Summary
Previously I have written articles comparing command and preferred shares of REITs I either own or analyze.
Hersha Hospitality is one of my long-time holdings, and the first preferred stock I ever bought.
Recent volatility caused a significant drop in common and preferred stock price-after an article I wrote on the common.
Hersha Hospitality has three classes of preferred stock, all of which trade at a discount to par and yield 7.5% or more.
While there is a slight advantage to the preferred at present, the common stock in this well-run company is still attractive as well.
I got started in preferred stock investing by buying Hersha Hospitality (HT) preferred stock over four years ago. I had seen some research on both the company and that now-redeemed class of preferred stock and dipped my toe into a new-to-me investment vehicle. Thanks to fellow Seeking Alpha authors, I have slowly learned a bit more about preferred stock. I enjoy comparing the common stock and preferred stocks of the REITs I own and analyze. Since that first investment in HT preferred stock, I have almost always owned either common or preferred shares in the company. As I recently wrote, I think HT is a well-run company with management that still runs the company as a family-owned hotel chain, just with a larger professional team and as a publicly traded company.
Unfortunately, the market reacted very negatively to a positive quarterly report-or fortunately if you don't have a position yet-and are reading this article to determine whether to buy the common or preferred stock of HT. BLUF: Both the common stock and all three preferred classes are good to great buys currently. There may be a slight preference to the Class D or E preferred stock for the income oriented investor.
