Sunstone Hotel Investors (SHO) Company presentation summary

Recent financial and operational highlights

• Achieved Q2 2026 Adjusted EBITDAre of $77 million (+6% YoY) and Adjusted FFO per share of $0.32 (+14% YoY), surpassing expectations and raising full-year guidance.

• Sold Hyatt Regency San Francisco for $279 million, nearly $340,000 per key, at a 20x trailing earnings multiple.

• Repurchased $40 million of common stock and $30 million of preferred stock at significant discounts, enhancing shareholder value.

• Andaz Miami Beach renovation is ramping up as expected, with strong earnings growth potential through 2028.

• Maintains strong liquidity with pro forma net debt & preferred equity to EBITDA at 3.6x and no debt maturities before 2028.

Portfolio and investment strategy

• Portfolio is geographically diversified across major convention, resort, and urban markets, with 13 hotels and 6,178 rooms.

• Focuses on investing in hotels with value-add potential, capital recycling, and returning capital to shareholders.

• Recent capital recycling includes high-value asset sales and redeployment into acquisitions and share repurchases, creating over $100 million in value.

• Brand conversion of Hilton Key West Resort & Marina expected to drive incremental earnings and value creation.

• Ongoing renovations and repositionings, such as Andaz Miami Beach, are expected to deliver $28–$31 million annual EBITDA upon stabilization.

Capital allocation and shareholder returns

• Over $590 million returned to shareholders since 2022 via dividends and share repurchases.

• Quarterly common dividend raised by 29% to $0.09 per share in Q2 2024, now 80% higher than at the start of 2022.

• Nearly 16% of common stock repurchased since 2022 at a blended price of $9.57 per share, a discount to NAV.

• Balance sheet flexibility supports further capital returns and potential dividend increases.