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Sunstone Hotel Investors, Inc. (SHO) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2019

SEC Filings

Sunstone Hotel Investors, Inc.

CIK: 1295810 Ticker: SHO

 

Exhibit 99.1

2007 Logo Med

For Additional Information:

Bryan Giglia

Sunstone Hotel Investors, Inc.

(949) 382-3036

 

Aaron Reyes

Sunstone Hotel Investors, Inc.

(949) 382-3018

 

SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR FOURTH QUARTER AND FULL YEAR 2019

 

IRVINE, CA  – February 18, 2020 – Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the hospitality sector, today announced results for the fourth quarter and year ended December 31, 2019.

 

Fourth Quarter 2019 Operational Results (as compared to Fourth Quarter 2018):

 

·

Net Income: Net income decreased 41.6% to $45.4 million. Excluding the effects of the noncash impairment loss, the one hotel sold during the fourth quarter of 2019 and the three hotels sold during the fourth quarter of 2018, net income would have decreased 1.8%.

·

RevPAR: 20 Hotel Comparable Portfolio RevPAR increased 0.8% to $190.43.

·

Hotel Adjusted EBITDAre Margin: 20 Hotel Comparable Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net decreased 110 basis points to 29.4%.

·

Adjusted EBITDAre:  Adjusted EBITDAre, excluding noncontrolling interest decreased 9.8% to $75.5 million. Excluding the effects of the one hotel sold during the fourth quarter of 2019 and the three hotels sold during the fourth quarter of 2018, Adjusted EBITDAre, excluding noncontrolling interest would have decreased 6.9%.

·

Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 10.3% to $0.26. Excluding the effects of the one hotel sold during the fourth quarter of 2019 and the three hotels sold during the fourth quarter of 2018, the decrease in Adjusted FFO attributable to common stockholders per diluted share would have remained constant at 10.3%.

 

Full Year 2019 Operational Results (as compared to Full Year 2018):

 

·

Net Income: Net income decreased 44.9% to $142.8 million. Excluding the effects of the noncash impairment losses recorded in both 2019 and 2018, the one hotel sold during 2019 and the six hotels sold during 2018, net income would have decreased 7.4%.

·

RevPAR: 20 Hotel Comparable Portfolio RevPAR increased 1.9% to $196.08.

·

Hotel Adjusted EBITDAre Margin: 20 Hotel Comparable Portfolio Adjusted EBITDAre Margin, excluding prior year property tax adjustments, net decreased 50 basis points to 30.4%.

·

Adjusted EBITDAre:  Adjusted EBITDAre, excluding noncontrolling interest decreased 3.5% to $320.2 million. Excluding the effects of the one hotel sold during 2019 and the six hotels sold during 2018, Adjusted EBITDAre, excluding noncontrolling interest would have increased 1.1%.

·

Adjusted FFO: Adjusted FFO attributable to common stockholders per diluted share decreased 4.3% to $1.12. Excluding the effects of the one hotel sold during 2019 and the six hotels sold during 2018, Adjusted FFO attributable to common stockholders per diluted share would have increased 2.1%.

 

John Arabia,  President and Chief Executive Officer, stated, “During the fourth quarter, our portfolio achieved better-than-expected operating results and superior RevPAR performance relative to the U.S. lodging average. We continue to realize the benefits from the long-term investments we made over the past few years as they have resulted in value appreciation and earnings growth. The better-than-expected fourth quarter performance resulted in RevPAR growth and profitability above the high-end of our guidance range.”

 

Mr. Arabia continued, “We expect the challenging operating environment – the combination of modest revenue growth and elevated expense growth – to persist in 2020, resulting in pressure on hotel profitability. While the operating environment presents short-term challenges, we remain excited about our geographic footprint, which should result in attractive growth relative to our peers. More

1

 

importantly, our quality portfolio and low-leverage balance sheet provide us with several avenues in which to create long-term stockholder value.” 

 

 

UNAUDITED SELECTED STATISTICAL AND FINANCIAL DATA

($ in millions, except RevPAR, ADR and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended December 31,

 

 

Year Ended December 31,

 

 

2019

   

2018

   

Change

 

 

2019

 

2018

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

$

45.4

 

$

77.8

 

(41.6)

%

 

$

142.8

 

$

259.1

 

(44.9)

%

Income Attributable to Common Stockholders per Diluted Share

$

0.18

 

$

0.32

 

(43.8)

%

 

$

0.54

 

$

1.05

 

(48.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20 Hotel Comparable Portfolio RevPAR (1)

$

190.43

 

$

188.83

 

0.8

%

 

$

196.08

 

$

192.39

 

1.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20 Hotel Comparable Portfolio Occupancy (1)

 

82.5

%

 

82.0

%

50

bps

 

