Procaccianti Hotel REIT, Inc. Announces Prorated Share Repurchases for Q4 2025: Key Shareholder Implications

Procaccianti Hotel REIT, Inc. (“the Company”) has issued an important update regarding its share repurchase program for the fourth quarter of 2025. The Company’s Board of Directors determined that the funding limitation under the Company’s Amended and Restated Share Repurchase Program (“SRP”) was reached for the quarter ended December 31, 2025, due to insufficient net proceeds from the Dividend Reinvestment Plan (DRIP) to fund all share repurchase requests.

Key Points From the Report

• Funding Limitation Reached: The Company did not have enough funds from the DRIP to fulfill all share repurchase requests for Q4 2025.
• Priority in Repurchase Requests:
  • Requests from deceased stockholders are given first priority and will be honored in full.
  • No repurchase requests were received in the categories of “qualifying disabilities” or involuntary exigent circumstances (such as bankruptcy), or for accounts with 100 shares or less.
  • All other repurchase requests will only be fulfilled on a prorated basis—specifically, only approximately 3.6% of the requested shares in this category will be repurchased.
• Unfulfilled Requests: Any repurchase requests not satisfied in this cycle will automatically roll over to subsequent repurchase periods, unless withdrawn by the stockholder five business days before the next repurchase date.

Details of the Amended and Restated Share Repurchase Program (SRP)

• The SRP limits repurchases to no more than 5.0% of the weighted average number of outstanding shares for Class K, Class K-I, and Class K-T common stock over the trailing 12 months.
• Repurchases in excess of this cap are not permitted, and deceased stockholder requests are prioritized, followed by disability or exigent circumstances, then small accounts, and finally other requests on a pro rata basis.

Why This Matters for Shareholders

• Liquidity Concerns: The inability to fully fund share repurchase requests signals liquidity constraints for the Company. Investors relying on the SRP for liquidity may experience delays and uncertainty regarding future repurchases.
• Potential Price Sensitivity: The pro rata reduction (requests fulfilled at only 3.6%) may negatively affect investor sentiment, especially for those wishing to exit or reduce their positions. This limitation could potentially impact the perceived value of the shares, especially if investors believe they cannot redeem their holdings as expected.
• No Trading Symbols/Exchange Listing: The Company’s shares are not listed on any exchange, and there is no active trading symbol, further limiting liquidity options for shareholders.
• Future Uncertainty: As unfulfilled requests roll over, there is no guarantee future quarters will not be similarly impacted should funding limitations persist.

Corporate Signature

The report was signed on March 3, 2026, by Gregory Vickowski, Chief Financial Officer of Procaccianti Hotel REIT, Inc.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence or consult with a qualified financial advisor before making investment decisions. Procaccianti Hotel REIT, Inc. is a non-traded REIT and its shares are not listed on any public exchange, which may further affect liquidity and valuation.

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