Sunstone Hotel InvestorsNYSE: SHO

Sunstone Hotel Investors' preferred shares are attractive due to a robust balance sheet and excellent dividend coverage, despite a recent AFFO guidance reduction. The preferred dividends are well-covered, with less than 10% of adjusted AFFO needed, ensuring financial stability even with seasonality impacts. Series H preferred shares offer a higher current yield (6.74%) compared to Series I (6.65%), making them slightly more attractive, though both are 'hold' at best.

ALISO VIEJO, Calif. , Oct. 10, 2024 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) today provided an update on recent operating activity for the third quarter and the estimated resulting impact on its previously provided full-year 2024 outlook.

ALISO VIEJO, Calif. , Sept. 30, 2024 /PRNewswire/ -- Sunstone Hotel Investors, Inc. (the "Company" or "Sunstone") (NYSE: SHO) announced that it will report financial results for the third quarter 2024 on Tuesday, November 12, 2024, before the market opens.

Sunstone Hotel Investors, Inc. (NYSE:SHO ) Q2 2024 Earnings Conference Call August 7, 2024 12:00 PM ET Company Participants Aaron Reyes - Chief Financial Officer Bryan Giglia - Chief Executive Officer Robert Springer - President and Chief Investment Officer Chris Ostapovicz - Chief Operating Officer Conference Call Participants Michael Bellisario - Baird Dori Kesten - Wells Fargo Duane Pfennigwerth - Evercore ISI Smedes Rose - Citi David Katz - Jefferies Chris Darling - Green Street Chris Woronka - Deutsche Bank Floris Van Dijkum - Compass Point Operator Good morning, ladies and gentlemen and thank you for standing by. Welcome to the Sunstone Hotel Investors Second Quarter 2024 Earnings Call.

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Sunstone Hotel Investors (SHO) and Gaming and Leisure Properties (GLPI). But which of these two stocks offers value investors a better bang for their buck right now?

Sunstone manages a high-quality hotel portfolio located in coastal markets. It has good growth prospects and very low leverage, but also a low dividend yield. The valuation is not very attractive, which presents a significant risk for investors.

The Sunstone Hotel Investors, Inc. preferred share price of the Series H has come down from a Q1 spike. Sunstone Hotel Investors reported a net income of $13M in Q1, with a decrease in AFFO per share compared to previous years. Sunstone's redevelopment plan and capital expenditures may cause short-term pain but are expected to result in long-term gains. The anticipated preferred dividend payout ratio is just under 8%.

The latest figures for Sunstone Hotel (SHO) provide a glimpse into the company's performance in the first quarter of 2024, but it could be beneficial to analyze certain important metrics against Wall Street projections and last year's results.

Sunstone Hotel Investors (SHO) reported quarterly funds from operations (FFO) of $0.18 per share, surpassing the Zacks Consensus Estimate of $0.16 per share. This is lower than the FFO of $0.21 per share from the same quarter last year.