Apple Hospitality REIT Inc (NYSE:APLE)
Apple Hospitality REIT Inc (NYSE:APLE), invests in income-producing real estate, primarily in the lodging sector, in the United States. Its hotels operate under Marriott or Hilton brands. The company has wholly-owned taxable REIT subsidiaries, which lease all of the company’s hotels from wholly-owned qualified REIT subsidiaries. Apple Hospitality REIT was founded in November 2007, went public in 2015, and is headquartered in Richmond, VA.
Apple Hospitality REIT Inc (NYSE:APLE) is a relative new comer with respect to having gone public in 2015 though it is a large cap REIT having been operated privately since 2007. It is a little too new for me to add to my portfolio but I do have it on my watch list. APLE recently reported 1Q16 financial performance and the company beat analyst’s projections on both the top and bottom line. Payout ratio is a healthy 77% and analysts ratings are generally favorable. I listed this stock in the spreadsheet as green because the only thing holding me back from an investment now is that I’d like to see another couple quarters of financials before I commit. For the interested reader, more detail can be found on APLE here and here.
Follow Apple Hospitality Reit Inc. (NYSE:APLE)
Follow Apple Hospitality Reit Inc. (NYSE:APLE)
Main Street Capital Corporation (NYSE:MAIN)
Main Street Capital Corporation (NYSE:MAIN) a BDC that invests in lower middle market companies with revenues of $10 – $150 million and EBITDA of $3 – $20 million. The fund targets companies operating in the fields of communications, electronic technology, finance, commercial services, restaurants, health services, consumer services, producer manufacturing, technology services and non energy minerals. It provides debt, equity and warrant financing for growth, management buyouts, recapitalizations, refinancing and acquisitions.
Main Street Capital Corporation (NYSE:MAIN) is a large cap BDC with a reasonable P/E of 14.7 and carries a BBB credit rating. The nine analysts that cover MAIN have generally favorable ratings on the company. The negative with MAIN is the razor thin coverage of the current dividend at a 100% payout ratio. While the market will often forgive a company for not fully covering a dividend in one or two quarters, the market can also be brutal on companies that cannot cover dividend payments for more than a couple quarters. I try very hard to maintain my capital base and so have listed MAIN as yellow; suitable for more risk tolerant investors. For the interested reader, I previously published an article on the importance of maintaining investment capital.
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Follow Main Street Capital Corp (NYSE:MAIN)
Chatham Lodging Trust (NYSE:CLDT)
Chatham Lodging Trust (NYSE:CLDT) operates as a real estate investment trust organized to invest in upscale extended-stay hotels. It includes investing in premium-branded select-service hotels such as Courtyard by Marriott, Hampton Inn and Hampton Inn and Suites. The company was founded on October 26, 2009 and is headquartered in West Palm Beach, FL.
Chatham Lodging Trust (NYSE:CLDT) is a mid cap sized REIT that is growing quickly. It offers a 5.9% dividend yield with a very comfortable FFO payout ratio of 72%. The analysts that cover CLDT have generally favorable ratings on the trust. CLDT recently reported 1Q16 financial performance that met or beat analyst’s expectations. The only thing CLDT really lacks is a credit rating though the company does maintain a solid balance sheet. With a little more time and size, I’m sure CLDT will pursue a formal credit rating from the major rating agencies. I’ve listed CLDT as green in the spreadsheet based on their overall performance to date. While I don’t own shares of CLDT in my portfolio, I do carry it on my watch list.
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Follow Chatham Lodging Trust (NYSE:CLDT)
EPR Properties (NYSE:EPR)
EPR Properties (NYSE:EPR) is a real estate investment trust. It engages in the development, finance, and leasing of theatres, entertainment retail and family entertainment centers. EPR operates in the following segments: Entertainment, Education, Recreation, and Other. The Entertainment segment consisted of investments in large megaplex theatres, entertainment retail centers, family entertainment centers and other retail parcels. The Education segment consists entirely of investments in public charter schools. The Recreation segment consists of investments in metro ski parks, water-parks and golf entertainment complexes. The Other segment consists of investments in vineyards and wineries and land held for development. The company was founded by Peter C. Brown on August 29, 1997 and is headquartered in Kansas City, MO.
EPR Properties (NYSE:EPR) is a large cap REIT that covers a lot of different types of real estate investment. It offers a respectable 5.4% dividend with a FFO coverage ratio of 86%. The eight analysts covering EPR give it generally favorable ratings. The one negative on EPR is the BB+ credit rating which is less than investment grade. I do have EPR on my watch list but I don’t currently have a position in the stock. I have listed the stock green based on its fundamentals and its performance to date.
