Financial Position - The company had total cash of $185.7 million, including $76.5 million of restricted cash, and access to an undrawn $500.0 million credit facility[24]. - As of December 31, 2025, the company reported no known instances of material cybersecurity incidents in the prior three fiscal years[82]. - As of December 31, 2025, the company had $930.0 million of outstanding debt, with maturities including $65.0 million in 2026, $105.0 million in 2028, and $760.0 million in 2031[148]. - The company anticipates needing to refinance debt, and failure to do so on favorable terms could harm financial condition and cash available for distributions[154]. - The company is required to distribute at least 90% of its REIT taxable income to avoid taxation, which may limit cash available for other purposes[157]. Operational Strategy - The company aims to maintain appropriate leverage and financial flexibility to create value throughout all phases of operating and financial cycles[23]. - The company focuses on disciplined capital recycling and may opportunistically sell hotels that no longer fit its strategy or have reached the end of their investment lifecycle[21]. - The company employs a proactive asset management program to enhance the value of its real estate and maximize operational efficiency[20]. - The company has a highly experienced team overseeing asset management, investments, and corporate administration[24]. - The company operates hotels under long-term management agreements with recognized brands such as Marriott, Hyatt, and Four Seasons[18]. Market and Economic Conditions - The hotel industry is highly competitive, with significant risks from economic slowdowns, political disputes, and natural disasters affecting performance[68]. - Inflation impacts the company's expenses, including wages, food costs, and property taxes, which may increase at higher rates than revenue[58][59]. - Inflation in the U.S. and Europe rose to levels not seen in decades in 2022, potentially impacting consumer confidence and increasing operational costs[78]. - A significant portion of hotels are geographically concentrated, making them vulnerable to local economic conditions and natural disasters[68]. - The reliance on large corporate customers for group and transient business poses risks, as losing such customers could adversely affect operating results[68]. Environmental and Corporate Responsibility - The company is committed to corporate responsibility, focusing on environmental sustainability, social responsibility, and corporate governance, with initiatives aimed at reducing energy, water, and waste impacts[50][53]. - The company has invested in initiatives to reduce greenhouse gas emissions, including LED lighting retrofits and solar power installations, and publishes an annual Corporate Responsibility Report[53]. - The company is subject to various environmental regulations and may face substantial costs for remediation of hazardous substances, which could affect its ability to sell properties or borrow against them[55][56]. - Compliance with environmental laws and regulations may impose significant costs and liabilities on the company, affecting its financial results[134]. Employee and Workforce Management - As of December 31, 2025, the company had 37 employees, with females constituting approximately 51% and ethnic and racial minorities making up about 41% of the workforce[45][48]. - The company emphasizes competitive compensation and benefits to attract and retain skilled employees, including subsidized medical, dental, and vision insurance, a stock grant program, and a 401(k) savings plan[51][47]. - The company has a hybrid work schedule and offers additional benefits such as gym memberships and discounts on hotel rooms[51]. Risks and Challenges - System security risks, including cyber-attacks, could disrupt operations and negatively impact revenue and reputation[79]. - The company may face challenges in acquiring or disposing of hotels due to competition from institutional investors and other REITs[71]. - The operating results of upper upscale and luxury hotels are more susceptible to economic downturns compared to lower-priced hotels[75]. - The company may incur significant capital expenditures for renovations and improvements, which could exceed expectations due to inflation and supply chain disruptions[68]. - The company faces risks associated with climate change, including potential increases in operational costs and property damage due to severe weather events[87]. Financial Performance and Shareholder Returns - Quarterly cash dividends for common stock were paid as follows: $0.05 in January 2023, $0.13 in January 2024, and $0.09 in January 2025[174]. - The common stock price fluctuated from a low of $7.72 to a high of $12.10 during 2025[173]. - The board of directors has authorized a stock repurchase program up to an aggregate amount of $500 million[180]. - The company may issue additional shares of common stock to raise capital for various corporate purposes[178]. - The company intends to distribute at least 90% of its REIT taxable income annually to maintain its REIT status, with cash dividends expected to continue in 2026[209]. Cybersecurity Management - The board of directors oversees cybersecurity risk management, with quarterly reports provided by management on cybersecurity risks and incidents[198][199]. - The company's cybersecurity risk management program includes risk assessments, incident response plans, and employee training[196][197]. - The information technology department has over 20 years of experience and employs the latest security technologies to monitor and assess cybersecurity threats[201]. - The company has not identified any material risks from known cybersecurity threats that have affected its operations or financial condition[197].

