Sunstone Hotel Investors’ FFO Surpasses Estimates by $0.04, Revenue Beats by $13.9M
May 6, 2023
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Sunstone Hotel Investors ($NYSE:SHO) Inc. (SHO) recently reported their fourth quarter earnings, surpassing analysts’ expectations. SHO is a real estate investment trust that primarily invests in hotel properties in North America. The company reported an FFO of $0.21, exceeding analysts’ expectations of $0.17 by $0.04.
Revenue rose to $243.44M, surpassing estimates of $229.54M by $13.9M. This positive news could potentially further increase the stock price of Sunstone Hotel Investors, as investors gain confidence in the company’s earnings potential and strong performance.
Earnings
In the earning report of FY2022 Q4 ending December 31 2022, Sunstone Hotel Investors reported a total revenue of 3.35M USD, surpassing estimates by $13.9M. Compared to the same period last year, SUNSTONE HOTEL INVESTORS experienced a slight decrease of 0.0% in total revenue. Moreover, the company has achieved an impressive three-year growth rate, with total revenue increasing from 3.21M USD to 3.35M USD.
This surpassing of estimates shows that Sunstone Hotel Investors is continuing to invest in its hotel properties and is able to benefit from increased customer traffic and spending. The company is well-positioned to continue this growth trend into the upcoming quarters.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for SHO. More…
| Total Revenues | Net Income | Net Margin |
| 912.05 | 72.59 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for SHO. More…
| Operations | Investing | Financing |
| 209.38 | -165.72 | -49.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for SHO. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.08k | 997.86 | 8.62 |
Key Ratios Snapshot
Some of the financial key ratios for SHO are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 10.9% |
| FCF Margin | ROE | ROA |
| – | – | – |
Stock Price
Sunstone Hotel Investors (SUN) made headlines on Friday when their FFO (Funds from Operations) surpassed analyst estimates by $0.04 and revenue additionally beat expectations by $13.9M. This news sent SUN’s share price soaring, with the stock opening at $10.4 and closing at $10.2, up 2.8% from the prior closing price of $9.9. Investors reacted positively to the news, which is likely to have a positive impact on SUN’s performance in the near future. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of SUNSTONE HOTEL INVESTORS’ financials. Based on our Risk Rating, SUNSTONE HOTEL INVESTORS is a low risk investment in terms of financial and business aspects. However, we detected one warning about the balance sheet. To get more details about this risk warning, we recommend registering on our website at goodwhale.com. With access to our platform, you can easily drill down into the specifics of each risk warning and make an informed decision about your investment. We strive to make sure that our customers have access to the most accurate and up-to-date data on the financial markets to help them make the best decisions for their investments. That’s why we provide detailed risk warnings and ratings to make sure you stay informed at all times. More…
Peers
In the hotel industry, Sunstone Hotel Investors Inc is in competition with Summit Hotel Properties Inc, Apple Hospitality REIT Inc, and Service Properties Trust. These companies are all competing for market share in the hotel industry. Its competitors are also well-known and have a strong presence in the market.
– Summit Hotel Properties Inc ($NYSE:INN)
Summit Hotel Properties, Inc. is a real estate investment trust. The Company focuses on owning premium-branded select-service and extended-stay hotels in the U.S. REITs are company’s that own, and in some cases, operate income-producing real estate.
– Apple Hospitality REIT Inc ($NYSE:APLE)
The company’s market cap is 3.66B as of 2022. The company focuses on providing hospitality real estate investment trusts (REITs) in the United States. It operates through two segments, Hotel Operations and Development. The Hotel Operations segment acquires, owns, leases, operates, and disposes of Marriott branded hotels. The Development segment is involved in developing Marriott branded hotels. As of December 31, 2020, the company owned 269 properties with 74,761 rooms.
– Service Properties Trust ($NASDAQ:SVC)
Service Properties Trust is a real estate investment trust that owns, operates, and develops hotels and resorts. The company has a market cap of $1.24 billion as of 2022. Service Properties Trust is headquartered in Boston, Massachusetts.
Summary
The company achieved strong operating performance and benefited from increasing occupancy rates in the hotel industry. SHO’s CEO, John Arabia, was pleased with the performance, noting that it was the second consecutive quarter of record-breaking FFO and revenue results. He also stated that the company is well-positioned to capitalize on the continuing recovery in the hotel industry. For investors, Sunstone Hotel Investors appears to be an attractive option with potential for solid returns.
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