Terms

Series

6.625% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest

Liquidation Preference

$25.00

Coupon Rate

6.625%

Rate Type

Fixed

Annual Dividend

$1.66

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

June 30, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Any Equity Securities Ranking Senior To Series A Preferred Shares (Requires 2/3 Preferred Shareholder Vote To Issue); Pari Passu With: Parity Preferred Shares (If Any Future Series Issued On Parity Terms); Senior To: Common Shares, Any Future Equity Securities Ranking Junior To Series A Preferred Shares

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,800,000

Prospectus Summary

Chatham Lodging Trust, a Maryland REIT focused on premium-branded upscale extended-stay and select-service hotels, is offering 4,800,000 shares of its 6.625% Series A Cumulative Redeemable Preferred Shares with a $25.00 liquidation preference per share. The fixed annual distribution of $1.65625 per share ($0.414 per quarter) is paid on the 15th of January, April, July, and October. These are direct preferred shares (not depositary shares), callable at par on or after June 30, 2026. Being cumulative, any missed distributions accrue and must be paid in full before the issuer can resume dividends on common or junior securities — providing holders meaningful protection against distribution skips. The Series A Preferred Shares rank senior to Chatham's common shares and any junior equity, pari passu with any future parity preferred series, and junior to all existing and future debt obligations of the trust. Because Chatham Lodging Trust is a holding company whose assets are held through its operating partnership, preferred holders face structural subordination — all creditors of the operating partnership (and its subsidiaries) stand ahead of trust-level preferred shareholders in a stress scenario. There is no Tier 1 or regulatory capital call provision. However, the issuer retains a special optional redemption right within 120 days of a Change of Control (broadly defined as >50% voting power acquisition plus delisting of common shares), at $25.00 plus accrued distributions, which can preempt holders' conversion rights. At the $25.00 offering price, the shares yield exactly 6.625% annually. As a REIT, Chatham's distributions are generally treated as ordinary income rather than qualified dividend income, meaning they do not benefit from the preferential 15%/20% QDI tax rate for individual investors or the dividends-received deduction for corporate holders. Distributions are paid quarterly on the 15th of January, April, July, and October, with the record date falling on the first day of the calendar month in which each payment date falls. The dividend stopper prevents any payment on common shares or pari passu/junior equity unless all accumulated Series A preferred distributions have been fully paid or reserved — triggered whenever the issuer falls behind on preferred distributions.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full cumulative distributions on the Series A Preferred Shares have not been paid or set aside for all past periods, the issuer cannot pay dividends on or repurchase common shares or any other junior or pari passu equity securities.

Other Preferreds from Chatham Lodging Trust REIT

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 44 (Average)