NYSE$SHO

Sunstone Hotel Investors Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sunstone reported net income of $127.0 million and a comparable RevPAR decrease of 2.2% to $206.58 for Q4 2023.

Sunstone Hotel Investors reported a net income of $127.0 million for the fourth quarter of 2023, compared to $17.5 million in the same period of 2022. Comparable RevPAR decreased by 2.2% to $206.58. Adjusted EBITDAre decreased by 20.5% to $54.6 million, and adjusted FFO per diluted share decreased by 26.9% to $0.19.

  • Net income was $127.0 million, which includes a gain on the hotel sale.
  • Comparable RevPAR decreased 2.2% to $206.58.
  • Adjusted EBITDAre decreased 20.5% to $54.6 million.
  • Adjusted FFO per diluted share decreased 26.9% to $0.19.

Headline financials

Total Revenue

$219M

Previous: $244M-10.3%
EPS (adj)

$0.19

Previous: $0.26-26.9%
Total Portfolio RevPAR

$206.58

Previous: $193.59+6.7%
Net Income

$127M

Previous: $17.5M+627.2%
Operating Income

$18.6M

Previous: $29.2M-36.3%
Gross Profit

$42.4M

Previous: $127M-66.5%
Stock-Based Comp

$2.51M

Previous: $2.23M+12.6%

Revenue & EPS history

Sunstone · Revenue · Quarterly

$219M

Q4 2023-10.3%vs Q4 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the full year 2024, Sunstone expects net income between $46 million and $71 million, total portfolio RevPAR growth between 2.5% and 5.5%, Adjusted EBITDAre between $230 million and $255 million, and Adjusted FFO per diluted share between $0.78 and $0.90.

Tailwinds

  • Total portfolio RevPAR growth between 2.5% and 5.5%.
  • Total portfolio RevPAR growth, excluding The Confidante Miami Beach, between 5.0% and 8.0%.
  • Adjusted EBITDAre between $230 million and $255 million.
  • Adjusted FFO attributable to common stockholders between $159 million and $184 million.
  • Adjusted FFO attributable to common stockholders per diluted share between $0.78 and $0.90.

Headwinds

  • Full year total Adjusted EBITDAre displacement of approximately $11 million to $13 million in connection with planned capital investments.
  • Full year corporate overhead expense (excluding deferred stock amortization) of approximately $21 million to $22 million.
  • Full year interest expense of approximately $52 million to $55 million, including approximately $3 million in amortization of deferred financing costs.
  • Full year preferred stock dividends of approximately $15 million to $16 million, which includes the Series G, H and I cumulative redeemable preferred stock.
  • The Confidante Miami Beach is expected to generate an EBITDAre loss of approximately $3 million to $5 million in 2024.

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 2023

Historical avgQ4 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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