DB:UF2

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Sunstone Hotel Investors

Executive Summary

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release has interests in 20 hotels comprised of 10,610 rooms.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Sunstone Hotel Investors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UF2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

UF2

0.1%

DE REITs

1.5%

DE Market


1 Year Return

-41.7%

UF2

9.6%

DE REITs

-1.8%

DE Market

Return vs Industry: UF2 underperformed the German REITs industry which returned 10.7% over the past year.

Return vs Market: UF2 underperformed the German Market which returned -0.7% over the past year.


Shareholder returns

UF2IndustryMarket
7 Day-0.7%0.1%1.5%
30 Day-10.1%2.0%4.3%
90 Day-6.0%15.5%25.1%
1 Year-38.6%-41.7%10.2%9.6%0.2%-1.8%
3 Year-42.3%-50.3%-1.7%-14.2%1.3%-6.9%
5 Year-32.4%-50.0%9.9%-12.5%15.0%-0.2%

Price Volatility Vs. Market

How volatile is Sunstone Hotel Investors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sunstone Hotel Investors undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UF2 (€7.1) is trading below our estimate of fair value (€56.48)

Significantly Below Fair Value: UF2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UF2 is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: UF2 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UF2's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UF2 is good value based on its PB Ratio (0.8x) compared to the DE REITs industry average (1.5x).


Next Steps

Future Growth

How is Sunstone Hotel Investors forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

103.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UF2 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: UF2 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UF2's is expected to become profitable in the next 3 years.

Revenue vs Market: UF2's revenue (15.8% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: UF2's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UF2 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Sunstone Hotel Investors performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UF2 is currently unprofitable.

Growing Profit Margin: UF2 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UF2 is unprofitable, and losses have increased over the past 5 years at a rate of -9.5% per year.

Accelerating Growth: Unable to compare UF2's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: UF2 is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (25.3%).


Return on Equity

High ROE: UF2 has a negative Return on Equity (-1.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is Sunstone Hotel Investors's financial position?


Financial Position Analysis

Short Term Liabilities: UF2's short term assets ($938.3M) exceed its short term liabilities ($186.2M).

Long Term Liabilities: UF2's short term assets ($938.3M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: UF2's debt to equity ratio (54.6%) is considered high.

Reducing Debt: UF2's debt to equity ratio has reduced from 62% to 54.6% over the past 5 years.

Debt Coverage: UF2's debt is well covered by operating cash flow (20.1%).

Interest Coverage: UF2 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Sunstone Hotel Investors's current dividend yield, its reliability and sustainability?

2.55%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate UF2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate UF2's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if UF2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if UF2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: UF2 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of UF2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

John Arabia (50yo)

5.5yrs

Tenure

US$5,568,539

Compensation

Mr. John V. Arabia, CPA serves as the Chief Executive Officer since January 17, 2015 and President since February 15, 2013 at Sunstone Hotel Investors, Inc. and has been its Executive Director since Februa ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD5.57M) is above average for companies of similar size in the German market ($USD1.45M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Arabia
President5.5yrsUS$5.57m0.50% $7.8m
Bryan Giglia
Executive VP & CFO7.42yrsUS$2.61m0.17% $2.6m
Marc Hoffman
Executive VP & COO10.42yrsUS$2.79m0.19% $2.9m
Robert Springer
Executive VP & Chief Investment Officer7.42yrsUS$2.23m0.15% $2.4m
David Klein
Executive VPno dataUS$1.49m0.055% $865.3k
Denise Hertle
Vice President of Corporate Accountingno datano datano data
Aaron Reyes
VP of Corporate Finance & Treasurer2.67yrsno datano data
Michael Harvey
Vice President of Asset Management10.33yrsno datano data
Cormac O'Modhrain
Group Vice President of Asset Managementno datano datano data
Todd Hersperger
Vice President of Asset Managementno datano datano data

7.4yrs

Average Tenure

50yo

Average Age

Experienced Management: UF2's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Arabia
President5.5yrsUS$5.57m0.50% $7.8m
Keith Russell
Independent Director15.75yrsUS$189.38k0.047% $737.3k
Thomas Lewis
Independent Director14.17yrsUS$169.38k0.042% $653.8k
Douglas Pasquale
Independent Non-Executive Chairman of the Board5.17yrsUS$299.02k0.063% $982.8k
Andrew Batinovich
Independent Director8.67yrsUS$189.38k0.041% $639.8k
W. Baird
Independent Director4.25yrsUS$169.38k0.021% $324.6k
Murray McCabe
Independent Director4.25yrsUS$169.38k0.027% $418.2k
Monica Digilio
Independent Director0.25yrno data0.0058% $90.2k

5.8yrs

Average Tenure

60yo

Average Age

Experienced Board: UF2's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UF2 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sunstone Hotel Investors, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunstone Hotel Investors, Inc.
  • Ticker: UF2
  • Exchange: DB
  • Founded: 1995
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: US$1.757b
  • Listing Market Cap: US$1.560b
  • Shares outstanding: 215.64m
  • Website: https://www.sunstonehotels.com

Number of Employees


Location

  • Sunstone Hotel Investors, Inc.
  • 200 Spectrum Center Drive
  • 21st Floor
  • Irvine
  • California
  • 92618
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHONYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2004
UF2DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2004

Biography

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release has interests in 20 hotels comprised of 10,610 rooms. Sunstone's business is to acquire, own, asset manage and renovate or reposition hotels considered to be Long-Term Relevant Real Estate®, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/01 21:47
End of Day Share Price2020/07/01 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.