Sotherly Hotels Inc. Announces Quarterly Preferred Dividends

Rhea-AI Summary

Sotherly Hotels Inc. (NASDAQ: SOHO) has announced the authorization of quarterly cash dividends for its Series B, Series C, and Series D Preferred Stock. The dividends for Series B, Series C, and Series D are $0.50, $0.4921875, and $0.515625 per share, respectively. The dividends will be paid on March 15, 2024, to shareholders of record as of February 29, 2024.

Financial Analyst

The announcement by Sotherly Hotels Inc. regarding the payment of quarterly cash dividends for its Series B, C and D Preferred Stock represents a direct financial incentive to preferred shareholders and signals the company's current liquidity and profit distribution policy. The declared dividends align with the fixed income nature of preferred shares, which typically provide a steady stream of income to investors. The specific dividend rates, 8.0% for Series B, 7.875% for Series C and 8.25% for Series D, reflect a commitment to return a portion of earnings to investors and may indicate the company's confidence in its ongoing operations and financial stability.

For stakeholders, the short-term implications include a predictable income stream, which can be particularly attractive in volatile market conditions. In the long-term, consistent dividend payments can be indicative of a company's financial health and may support a stable stock price. However, investors must also consider the opportunity cost of holding preferred stock, which typically offers less capital appreciation potential compared to common stock. Additionally, the company's decision to pay out dividends can affect its cash reserves, potentially limiting funds available for reinvestment or debt reduction.

Market Research Analyst

From a market perspective, Sotherly Hotels Inc.'s dividend declaration can be interpreted as a positive signal to the market, potentially influencing investor sentiment and the company's stock valuation. Dividend payments often reflect a company's competitive position within the hospitality industry and its ability to generate consistent revenue, important factors for investors assessing the stock's attractiveness. The hospitality sector's performance is closely tied to economic cycles and regular dividend payments might suggest that Sotherly Hotels is navigating the current economic landscape successfully.

However, it's crucial to analyze these dividends within the broader industry context. If Sotherly's dividend yields are significantly higher or lower than its peers, this could indicate a deviation from industry norms that may require further investigation. Investors should also consider the sustainability of these dividends, as the hospitality industry can be susceptible to external shocks such as economic downturns or changes in consumer travel behavior. A comparison with the company's historical payout ratios and earnings performance can provide additional insights into the long-term viability of these dividends.

Real Estate Investment Trust (REIT) Analyst

As a company operating within the real estate sector, specifically in hospitality, Sotherly Hotels Inc.'s dividend payments must also be evaluated in the context of REIT (Real Estate Investment Trust) regulations and standards. REITs are required to distribute at least 90% of their taxable income to shareholders, which can lead to high dividend yields. The declared dividends for Series B, C and D Preferred Stock suggest compliance with these regulations while also providing competitive yields that may appeal to income-focused investors.

The financial health of a REIT is heavily dependent on its property portfolio, occupancy rates and ability to manage operational costs. Therefore, the dividend announcement may also reflect the underlying asset performance and management's effectiveness in cost control and revenue maximization. Investors should assess the dividend sustainability by reviewing the company's funds from operations (FFO), a key REIT metric, which provides a clearer picture of cash flow generated from the core business operations, excluding the effects of depreciation and property sales.

WILLIAMSBURG, Va., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Sotherly Hotels Inc. (NASDAQ: SOHO) (the “Company”) today announced that its Board of Directors has authorized payment of quarterly cash dividends for the Company’s Series B, Series C, and Series D Preferred Stock.

The Board of Directors authorized, and the Company has declared, a quarterly cash dividend of $0.50 per share of beneficial interest of the Company’s 8.0% Series B Cumulative Redeemable Perpetual Preferred Stock. The Series B preferred dividend will be paid on March 15, 2024 to shareholders of record as of February 29, 2024.

The Board of Directors also authorized, and the Company has declared, a quarterly cash dividend of $0.4921875 per share of beneficial interest of the Company’s 7.875% Series C Cumulative Redeemable Perpetual Preferred Stock. The Series C preferred dividend will be paid on March 15, 2024 to shareholders of record as of February 29, 2024.

The Board of Directors also authorized, and the Company has declared, a quarterly cash dividend of $0.515625 per share of beneficial interest of the Company’s 8.25% Series D Cumulative Redeemable Perpetual Preferred Stock. The Series D preferred dividend will be paid on March 15, 2024 to shareholders of record as of February 29, 2024.

About Sotherly Hotels Inc.

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company’s portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information, please visit www.sotherlyhotels.com.

What is the ticker symbol for Sotherly Hotels Inc.?

The ticker symbol for Sotherly Hotels Inc. is SOHO.

What type of dividends were authorized by the Board of Directors?

The Board of Directors authorized quarterly cash dividends for the Company’s Series B, Series C, and Series D Preferred Stock.

When will the dividends be paid?

The dividends will be paid on March 15, 2024.

What is the dividend amount for Series B Preferred Stock?

The quarterly cash dividend for Series B Preferred Stock is $0.50 per share.

What is the dividend amount for Series C Preferred Stock?

The quarterly cash dividend for Series C Preferred Stock is $0.4921875 per share.

What is the dividend amount for Series D Preferred Stock?

The quarterly cash dividend for Series D Preferred Stock is $0.515625 per share.

When is the record date for shareholders to receive the dividends?

The record date for shareholders to receive the dividends is February 29, 2024.