The FIFA World Cup comes to Canada, the United States and Mexico in 2026. This will create a one-off boost to hotel REITs such as RLJ Lodging Trust ( RLJ ). Indeed RLJ's December 2025 presentation highlights thatI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I ap ...

The FIFA World Cup comes to Canada, the United States and Mexico in 2026. This will create a one-off boost to hotel REITs such as RLJ Lodging Trust ( RLJ ). Indeed RLJ's December 2025 presentation highlights thatI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I ap ...

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Summaries Alexandria Real Estate Equities Inc (NYSE:ARE) - Dividend Yield: 10.66% - RBC Capital analyst Michael Carroll maintained a Sector Perform rating and reduced the price target from $98 to $65 on Nov. 3, 2025, with an accuracy rate of 60% [7] - JP Morgan analyst Anthony Paolone maintained a Neutral rating and lowered the price target from $117 to $95 on May 20, 2025, with an accuracy rate of 65% [7] - Recent quarterly results were mixed, reported on Oct. 27 [7] Park Hotels & Resorts Inc (NYSE:PK) - Dividend Yield: 9.97% - UBS analyst Robin Farley maintained a Neutral rating and increased the price target from $10 to $11 on Oct. 6, 2025, with an accuracy rate of 77% [7] - Truist Securities analyst Patrick Scholes downgraded the stock from Buy to Hold and cut the price target from $16 to $11 on May 30, 2025, with an accuracy rate of 64% [7] - Recent third-quarter results were mixed, reported on Oct. 30 [7] RLJ Lodging Trust (NYSE:RLJ) - Dividend Yield: 8.23% - Truist Securities analyst Gregory Miller maintained a Hold rating and raised the price target from $7 to $8 on Sept. 5, 2025, with an accuracy rate of 67% [7] - Keybanc analyst Austin Wurschmidt maintained an Overweight rating and reduced the price target from $14 to $12 on March 24, 2025, with an accuracy rate of 61% [7] - Recent quarterly results were mixed, reported on Nov. 5 [7]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence and uncertainty, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Company Summaries Alexandria Real Estate Equities Inc (NYSE:ARE) - Dividend Yield: 10.66% - RBC Capital analyst Michael Carroll maintained a Sector Perform rating and reduced the price target from $98 to $65 on Nov. 3, 2025, with an accuracy rate of 60% [7] - JP Morgan analyst Anthony Paolone maintained a Neutral rating and lowered the price target from $117 to $95 on May 20, 2025, with an accuracy rate of 65% [7] - Recent quarterly results were mixed, reported on Oct. 27 [7] Park Hotels & Resorts Inc (NYSE:PK) - Dividend Yield: 9.97% - UBS analyst Robin Farley maintained a Neutral rating and increased the price target from $10 to $11 on Oct. 6, 2025, with an accuracy rate of 77% [7] - Truist Securities analyst Patrick Scholes downgraded the stock from Buy to Hold and cut the price target from $16 to $11 on May 30, 2025, with an accuracy rate of 64% [7] - Recent third-quarter results were mixed, reported on Oct. 30 [7] RLJ Lodging Trust (NYSE:RLJ) - Dividend Yield: 8.23% - Truist Securities analyst Gregory Miller maintained a Hold rating and raised the price target from $7 to $8 on Sept. 5, 2025, with an accuracy rate of 67% [7] - Keybanc analyst Austin Wurschmidt maintained an Overweight rating and reduced the price target from $14 to $12 on March 24, 2025, with an accuracy rate of 61% [7] - Recent quarterly results were mixed, reported on Nov. 5 [7]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on Real Estate Investment Trusts (REITs) [1] - He has a background in business information systems and experience at Charles Schwab, which supports his analytical capabilities in equities research [1] - Anthony operates his own boutique equities research firm, Albert Anthony & Company, remotely from Texas, and is actively involved in the REIT investment space [1] Professional Background - The author has over 1,000 followers on Seeking Alpha and has published a book on REITs titled "Real Estate Investment Trusts: A Fundamental Analysis (2026 Edition)" [1] - He holds a B.A. in Political Science from Drew University and