Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Hey Bryan,

Thanks for the shout-out.

Bryan and I sit next to each other, so we're constantly shooting ideas back and forth. Bryan has been giving me feedback and thoughts as I developed my thesis around Pebblebrook, so he is already well in the loop on the company.

Attaining REIT status will definitely be a catalyst for Pebblebrook. To get REIT status, PEB will have to be at least 75% invested and pay out more than 90% of its earnings to shareholders, among other things. I estimate that PEB can qualify within 12-18 months. The reason this is a good thing, and a catalyst, is that REITs are exempt from federal income tax--so the day they get REIT status, tax expenses go away.

Another, related catalyst is yield. As Pebblebrook starts paying out a dividend to qualify for REIT status, the stock's yield will rise, and a new group of investors will pick up on the stock. These yield investors invest primarily on (surprise) yield, and since, by my calculations, Pebblebrook will be capable of paying out 2-3x the going yield for similar companies, these investors should bid the stock price up.

If you have any questions about Pebblebrook, I am confident that Bryan can help you out--and I'll be here as well. You can also check out my boards for further PEB discussion:

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.