INN - Summit Hotel Properties: I Am Still Long The 7.4% Preferred Shares
2024-05-26 11:40:00 ET
Summary
- Summit Hotel Properties had a decent start to 2024 with decently strong FFO and AFFO results.
- The AFFO adjusted for capital expenditures was approximately $12M, with a payout ratio of approximately 25% for the preferred dividends.
- The LTV ratio is approximately 48.2% based on book value, but drops to just over 40% when considering acquisition value.
Introduction
I like preferred shares as a portion of my fixed income portfolio and I am keeping my fingers on the pulse of a lot of different issuers and preferred shares to make sure there are no unexpected surprises. I own both series of preferred shares issued by Summit Hotel Properties ( INN ) and as the hotel sector isn’t always the most reliable sector I am following the preferred shares I own in this sector a bit closer than other issues to ensure there are no coverage issues and/or balance sheet issues....
Summit Hotel Properties: I Am Still Long The 7.4% Preferred Shares