has certifications in Microsoft Fundamentals and CompTIA Project+ [1] - Currently, he is pursuing further certifications in Capital Markets & Securities Analyst (CMSA) and business intelligence/data analysis through the Corporate Finance Institute [1] Media Presence - Anthony is expanding his presence on YouTube, where he discusses REITs and shares insights from his investment portfolio [1] - He has participated in numerous business and innovation conferences in both the US and Croatia, enhancing his visibility in the industry [1] - The author emphasizes a data-driven approach to equities research, aiming to provide actionable insights to his audience [1]

Core Insights - Albert Anthony is a Croatian-American business author and analyst contributing to Seeking Alpha and other financial platforms, with a focus on Real Estate Investment Trusts (REITs) [1] - He has a background in business information systems and experience at Charles Schwab, which supports his analytical capabilities in equities research [1] - Anthony operates his own boutique equities research firm, Albert Anthony & Company, remotely from Texas, and is actively involved in the REIT investment space [1] Company Background - Albert Anthony & Company is a Texas-registered business that provides market commentary and research based on publicly available data [1] - The firm does not manage client funds or provide personalized financial advisory services, focusing instead on general market insights [1] Author's Qualifications - Anthony holds a B.A. in Political Science and is certified in Microsoft Fundamentals and CompTIA Project+ [1] - He is pursuing ongoing certifications in Capital Markets & Securities Analyst (CMSA) and business intelligence/data analysis through the Corporate Finance Institute [1] Media Presence - Anthony has a growing presence on YouTube, where he discusses REITs and shares insights from his investment portfolio [1] - He has participated in numerous business and innovation conferences, enhancing his visibility in the financial community [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Revenue Performance - Total revenues decreased by $15.7 million to $330.0 million for the three months ended September 30, 2025, compared to $345.7 million for the same period in 2024[129]. - Total revenues decreased by $18.2 million to $1,021.3 million for the nine months ended September 30, 2025, compared to $1,039.5 million for the same period in 2024[143]. - Room revenue decreased by $16.2 million to $267.4 million for the three months ended September 30, 2025, primarily due to a $14.3 million decrease from comparable properties[130]. - Room revenue decreased by $22.8 million to $831.1 million for the nine months ended September 30, 2025, primarily due to a $19.0 million decrease from comparable properties[144]. Occupancy and Rates - Occupancy rate for comparable properties was 73.0% for the three months ended September 30, 2025, down from 75.4% in 2024[131]. - Occupancy rate for comparable properties was 72.6% for the nine months ended September 30, 2025, down from 73.9% in 2024[145]. - Average Daily Rate (ADR) decreased to $189.45 for the three months ended September 30, 2025, from $193.43 in 2024[131]. - Revenue per Available Room (RevPAR) decreased to $138.29 for the three months ended September 30, 2025, compared to $145.77 in 2024[131]. Expenses and Losses - Operating expenses increased by $3.3 million to $308.9 million for the three months ended September 30, 2025, from $305.6 million in 2024[128]. - Property operating expenses increased by $4.6 million to $666.5 million for the nine months ended September 30, 2025, from $661.9 million for the same period in 2024[148]. - Depreciation and amortization expense increased by $5.1 million to $139.1 million for the nine months ended September 30, 2025, primarily related to recently renovated hotels[150]. - General and administrative expense decreased by $6.3 million to $35.6 million for the nine months ended September 30, 2025, due to a decrease in non-cash compensation expense[152]. - Interest income decreased by $3.1 million to $10.1 million