Stable 7%-Plus Yield On Sunstone Hotel Investors And Its Preferred Shares

(6min)

Summary

  • Sunstone Hotel Investors, Inc. is a stable hotel REIT with strong asset coverage and a market cap of $1.72 billion.
  • Both SHO preferred shares (SHO.PR.H and SHO.PR.I) offer attractive yields above 7% and trade below par, with about one year to call.
  • SHO's credit metrics, using Moody's methodology, indicate a solid Baa2 rating.
  • Given the stable fundamentals and discounted preferred shares, SHO offers a compelling opportunity in the hotel REIT sector.

REIT, Real Estate Investment Trust Concept, Businessman use laptop Investment plan buy house, Location, Efficiency rating and property value, financial management, Investing for future profits

NongAsimo

Today, we will focus on one of the most stable companies in the REIT sector – Sunstone Hotel Investors, Inc. (NYSE:SHO). The company has two preferred shares that are publicly traded:

The Cumulative with 7.53% (NYSE:SHO.PR.H).

The Cumulative

Trade With Beta

At Trade With Beta,

we discuss ideas like this as they happen in more detail. All active investors are welcome to join on a free trial and ask any question in our chat room full of sophisticated traders and investors.

This article was written by

14.61K Followers

Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.

Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SHO.PR.H either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About SHO Stock

SymbolLast Price% Chg
EPS
PE
Div Rate
Yield
Short Interest
Market Cap
Volume
Compare to Peers

More on SHO

Related Stocks

SymbolLast Price% Chg
SHO
--
SHO.PR.H
--
SHO.PR.I
--