Sunstone Hotel Investors(SHO) - 2025 Q1 - Quarterly Results

Financial Performance - For Q1 2025, total revenues reached $234.065 million, a 9% increase from $214.770 million in Q4 2024[25] - Room revenue for Q1 2025 was $144.921 million, up 8.0% from $133.191 million in Q4 2024[25] - Net income for Q1 2025 was $5.255 million, compared to $836,000 in Q4 2024, reflecting a significant increase[25] - Total operating expenses for Q1 2025 were $217.594 million, an increase from $205.384 million in Q4 2024[25] - Adjusted EBITDAre for Q1 2025 reached $57,256,000, up from $48,093,000 in Q4 2024, indicating a growth of approximately 18%[27] - Total Portfolio Hotel Adjusted EBITDAre for the trailing 12 months was $244,466,000, compared to $232,439,000 for the previous period, showing an increase of about 5.2%[27] - FFO attributable to common stockholders for Q1 2025 was $33,242,000, an increase from $29,155,000 in Q4 2024, representing a growth of approximately 14.3%[28] - Adjusted FFO attributable to common stockholders for Q1 2025 was $41,500,000, compared to $32,020,000 in Q4 2024, marking an increase of about 29.5%[28] - Total portfolio revenues for Q1 2025 reached $234.065 million, an increase from $230.703 million in Q1 2024, reflecting a growth of 1.0%[54] - Adjusted EBITDAre for the total portfolio in Q1 2025 was $60.772 million, compared to $57.399 million in Q1 2024, representing a year-over-year increase of 4.1%[54] - The overall adjusted EBITDAre margin for the total portfolio improved to 26.0% in Q1 2025, up from 24.9% in Q1 2024, indicating a margin expansion of 110 basis points[54] Debt and Equity - Interest expense for Q1 2025 was $12.682 million, compared to $10.440 million in Q4 2024, indicating increased borrowing costs[25] - The market value of common equity decreased to $1,885,477,000 as of March 31, 2025, down from $2,377,768,000 at the end of Q4 2024[34] - Total debt remained stable at $845,000,000 as of March 31, 2025, unchanged from the previous quarter[34] - The total debt to total capitalization ratio increased to 28.1% in Q1 2025, compared to 24.1% in Q4 2024[34] - The average interest rate on total debt was reported at 5.45% as of March 31, 2025[36] - The diluted weighted average shares outstanding for Q1 2025 was 201,624,000, slightly down from 202,233,000 in Q4 2024[28] - The annual dividend rate on Series G preferred stock increased from 3.0% to 4.5% in Q3 2024, and will further increase to 6.5% in Q3 2025[39] Hotel Operations - The company owns 15 hotels with a total of 7,253 rooms as of May 6, 2025[8] - The total portfolio consists of 7,253 rooms across various hotels, with Hilton San Diego Bayfront accounting for 16% of total rooms[44] - The average daily rate (ADR) for Hilton San Diego Bayfront was $288 in Q1 2025, a decrease of 0.7% compared to Q1 2024[49] - The occupancy rate for the total portfolio was 70.1% in Q1 2025, up from 68.9% in Q1 2024[51] - RevPAR for Hyatt Regency San Francisco increased by 8.6% to $232 in Q1 2025 compared to Q1 2024[49] - The Andaz Miami Beach, which reopened in May 2025 after renovation, had an ADR of $270, with a significant impact on overall portfolio statistics[51] - The total revenue per available room (TRevPAR) for the total portfolio increased by 3.2% to $358 in Q1 2025 compared to Q1 2024[51] - The occupancy rate for the Four Seasons Resort Napa Valley was 43.6% in Q1 2025, down from 60.0% in Q1 2024[49] - The company owns 100% of the Hilton San Diego Bayfront following the acquisition of the remaining 25% interest in June 2022[44] Acquisitions and Strategy - The company plans to continue its strategy of acquiring well-located hotel and resort real estate to enhance long-term stakeholder value[8] - The acquisition of the Hyatt Regency San Antonio Riverwalk in April 2024 is included in the financial results for Q1 2025[25] - The company acquired the Hyatt Regency San Antonio Riverwalk in April 2024, which included prior ownership results[51] - The total portfolio included results from 15 hotels in Q1 2025, compared to 14 hotels in Q1 2024, indicating a slight increase in the number of properties contributing to revenues[56] Performance Metrics - Adjusted EBITDAre and hotel Adjusted EBITDAre margins are used to evaluate ongoing performance, excluding certain nonrecurring items[20] - The Hilton San Diego Bayfront reported total revenues of $44.640 million in Q1 2025, with an adjusted EBITDAre of $13.426 million and a margin of 30.1%, down 80 basis points from the previous year[54] - The JW Marriott New Orleans achieved an impressive adjusted EBITDAre margin of 49.9% in Q1 2025, up 1,150 basis points from 38.4% in Q1 2024[54] - The Hyatt Regency San Francisco saw total revenues increase to $24.521 million in Q1 2025, with an adjusted EBITDAre margin of 10.7%, down 120 basis points year-over-year[54] - The total portfolio, excluding renovation hotels, generated revenues of $233.933 million in Q1 2025, with an adjusted EBITDAre of $61.247 million and a margin of 26.2%, up 80 basis points from the previous year[54] - The Andaz Miami Beach, which underwent extensive renovations, reported a significant negative adjusted EBITDAre of $(475,000) in Q1 2025, reflecting a margin decline of 359.8%[56]