Free Post Earnings Research Report: Sunstone Reported Better Than Expected Results

LONDON, UK / ACCESSWIRE / June 11, 2018 / If you want access to our free earnings report on Sunstone Hotel Investors, Inc. (NYSE: SHO) (“Sunstone”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=SHO. The Company reported its first quarter fiscal 2018 operating and financial results on May 07, 2018. The hotel real estate investment trust (REIT), based in Aliso Viejo, California, provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Sunstone Hotel Investors most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=SHO

Earnings Highlights and Summary

For the three months ended March 31, 2018, Sunstone’s revenues totaled $271.4 million compared to $280.7 million in Q1 2017. The Company’s revenue numbers exceeded analysts’ estimates of $258.3 million.

During Q1 2018, Sunstone’s 25 Hotel Comparable Portfolio revenue per available room (RevPAR) decreased 0.7% to $160.54 on a y-o-y basis. The Company’s 25 Hotel Comparable Portfolio adjusted earnings before interest, tax, depreciation, and amortization for real estate (EBITDAre) margin fell 170 basis points (bps) to 26.0%. Excluding the Hyatt Regency San Francisco, the Marriott Boston Long Wharf, and the Renaissance Los Angeles Airport, all of which were under rooms renovation during Q1 2018, Sunstone’s 22 Hotel Comparable Portfolio adjusted EBITDAre margin would have decreased 40 bps.

For Q1 2018, Sunstone’s net income totaled $38.5 million, down 39.8% compared to $63.8 million in Q1 2017. Excluding the effect of gains on hotels sold during Q1 2018 and Q1 2017, the Company’s net income would have increased 16.7%. Sunstone’s income attributable to common stockholders fell 44.4% to $0.15 per diluted share compared to $027 per diluted share in Q1 2017. Excluding the effect of gains on hotels sold during Q1 2018 and Q1 2017, the Company’s income attributable to common stockholders per diluted common share would have increased 14.3%.

Sunstone’s adjusted funds from operations (AFFO) attributable to common stockholders was $45.9 million, or $0.20 per diluted share, in Q1 2018 compared to $53.2 million, or $0.24 per diluted share, in Q1 2017. The Company’s reported numbers exceeded Wall Street’s estimates of $0.19 per share.

Cash Matters

As of March 31, 2018, Sunstone had cash and cash equivalents of $546.4 million, including restricted cash of $79.3 million; total assets of $3.8 billion, including $3.1 billion of net investments in hotel properties; total consolidated debt of $988.5 million; and stockholders’ equity of $2.6 billion.

During Q1 2018, Sunstone invested $39.3 million into capital improvements of its portfolio. For 2018, the Company expects to invest approximately $150 million to $175 million into its portfolio. Based on the expected timing and scope of its 2018 projects, the Company expects $9 million to $11 million of total revenue displacement related to all capital projects in 2018, of which approximately $4.9 million of total revenue displacement was incurred during Q1 2018.

On May 03, 2018, Sunstone’s Board of Directors declared a cash dividend of $0.05 per share of common stock. The dividend will be paid on July 16, 2018, to stockholders of record as of June 29, 2018.

Outlook

For the second quarter of the fiscal year 2018, Sunstone is forecasting total portfolio RevPAR to increase between 0.5% and 2.5%, which includes approximately 150 basis points of renovation-related disruption. The Company is expecting adjusted EBITDAre to be between $96 million and $99 million for the upcoming quarter, and AFFO per diluted share to be in the band of $0.34 and $0.36.

For the full fiscal year 2018, Sunstone is anticipating total portfolio RevPAR growth to be between flat and up 2.5%. The Company’s adjusted EBITDAre guidance ranges from $310 million to $328 million, and AFFO per diluted share ranges from $1.07 to $1.16 for FY18.

Stock Performance Snapshot

June 08, 2018 – At Friday’s closing bell, Sunstone Hotel Investors’ stock slightly dropped 0.99%, ending the trading session at $16.97.

Volume traded for the day: 3.54 million shares, which was above the 3-month average volume of 2.23 million shares.

Stock performance in the last month – up 2.17%; previous three-month period – up 13.74%; past twelve-month period – up 4.82%; and year-to-date – up 2.66%

After last Friday’s close, Sunstone Hotel Investors’ market cap was at $3.88 billion.

Price to Earnings (P/E) ratio was at 36.81.

The stock has a dividend yield of 1.18%.

The stock is part of the Financial sector, categorized under the REIT – Hotel/Motel industry. This sector was up 0.4% at the end of the session.

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