties (at the end of 2023) with a total of just over 21,000 rooms ....
RLJ Lodging Trust: I Like The 7.75% Yielding Preferred Shares