andrewsdad

We Don't Need No Stinkin' Rally: Eye on Hotel REITs

Hello,

I'm a long term stock investor. Never bought preferred stocks. What is the ticker for SHO? Thanks.

Andrewsdad


On Mar 09 10:55 AM William Cowie wrote:

> Chris, Zorro, good points, especially the possibility of the common
> to recover. However, the thing that gives me the most comfort is
> the scale of the amounts - it takes (comparatlively) only a small
> amount of money to service the preferreds. So even if a company barely
> squeaks by, it might still have enough for the preferred dividend.
>
>
> Agreed on the risk of bankruptcy. However, I doubt that ALL will
> meet that fate. I think HST, AHT, LHO and SHO stand a better chance
> of making it than the others. Of course, for a return over 20% per
> year, one would expect at least some level of risk.
>
> Speaking of which, there is another risk for the common, which is
> dilution. If I'm not mistaken, BEE has already filed a shelf registration
> for more stock. It is a rational way for REITs to weather the storm,
> and it could take some steam out of the common recovery. Preferreds,
> on the other hand, don't face the risk of dilution, because the dividend
> is fixed.
>
> Zorro, thanks for pointing to those other stocks.
>
>

We Don't Need No Stinkin' Rally: Eye on Hotel REITs

Zorro6204,

I'm a stock investor and haven't bought preferred. What is the ticker (if that's the correct terminology) for SHO? Thanks.

Gman


On Mar 09 10:15 AM zorro6204 wrote:

> People make fun of the Yahoo chat boards, but we've been all over
> REIT preferreds since October. SHO is one of the most liquid REIT's
> in the market, and it flowed plenty of cash from operations even
> in a dismal Q4. HPT preferreds have become very cheap the last few
> weeks. BEE is a bad shape, no doubt, but it did just handle its credit
> line, and it flowed a little cash in Q4. It should make it so long
> as there is some recovery in the next year or two.
>
> Hotels are not necessarily the most solvent REIT's out there, as
> pointed out above. Lending REIT's NRF and RAS have preferreds on
> sale, as does the apartment REIT AIV. None of these companies have
> any serious liquidity challenges coming up.