SHO - Sunstone Hotel Investors: 7.2%-Yielding Preferred Shares Offer Great Risk/Reward
2024-06-08 11:40:00 ET
Summary
- The Sunstone Hotel Investors, Inc. preferred share price of the Series H has come down from a Q1 spike.
- Sunstone Hotel Investors reported a net income of $13M in Q1, with a decrease in AFFO per share compared to previous years.
- Sunstone's redevelopment plan and capital expenditures may cause short-term pain but are expected to result in long-term gains. The anticipated preferred dividend payout ratio is just under 8%.
Introduction
As I have dedicated a portion of my investment portfolio to fixed income, I am still looking for additional exposure to preferred equity. As the interest rates on the financial markets will move down, the price of fixed rate preferred shares will go up (assuming the creditworthiness of the issuer remains unchanged). I sold my preferred shares in Sunstone Hotel Investors, Inc. ( SHO ) a few months ago on a temporary price spike, but I am wondering if I should re-establish a long position....
Sunstone Hotel Investors: 7.2%-Yielding Preferred Shares Offer Great Risk/Reward