Chatham Lodging Trust (CLDT) Company Overview

Chatham Lodging Trust's Series A preferred shares are attractive due to strong dividend coverage and a robust balance sheet, now yielding nearly 8%. The REIT's AFFO comfortably covers preferred dividends, with $53.5M expected for FY 2024, ensuring financial stability even in weaker quarters. The balance sheet shows a net financial debt of $416M against $1.3B in assets, indicating a low LTV ratio and substantial equity cushion.

Chatham Lodging (CLDT) came out with quarterly funds from operations (FFO) of $0.35 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.40 per share a year ago.

Chatham Lodging Trust is a lodging REIT focused on extended stay and limited-service hotels, primarily in the Sun Belt region. The company has underperformed the Vanguard Real Estate Index Fund ETF so far in 2024, resulting in a depressed forward AFFO multiple of 7.2x. Over the near term, the company will benefit from Fed easing thanks to its ~57.5% proportion of floating rate debt.

The headline numbers for Chatham Lodging (CLDT) give insight into how the company performed in the quarter ended June 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Chatham Lodging (CLDT) came out with quarterly funds from operations (FFO) of $0.39 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to FFO of $0.43 per share a year ago.

Reaching for higher yield doesn't always have to mean taking on too much risk. In this article, I highlight 2 picks with strong fundamentals and balance sheets. Chatham Lodging Trust Preferred Stock and Capital Southwest offer attractive yields above 8% and upside potential.

Chatham Lodging Trust's financial performance for preferred shareholders remains robust, with a strong preferred dividend coverage ratio. The REIT's balance sheet shows low net debt compared to real estate assets, providing a substantial cushion for preferred equity. Series A preferred shares offer an attractive current yield of approximately 8.1%, making them an appealing income-focused investment in the current interest rate climate.

WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Chatham Lodging Trust Declares Quarterly Common, Preferred Dividend.

Chatham Lodging Trust is a lodging REIT focused on extended-stay accommodations and select-service hotels. The company's April/May Q2 2024 business update shows it will likely easily beat its initial guidance. Net debt accounts for 45% of enterprise value, with preferred shares contributing 12% to the capital structure.