Financial Data and Key Metrics Changes - The fourth quarter operating results exceeded expectations, with total RevPAR growth of 7.4% in the quarter, or 12.5% including contributions from Andaz Miami Beach [5][19] - Rooms RevPAR grew by 9.6% in the quarter, with a 540 basis point benefit from Andaz Miami Beach [19] - Adjusted EBITDAre for the fourth quarter was reported at $57 million, and Adjusted FFO was $0.20 per diluted share [19][24] Business Line Data and Key Metrics Changes - Resorts led the portfolio with a 19% RevPAR growth in Maui, while Andaz Miami Beach outperformed expectations [6][7] - Montage Healdsburg achieved 15% total RevPAR growth in the quarter, and Marriott Long Beach Downtown generated 12% growth [7][8] - Urban hotels showed less robust top-line growth, but margins improved due to cost control measures [8][10] Market Data and Key Metrics Changes - The Portland market showed nearly 13% growth, while Boston and New Orleans faced softer markets [7] - Group revenue production in Orlando increased over 10% last year, indicating a strong start for 2026 [9] - The Washington D.C. market faced challenges due to government spending cuts and a government shutdown, impacting performance [10][12] Company Strategy and Development Direction - The company is focused on three strategic objectives: recycling capital, investing in the portfolio, and returning capital to shareholders [4][14] - The management team is committed to maximizing shareholder value through asset sales and stock repurchases [27] - The company plans to continue executing its capital recycling strategy while remaining disciplined in capital allocation [18][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, citing strong early performance from Andaz Miami Beach and positive signs in Northern California [11][12] - The company anticipates RevPAR growth of 4% to 7% for rooms and 3.5% to 6.5% for total RevPAR in 2026 [22][23] - Management highlighted potential headwinds from softer transient demand in San Diego and uncertainty in D.C. [12][13] Other Important Information - The company returned over $170 million to shareholders through dividends and share repurchases [5] - The board has reauthorized a $500 million share repurchase program [25] - The company has a strong balance sheet with over $200 million in cash and total liquidity exceeding $700 million [20][21] Q&A Session Questions and Answers Question: Can you walk through the 1.5% midpoint of 2026 RevPAR growth ex-Andaz? - Management noted that Maui is seeing growth, and the transient demand is up about 53%, which will help cover shortfalls [32][33] Question: Can you discuss the expense growth implied in guidance? - Management indicated that total expense growth is around 3%, with labor costs decreasing slightly and energy prices increasing [36][39] Question: Are you expecting to be a net seller of assets? - Management confirmed that they are looking to realize private market values for hotels and resorts, continuing their strategy of recycling assets [44][47] Question: Why is total RevPAR guidance lower than RevPAR outlook? - Management explained that larger assets in D.C. and San Diego are impacting group business and ancillary spend, affecting total RevPAR [51][52] Question: What is the impact of the sale process on operations? - Management stated that the management contracts for hotels remain in place, so day-to-day operations are not impacted [72][73]

