+ Watch HPT
on My Watchlist
The Company is a real estate investment trust which invests in real estate used in hospitality industries.
I like the company & the dividend. BUT, the 1 thing that everyone is over-looking, is this company is managed by Reit Management & Research (RMR). If you want to know the future of this company, just look at what has happened to CommonWealth (CWH). RMR also manages Government Properties (GOV) & Select Income (SIR).
I added this pick in Apr '09 under $10. HPT primarily operates truck stops/travel centers and hotels/lodging. I am long-term bearish on the entire trucking industry, but under $10, I felt like this was a no-brainer in spite of that. At $22, I still believe this REIT is undervalued, but I believe the macroeconomic factors are even further aligned against it. I'm mixed on the future outlook for hotels and my views have turned slightly more bearish due to a few macroeconomic changes. Cash flows are very high for HPT. They report FFOs around $3 per share on an annual basis. The value of their underlying properties is difficult to gauge (mainly because I value travel centers radically different than I would most commercial properties), but with that level of FFOs/cash flows, the stock should probably still be selling over $22. I'd estimate the underlying value of their equity interest in their properties to be $20 per share at a minimum and potentially upwards of $30. Dividend yield is still fantastic at 8.1%! That would also suggest that the price of this stock should move upwards a bit. A 6% yield might be more reasonable. That would be achieved at $30. Valuation is tricky due to my long-term macroeconomic fears. I'd say it's worth at least $30 and I'll go ahead and peg it at $35 based on my own quick and dirty analysis. Not a ton of research was put into this, so take that for what you will. I'll let this pick run till at least $30 --- or alternatively, I'll collect the dividends for a few more years if the price stays below that.
I like this company. So far, their REITs have been doing very well, in spite of the current market and they are all paying dividends.
Solid balance sheet, one of the strongest in it's industry, should allow HPT to ride out the slump in TA and in reduced room occupancy.Dividends are extremely attractive. Even if dividend where cut by 50% would still be a solid paying company with the resources to back up their dividend. P/Ex of 9.0 is lower than REIT industry average. Conservative management, while limiting upside, is a god send in the current environment. With 20/20 hindsight, acquisition and price paid for TA is is questionable. Nevertheless, should be able to overcome this.
I am thinking this one goes right back up with house prices once things begin to stabilize. And seeing how the stabilizing of the housing market is a critical component of fixing this economy, I am going to guess that the government will help considerably if needed. If you can;t invest in real estate at these clearance prices, do the next best thing. And the 77 cent quarterly dividend will make the wait easier
Unlike many REITs, HPT does not have a debt principal repayment issue until 2012. In the meantime, their cash flow should increase in 2009 as it is likely that Travel Centers of America (TA) will begin paying the full amount of their lease again. Declining prices of diesel fuel should help TA. I don't believe the HPT will need to cut their dividend during 2009 or 2010 but they might have to way out there because of their higher debt repayment requirements beginning in 2012.I believe this stock is oversold and will recover nicely. I really like the preferred stock issue HPT-C which can be purchased for a monster yield and large potential capital gain. In fact, I own a large number of these shares as well as a small number of shares of HPT.
HPT has been hammered down along with most of the REIT industry. HPT is beginning to stabalize and has reported a strong quarter and dividend. When the Mutual funds quit dumping they will come back to the REIT industry and the strong yields they can provide.I personally own several hundred shares of this stock bought in the last week.
I didn't buy this stock due to their market value; rather, I bought it because of their juicy dividend. 90% or more of their profits have to be turned back to the share holder...I will just DRIP this one until the cows come home.
This pick is based on the fundamentals I have looked at very recently... there are potential pitfalls but the financials don't seem to warrant the drop experianced. Hopefully, Sorbanes-Oxeley will prevent any major surprises.
I'm just here for the dividend.
This is a strong landlord that can weather current troubles. Hotel business isn't going to dry up rolling through the summer. TA could U-turn in 2009. (with fingers tightly crossed) Very-long term I think HPT is going to keep seeing steady growth and a solid dividend (which is currently only 76% of FFO)
Well run company that keeps icome coming in with its properties without being held down by one particular brand. Its contracts with brand providers keeps it well protected from econmic gyrations.
Mostly Government Office buildings and other steady tenants, selling at lows for the year and a great dividend. Will weather the stock market drops very well. A good port in this storm
The competitive advantage isn't as great as I'd like to see, but they do own a pretty good portfolio of brands.
This company has very conservative use of leverage. They have tenants locked into multi-year contracts and security deposits to back them.Because of conservative strategy, it is difficult for this company to lose moeny!In addition, a nearly 8% dividend! At 8% you can afford to wait forever for a price to rebound.Plus as baby-boomers retire, they are going to be looking for income so they will buy this REIT, causing the share price to go up!
Another company Long term will make investors in this company pay.Earnings much lesser than dividends, a recipe for disaster!add it with pathetic income growth, market will punish this given sufficient time.
what is wrong with this company, why is keep falling, when it will rebound?
Beat down stock price (-13.5% in 6 mos). Good dividend yield 7.16%. (Money payback) Well run business
This is a REIT based on hotel properties. They spun off TA Travel Centers of America and the unit price dropped in sync. However it regained its pre-spinoff price within about two weeks making the spinoff pretty well free to holders. The properties are solid mostly run by Marriott (mostly for business guests), suites run by Holiday Inn for longer stays and a number of vacation type resort accomodation. As a REIT it pays a hansome dividend (6.6%). Though the payout ratio is a bit high at 134%. (Just something to watch I suppose as the short ratio is 1.5 and those shorts have to come up with the handsome dividend). It's very unlikely to suffer from the housing slump and serious rises in interest rates because of the very wide range of properties held. It could just be that the shorts look at it as a REIT and therefore very likely to plunge if interest rates balloon.
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