Terms

Series

6.3% Series J Cumulative Redeemable Preferred Shares of Beneficial Interest

Liquidation Preference

$25.00

Coupon Rate

6.3%

Rate Type

Fixed

Annual Dividend

$1.57

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

May 25, 2021

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Debt Obligations Of Lasalle Hotel Properties And Its Subsidiaries; Pari Passu With: Other Series Of Preferred Shares Of Beneficial Interest On Parity; Senior To: Common Shares Of Beneficial Interest, Any Junior Preferred Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

6,000,000

Prospectus Summary

LaSalle Hotel Properties, a Maryland REIT focused on upscale and luxury full-service hotels, is offering 6,000,000 shares of its 6.3% Series J Cumulative Redeemable Preferred Shares of Beneficial Interest (par value $0.01) at a $25.00 liquidation preference per share. The fixed annual distribution of $1.575 per share ($0.39375 quarterly) is paid on January 15, April 15, July 15, and October 15. The shares are non-callable until May 25, 2021, after which LaSalle may redeem them at $25.00 plus accrued distributions. These shares are cumulative, meaning any unpaid distributions accrue and must be satisfied before dividends can be paid on junior securities such as common shares. The Series J Preferred Shares rank senior to LaSalle's common shares and any junior-ranking preferred shares, and pari passu with other outstanding series of preferred shares. As a holding company, LaSalle's obligations are structurally subordinated to all debt at the operating partnership and property-owning subsidiary levels, meaning preferred holders have a weaker claim than secured and unsecured creditors of the operating partnership. There is no formal regulatory capital call, but the issuer retains the right to redeem prior to the call date to preserve its REIT qualification, and a special optional redemption right is triggered within 120 days of a Change of Control that results in delisting of the issuer's or successor's common shares. At the $25.00 offering price, the effective yield is 6.30% per annum. As distributions from a REIT, payments on the Series J Preferred Shares are generally not treated as qualified dividend income eligible for the 15%/20% preferential QDI rate, nor do they qualify for the corporate dividends-received deduction; they are typically taxed as ordinary income or return of capital. If Series J Preferred distributions fall into arrears, LaSalle is blocked from paying dividends on common shares or other junior securities until all accumulated preferred distributions are paid in full, providing cumulative income protection for preferred holders.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If distributions on the Series J Preferred Shares are in arrears, the issuer is generally prohibited from paying dividends on or repurchasing common shares or any other shares ranking junior to the Series J Preferred Shares.

Other Preferreds from Pebblebrook Hotel Trust

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 45 (Average)