Dividend-News

Daily dividend news for investors in dividend stocks


RLJ Lodging: This 7.4%-Yielding REIT Is A Hold

Published Thu, 07 Feb 2019 17:05:28 -0500 on Seeking Alpha

Investment Thesis
RLJ Lodging Trust (RLJ) is a geographically diversified lodging REIT in the United States. The REIT operates premium-branded hotels that tend to attract more customers and resulted in higher occupancy rates and average daily rates. The company also has a solid balance sheet. However, the performance of RLJ Lodging is highly dependent on the strength of the economy. Despite its attractive dividend yield, given the fact that we are now in the latter stage of the economic cycle, we think the best time to invest in this REIT is to wait till the initial stage of the next economic cycle.

Source: YCharts
Q3 2018 Financial Highlights
Like many other REITs, RLJ Lodging posted unimpressive Q3 2018 earnings result. As can be seen from the table below, its Q3 2018 (three months ended on Sept. 30, 2018) occupancy ratios declined to 79.6% from 80.9% in Q3 2017. While the company increased its average daily rate from $169.54 in Q3 2017 to $170.78 in Q3 2018, its revenue per available room declined slightly from $137.23 in Q3 2017 to $136.02 in Q3 2018.

Source: Q3 2018 Supplemental
This unimpressive Q3 was a result of several headwinds such as July 4 falling on the midweek, difficult comps from post-hurricane recovery efforts last year, and the impact of Hurricane Florence this year.
What we like about RLJ Lodging
Despite its unimpressive Q3 2018 result and revised 2018 outlook, we identified several positives of RLJ Lodging:
... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
RLJ LODGING TRUST 18.22   19.4 0.94 1.32 7.21

RLJ LODGING TRUST - RLJ
RLJ LODGING TRUST - RLJ  


Older articles featuring Rlj Lodging Trust (RLJ):
Our High Yield REIT Portfolio Heading Into The 2nd Quarter
Our 10% Yielding REIT Portfolio Heading Into 2019
Our Intelligently Diversified High Yield REIT Portfolio Designed For Outperformance
'Safer' Real Estate Dividend Dogs CoreCivic & Retail Props Boast Big Expected Gains
Dividend Champions For October 2017
A Modern Romance: Yield Hunters And Real Estate
Ten 'Safer' Real Estate Dividend Dogs See Gains Grow 10%+ Per September Broker Targets
Dividend Growth Stocks Going Ex-Div Next Week (August 28-September 1st)
'Safer' Real Estate Dividend Dogs, CoreCivic, And Orchid Boast Broker - Believed Big Gains By August 2018
'Safer' Dividend Challenger Top 10 Dogs Aim For Big July Gains

More