Sunstone Hotel Investors Expects Adj FFO of $0.84-$0.94 (Prior $0.83-$0.95)

Author: Benzinga Newsdesk | May 06, 2024 07:46am

2024 Outlook

For the full year 2024, the Company expects:

Metric ($ in millions, except per share data)		Prior Full Year 2024 Guidance (1)		Adjustments (2)		Adjusted Prior Full Year 2024 Guidance		Current Full Year 2024 Guidance (3)		Change in Full Year 2024 Guidance Midpoint
Net Income		$46  to  $71		+ $4		$50  to  $75		$56  to  $77		+ $4
Total Portfolio RevPAR Growth (4)		+ 2.5% to + 5.5%		-  0.25 %		+ 2.25% to + 5.25%		+ 2.25% to + 5.25%		0.0 %
Total Portfolio RevPAR Growth, excluding The Confidante Miami Beach (4)		+ 5.0% to + 8.0%		-  0.25 %		+ 4.75% to + 7.75%		+ 4.75% to + 7.75%		0.0 %
Adjusted EBITDAre		$230  to  $255		+ $10		$240  to  $265		$242  to  $263		$0
Adjusted FFO Attributable to Common Stockholders		$159  to  $184		+ $10		$169  to  $194		$171  to  $192		$0
Adjusted FFO Attributable to Common Stockholders per Diluted Share		$0.78  to  $0.90		+ $0.05		$0.83  to  $0.95		$0.84  to  $0.94		$0
Diluted Weighted Average Shares Outstanding		204,500,000		—		204,500,000		204,500,000		—

(1)	Reflects guidance presented on February 23, 2024.
(2)	Includes adjustments to reflect the impact of the recently completed acquisition of the Hyatt Regency San Antonio Riverwalk.
(3)	Detailed reconciliations of Net Income to non-GAAP financial measures are provided later in this release.
(4)	RevPAR Growth reflects comparison to full year 2023.

Full year 2024 guidance is based in part on the following full year assumptions:

• Full year total Adjusted EBITDAre displacement of approximately $13 million to $15 million in connection with planned capital investments.
• Full year interest income of approximately $10 million to $11 million.
• Full year corporate overhead expense (excluding deferred stock amortization) of approximately $21 million to $22 million.
• Full year interest expense of approximately $50 million to $53 million, including approximately $3 million in amortization of deferred financing costs and $2 million of noncash reduction to interest expense from derivatives.
• Full year preferred stock dividends of approximately $15 million to $16 million, which includes the Series G, H and I cumulative redeemable preferred stock.
• The Confidante Miami Beach is expected to reopen as Andaz Miami Beach in the fourth quarter of 2024 and the Company currently anticipates that the resort will generate an EBITDAre loss of approximately $3 million to $5 million, excluding pre-opening and certain capitalized costs, in 2024 as the comprehensive transformation is completed.

Posted In: SHO