for the nine months ended September 30, 2025, attributed to lower interest rates and reduced cash holdings[154]. - Interest expense increased by $0.6 million to $83.7 million for the nine months ended September 30, 2025, compared to $83.2 million for the same period in 2024[155]. - Net loss attributable to common shareholders was $10.0 million for the three months ended September 30, 2025, compared to net income of $14.3 million in 2024[128]. - For the three months ended September 30, 2025, the net loss was $3.798 million compared to a net income of $20.643 million for the same period in 2024[161]. - The company recorded a net income of $28.0 million for the nine months ended September 30, 2025, a decrease of $34.7 million from $62.7 million in 2024[142]. - Funds From Operations (FFO) for the three months ended September 30, 2025, was $37.245 million, a decrease of 32% from $54.689 million in 2024[161]. - Adjusted FFO for the nine months ended September 30, 2025, was $160.684 million, down 16% from $191.634 million in 2024[161]. - EBITDA for the three months ended September 30, 2025, was $68.728 million, a decrease of 24% from $90.602 million in 2024[166]. Cash Flow and Investments - As of September 30, 2025, the company had $404.1 million in cash and cash equivalents, down from $433.3 million at December 31, 2024[168]. - Net cash flow provided by operating activities for the nine months ended September 30, 2025, was $180.9 million, a decrease from $214.4 million in 2024[170]. - The net cash flow used in investing activities for the nine months ended September 30, 2025, was $88.1 million, primarily due to $111.7 million in capital improvements[171]. - The net cash flow used in financing activities for the nine months ended September 30, 2025, totaled $122.1 million, mainly due to $100.0 million in repayment of the Revolver[173]. - Approximately $29.2 million was held in FF&E reserve accounts for future capital expenditures as of September 30, 2025[177]. Debt and Interest Rate Management - As of September 30, 2025, the company had approximately $1.2 billion of total variable rate debt outstanding, representing 54.1% of total indebtedness, with a weighted-average interest rate of 5.30% per annum[178]. - The total debt obligations as of September 30, 2025, amounted to $2.231 billion, with fixed rate debt totaling $1.025 billion and variable rate debt totaling $1.206 billion[180]. - The weighted-average interest rates for fixed rate debt are 3.90% and for variable rate debt are 5.30%[180]. - If market interest rates on variable rate debt increase by 1.00%, interest expense would decrease future earnings and cash flows by approximately $7.3 million annually[178]. - The estimated fair value of the company's fixed rate debt as of September 30, 2025, was $991.9 million, with a potential decrease of approximately $21.8 million if interest rates rise by 1.00%[182]. - The company has entered into derivative financial instruments such as interest rate swaps to mitigate interest rate risk, effectively locking the interest rate on a portion of its variable rate debt[179]. - 67.2% of the company's total indebtedness was fixed or effectively fixed after considering interest rate swaps[178]. - The company aims to limit the impact of interest rate fluctuations on earnings and cash flows while lowering overall borrowing costs[179]. - The company does not engage in derivative or interest rate transactions for speculative purposes[179]. - The principal repayments for variable rate debt include $406 million due in 2026, $500 million in 2027, and $300 million in 2028[180]. Asset Sales and Share Repurchase - The company sold one hotel property for a sales price of $24.3 million in 2025[117]. - The company sold one hotel property for $24.3 million during the nine months ended September 30, 2025, recording a net gain of $0.8 million[156]. - A new share repurchase program was approved to acquire up to $250.0 million of common and preferred shares from May 9, 2025, to May 8, 2026[117]. - The company refinanced a term loan to increase it to $300.0 million and extended the maturity to April 2028[117].