Financial Data and Key Metrics Changes - The fourth quarter operating results exceeded expectations, with total RevPAR growth of 7.4%, or 12.5% including contributions from Andaz Miami Beach [8][31] - Adjusted EBITDAre for the fourth quarter was reported at $57 million, with Adjusted FFO of $0.20 per diluted share [32] - Full-year earnings were ahead of the midpoint of guidance, with comparable portfolio margin growth of 40 basis points on total RevPAR growth of 3.5% [17][32] Business Line Data and Key Metrics Changes - Resorts led the portfolio with a 19% RevPAR growth in Maui, while Andaz Miami Beach outperformed expectations [9][10] - Urban hotels showed mixed results, with Marriott Long Beach Downtown achieving 12% RevPAR growth, but Boston and New Orleans faced challenges [12][13] - Convention hotels reported RevPAR growth of 2.8%, with San Francisco being a standout performer [13] Market Data and Key Metrics Changes - The Wailea Beach Resort saw a significant recovery, with a RevPAR index increase of 17 points sequentially into the fourth quarter [26] - Group revenue production in Orlando increased over 10% last year, indicating a positive trend for future performance [15] - The D.C. market faced headwinds from government spending cuts and a government shutdown, impacting overall performance [16][102] Company Strategy and Development Direction - The company is focused on three strategic objectives: recycling capital, investing in the portfolio, and returning capital to shareholders [5][23] - The management team is committed to maximizing shareholder value through asset sales and stock repurchases [43][65] - The company anticipates continued growth from operations and investment projects, despite a cautious outlook for certain markets [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, expecting rooms RevPAR to increase between 4% and 7% [35] - The company noted potential headwinds from softer transient demand in San Diego and uncertainty in D.C. [20] - Positive signs of market recovery were highlighted, particularly in Northern California and Maui [19][20] Other Important Information - The company has over $200 million in cash and cash equivalents, with total liquidity exceeding $700 million [33][34] - A common dividend of $0.09 per share has been authorized for the first quarter, alongside a repurchase program reauthorized up to $500 million [40][41] Q&A Session Summary Question: Can you discuss the 1.5% midpoint of 2026 RevPAR growth ex-Andaz? - Management noted that Maui is showing growth, with a stabilization in the Kaanapali market, and transient demand is up [47][48] Question: What is the expense growth implied in guidance? - Expense growth is expected around 3%, with labor costs decreasing slightly and energy prices increasing [52][56] Question: Are you expecting to be a net seller of assets? - Management indicated a pickup in transactions and a focus on realizing private market values for assets [62][65] Question: Why is total RevPAR guidance lower than RevPAR outlook? - The impact of renovations and group business limitations in D.C. and San Diego were cited as factors [70][71] Question: What is the outlook for the San Diego market? - Management reported positive signs of recovery in transient demand, particularly from government contractors [75] Question: Can you elaborate on the operating environment's impact on guidance? - Management highlighted potential headwinds from government-related events and positive signs from transient demand recovery [101][102]

Financial Data and Key Metrics Changes - The fourth quarter operating results exceeded expectations, with total RevPAR growth of 7.4% in the quarter, or 12.5% including the contribution from Andaz Miami Beach [5][21] - Adjusted EBITDAre for the fourth quarter was reported at $57 million, with Adjusted FFO of $0.20 per diluted share [21] - The company maintained a strong balance sheet with net leverage of 3.5 times trailing earnings, or 4.7 times including preferred equity [22] Business Line Data and Key Metrics Changes - Resorts led the portfolio with a 19% RevPAR growth in Maui, while Andaz Miami Beach outperformed expectations [6][7] - Urban hotels showed mixed results, with Marriott Long Beach Downtown achieving 12% RevPAR growth, but Boston and New Orleans faced softer markets [8][9] - Convention hotels experienced RevPAR growth of 2.8%, with San Francisco being a standout performer [9] Market Data and Key Metrics Changes - The company noted a recovery in the Northern California market and positive signs in Wailea, with expectations for industry-wide lift from upcoming events [12][13] - The D.C. market faced challenges due to government spending cuts and a shutdown, impacting performance [11][76] - Transient demand in San Diego showed improvement, with early signs of recovery noted in January and February [13][55] Company Strategy and Development Direction - The company is focused on three strategic objectives: recycling capital, investing in the portfolio, and returning capital to shareholders [4][14] - Plans for 2026 include continued investment in properties and potential asset sales to realize value [29][45] - The company aims to manage costs effectively while pursuing growth opportunities in a cautious market environment [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, expecting rooms RevPAR to increase between 4% and 7% [23] - The company anticipates a strong first quarter due to contributions from Andaz and improved performance in Maui [24] - Management highlighted the importance of controlling costs and managing margins amid inflationary pressures [11][40] Other Important Information - The company returned over $170 million to shareholders through dividends and share repurchases [5] - A common dividend of $0.09 per share was authorized for the first quarter, alongside routine distributions for preferred securities [27] - The board reauthorized a share repurchase program of up to $500 million [27] Q&A Session Summary Question: Can you discuss the 1.5% midpoint of 2026 RevPAR growth excluding Andaz? - Management noted that Maui is seeing growth, and transient demand is improving, which should help cover shortfalls in group business [32][35] Question: What are the key drivers of expense growth in guidance? - Expense growth is expected around 3%, with labor costs decreasing slightly and energy prices increasing [38][40] Question: Is the company expecting to be a net seller of assets? - Management indicated a pickup in transactions and a focus on realizing private market values for assets [45][46] Question: Why is total RevPAR guidance lower than RevPAR outlook? - The company cited challenges in larger assets and group business impacting ancillary spend [50][51] Question: What external events could impact guidance? - Management highlighted potential headwinds from government-related events and positive signs from upcoming celebrations [76][78] Question: Can you elaborate on CapEx guidance? - The largest projects will be front-loaded, with significant spending on meeting space renovations and other maintenance projects [80][81]

