FFO has nothing to do with being a REIT.
Net Earnings do, they have enough losses to cover them. Carry forward.
Also, they have till the end of the year to pay.
They cannot pay any dividend on the common, until they pay on the preferred.
(not sure, if they have to pay all missed payments on the preferred or not)
This quarter's results totally demolished my number. Considering the changes they made YOY in their portfolio, I find it next to impossible to get a baseline for comparison, but $1.6M in EBITDA versus my forecast of $1.12. I still have to go through the rest of the report, but this was a huge beat, in my opinion.
Not when they have high short term debt on most the hotels that are also lower tier brands, 5 quarters of cumulative preferred dividends in arrears, and higher costs than many hotel REITs per employee. IMHO no logical reason for the bounce recently-these sales were expected.
Didn't the press release say they are using the proceeds to pay down debts? Over at Seeking Alpha I write some on the common (speculative, enjoy this bounce) and another poster writes about the A and B preferreds. If you can wait for when/if they reinstate the cumulative dividends, the As are probably the best bet.
I think the focus on the bank loans first.
The preferred can wait (yuk, I have a lot)
The banks can cause a lot more issues.
Since u asked. They sold the 4 with the most value for the most part. Need to repay $45M in loans due this year. Most of the other properties worth between $500K and $1.5M. Nothing positive about it. Sold at book value. Its all in the most recent 10-K page 99 if u care to research
4.9 million shares outstanding and 3.2 million have traded today, how can that be? This is a REIT. The top 5 share holders in a REIT can't own over 50% of the stock. Also SPPR has in its by-laws that no one can own over 10%. Apparently there are ways around on the buy side by having a mutual fund buy which is considered multiple people not as one. But on the sell side I doubt that 50% of the share holders even knew that the stock was up $1 by the time most of the volume had traded.
The Class C Preferred's conversion price was lowered last year because of a low priced stock issue. If the operations of SPPR ever takes off the conversion of the Class C Preferred will take the value of the common stock back under $2.
The other two preferred are good buys, yielding 14% plus they each have over 15+ months of accrued dividends due.