SHO: The Preferred Stocks' 7.3% Yield Outshines The FFO Yield
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Sunstone Hotel Investors Inc. (SHO) offers preferred stocks with a 7.3% yield, which is more attractive than the common stock's expected 8% FFO yield. The company's strong financials, including a 400% asset coverage ratio and no secured debt, make it a relatively safe investment. The narrowing spread to the 20-year Treasury suggests potential for higher credit ratings.
February 21, 2025 | 10:45 pm
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Sunstone Hotel Investors Inc. (SHO) preferred stocks offer a 7.3% yield, outperforming the common stock's expected 8% FFO yield. The company's strong financials and narrowing spread to the 20-year Treasury suggest potential for higher credit ratings.
SHO's preferred stocks offer a higher yield compared to the common stock's FFO yield, making them a more attractive investment. The company's strong financials and narrowing spread to the 20-year Treasury indicate potential for credit rating upgrades, which could positively impact stock prices.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100