Ross Bowler proposes selling INN.PR.E at $17.70 to book a loss and buying INN.PR.F at $16.60, maintaining yield and increasing the discount to par.
Alpha Score of 59 reflects moderate overall profile with moderate momentum, weak value, moderate quality, moderate sentiment.
Ross Bowler, an investment advisor representative at 2nd Market Advisory Capital Corporation, proposed swapping Summit Hotel Properties' Series E preferred shares for the Series F issue to harvest a tax loss while maintaining yield exposure.
Bowler recommended selling Summit Hotel Properties Series E (INN.PR.E) at roughly $17.70, booking a $1.15 per share loss against a purchase price near $18.85. He then suggested using the proceeds to buy Series F (INN.PR.F) at about $16.60.
The trade preserves most of the income stream. INN.PR.E pays an annual dividend of $1.5625, equal to a 6.25% coupon, yielding 8.82% at the sale price. INN.PR.F pays $1.46875, a 5.875% coupon, yielding 8.85% at the purchase price. The discount to the $25 par value widens from roughly 29% to 33%.
Bowler said the tax benefit depends on the investor's capital gains rate. A $1.15 per share loss saves between $0.23 and $0.437 per share, assuming a 20% to 38% rate, against gains booked elsewhere in 2026.
Summit Hotel Properties, a REIT, owns 97 hospitality properties across the U.S. The common stock has risen 40% year-to-date, outperforming the Vanguard REIT ETF (VNQ). The preferreds, however, have traded lower, widening the discount to par. Bowler said that divergence creates periodic opportunities to swap between the two series for better yield, better upside, or both.
He cautioned that the strategy is best executed with limit orders and patience. The preferreds are thinly traded, and pricing anomalies can persist.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.