TRADE ALERT - Retirement Portfolio August 2026 (New Investment)
We are initiating a small position in the Series H preferred shares of Pebblebrook Hotel Trust (PEB.PR.H) for our Retirement Portfolio.
Pebblebrook is one of the largest owners of upper-upscale and luxury lifestyle hotels in the United States. Its portfolio includes 43 hotels across major urban and resort markets, including Boston, San Diego, San Francisco, Los Angeles, Washington, D.C., Key West, and Naples.
Hotel REIT common shares have rallied sharply as operating conditions have improved. Pebblebrook’s common equity, for instance, has nearly doubled from its recent lows as investors have increasingly recognized that its cash flow recovery is gaining momentum.
But Pebblebrook’s preferred shares have largely missed this rally.
The Series H preferred shares continue to trade near $18, offering a yield of approximately 8% and a nearly 30% discount to their $25 liquidation preference.
We believe this disconnect has created an attractive opportunity.
The preferred shares are materially safer today than they were a year ago, but their valuation has barely adjusted to reflect the improvement.
