SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2025
Returned Over
Restores
Fourth Quarter 2025 Operational Results (as compared to Fourth Quarter 2024):
-
Net Income: Net income was
$7.2 million as compared to$0.8 million . -
Total Portfolio RevPAR: Total Portfolio RevPAR increased 9.6% to
$220.12 . The average daily rate was$319.01 and occupancy was 69.0%. -
Adjusted EBITDAre: Adjusted EBITDAre increased 17.6% to
$56.6 million . -
Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 25.0% to
$0.20 .
Full Year 2025 Operational Results (as compared to Full Year 2024):
-
Net Income: Net income was
$24.6 million as compared to$43.3 million . Excluding the loss on the sale of theHilton New Orleans St. Charles inJune 2025 , net income for the full year 2025 would have been$33.3 million . -
Total Portfolio RevPAR: Total Portfolio RevPAR increased 3.8% to
$225.12 . The average daily rate was$317.07 and occupancy was 71.0%. -
Adjusted EBITDAre: Adjusted EBITDAre increased 3.0% to
$236.6 million . -
Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share increased 7.5% to
$0.86 .
Information regarding the non-GAAP financial measures disclosed in this release is provided below in "Non-GAAP Financial Measures." Reconciliations of non-GAAP financial measures to the most comparable GAAP measure for each of the periods presented are included later in this release.
|
Unaudited Selected Statistical and Financial Data ($ in millions, except RevPAR, ADR and per share amounts). |
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Quarter Ended |
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Year Ended |
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|
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
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|
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|
|
|
|
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|
|
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|
|
|
Net Income |
$ |
7.2 |
|
$ |
0.8 |
|
763.3 |
% |
|
$ |
24.6 |
|
$ |
43.3 |
|
(43.2) |
% |
|
Income (Loss) Attributable to Common Stockholders |
$ |
0.02 |
|
$ |
(0.02) |
|
200.0 |
% |
|
$ |
0.04 |
|
$ |
0.14 |
|
(71.4) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio Operating Statistics (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR |
$ |
220.12 |
|
$ |
200.75 |
|
9.6 |
% |
|
$ |
225.12 |
|
$ |
216.86 |
|
3.8 |
% |
|
Occupancy |
|
69.0 |
% |
|
65.1 |
% |
390 |
bps |
|
|
71.0 |
% |
|
68.7 |
% |
230 |
bps |
|
Average Daily Rate |
$ |
319.01 |
|
$ |
308.37 |
|
3.5 |
% |
|
$ |
317.07 |
|
$ |
315.66 |
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Portfolio Operating Statistics, excluding Andaz |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR |
$ |
218.07 |
|
$ |
209.38 |
|
4.2 |
% |
|
$ |
229.94 |
|
$ |
225.31 |
|
2.1 |
% |
|
Occupancy |
|
69.1 |
% |
|
67.9 |
% |
120 |
bps |
|
|
72.7 |
% |
|
71.3 |
% |
140 |
bps |
|
Average Daily Rate |
$ |
315.59 |
|
$ |
308.37 |
|
2.3 |
% |
|
$ |
316.28 |
|
$ |
316.00 |
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25.5 |
% |
|
23.3 |
% |
220 |
bps |
|
|
26.7 |
% |
|
26.3 |
% |
40 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAre |
$ |
56.6 |
|
$ |
48.1 |
|
17.6 |
% |
|
$ |
236.6 |
|
$ |
229.7 |
|
3.0 |
% |
|
Adjusted FFO Attributable to Common Stockholders |
$ |
38.9 |
|
$ |
32.0 |
|
21.4 |
% |
|
$ |
167.8 |
|
$ |
163.0 |
|
3.0 |
% |
|
Adjusted FFO Attributable to Common Stockholders |
$ |
0.20 |
|
$ |
0.16 |
|
25.0 |
% |
|
$ |
0.86 |
|
$ |
0.80 |
|
7.5 |
% |
|
|
|
|
(1) |
Includes the 14 hotels owned by the Company as of |
|
(2) |
Includes the 14 hotels owned by the Company as of |
The Company's actual results for 2025 compare to its guidance previously provided as follows:
|
Metric ($ in millions, except per share data) |
|
Full Year 2025 Guidance (1) |
|
Full Year 2025 Actual Results |
|
Performance Relative |
|
Net Income |
|
$14 to |
|
|
|
+ |
|
Total Portfolio RevPAR Growth (2) |
|
3.0% to 5.0% |
|
3.8 % |
|
- 20 bps |
|
Total Portfolio RevPAR Growth, excluding Andaz Miami Beach (2) |
|
1.0% to 3.0% |
|
2.1 % |
|
+ 10 bps |
|
Adjusted EBITDAre |
|
$226 to |
|
|
|
+ |
|
Adjusted FFO Attributable to Common Stockholders |
|
$156 to |
|
|
