Sunstone Hotel Investors Q1 Profit Beats Estimates - Quick Facts

(RTTNews) - Sunstone Hotel Investors, Inc. (SHO) reported a first quarter loss to shareholders of $3.3 million or $0.02 per share, compared to a loss of $8.0 million or $0.04 per share, prior year. FFO increased to $39.5 million from $31.7 million. Adjusted FFO available to common stockholders per share was $0.22, for the quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.19 for the quarter. Analysts' estimates typically exclude special items.

Revenue increased to $284.4 million from $247.4 million last year. Analysts expected revenue of $269.59 million for the quarter. Adjusted Comparable Hotel RevPAR increased 7.0% to $150.12.

John Arabia, CEO, stated, "Our portfolio exceeded our first quarter expectations driven by a combination of stronger than anticipated group demand, continued gains in food and beverage, increased ancillary income, solid expense control and margin expansion. With the exception of the New York City market, which continues to lag other U.S. major markets, our portfolio continues to demonstrate strong revenue growth, resulting in an increase to the midpoint of our 2015 Adjusted EBITDA and Adjusted FFO guidance."

The company now expects full year 2015 adjusted FFO per share to be in the range of $1.26 - $1.32. Analysts expect the company to report 2015 earnings per share of $1.29.

For the second-quarter, the company expects adjusted FFO per share in the range of $0.40 - $0.42. Analysts expect the company to report second-quarter earnings per share of $0.41.

The company expects to continue to pay a regular quarterly dividend of $0.05 per share of common stock throughout 2015. To the extent that the expected regular quarterly dividends for 2015 do not satisfy the company's annual distribution requirements, the company expects to satisfy the annual distribution requirement by paying a "catch up" dividend in January 2016, which dividend may be paid in cash and/or a combination of cash and shares of common stock.