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

Key Points

• Quarterly dividend of $0.09 declared, payable April 15 to shareholders of record on March 31 (ex-dividend date March 31), representing an annualized $0.36 payment and about a 4.0% yield.
• Payout sustainability is mixed: Sunstone currently has a payout ratio of 189.5%, indicating dividends exceed earnings and are being covered by the balance sheet, but analysts forecast $0.97 EPS next year which would lower the projected payout ratio to roughly 37.1%.
• Recent results and portfolio: Sunstone beat the quarter with $0.20 EPS vs. $0.18 expected and revenue of $236.97M, set FY2026 EPS guidance of $0.81–$0.94, and owns about 97 hotels (~25,000 rooms).

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) announced a quarterly dividend on Thursday, February 26th. Investors of record on Tuesday, March 31st will be given a dividend of 0.09 per share by the real estate investment trust on Wednesday, April 15th. This represents a c) dividend on an annualized basis and a yield of 4.0%. The ex-dividend date of this dividend is Tuesday, March 31st.

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% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Sunstone Hotel Investors to earn $0.97 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 37.1%.

Sunstone Hotel Investors Trading Down 3.2%

SHO stock opened at $8.96 on Friday. The business has a fifty day moving average price of $9.18 and a 200 day moving average price of $9.23. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.94 and a quick ratio of 2.94. Sunstone Hotel Investors has a fifty-two week low of $7.45 and a fifty-two week high of $10.27. The stock has a market capitalization of $1.69 billion, a price-to-earnings ratio of 223.93, a P/E/G ratio of 2.46 and a beta of 0.97.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last posted its quarterly earnings data on Friday, February 27th. The real estate investment trust reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.02. Sunstone Hotel Investors had a return on equity of 1.44% and a net margin of 2.56%.The company had revenue of $236.97 million for the quarter, compared to analyst estimates of $226.18 million. During the same quarter in the previous year, the firm earned $0.16 earnings per share. The business's revenue was up 10.3% on a year-over-year basis. Sunstone Hotel Investors has set its FY 2026 guidance at 0.810-0.940 EPS. Analysts expect that Sunstone Hotel Investors will post 0.79 EPS 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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