Procaccianti Hotel REIT Caps Share Repurchases

The real estate investment trust faced limits on available funds, leading to prorated fulfillment of shareholder requests.

August 27, 2025

Quarterly repurchase cap hits limit

Procaccianti Hotel REIT announced that it hit the ceiling on its share repurchase program for the second quarter of 2025. The company relies on proceeds from its distribution reinvestment plan and certain operating funds approved by its board. This quarter, those resources weren’t enough to cover every request.

The repurchase program follows a clear order of priority. Shares tied to deceased stockholders were bought back in full. Requests tied to disabilities or other hardship circumstances were reviewed, but only one fell into that category and it was not prioritized. Accounts holding fewer than 100 shares, which sometimes receive special consideration, had no requests this period.

Shareholder redemptions prorated

That left the rest of the shareholders seeking liquidity. Their requests were fulfilled on a prorated basis, with just 2.4 percent of the submitted shares repurchased. Any unfilled requests automatically roll into the next quarter unless withdrawn.

The update highlights how closely redemption activity depends on reinvestment flows. When reinvestment slows, so does the capacity to fund buybacks. For investors, that means timing matters.

The company confirmed the decision on August 26, 2025, with Chief Financial Officer Gregory Vickowski signing on behalf of the board.