Lodging REIT Hersha Hospitality (NYSE:HT) turned into quite a disaster this past week and the tumbling commons shares took the preferreds with them.
The company released earnings on 10/23 and while a quick review didn’t find too much to worry about, obviously the marketplace didn’t like them as the common shares opened the week at $19.57 and closed the week at $17.43. The company pays a common distribution of $1.16/share so has a nice yield of 6.7%.
Here is a chart of the common shares, which are very unloved–and of course caught in the market tumble.
Additionally there are 3 perpetual preferred outstanding and they are as unloved as the common shares. Here are charts of the C, D and E series preferreds. The have coupons of 6.875, 6.5 and 6.5% respectively. Current yield are all in the 7.5% area. For a well run lodging REIT these are pretty decent current yields.
At this time we are not interested as we are trying to stay away from perptuals until at least January because of what we believe is some interest rate risk–but for folks looking for a decent yield maybe these are of interest.