Sotherly Hotels Releases Earnings

Sotherly Hotels (NASDAQ:SOHO) has released earnings for the quarter and year ending 12/31/2018.

Revenue was up nicely but net income was off and continued to show a loss–as expected. Given that SOHO is a REIT we look at Funds From Operations (FFO) rather than net income and it came in at 92 cents/share which is up from 80 cents/share last year.

The company pays a 12.5 cent common share dividend (50 cents on a annualized basis) so they easily cover the dividend–the dividend for last year was 100% return of capital.

We mention SOHO because of the 7.25% baby bond which matures in 2021 they have outstanding (SOHOK).

Additionally they have 2 high yield preferreds selling just below $25. SOHOO is a 7.875% perpetual and SOHOB is a 8% perpetual.

The earnings release can be read here.

Disclosure–we own the SOHOK baby bonds.

One thought on “Sotherly Hotels Releases Earnings”

  1. I have some BKLN that I’d like to swap out of and looked at SOHOK as a replacement. Decided against it as I have a policy about paying a premium (in this case, 2%) for something callable. Especially where the parent seems to be generating plenty of FFO and the other, higher yielding, preferreds (SOHOO, SOHOB) are not yet callable. Will continue my quest.

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