|
+ |
|
Adjusted FFO Attributable to Common Stockholders per Diluted Share |
|
$0.80 to |
|
|
|
+ |
|
Diluted Weighted Average Shares Outstanding |
|
195,000,000 |
|
194,452,000 |
|
- 548,000 |
|
|
|
|
(1) |
Reflects guidance presented on |
|
(2) |
RevPAR Growth reflects comparison to full year 2024. |
2025 Highlights
Andaz Miami Beach. In
Stock Repurchase Program. During 2025, the Company repurchased an aggregate amount of
-
Common stock: During 2025, the Company repurchased 11,589,722 shares at an average purchase price per share of
$8.83 for a total repurchase amount before expenses of$102.4 million . From the start of this year throughFebruary 26, 2026 , the Company has repurchased 639,355 shares at an average purchase price per share of$8.88 for a total repurchase amount before expenses of$5.7 million . Since the beginning of 2022, the Company has deployed approximately$300 million and repurchased 31.2 million shares of its common stock, representing over 14% of shares outstanding at the start of the period, at an average purchase price of$9.60 per share. The average purchase price per share represents a substantial discount to consensus estimates of net asset value and implies a highly attractive valuation multiple on the Company's stabilized cash flow. -
Series H Cumulative Redeemable Preferred Stock: During 2025, the Company repurchased 54,097 shares at an average purchase price per share of
$20.28 for a total repurchase amount before expenses of$1.1 million . From the start of this year throughFebruary 26, 2026 , the Company has repurchased 90,459 shares at an average purchase price per share of$20.69 for a total repurchase amount before expenses of$1.9 million . The 2025 and 2026 average repurchase price of$20.54 per share reflects an 18% discount to the preferred stock liquidation value. -
Series I Cumulative Redeemable Preferred Stock: During 2025, the Company repurchased 9,027 shares at an average purchase price per share of
$19.25 for a total repurchase amount before expenses of$0.2 million . The average repurchase price per share reflects a 23.0% discount to the preferred stock liquidation value.
Amended and Restated Credit Agreement. In
Recent Developments
Stock Repurchase Program Reauthorization. In
Delayed-Draw and Series A Senior Notes Repayment. In
Corporate Responsibility Report. In
Balance Sheet and Liquidity Update
As of
Capital Investments Update
The Company invested
2026 Outlook
The Company's 2026 outlook is based on Management's expectations and information available as of the date of this release. Changes in economic policies, changes in the health of the economy, or changes in business and consumer sentiment, among other factors, could lead to revisions to the Company's outlook or cause the Company to withdraw its outlook altogether. For the full year 2026, the Company currently expects:
|
Metric ($ in millions, except per share data) |
|
Year Ended
Guidance (1) |
|
Net Income |
|
|
|
RevPAR Growth (2) |
|
4.0% to 7.0% |
|
Total RevPAR Growth (2) |
|
3.5% to 6.5% |
|
Adjusted EBITDAre |
|
|
|
Adjusted FFO Attributable to Common Stockholders |
|
|
|
Adjusted FFO Attributable to Common Stockholders per Diluted Share |
|
|
|
Diluted Weighted Average Shares Outstanding |
|
190,000,000 |
|
|
|
|
(1) |
Detailed reconciliations of Net Income to non-GAAP financial measures are provided later in this release. |
|
(2) |
RevPAR and Total RevPAR Growth reflect comparisons to full year 2025 and include all 14 hotels owned by the Company. Andaz Miami Beach is expected to contribute approximately 400 basis points of RevPAR and Total RevPAR growth. |
Full year 2026 guidance is based in part on the following full year assumptions:
- Full year interest and other income of approximately
$3 million to$4 million . - Full year corporate overhead expense (excluding deferred stock amortization) of approximately
$20 million to$21 million . - Full year interest expense of approximately
$53 million to$56 million , including approximately$4 million in amortization of deferred financing costs. - Full year preferred stock dividends of approximately
$16 million to$17 million , which includes the Series G,H, and I cumulative redeemable preferred stock.
