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Chatham Lodging Trust preferred stock yields 8.2% backed by strong balance sheet and dividend growth.

Analyst Insights
13 Sep 2026
Seeking Alpha
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Bullish
Chatham Lodging Trust preferred stock yields 8.2% backed by strong balance sheet and dividend growth.

Chatham Lodging Trust's preferred stock offers an attractive 8.2% yield supported by a strong balance sheet and solid dividend coverage. The company reported a nearly 20% year-over-year increase in adjusted funds from operations (FFO) for Q2, with a 25% rise in per-share adjusted FFO, reinforcing confidence in sustained preferred dividend payments. Its net debt is conservatively managed at just over $400 million, representing 35% of book value and less than 25% of acquisition cost. While the common stock has risen 50%, the preferred shares remain a recommended buy for their risk-adjusted returns.

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