I won’t start adding to the community bank preferred issues I already own yet–but in a bid to raise my current yield on the portfolio I am going to nibble a few of the more solid (in my opinion) preferreds from a couple lodging REITs.
Today I bought the Pebblebrook Hotels 6.375% perpetual preferred (PEB-G) which has a current yield of around 8.40%. This is a starter position only–we will see where it goes from here.
The company has shown steadily improving results–but has a ways to go, but I purchased PEB because of the balance sheet–they are not as levered as many REITs are in the lodging sector.
Likely I will be buying another tomorrow.