Dividend Update
On
The Company currently expects to continue to pay a quarterly cash common dividend throughout 2026. The level of any future quarterly dividends will be determined by the Company's Board of Directors after considering long-term operating projections, expected capital requirements, and risks affecting the Company's business.
Supplemental Disclosures
Contemporaneous with this release, the Company has furnished a Form 8-K with unaudited financial information. This additional information is being provided as a supplement to the information in this release and other filings with the
Earnings Call
The Company will host a conference call to discuss fourth quarter and full year 2025 results on
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will" and other similar terms and phrases, including opinions, references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks, uncertainties, and other factors include, but are not limited to, those described in the sections entitled "Special Note Regarding Forward-Looking Statements," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2025 Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission on
This release should be read together with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q. Copies of these reports are available on our website at www.sunstonehotels.com and through the
Non-GAAP Financial Measures
We present the following non-GAAP financial measures that we believe are useful to investors as key supplemental measures of our operating performance: earnings before interest expense, taxes, depreciation and amortization for real estate, or EBITDAre; Adjusted EBITDAre (as defined below); funds from operations attributable to common stockholders, or FFO attributable to common stockholders; Adjusted FFO attributable to common stockholders (as defined below); hotel Adjusted EBITDAre; and hotel Adjusted EBITDAre margins. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with GAAP. In addition, our calculation of these measures may not be comparable to other companies that do not define such terms exactly the same as us. These non-GAAP measures are used in addition to and in conjunction with results presented in accordance with GAAP. They should not be considered as alternatives to net income (loss), cash flow from operations, or any other operating performance measure prescribed by GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure.
We present EBITDAre in accordance with guidelines established by the
We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful information to investors regarding our operating performance, and that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is beneficial to an investor's complete understanding of our operating performance. In addition, we use both EBITDAre and Adjusted EBITDAre as measures in determining the value of hotel acquisitions and dispositions.
We believe that the presentation of FFO attributable to common stockholders provides useful information to investors regarding our operating performance because it is a measure of our operations without regard to specified noncash items such as real estate depreciation and amortization, any real estate impairment loss and any gain or loss on sale of real estate assets, all of which are based on historical cost accounting and may be of lesser significance in evaluating our current performance. Our presentation of FFO attributable to common stockholders conforms to Nareit's definition of "FFO applicable to common shares." Our presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current Nareit definition, or that interpret the current Nareit definition differently than we do.
We also present Adjusted FFO attributable to common stockholders when evaluating our operating performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and may facilitate comparisons of operating performance between periods and our peer companies.
We adjust EBITDAre and FFO attributable to common stockholders for the following items, which may occur in any period, and refer to these measures as either Adjusted EBITDAre or Adjusted FFO attributable to common stockholders:
- Amortization of deferred stock compensation: we exclude the noncash expense incurred with the amortization of deferred stock compensation as this expense is based on historical stock prices at the date of grant to our corporate employees and does not reflect the underlying performance of our hotels.
- Amortization of contract intangibles: we exclude the noncash amortization of any favorable or unfavorable contract intangibles recorded in conjunction with our hotel acquisitions. We exclude the noncash amortization of contract intangibles because it is based on historical cost accounting and is of lesser significance in evaluating our actual performance for the current period.
- Gains or losses from debt transactions: we exclude the effect of finance charges and premiums associated with the extinguishment of debt, including the acceleration of deferred financing costs from the original issuance of the debt being redeemed or retired because, like interest expense, their removal helps investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure.
