Sunstone Hotel Investors, Inc. (NYSE:SHO) Declares Quarterly Dividend of $0.09

Key Points

• Sunstone Hotel Investors declared a quarterly dividend of $0.09 per share, payable January 15 to shareholders of record December 31. The annualized dividend is $0.36, for a stated yield of 2.9%.
• The current dividend payout ratio is 189.5%, meaning earnings alone do not cover the payment. Analysts expect next year’s earnings to support the dividend, with a projected payout ratio of 35.6%.
• Sunstone reported quarterly EPS of $0.20, beating the $0.03 consensus estimate, and revenue of $233.72 million versus expectations of $222.89 million. Analysts’ average rating is “Hold,” with an average price target of $11.43.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) announced a quarterly dividend on Thursday, November 5th. Investors of record on Thursday, December 31st will be paid a dividend of $0.09 per share by the real estate investment trust on Friday, January 15th. This represents a $0.36 annualized dividend and a dividend yield of 2.9%. The ex-dividend date of this dividend is Thursday, December 31st.

Sunstone Hotel Investors has increased its dividend payment by an average of 0.5% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Sunstone Hotel Investors has a dividend payout ratio of 189.5% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Sunstone Hotel Investors to earn $1.01 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 35.6%.

Sunstone Hotel Investors Stock Up 1.1%

Sunstone Hotel Investors stock traded up $0.14 during midday trading on Friday, hitting $12.49. 2,746,545 shares of the company were exchanged, compared to its average volume of 2,272,661. The company has a market cap of $2.32 billion, a PE ratio of 56.77, a price-to-earnings-growth ratio of 2.28 and a beta of 0.99. Sunstone Hotel Investors has a fifty-two week low of $8.69 and a fifty-two week high of $13.08. The company's fifty day moving average price is $11.61 and its 200-day moving average price is $10.62. The company has a debt-to-equity ratio of 0.59, a current ratio of 3.84 and a quick ratio of 3.84.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its quarterly earnings data on Friday, November 6th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.17. The company had revenue of $233.72 million during the quarter, compared to the consensus estimate of $222.89 million. Sunstone Hotel Investors had a net margin of 5.30% and a return on equity of 3.21%. Sunstone Hotel Investors has set its FY 2026 guidance at 1.000-1.030 EPS. On average, research analysts predict that Sunstone Hotel Investors will post 0.99 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

SHO has been the subject of a number of recent analyst reports. Wells Fargo & Company raised shares of Sunstone Hotel Investors to a "strong-buy" rating in a report on Thursday, July 23rd. Evercore set a $13.00 price objective on shares of Sunstone Hotel Investors in a report on Monday, October 26th. Zacks Research cut shares of Sunstone Hotel Investors from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 23rd. Truist Financial raised their target price on Sunstone Hotel Investors from $11.00 to $13.00 and gave the company a "hold" rating in a research note on Thursday, September 10th. Finally, Wall Street Zen lowered Sunstone Hotel Investors from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Sunstone Hotel Investors presently has an average rating of "Hold" and an average target price of $11.43.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc NYSE: SHO is a real estate investment trust that owns and manages hotels in the United States. The company focuses primarily on upscale and upper-upscale properties located in major business, convention, and leisure destinations.

Sunstone's portfolio includes full-service hotels operated under well-known hospitality brands as well as independent properties. Its hotels provide accommodations, restaurants and bars, meeting and event facilities, fitness amenities, and other services designed for business and leisure travelers.

The company has historically pursued ownership of institutional-quality lodging assets in markets with strong travel demand, including coastal gateway cities and popular resort and urban destinations.

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