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

Distribution gone

[tylerreddick]

So much for those who said they wouldn't cut the distribution.

Probably won't be pretty tomorrow.

[BBAccount001]

I could have lived with a cut. But the banks made them suspend it completely. Tomorrow gonna be fugly. 

[divime1]

AFFO payout ratio was only 40 % so it shouldn't  take long to reinstate it when interest rates start to go back down .

[BudFox198777777]

If they do ever lower them again (could take years and years) it would take a bad recession and will be a small adjustment, this is the new normal and we will never return to record low interest rates after seeing the damage it causes in regards to inflation and asset bubbles.  Selling off 4 hotels now, on top of the others they sold this year, just to pay what is due, this is not a

[BBAccount001]

Have to agree with you. Sold my remaining position this morning. It'll be interesting to see what valuation the banks come back with on their properties. Maybe someone will want to buy this out for 0.5x book value.

[Sunnyboy]

Yes and 50% of book value according Q3 would be about 2.00USD / 2.75CAD if I did the math correct?

[EstevanOutsider]

Their interest rate coverage was 2x at 4.53%. New financing likely done at 8-9%? macro faltering while US hotel numbers are not improving but getting worse with inflationary costs on the rise and unable to recoup costs. Crappy management team to cut twice in 3 years though. 

[lashing]

INterest rates are not going down ... suckers like you lose all, every time. This stock has long been garbage. People were talking like you when it was $6 ... yeah, real bargain LOL

[borne2run]

Absolutely right, Lashing.  AHIP was garbage before covid.  I once owned a few units and escaped unscathed, exiting in the 7s with a small gain.  I called out the company for the sh1t show it was (and continues to be). The converible debenture (HOT.db.V) traded in the 70s today, providing a yield to maturity of 15% per annum. Eliminating the distribution benefits the debenture