- Cumulative effect of a change in accounting principle: from time to time, the FASB promulgates new accounting standards that require the consolidated statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments, which include the accounting impact from prior periods, because they do not reflect our actual performance for that period.
- Other adjustments: we exclude other adjustments that we believe are outside the ordinary course of business because we do not believe these costs reflect our actual performance for the period and/or the ongoing operations of our hotels. Such items may include: lawsuit settlement costs; the write-off of development costs associated with abandoned projects; property-level restructuring, severance, and management transition costs; pre-opening costs associated with extensive renovation projects; debt resolution costs; lease terminations; property insurance restoration proceeds or uninsured losses; and other nonrecurring identified adjustments.
In addition, to derive Adjusted EBITDAre, we exclude the amortization of our right-of-use assets and related lease obligations as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. We also exclude the effect of gains and losses on the disposition of undepreciated assets because we believe that including them in Adjusted EBITDAre is not consistent with reflecting the ongoing performance of our assets.
To derive Adjusted FFO attributable to common stockholders, we also exclude the noncash interest on our derivatives as we believe that these items are not reflective of our ongoing finance costs. Additionally, we exclude the real estate amortization of our right-of-use assets and related lease obligations (with the exception of our corporate operating lease) as these expenses are based on historical cost accounting and do not reflect the actual rent amounts due to the respective lessors or the underlying performance of our hotels. We also exclude gains or losses on the redemptions or repurchases of preferred stock, changes to deferred tax assets, liabilities or valuation allowances, and income tax benefits or provisions associated with the application of net operating loss carryforwards, uncertain tax positions or with the sale of assets.
In presenting hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins, miscellaneous non-hotel items have been excluded. We believe the calculation of hotel Adjusted EBITDAre results in a more accurate presentation of the hotel Adjusted EBITDAre margins for our hotels, and that these non-GAAP financial measures are useful to investors in evaluating our property-level operating performance.
Reconciliations of net income to EBITDAre, Adjusted EBITDAre, FFO attributable to common stockholders, Adjusted FFO attributable to common stockholders, hotel Adjusted EBITDAre and hotel Adjusted EBITDAre margins are set forth in the following pages of this release.
For Additional Information:
(949) 382-3018
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|
Consolidated Balance Sheets |
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|
(In thousands, except share and per share data) |
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|
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|
|
|
|
||
|
|
|
2025 |
|
2024 |
||
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
|
|