Sunstone Hotel Investors (SHO) came out with quarterly funds from operations (FFO) of $0.2 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to FFO of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +9.35%. A quarter ago, it was expected that this hotel real estate investment trust would post FFO of $0.15 per share when it actually produced FFO of $0.17, delivering a surprise of +13.33%.Over th ...

Exhibit 99.2 Supplemental Financial Information For the quarter and year ended December 31, 2025 February 27, 2026 Supplemental Financial Information February 27, 2026 Table of Contents | Corporate Profile And Disclosures Regarding Non-GAAP Financial Measures | 2 | | --- | --- | | Comparable Corporate Financial Information | 6 | | Capitalization | 11 | | Property-Level Data And Operating Statistics | 14 | | Property-Level Revenues, Adjusted EBITDAre & Adjusted EBITDAre Margins | 19 | Supplemental Financial ...

Core Viewpoint - The focus is on building a financial portfolio aimed at achieving financial independence through investments in dividend stocks, which provide a steady income stream [1] Group 1: Investment Strategy - The strategy emphasizes a keen interest in financial markets and continuous learning about various sectors [1] - Dividend stocks are highlighted as a preferred investment choice due to their ability to generate consistent income [1]

Core Viewpoint - The focus is on building a financial portfolio aimed at achieving financial independence through investments in dividend stocks, which provide a steady income stream. Group 1: Financial Strategy - The company aims to create a financial portfolio that supports financial independence [1] - There is a strong interest in financial markets and a commitment to learning about various sectors [1] - Dividend stocks are preferred for their ability to generate consistent income [1]

Core Viewpoint - Sunstone Hotel Investors, Inc. has announced the tax treatment of its 2025 distributions to common stock and preferred stock holders, detailing the taxable amounts for different tax years [1][3]. Distribution Details - The common stock distribution of $0.090000 per share payable on January 15, 2025, will be treated as paid in two tax years, with approximately 33.33% ($0.030000) taxable in 2024 and 66.67% ($0.060000) taxable in 2025 [2][3]. - The common stock distribution of $0.090000 per share payable on January 15, 2026, will be treated as paid in two tax years, with approximately 66.67% ($0.060000) taxable in 2025 and 33.33% ($0.030000) taxable in 2026 [3]. Company Overview - Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) focused on creating long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate [5].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Investment Opportunity - A specific company is highlighted as a potential investment opportunity, possessing critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI data centers [3][7] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the anticipated surge in electricity demand driven by AI technologies [3][6] Energy Demand and Infrastructure - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The company in focus is involved in the U.S. LNG exportation sector, which is expected to grow under the current administration's energy policies [7] Financial Position - The company is noted for being debt-free and holding a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8] - It is trading at less than 7 times earnings, indicating a potentially undervalued investment opportunity in the context of its critical role in the energy sector [10] Market Trends - The article discusses the broader trends of onshoring and tariffs that are influencing the energy and AI sectors, suggesting that this company is well-positioned to capitalize on these developments [5][14] - The influx of talent into the AI field is expected to drive continuous innovation and advancements, further solidifying the importance of energy infrastructure in supporting this growth [12] Conclusion - The company is portrayed as a key player in the intersection of AI and energy, with the potential for significant returns as the demand for AI-driven technologies continues to rise [11][13]