American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures T.HOT.DB.V

Advice from regular posters

[Sirlostalot]

Hello , just wondering if I might be missing something in the company numbers , dividend is only ~ 40% free cash flow , debt interest rates are quite secure for the foreseeable future ,occupancy has increased fairly well. Was previously in this name ,took the big hit after Covid and exited  with the crumbs I had left . Am considering investing again but can't help but think I'm really missing some iceberg out there given how low the share price is ? Is it really just recession fears? Any thoughts would be appreciated , many posters seem quite familiar with the inner workings of this stock. Thanks

[Sirlostalot]

Have been reading back through all old posts, looking for opinions,wondering if  the witholding tax would  be an issue with this company as it is tsx listed and formed as a limited paternership in Ontario according to the ahip website even if the investment properties are all in the US.

[navajojoe]

This post has been removed in accordance with Community Policy

[Nstrat]

If you're talking about the new 10% withholding tax that comes into place on January 1st, HOT.UN is not impacted.  There are 115 securities on the list and only 2 are Canadian listed.  The rest are all in the US and the majority are MLPs.  HOT.UN is not on the list. As sirlostalot pointed out HOT.UN is an LP formed in Ontario. It is not a US LP.  

[sclarda]

When the shareprice of a stock keeps dropping steadily as HOT has since March of this year when the sharprice was around $4.20 it does also make me wonder if there is something wrong here. As you say the payout ratio is low and after the dividend HOT is still banking aprox.  $18 million US per year. Occupancy rates have risen this year after Covid.  And lets not forget the $50 million US

[Sirlostalot]

Thanks for the responses , appreciate the insight. Good luck to all. 

[flamingogold]

Agree, the market always has something to worry about... always.   Today, it's a trifecta of worries... inflation, rising rates and Russia's invasion of Ukraine.   Before that... covid and the end of days.   Before that, it was Trump and his trade war/tariffs on China, Canada, Europe and, of course, the instigator of potentially the first civil war in the US