Procaccianti Hotel REIT Reports Prorated Q2 2026 Share Repurchases

What Happened
Procaccianti Hotel REIT, Inc. (PRXA) filed an 8-K on August 27, 2026 reporting that the Board determined on August 26, 2026 the company reached the Funding Limitation for share repurchases for the quarter ended June 30, 2026. Because net proceeds from the company’s distribution reinvestment plan (DRIP) were insufficient to pay all repurchase requests, the Company will repurchase deceased stockholders’ shares in full and will prorate remaining approved repurchase requests at about 3%.

Key Details

• The Company’s Amended Share Repurchase Program limits repurchases to no more than 5.0% of the weighted average number of Class K, K‑I and K‑T shares outstanding during the trailing 12 months (with special treatment for shares requested upon a stockholder’s death).
• Funding for repurchases is limited to net proceeds from the DRIP and any other operating funds the Board authorizes (the “Funding Limitation”); the Board found DRIP proceeds insufficient for Q2 2026.
• Priority order if funds are insufficient: (1) deceased stockholders’ shares (will be repurchased in full or pro rata if funds still short), (2) stockholders with qualifying disabilities or other involuntary exigent circumstances (e.g., bankruptcy), (3) full repurchases of small accounts (≤100 K/K‑I shares), then (4) remaining requests pro rata.
• For the Q2 2026 repurchase date, there were no requests in categories (2) or (3); remaining requests were prorated to approximately 3% and unfulfilled requests will carry over to future repurchase periods unless withdrawn five business days before the next repurchase date.

Why It Matters
If you submitted a repurchase request for the June 30, 2026 quarter, you should expect a significantly reduced payment (about 3% of the shares requested) unless your request was for a deceased shareholder’s shares, which are being paid in full. The limitation shows repurchases depend on DRIP inflows and Board-authorized funds, so future repurchase payments may be limited or prorated if funding remains constrained.