BETHESDA, MD-Pebblebrook Hotel Trust has netted a total of $97 million from a preferred equity offering of 400,000 series C shares, which followed public offering of 3.6 million series C shares in March. The 4 million shares were sold at $25 per share. The REIT will use the proceeds for general corporate purposes, including possible acquisitions and investments.
Pebblebrook is an active player in both the debt and equity markets. Late last year it secured a $410 million loan, secured by a first mortgage on the Affinia Manhattan, Affinia Shelburne, Affinia 50, Affinia Gardens and The Benjamin—hotels in New York.
Still, preferred equity is where the action is, according to a separate report by SNL. Year-to-date as of March 25, preferred equity represented 17.6% of the total capital raised by US REITs in 2013, a pace that represents the second-largest percentage since Jan. 1, 2000, and second only to the 22.6% of REIT capital that preferreds represented in full-year 2003. As of March 25, 17 US traded REITs had completed 20 preferred equity offerings, raising a combined $2.7 billion.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
