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

Key Points

• Sunstone Hotel Investors declared a quarterly dividend of $0.09 per share, payable October 15 to shareholders of record on September 30. The dividend implies an annualized payout of $0.36 and a 3.2% yield.
• The REIT’s current earnings-based payout ratio is high at 189.5%, though analysts expect next year’s earnings to support a more sustainable 36.7% payout ratio.
• Sunstone recently exceeded quarterly earnings expectations, reporting $0.27 EPS versus the $0.22 consensus and $259.71 million in revenue, up 10.9% year over year. Shares traded at $11.30, near the upper end of their 12-month range.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Shareholders of record on Wednesday, September 30th will be given a dividend of 0.09 per share by the real estate investment trust on Thursday, October 15th. This represents a c) annualized dividend and a yield of 3.2%. The ex-dividend date is Wednesday, September 30th.

Sunstone Hotel Investors has raised its dividend 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 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 research analysts expect Sunstone Hotel Investors to earn $0.98 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 36.7%.

Sunstone Hotel Investors Stock Performance

Shares of NYSE:SHO traded down $0.38 during trading on Thursday, hitting $11.30. The stock had a trading volume of 2,544,915 shares, compared to its average volume of 2,187,494. Sunstone Hotel Investors has a 12-month low of $8.61 and a 12-month high of $12.07. The stock has a market capitalization of $2.10 billion, a price-to-earnings ratio of 102.70, a price-to-earnings-growth ratio of 2.51 and a beta of 0.97. The company has a quick ratio of 3.42, a current ratio of 3.42 and a debt-to-equity ratio of 0.58. The stock has a 50-day simple moving average of $11.53 and a two-hundred day simple moving average of $10.20.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.05. The company had revenue of $259.71 million for the quarter, compared to the consensus estimate of $244.29 million. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. Sunstone Hotel Investors's quarterly revenue was up 10.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.21 EPS. On average, equities research analysts expect that Sunstone Hotel Investors will post 0.91 earnings per share for the current fiscal year.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc NYSE: SHO is a publicly traded real estate investment trust (REIT) focused on acquiring, owning and asset‐managing upper‐upscale extended‐stay and premium‐branded hotel properties in the United States. The company's business model centers on generating stable, long‐term cash flows through franchise agreements and third‐party management contracts with established hotel operators.

As of the most recent reporting period, Sunstone's portfolio includes approximately 97 hotels and nearly 25,000 guest rooms across 19 states, with concentrations in major metropolitan and select high‐growth secondary markets.

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