Investment in hotel properties, net |
|
$ |
2,771,180 |
|
$ |
2,856,032 |
|
Operating lease right-of-use assets, net |
|
|
4,418 |
|
|
8,464 |
|
Cash and cash equivalents |
|
|
109,189 |
|
|
107,199 |
|
Restricted cash |
|
|
76,531 |
|
|
73,078 |
|
Accounts receivable, net |
|
|
33,662 |
|
|
34,109 |
|
Prepaid expenses and other assets, net |
|
|
34,025 |
|
|
27,757 |
|
Total assets |
|
$ |
3,029,005 |
|
$ |
3,106,639 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Debt, net of unamortized deferred financing costs |
|
$ |
918,086 |
|
$ |
841,047 |
|
Operating lease obligations |
|
|
7,348 |
|
|
12,019 |
|
Accounts payable and accrued expenses |
|
|
63,146 |
|
|
52,722 |
|
Dividends and distributions payable |
|
|
22,975 |
|
|
24,137 |
|
Other liabilities |
|
|
72,832 |
|
|
72,694 |
|
Total liabilities |
|
|
1,084,387 |
|
|
1,002,619 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Preferred stock, |
|
|
|
|
|
|
|
Series G Cumulative Redeemable Preferred Stock, 2,650,000 shares issued |
|
|
66,250 |
|
|
66,250 |
|
6.125% Series H Cumulative Redeemable Preferred Stock, 4,545,903 shares issued |
|
|
113,648 |
|
|
115,000 |
|
5.70% Series I Cumulative Redeemable Preferred Stock, 3,990,973 shares issued |
|
|
99,774 |
|
|
100,000 |
|
Common stock, |
|
|
1,897 |
|
|
2,008 |
|
Additional paid in capital |
|
|
2,298,398 |
|
|
2,395,702 |
|
Distributions in excess of retained earnings |
|
|
(635,349) |
|
|
(574,940) |
|
Total stockholders' equity |
|
|
1,944,618 |
|
|
2,104,020 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
3,029,005 |
|
$ |
3,106,639 |
|
|
||||||||||||
|
Consolidated Statements of Operations |
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|
(In thousands, except per share data) |
||||||||||||
|
|
||||||||||||
|
|
|
Quarter Ended |
|
Year Ended |
||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
|
|
|
(unaudited) |
|
|
||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
$ |
142,177 |
|
$ |
133,191 |
|
$ |
582,669 |
|
$ |
559,061 |
|
Food and beverage |
|
|
69,107 |
|
|
59,650 |
|
|
278,680 |
|
|
256,222 |
|
Other operating |
|
|
25,682 |
|
|
21,929 |
|
|
98,777 |
|
|
90,526 |
|
Total revenues |
|
|
236,966 |
|
|
214,770 |
|
|
960,126 |
|
|
905,809 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Room |
|
|
39,422 |
|
|
36,020 |
|
|
158,694 |
|
|
146,369 |
|
Food and beverage |
|
|
49,088 |
|
|
44,497 |
|
|
199,654 |
|
|
182,840 |
|
Other operating |
|
|
6,429 |
|
|
5,170 |
|
|
25,136 |
|
|
23,323 |
|
Advertising and promotion |
|
|
13,525 |
|
|
13,854 |
|
|
54,283 |
|
|
52,180 |
|
Repairs and maintenance |
|
|
10,209 |
|
|
9,144 |
|
|
39,723 |
|
|
35,927 |
|
Utilities |
|
|
6,890 |
|
|
6,667 |
|
|
28,514 |
|
|
26,576 |
|
Franchise costs |
|
|
4,726 |
|
|
4,656 |
|
|
18,499 |
|
|
18,391 |
|
Property tax, ground lease and insurance |
|
|
19,036 |
|
|
18,535 |
|
|
76,461 |
|
|
77,221 |
|
Other property-level expenses |
|
|
29,164 |
|
|
28,388 |
|
|
117,348 |
|
|
110,833 |
|
Corporate overhead |
|
|
7,369 |
|
|
5,787 |
|
|
31,590 |
|
|
29,050 |
|
Depreciation and amortization |
|
|
34,180 |
|
|
32,666 |
|
|
134,508 |
|
|
124,507 |
|
Total operating expenses |
|
|
220,038 |
|
|
205,384 |
|
|
884,410 |
|
|
827,217 |
|
Interest and other income |
|
|
3,940 |
|
|
1,873 |
|
|
10,964 |
|
|
13,179 |
|
Interest expense |
|
|
(13,707) |
|
|
(10,440) |
|
|
(52,965) |
