SUNSTONE HOTEL INVESTORS REPORTS RESULTS FOR THIRD QUARTER 2025
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- Distribution Overview: Sunstone Hotel Investors announced a common stock distribution of $0.09 per share payable on January 15, 2025, indicating the company's ongoing cash flow and profitability.
- Tax Treatment Details: The 2025 distribution will be treated across two tax years, with approximately 66.67% ($0.06) taxable in 2025 and 33.33% ($0.03) in 2026, reflecting the company's transparency regarding tax implications for shareholders.
- Preferred Stock Dividends: Series H and Series I preferred stocks will have distributions of $0.382813 and $0.356250 per share, respectively, showcasing stable returns for preferred shareholders and enhancing investor confidence.
- Shareholder Advisory: The company encourages shareholders to consult personal tax advisors for clarity on the specific tax treatment of distributions, demonstrating its commitment to shareholder interests.

- Earnings Release Schedule: Sunstone Hotel Investors plans to report its Q4 and full year 2025 financial results on February 27, 2026, before market opens, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Timing: Management will hold a quarterly conference call at 12:00 p.m. Eastern Time on the same day to provide detailed insights into the financial results and address investor inquiries, thereby enhancing investor confidence.
- Webcast Availability: The conference call will be available via a live webcast through the company's Investor Relations section, ensuring that all stakeholders can access real-time information, which improves accessibility and transparency.
- Company Background: Sunstone Hotel Investors is a lodging real estate investment trust (REIT) focused on acquiring and actively managing well-located hotel and resort properties, reflecting its robust positioning in the industry aimed at creating long-term shareholder value.
Dividend Predictability: Dividend amounts for companies like Sunstone Hotel Investors Inc are influenced by profitability, making them unpredictable; the recent dividend yield is 3.9%.
Volatility and Options Trading: The stock's historical volatility is calculated at 31%, which can inform decisions on selling covered calls at the $10 strike price.
Options Market Activity: On a recent trading day, the put volume among S&P 500 components was 1.16M contracts, while call volume was significantly higher at 2.53M, indicating a preference for calls.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
CHLA's Advocacy Focus: The California Hotel and Lodging Association (CHLA) is prioritizing business advocacy for over 6,000 hotels and 235,000 employees in California, addressing issues like predatory lawsuits and unsustainable wage mandates.
Leadership Transition: Kristi Allen has been appointed as the new chair of CHLA, succeeding Cormac O'Modhrain, with a newly elected board of directors aimed at enhancing advocacy efforts for the hospitality industry.
Stock Performance: Sunstone Hotel Investors Inc's 5.70% Series I Cumulative Preferred Stock (SHO.PRI) is down approximately 3% in Thursday trading, while the common shares (SHO) have decreased by about 0.6%.
Dividend History: A chart detailing the historical dividend payments for Sunstone Hotel Investors Inc's 5.70% Series I Cumulative Preferred Stock is provided, showcasing its dividend history.
Third Quarter Financial Performance: Sunstone Hotel Investors reported a net income of $1.3 million for Q3 2025, down from $3.2 million in Q3 2024, with a 2.0% increase in total portfolio RevPAR to $216.12, while adjusted EBITDA decreased by 6.6% to $50.1 million.
Operational Challenges and Market Performance: The CEO noted ongoing challenges in larger markets but highlighted stronger performance in San Francisco, which helped mitigate weaker demand in other areas, particularly from government-related travel.
Debt Management and Financial Flexibility: The company successfully recast its credit facilities, addressing all debt maturities through 2028 and lowering borrowing costs, which enhances financial flexibility amid a mixed macroeconomic outlook.
Stock Repurchase and Future Outlook: Sunstone has repurchased over 11 million shares year-to-date and plans to maintain its dividend policy, while its 2025 guidance remains unchanged despite potential impacts from government shutdowns and economic conditions.








