NYSE$SHO

Sunstone Hotel Investors Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Sunstone's Q4 2022 results exceeded expectations due to growing corporate and group business and pandemic-related business interruption insurance proceeds.

Sunstone Hotel Investors reported net income of $17.5 million for the fourth quarter of 2022, with comparable portfolio RevPAR increasing by 34.2% to $193.59 and Adjusted EBITDAre increasing by 120.6% to $68.8 million.

  • Net income was $17.5 million, compared to $138.3 million in Q4 2021.
  • Comparable Portfolio RevPAR increased 34.2% to $193.59.
  • Total Portfolio RevPAR was $206.73.
  • Adjusted EBITDAre increased 120.6% to $68.8 million.

Headline financials

Total Revenue

$244M

Previous: $174M+40.6%
EPS (adj)

$0.26

Previous: $0.08+225.0%
Total Portfolio RevPAR

$193.59

Previous: $147.27+31.5%
Net Income

$17.5M

Previous: $138M-87.4%
Operating Income

$29.2M

No prior period
Gross Profit

$127M

Previous: $79.1M+60.0%
Cash & Equivalents

$101M

Previous: $120M-16.0%
Total Assets

$3.08B

Previous: $3.04B+1.4%
Stock-Based Comp

$2.23M

Previous: $2.21M+0.8%

Revenue & EPS history

Sunstone · Revenue · Quarterly

$244M

Q4 2022+40.6%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the first quarter of 2023, Sunstone expects net income between $3 million and $7 million, total portfolio RevPAR growth of 30% to 32%, Adjusted EBITDAre between $51 million and $55 million, and Adjusted FFO attributable to common stockholders per diluted share between $0.16 and $0.18.

Tailwinds

  • Full year total Adjusted EBITDAre displacement of approximately $16 million to $18 million in connection with planned capital investments.
  • Full year corporate overhead expense (excluding deferred stock amortization) of approximately $22 million to $23 million.
  • Full year interest expense of approximately $52 million to $54 million, including approximately $2 million in amortization of deferred financing costs.
  • Full year preferred stock dividends of approximately $15 million, which includes the Series G, H and I cumulative redeemable preferred stock.
  • The Company’s Board of Directors reauthorized the Company’s stock repurchase program, which allows the Company to acquire up to $500.0 million of its common and preferred stock.

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 Q4 2022

Historical avgQ4 2022

-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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