|
|
(50,125) |
|
(Loss) gain on sale of assets, net |
|
|
— |
|
|
— |
|
|
(8,751) |
|
|
457 |
|
(Loss) gain on extinguishment of debt |
|
|
— |
|
|
— |
|
|
(180) |
|
|
59 |
|
Income before income taxes |
|
|
7,161 |
|
|
819 |
|
|
24,784 |
|
|
42,162 |
|
Income tax benefit (provision), net |
|
|
56 |
|
|
17 |
|
|
(216) |
|
|
1,100 |
|
Net income |
|
|
7,217 |
|
|
836 |
|
|
24,568 |
|
|
43,262 |
|
Preferred stock dividends, net of gain on |
|
|
(3,985) |
|
|
(3,931) |
|
|
(16,110) |
|
|
(15,228) |
|
Income (loss) attributable to common |
|
$ |
3,232 |
|
$ |
(3,095) |
|
$ |
8,458 |
|
$ |
28,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted income (loss) attributable to |
|
$ |
0.02 |
|
$ |
(0.02) |
|
$ |
0.04 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares |
|
|
189,172 |
|
|
200,185 |
|
|
193,613 |
|
|
201,739 |
|
Diluted weighted average common shares |
|
|
189,723 |
|
|
200,185 |
|
|
194,316 |
|
|
202,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per common share |
|
$ |
0.09 |
|
$ |
0.09 |
|
$ |
0.36 |
|
$ |
0.34 |
|
|
||||||||||||
|
Reconciliation of Net Income to Non-GAAP Financial Measures |
||||||||||||
|
(Unaudited and in thousands) |
||||||||||||
|
|
||||||||||||
|
Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre |
||||||||||||
|
|
||||||||||||
|
|
|
Quarter Ended |
|
Year Ended |
||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
|
2024 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,217 |
|
$ |
836 |
|
$ |
24,568 |
|
$ |
43,262 |
|
Depreciation and amortization |
|
|
34,180 |
|
|
32,666 |
|
|
134,508 |
|
|
124,507 |
|
Interest expense |
|
|
13,707 |
|
|
10,440 |
|
|
52,965 |
|
|
50,125 |
|
Income tax (benefit) provision, net |
|
|
(56) |
|
|
(17) |
|
|
216 |
|
|
(1,100) |
|
Loss (gain) on sale of assets, net |
|
|
— |
|
|
— |
|
|
8,751 |
|
|
(457) |
|
EBITDAre |
|
|
55,048 |
|
|
43,925 |
|
|
221,008 |
|
|
216,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred stock compensation |
|
|
1,958 |
|
|
2,075 |
|
|
8,699 |
|
|
10,456 |
|
Amortization of right-of-use assets and obligations |
|
|
(167) |
|
|
(154) |
|
|
(625) |
|
|
(425) |
|
Loss (gain) on extinguishment of debt |
|
|
— |
|
|
— |
|
|
180 |
|
|
(59) |
|
Gain on insurance recoveries, net |
|
|
(277) |
|
|
(116) |
|
|
(1,050) |
|
|
(430) |
|
Pre-opening costs |
|
|
— |
|
|
1,181 |
|
|
6,471 |
|
|
2,633 |
|
Property-level legal settlement costs |
|
|
— |
|
|
1,182 |
|
|
— |
|
|
1,182 |
|
Management transition costs |
|
|
— |
|
|
— |
|
|
1,869 |
|
|
— |
|
Adjustments to EBITDAre, net |
|
|
1,514 |
|
|
4,168 |
|
|
15,544 |
|
|
13,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAre |
|
$ |
56,562 |
|
$ |
48,093 |
|
$ |
236,552 |
|
$ |
229,694 |
|
|
||||||||||||
|
Reconciliation of Net Income to Non-GAAP Financial Measures |
||||||||||||
|
(Unaudited and in thousands, except per share data) |
||||||||||||
|
|
||||||||||||
|
Reconciliation of Net Income to FFO Attributable to Common Stockholders and |
||||||||||||
|
Adjusted FFO Attributable to Common Stockholders |
||||||||||||
|
|
||||||||||||
|
|
|
Quarter Ended |
|
Year Ended |
||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
|
2024 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,217 |
|
$ |
836 |
|
$ |
24,568 |
|
$ |
43,262 |
|
Preferred stock dividends, net of gain on |
|
|
(3,985) |
|
|
(3,931) |
|
|