 

83.7

%

 

83.6

%

10

bps

20 Hotel Comparable Portfolio ADR (1)

$

230.83

 

$

230.28

 

0.2

%

 

$

234.26

 

$

230.13

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20 Hotel Comparable Portfolio Adjusted EBITDAre Margin (1) (2)

 

29.4

%

 

30.5

%

(110)

bps

 

 

30.4

%

 

30.9

%

(50)

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAre, excluding noncontrolling interest

$

75.5

 

$

83.6

 

(9.8)

%

 

$

320.2

 

$

331.8

 

(3.5)

%

Adjusted FFO Attributable to Common Stockholders

$

59.0

 

$

66.8

 

(11.6)

%

 

$

254.0

 

$

264.2

 

(3.9)

%

Adjusted FFO Attributable to Common Stockholders per Diluted Share

$

0.26

 

$

0.29

 

(10.3)

%

 

$

1.12

 

$

1.17

 

(4.3)

%


The following information was filed by Sunstone Hotel Investors, Inc. (SHO) on Tuesday, February 18, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Sunstone Hotel Investors, Inc.'s 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statement Of Equity (Parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Equity
Consolidated Statements Of Operations
Commitments And Contingencies
Commitments And Contingencies (Tables)
Commitments And Contingencies - Management Fees, Franchise Costs And Renovation Commitments (Details)
Commitments And Contingencies - Other Commitments And Concentration Of Risk (Details)
Disposals And Discontinued Operations
Disposals And Discontinued Operations (Tables)
Disposals And Discontinued Operations - Discontinued Operations (Details)
Disposals And Discontinued Operations - Disposals (Details)
Fair Value Measurements And Interest Rate Derivatives
Fair Value Measurements And Interest Rate Derivatives (Tables)
Fair Value Measurements And Interest Rate Derivatives - Fair Value Measurements (Details)
Fair Value Measurements And Interest Rate Derivatives - Fair Value Of Debt (Details)
Fair Value Measurements And Interest Rate Derivatives - Interest Rate Derivatives (Details)
Income Taxes
Income Taxes (Details)
Income Taxes (Tables)
Income Taxes - Characterization Of Distributions (Details)
Investment In Hotel Properties
Investment In Hotel Properties (Details)
Investment In Hotel Properties (Tables)
Investment In Hotel Properties - Intangible Assets (Details)
Leases
Leases (Tables)
Leases - Components Of Lease Cost (Details)
Leases - Future Maturities Of Lease Liabilities (Details)
Leases - Lessee Information Prior To The Adoption Of Asu 2016-02 (Details)
Leases - Lessor Information (Details)
Leases - Supplemental Balance Sheet Information Related To Leases (Details)
Leases - Supplemental Cash Flow Information Related To Leases (Details)
Long-Term Incentive Plan
Long-Term Incentive Plan (Details)
Long-Term Incentive Plan (Tables)
Notes Payable
Notes Payable (Details)
Notes Payable (Tables)
Notes Payable - Deferred Financing Costs, Loss On Extinguishment Of Debt And Interest Expense (Details)
Notes Payable - Transactions (Details)
Organization And Description Of Business
Organization And Description Of Business (Details)
Organization And Description Of Business (Tables)
Other Assets
Other Assets (Details)
Other Assets (Tables)
Other Current Liabilities And Other Liabilities
Other Current Liabilities And Other Liabilities (Details)
Other Current Liabilities And Other Liabilities (Tables)
Quarterly Operating Results (Unaudited)
Quarterly Operating Results (Unaudited) (Details)
Quarterly Operating Results (Unaudited) (Tables)
Schedule Iii-Real Estate And Accumulated Depreciation
Schedule Iii-Real Estate And Accumulated Depreciation (Details)
Schedule Iii-Reconciliation Of Carrying Amounts And Accumulated Depreciation (Details)
Stockholders' Equity
Stockholders' Equity (Tables)
Stockholders' Equity - Common Stock (Details)
Stockholders' Equity - Dividends (Details)
Stockholders' Equity - Preferred Stock (Details)
Subsequent Events
Subsequent Events (Details)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (Policies)
Summary Of Significant Accounting Policies (Tables)
Summary Of Significant Accounting Policies - (Details)
Summary Of Significant Accounting Policies - Adoption Of New Lease Standard (Details)
Summary Of Significant Accounting Policies - Earnings Per Share (Details)
Ticker: SHO
CIK: 1295810
Form Type: 10-K Annual Report
Accession Number: 0001558370-20-000962
Submitted to the SEC: Wed Feb 19 2020 12:32:01 PM EST
Accepted by the SEC: Wed Feb 19 2020
Period: Tuesday, December 31, 2019
Industry: Hotels And Motels

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