Pebblebrook Hotel Trust trades at a steep 60% discount to GAAP book value, largely due to San Francisco market changes and post-pandemic business travel declines. Despite headwinds, PEB posted dual earnings beats and expects significant 2025 growth as LaPlaya Beach Resort fully reopens, boosting hotel EBITDA. The REIT's balance sheet is strong, with ample cash, no debt maturities until late 202...
Pebblebrook Hotel Trust is a hospitality REIT, which has repositioned itself towards leisure-oriented properties in recent years. Despite a healthy financial position, the dividend remains at a nominal $0.01/share, deterring yield-focused investors, while management focuses on share repurchases. Given the low dividend yield and prolonged undervaluation, I rate Pebblebrook Hotel Trust as a "Sell".
Pebblebrook Hotel Trust (NYSE:PEB ) Q1 2025 Earnings Conference Call May 2, 2025 9:00 AM ET Company Participants Ray Martz - Co-President and CFO Jon Bortz - Chairman and CEO Tom Fisher - Co-President and CIO Conference Call Participants Jay Kornreich - Wedbush Smedes Rose - Citi Floris Van Dijkum - Compass Point Shaun Kelley - Bank of America Duane Pfennigwerth - Evercore Jamie Feldman - Wells...
REITs finished the first quarter of 2025 in the red (-3.36%) with a brutal -4.92% average total return in March. Large cap (-2.04%) and mid cap REITs (-2.63%) saw modest losses, but small caps (-4.16%) and micro caps (-16.19%) had a particularly bad month. Only 29.49% of REIT securities had a positive total return in March.
Pebblebrook Hotel Trust saw its cash and cash equivalents end its fiscal 2024 fourth quarter at $217.6 million, up 5.6% sequentially. A lower capital investment outlook for 2025 and 2026 should see liquidity dramatically expand and continued common share buybacks. The Series H preferreds are trading for 68 cents on the dollar and an 8.5% yield despite the REIT's improved liquidity profile.
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