(16,110) |
|
|
(15,228) |
|
Real estate depreciation and amortization |
|
|
33,834 |
|
|
32,250 |
|
|
133,112 |
|
|
123,096 |
|
Loss (gain) on sale of assets, net |
|
|
— |
|
|
— |
|
|
8,751 |
|
|
(457) |
|
FFO attributable to common stockholders |
|
|
37,066 |
|
|
29,155 |
|
|
150,321 |
|
|
150,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred stock compensation |
|
|
1,958 |
|
|
2,075 |
|
|
8,699 |
|
|
10,456 |
|
Real estate amortization of right-of-use assets and |
|
|
(137) |
|
|
(136) |
|
|
(527) |
|
|
(517) |
|
Amortization of contract intangibles, net |
|
|
315 |
|
|
314 |
|
|
1,259 |
|
|
1,147 |
|
Noncash interest on derivatives, net |
|
|
210 |
|
|
(1,635) |
|
|
878 |
|
|
(540) |
|
Loss (gain) on extinguishment of debt |
|
|
— |
|
|
— |
|
|
180 |
|
|
(59) |
|
Gain on insurance recoveries, net |
|
|
(277) |
|
|
(116) |
|
|
(1,050) |
|
|
(430) |
|
Pre-opening costs |
|
|
— |
|
|
1,181 |
|
|
6,471 |
|
|
2,633 |
|
Property-level legal settlement costs |
|
|
— |
|
|
1,182 |
|
|
— |
|
|
1,182 |
|
Management transition costs |
|
|
— |
|
|
— |
|
|
1,869 |
|
|
— |
|
Gain on preferred stock repurchases, net |
|
|
(254) |
|
|
— |
|
|
(254) |
|
|
— |
|
Prior year income tax benefit, net |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,530) |
|
Adjustments to FFO attributable to common |
|
|
1,815 |
|
|
2,865 |
|
|
17,525 |
|
|
12,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO attributable to common |
|
$ |
38,881 |
|
$ |
32,020 |
|
$ |
167,846 |
|
$ |
163,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to common stockholders per |
|
$ |
0.20 |
|
$ |
0.14 |
|
$ |
0.77 |
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO attributable to common |
|
$ |
0.20 |
|
$ |
0.16 |
|
$ |
0.86 |
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding |
|
|
189,172 |
|
|
200,185 |
|
|
193,613 |
|
|
201,739 |
|
Shares associated with unvested restricted stock |
|
|
776 |
|
|
2,048 |
|
|
839 |
|
|
1,204 |
|
Diluted weighted average shares outstanding |
|
|
189,948 |
|
|
202,233 |
|
|
194,452 |
|
|
202,943 |
|
|
||||||
|
Reconciliation of Net Income to Non-GAAP Financial Measures |
||||||
|
Guidance for Full Year 2026 |
||||||
|
(Unaudited and in thousands, except for per share amounts) |
||||||
|
|
||||||
|
Reconciliation of Net Income to Adjusted EBITDAre |
||||||
|
|
||||||
|
|
|
Year Ended |
||||
|
|
|
|
||||
|
|
|
|
Low |
|
|
High |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
21,000 |
|
$ |
46,000 |
|
Depreciation and amortization |
|
|
136,500 |
|
|
136,500 |
|
Interest expense |
|
|
54,500 |
|
|
54,500 |
|
Income tax provision |
|
|
1,000 |
|
|
1,000 |
|
Amortization of deferred stock compensation |
|
|
10,000 |
|
|
10,000 |
|
Pre-opening costs |
|
|
2,000 |
|
|
2,000 |
|
Adjusted EBITDAre |
|
$ |
225,000 |
|
$ |
250,000 |
|
|
||||||
|
Reconciliation of Net Income to Adjusted FFO Attributable to Common Stockholders |
||||||
|
|
||||||
|
|
|
Year Ended |
||||
|
|
|
|
||||
|
|
|
|
Low |
|
|
High |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
21,000 |
|
$ |
46,000 |
|
Preferred stock dividends |
|
|
(16,500) |
|
|
(16,500) |
|
Real estate depreciation and amortization |
|
|
136,000 |
|
|
136,000 |
|
Amortization of deferred stock compensation |
|
|
10,000 |
|
|
10,000 |
|
Pre-opening costs |
|
|
2,000 |
|
|
2,000 |
|
Amortization of intangibles, net |
|
|
500 |
