NYSE$SHO

Sunstone Hotel Investors Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Sunstone's results for Q3 2023 were announced, with earnings exceeding the high-end of guidance despite challenges from the Maui fires, and urban and convention assets performing strongly amidst moderating leisure demand.

Sunstone Hotel Investors reported a net income of $15.6 million for Q3 2023, with comparable RevPAR at $222.54. Adjusted EBITDAre decreased slightly to $63.7 million, and adjusted FFO per diluted share was $0.23. The company also sold Boston Park Plaza for $370 million and reinvested in The Westin Washington, DC Downtown.

  • Net income reached $15.6 million, a decrease compared to $20.5 million in the same quarter of the previous year.
  • Comparable RevPAR was $222.54, consistent with the prior year, with urban and convention hotels showing a 7.4% increase.
  • Adjusted EBITDAre stood at $63.7 million, slightly down by 0.2% from the previous year.
  • Adjusted FFO attributable to common stockholders per diluted share decreased by 4.2% to $0.23.

Headline financials

Total Revenue

$248M

Previous: $244M+1.4%
EPS (adj)

$0.23

Previous: $0.24-4.2%
Total Portfolio RevPAR

$222.54

Previous: $222.50+0.0%
Capital Expenditures

-$306M

Previous: -$330M+7.1%
Free Cash Flow

-$291M

Previous: -$310M+6.0%
Net Income

$15.6M

Previous: $20.5M-24.1%
Operating Income

-$221M

Previous: -$214M-3.0%
Gross Profit

$117M

Previous: $111M+5.2%
Cash & Equivalents

$114M

Previous: $118M-3.2%
Total Assets

$3.09B

Previous: $3.11B-0.7%
Stock-Based Comp

$2.51M

Previous: $2.23M+12.6%

Revenue & EPS history

Sunstone · Revenue · Quarterly

$248M

Q3 2023+1.4%vs Q3 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the fourth quarter of 2023, Sunstone Hotel Investors anticipates a net income between $125 million and $130 million and Adjusted EBITDAre between $48 million and $53 million.

Tailwinds

  • Net Income: $125 to $130 million
  • Adjusted EBITDAre: $48 to $53 million
  • Adjusted FFO Attributable to Common Stockholders: $30 to $35 million
  • Adjusted FFO Attributable to Common Stockholders per Diluted Share: $0.14 to $0.17
  • Diluted Weighted Average Shares Outstanding: 205,500,000

Headwinds

  • Total Portfolio RevPAR Growth: -3.0% to -6.0%
  • Total Portfolio RevPAR Growth, excluding The Confidante Miami Beach: -0.5% to -3.5%
  • Reduction of $2 to $3 million in expected EBITDAre due to disruption in demand at Wailea Beach Resort and the sale of Boston Park Plaza.
  • Total Adjusted EBITDAre displacement of approximately $12 million to $13 million in connection with planned capital investments.
  • Interest expense of approximately $49 million to $50 million, including $3 million in amortization of deferred financing costs and $3 million of noncash benefit from interest on derivatives.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.0%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.0%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+20.1%

Q3 2020

Best reaction

-10.0%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+8.0%+18.3%
Q4 2025-3.7%+0.5%-7.3%
Q3 2025+1.8%+2.5%-3.8%
Q1 2025-2.9%+0.5%+0.8%
Q4 2024-5.8%-8.2%-13.9%
Q3 2024-4.1%-7.3%+12.5%
Q2 2024+0.0%-1.6%+2.4%
Q1 2024+1.9%+0.7%+0.3%
Q4 2023-0.1%+0.6%-1.5%
Q3 2023-1.5%+0.6%+5.6%
Q2 2023+0.0%-0.6%-6.0%
Q1 2023+3.5%+5.5%+4.9%
Q4 2022+7.0%+7.4%-11.6%
Q3 2022-4.0%+4.5%-0.7%
Q2 2022-0.5%+0.5%-2.4%
Q1 2022-4.9%-7.8%+1.4%
Q4 2021-10.0%-7.6%+0.9%
Q3 2021+2.2%-0.9%-15.1%
Q2 2021-1.2%-0.2%+2.7%
Q1 2021-2.1%-3.2%-2.1%
Q4 2020+6.3%+8.8%+15.5%
Q3 2020+20.1%+19.4%+38.1%
Q2 2020+4.1%+10.7%+14.7%
Q1 2020-9.5%-18.8%+13.7%
Q4 2019-1.8%-1.9%-46.8%
Q3 2019+3.3%+0.6%-1.2%
Q2 2019+0.7%-0.9%-0.5%
Q1 2019-2.3%-1.9%-6.7%
Q4 2018+2.7%+3.1%+3.2%
Q3 2018+1.5%+4.4%+2.8%
Q2 2018+0.7%+1.2%+3.3%
Q1 2018+1.8%+3.3%+6.8%
Q4 2017-0.4%-1.6%-5.9%
Q3 2017-0.8%+0.2%+0.9%
Q2 2017-1.1%+0.7%-2.9%
Q1 2017+2.6%+5.2%+5.3%
Q4 2016-0.9%-2.8%-2.8%
Q3 2016-1.9%-1.4%+19.2%
Q2 2016+2.1%+0.5%-2.4%
Q1 2016-1.2%
Q4 2015+1.4%
Q3 2015+1.6%
Q2 2015+1.8%
Q1 2015-1.0%
Q4 2014+0.8%
Q3 2014-1.0%
Q2 2014+1.8%
Q1 2014+1.9%
Q4 2013+2.1%
Q3 2013+2.1%
Q2 2013+1.0%
Q1 2013+2.0%
Q4 2012-2.0%
Q3 2012-3.2%
Q2 2012+1.6%
Q1 2012+2.0%
Q4 2009-1.8%
Q4 2011-1.8%
Q3 2011-2.9%
Q3 2010-2.9%
Q2 2011-3.1%
Q2 2010-3.1%
Q1 2011-1.5%
Q1 2010-1.5%
Q4 2010-1.5%

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