Sunstone Hotel: Fourth Quarter Financial Highlights

Sunstone Hotel Investors Surpasses Q4 Profit Expectations

Sunstone Hotel Investors Inc., headquartered in Aliso Viejo, California, announced its fourth-quarter financial results on Friday, revealing stronger profitability than analysts had anticipated.

The real estate investment trust (REIT) reported funds from operations totaling $38.9 million for the quarter, which translates to $0.20 per share. This figure exceeded the consensus estimate of $0.18 per share, according to a survey of three analysts by Zacks Investment Research.

Funds from operations, a key performance indicator for REITs, is calculated by adjusting net income to add back expenses such as depreciation and amortization.

During the same period, Sunstone Hotel Investors posted a net income of $3.2 million, or $0.02 per share.

The company also reported quarterly revenue of $237 million, outpacing the $227.2 million expected by analysts polled by Zacks.

For the full year, Sunstone Hotel Investors generated $167.8 million in funds from operations and reported total revenue of $960.1 million.

Looking ahead, the company projects its funds from operations for the upcoming year to fall between $0.81 and $0.94 per share.