|
|
500 |
|
Adjusted FFO attributable to common stockholders |
|
$ |
153,000 |
|
$ |
178,000 |
|
|
|
|
|
|
|
|
|
Adjusted FFO attributable to common stockholders per diluted share |
|
$ |
0.81 |
|
$ |
0.94 |
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding |
|
|
190,000 |
|
|
190,000 |
|
|
|||||||||||||
|
Non-GAAP Financial Measures |
|||||||||||||
|
|
|||||||||||||
|
(Unaudited and in thousands) |
|||||||||||||
|
|
|||||||||||||
|
|
|
Quarter Ended |
|
Year Ended |
|
||||||||
|
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24.6 % |
|
|
23.0 % |
|
|
25.7 % |
|
|
26.0 % |
|
|
|
|
|
25.5 % |
|
|
23.3 % |
|
|
26.7 % |
|
|
26.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual revenues |
|
$ |
236,966 |
|
$ |
214,770 |
|
$ |
960,126 |
|
$ |
905,809 |
|
|
Prior ownership hotel revenues (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
17,737 |
|
|
Sold hotel revenues (2) |
|
|
— |
|
|
(4,117) |
|
|
(7,448) |
|
|
(14,135) |
|
|
|
|
|
236,966 |
|
|
210,653 |
|
|
952,678 |
|
|
909,411 |
|
|
Andaz Miami Beach revenues (3) |
|
|
(11,063) |
|
|
(170) |
|
|
(18,836) |
|
|
(4,458) |
|
|
|
|
$ |
225,903 |
|
$ |
210,483 |
|
$ |
933,842 |
|
$ |
904,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
7,217 |
|
$ |
836 |
|
$ |
24,568 |
|
$ |
43,262 |
|
|
Non-hotel operating expenses, net (4) |
|
|
(290) |
|
|
(360) |
|
|
(1,261) |
|
|
(1,240) |
|
|
Property-level adjustments (5) |
|
|
76 |
|
|
2,467 |
|
|
7,088 |
|
|
2,952 |
|
|
Corporate overhead |
|
|
7,369 |
|
|
5,787 |
|
|
31,590 |
|
|
29,050 |
|
|
Depreciation and amortization |
|
|
34,180 |
|
|
32,666 |
|
|
134,508 |
|
|
124,507 |
|
|
Interest and other income |
|
|
(3,940) |
|
|
(1,873) |
|
|
(10,964) |
|
|
(13,179) |
|
|
Interest expense |
|
|
13,707 |
|
|
10,440 |
|
|
52,965 |
|
|
50,125 |
|
|
Loss (gain) on sale of assets, net |
|
|
— |
|
|
— |
|
|
8,751 |
|
|
(457) |
|
|
Loss (gain) on extinguishment of debt |
|
|
— |
|
|
— |
|
|
180 |
|
|
(59) |
|
|
Income tax (benefit) provision, net |
|
|
(56) |
|
|
(17) |
|
|
216 |
|
|
(1,100) |
|
|
|
|
|
58,263 |
|
|
49,946 |
|
|
247,641 |
|
|
233,861 |
|
|
Prior ownership hotel Adjusted EBITDAre (1) |
|
|
— |
|
|
— |
|
|
— |
|
|
7,232 |
|
|
Sold hotel Adjusted EBITDAre (2) |
|
|
— |
|
|
(1,597) |
|
|
(3,049) |
|
|
(4,638) |
|
|
|
|
|
58,263 |
|
|
48,349 |
|
|
244,592 |
|
|
236,455 |
|
|
Andaz Miami Beach Adjusted EBITDAre (3) |
|
|
(630) |
|
|
684 |
|
|
4,668 |
|
|
1,965 |
|
|
|
|
$ |
57,633 |
|
$ |
49,033 |
|
$ |
249,260 |
|
$ |
238,420 |
|
|
|
|
|
(1) |
Prior ownership hotel revenues and Adjusted EBITDAre include results for the |
|
(2) |
Sold hotel revenues and Adjusted EBITDAre includes results for the |
|
(3) |
Andaz Miami Beach was undergoing a transformational renovation, and results are not comparable to the prior period. |
|
(4) |
Non-hotel operating expenses, net include the amortization of hotel real estate-related right-of-use assets and obligations. Non-hotel operating expenses, net also include prior year property tax credits related to sold hotels. |
|
(5) |
Property-level adjustments include non-operational and nonrecurring items. Adjustments primarily include pre-opening costs at Andaz Miami Beach. |
View original content:https://www.prnewswire.com/news-releases/sunstone-hotel-investors-reports-results-for-fourth-quarter-and-full-year-2025-302699094.html
SOURCE