Financial Data and Key Metrics Changes - The company reported a third quarter REVPAR of $139, reflecting a 5.1% decline year-over-year, driven by a 3.1% drop in occupancy and a 2.1% decrease in ADR [16][21] - Third quarter occupancy was 73%, and average daily rate (ADR) was $190 [16] - Adjusted EBITDA for the third quarter was $72.6 million, with adjusted FFO per diluted share at $0.27 [18][21] - The company ended the quarter with $2.2 billion in debt, a weighted average maturity of three years, and an interest rate of 4.7% [19] Business Line Data and Key Metrics Changes - Urban hotels outperformed the broader portfolio, with REVPAR growth in San Francisco CBD at 19.4% due to strong demand from conferences and events [6][17] - Non-room revenues grew by 1.3% despite lower occupancy, indicating successful ROI initiatives [9][18] - Group revenues were impacted by the shift of Jewish holidays into September, leading to a softer citywide calendar [6] Market Data and Key Metrics Changes - The company noted a decline in government-related transient demand, which remained significantly below last year [6] - The leisure segment showed stable trends, with demand up 1% during the quarter, although some pricing sensitivity was observed [8][40] - Urban leisure markets continued to perform well, benefiting from strong demand for concerts and events [8] Company Strategy and Development Direction - The company is focused on capital allocation, with ongoing renovations in Waikiki, Key West, and Fort Lauderdale, which are now substantially complete [10][20] - The company is optimistic about the upcoming World Cup in the U.S. and other major events that will drive demand in key markets [14][72] - The company is committed to returning capital to shareholders while maintaining a healthy balance sheet [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the impact of the government shutdown on travel propensity and overall market conditions [12][60] - The outlook for the fourth quarter has been adjusted to reflect current trends, with expected REVPAR growth ranging from -1.9% to -2.6% [21] - Management remains optimistic about 2026, citing favorable economic conditions and a lack of new supply in urban markets [14][74] Other Important Information - The company has significant liquidity of approximately $1 billion, including $375 million in unrestricted cash [18] - The company is leveraging its healthy balance sheet to unlock value through renovations and conversions [19][20] Q&A Session Summary Question: Can you dive into the revenue management strategies for the quarter? - Management highlighted a shift towards leisure bookings to compensate for weaker group demand, with a focus on diversifying the mix [26][28] Question: How does the top-line outlook affect your CapEx and expected returns? - Management noted that most renovations were front-loaded, and while they expect delays in ramp-up due to market conditions, they remain optimistic about future returns [32][33] Question: What is the impact of the government shutdown on Q4 guidance? - Management indicated that the government shutdown has affected overall market sentiment and travel propensity, leading to a downward adjustment in expectations for October and the fourth quarter [58][60] Question: How is the REVPAR index share evolving? - Management reported an increase in REVPAR index, reflecting strong asset quality and market positioning [83][84] Question: What are the risks to the hotel operating model in the future? - Management expressed confidence in current labor trends and productivity improvements, despite potential future risks related to immigration policy [85][88]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Company Ratings and Analyst Insights - Park Hotels & Resorts Inc (NYSE:PK) has a dividend yield of 9.91%. UBS analyst Robin Farley maintained a Neutral rating and raised the price target from $10 to $11 on October 6, 2025, with an accuracy rate of 79%. Truist Securities analyst Patrick Scholes downgraded the stock from Buy to Hold and cut the price target from $16 to $11 on May 30, 2025, with an accuracy rate of 65% [7] - RLJ Lodging Trust (NYSE:RLJ) has a dividend yield of 8.75%. Truist Securities analyst Gregory Miller maintained a Hold rating and raised the price target from $7 to $8 on September 5, 2025, with an accuracy rate of 67%. Keybanc analyst Austin Wurschmidt maintained an Overweight rating but reduced the price target from $14 to $12 on March 24, 2025, with an accuracy rate of 60% [7] - Easterly Government Properties Inc (NYSE:DEA) has a dividend yield of 8.37%. Jefferies analyst Joe Dickstein downgraded the stock from Buy to Hold and cut the price target from $26 to $20 on October 13, 2025, with an accuracy rate of 65%. RBC Capital analyst Michael Carroll maintained an Underperform rating and reduced the price target from $27.5 to $22 on June 2, 2025, with an accuracy rate of 60% [7]