Pebblebrook Hotel Trust Is Risky, But We Are Buying The 8.5% Preferred Stocks
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Pebblebrook Hotel Trust's preferred stocks offer an 8.5% yield, with dividends representing 15% of expected FFO, providing a cushion despite credit concerns. Moody's rates PEB at Ba3, with preferred stocks near B1, indicating higher risk.
February 28, 2025 | 11:15 pm
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Pebblebrook Hotel Trust's preferred stocks yield 8.5%, with dividends at 15% of expected FFO, providing a cushion despite credit concerns. Moody's rates PEB at Ba3, with preferred stocks near B1, indicating higher risk.
The article highlights the attractive yield of PEB's preferred stocks and their dividend coverage, which is a positive aspect. However, the credit rating of Ba3 and the higher risk associated with the preferred stocks compared to peers balance the positive yield, resulting in a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100