Hoegh LNG Partners Preferred Shares Offer 10.5% Yield With Strong Dividend Coverage
Hoegh LNG Partners' preferred shares offer a 10.5% yield, with Q1 2026 net free cash flow of $21.5M requiring only 15% for preferred dividends. The partnership continues to see declining net interest expense and leverage, improving the safety profile for preferred investors following the delisting of common units.
Hoegh LNG Partners' preferred shares delivered a 10.5% yield in the first quarter of 2026, underpinned by net free cash flow of $21.5 million that required only 15 percent for preferred dividend obligations. The partnership reported $41.1 million in revenue and $19.3 million in net income for the period, maintaining continuous payment to preferred holders after the delisting of its common units.
The coverage ratio marks a material buffer for preferred investors, who sit senior to the now-delisted common equity in the capital structure. Net interest expense declined during the quarter as balance sheet leverage continued to compress, widening the safety margin between operating cash generation and the fixed preferred distribution.
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