I bought a 1/2 position of the lodging REIT preferred of Pebblebrook Hotels (PEB) this morning.
The company has a total of 5 issues currently outstanding which can be seen here. The most recent issue, which was sold on 5/6/2021, was 8 million shares with a coupon of 6.375%. This issuance has lead investors to believe that a redemption of an older issue may occur–maybe and maybe not–actually I doubt it. The highest coupon outstanding is 6.50% which would make a call somewhat unusual–certainly could happen though. The company has stated they will use 50% of the proceeds from the newest issuance to pay down credit lines–leaving enough cash to call maybe 1 outstanding issue if desired.
I bought the PEB-F with a 6.30% coupon which happens to come redeemable today–simply assuming if there was to be a call it would be the 6.50% PEB-C issue.
Regardless–I have added 4 preferred issue of PEB to the watch list.
Pebblebrook is one of the strongest lodging REITs out there and while their revenues were decimated during the pandemic I expect them to come roaring back in the quarter ahead.