- Sees strengthening demand trends
- Maintains focus on growing portfolio through disciplined
acquisitions
- Looks to enhance portfolio quality through expanded
renovations program
<>
SAN
CLEMENTE, Calif., May
10, 2010 - Sunstone Hotel Investors, Inc. (the "Company") (NYSE: SHO)
today announced results for the first quarter ended March 31, 2010.
RevPAR
and hotel EBITDA margin information presented reflect the Company's
core 29 hotel portfolio on a pro forma basis.
First
Quarter 2010 Operational Results:
- Total
revenue was $160.7
million.
- Pro
forma RevPAR was $94.68.
- Loss
attributable to common stockholders was $26.3 million.
- Loss
attributable to common stockholders per diluted share was $0.27.
- Adjusted
EBITDA was $31.0
million.
- Adjusted
FFO available to common stockholders was $3.9 million.
- Adjusted
FFO available to common stockholders per diluted share was $0.04.
- Pro
forma hotel EBITDA margin was 21.7%.
Art
Buser, President and Chief Executive Officer,
stated, "During the first quarter we saw a reversal of the
negative trends our industry experienced over the last year as demand
rebounded. We believe our well-located portfolio of institutional
quality hotels is positioned to benefit from the recovery. We are
highly focused on growing our portfolio, both through selective
acquisitions of hotels and through disciplined capital investments in
our existing portfolio. Our mission remains to provide lodging
real estate investors with exceptional performance and appropriate
risk. Simply put, Sunstone exists to outperform."
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|
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SELECTED
FINANCIAL DATA
|
|
|
($
in millions, except RevPAR and per share amounts)
|
|
|
(unaudited)
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
|
2010
|
2009
|
%
Change
|
|
|
Total
Revenue
|
$
160.7
|
$
171.4
|
(6.2)%
|
|
|
Pro
forma RevPAR (1)
|
$
94.68
|
$
101.23
|
(6.5)%
|
|
|
Pro
forma hotel EBITDA margin (1)
|
21.7%
|
24.1%
|
(240)
bps
|
|
|
|
|
|
|
|
Income
available (loss attributable) to common stockholders
|
$
(26.3)
|
$
0.9
|
|
|
|
Income
available (loss attributable) to common stockholders per diluted share
|
$
(0.27)
|
$
0.02
|
|
|
|
EBITDA
|
$
30.0
|
$
62.4
|
|
|
|
Adjusted
EBITDA
|
$
31.0
|
$
38.9
|
|
|
|
FFO
available to common stockholders
|
$
(1.0)
|
$
31.3
|
|
|
|
Adjusted
FFO available to common stockholders
|
$
3.9
|
$
7.0
|
|
|
|
FFO
available to common stockholders per diluted share (2)
|
$
(0.01)
|
$
0.60
|
|
|
|
Adjusted
FFO available to common stockholders per diluted share (2)
|
$
0.04
|
$
0.13
|
|
|
|
|
|
|
|
|
(1)
Includes the 29 hotels held for investment by the Company as of March
31, 2010, excluding the Mass Mutual eight hotels reclassified as
"Operations Held for Non-Sale Disposition" on the Company's balance
sheets and statements of operations, and the W San Diego, Renaissance
Westchester
and Marriott Ontario Airport reclassified as discontinued operations on
the Company's balance sheets and statements of operations.
(2)
Reflects Series C convertible preferred stock on a "non-converted"
basis. On an "as-converted" basis, FFO available to common stockholders
per diluted share is $0.01 and $0.58, respectively, for the three
months ended March 31, 2010 and 2009, and Adjusted FFO available to
common stockholders per diluted share is $0.05 and $0.15, respectively,
for the three months ended March 31, 2010 and 2009.
|
|
|
|
|
|
|
The
Company has filed with the Securities and Exchange Commission its
Quarterly Report on Form 10-Q for the quarter endedMarch
31, 2010.
Disclosure
regarding the non-GAAP financial measures in this release is included
on pages 4 and 5. Disclosure regarding the pro forma hotel EBITDA
Margin is included on page 5 of this release. Reconciliations of
non-GAAP financial measures to the most comparable GAAP measure for
each of the periods presented are included on pages 8, 9, and 10 of
this release.
Acquisitions
The
Company continues to analyze a variety of investment opportunities
aimed at enhancing its portfolio quality and growth prospects.
The Company believes the lodging industry may be in the early stage of
a credit-driven acquisitions opportunity, and as a result seller price
expectations currently remain relatively high. During the early
stage of this opportunity, the Company is exploring alternative
structured investments, such as hotel debt or portfolio transactions,
which may ultimately lead to opportunities to acquire quality hotel
assets at meaningful discounts to warranted value.
On April 30, 2010,
the Company purchased two hotel loans with a combined principal amount
of $32.5
million plus
accrued interest of approximately $800,000,
for a total purchase price of $3.7
million. The loans include (i) a $30.0 million,
8.5% mezzanine loan maturing in January
2017 secured by
the equity interests in the Company's Doubletree Guest Suites Times
Square joint venture, and (ii) a $2.5
million, 8.075% subordinate note maturing in November 2010 secured by the 101-room
boutique hotel known as Twelve Atlantic Station in Atlanta Georgia.
The Company purchased the mezzanine loan for $3.45 million and the subordinate note for $250,000. None
of the debt on the Doubletree Guest Suites Times Square is in default,
however interest on the mezzanine loan is currently being deferred in
accordance with the provisions of the loan. The subordinate note
secured by the Twelve Atlantic Station is currently in default. The
Company will account for both loans using the cost recovery method
until such time as the expected cash flows from the loans are
reasonably probable and estimable.
Independent
Hotel Management RFP
During December 2009,
the Company issued a request for proposal ("RFP") to hotel management
companies interested in managing 15 of its hotels currently managed by
Sunstone Hotel Properties, Inc., a division of Interstate Hotels &
Resorts, Inc. The purpose of the RFP was to ensure that the Company has
the most highly qualified management companies operating its hotels in
order to consistently deliver best in class results. The Company
concluded this process in April
2010. Interstate Hotels & Resorts, Inc. will continue to
manage 13 of the Company's 29 hotels. In addition, the Company has
selected Davidson Hotel Company to manage its Embassy Suites Chicago,
and Sage Hospitality Resources to manage its Hilton Del Mar.
Balance
Sheet/Liquidity Update
Ken
Cruse, Chief Financial Officer, stated, "We believe that by
appropriately managing our capital structure for the cycle we stand to
outperform. Our 2010 plan is focused on reducing our excess cash
balance through a disciplined investment process while maintaining
reasonable levels of well staggered, flexible debt. Our objective
is to maximize total returns to our stockholders through enhanced
growth in FFO per share and by expediting the future reintroduction of
cash common dividends when appropriate."
As of March 31, 2010,
the Company had approximately $374.0
million of cash
and cash equivalents, including restricted cash of $40.5 million.
The Company intends to use a portion of its higher than historical cash
balance for acquisition opportunities.
On March 31, 2010,
total assets were $2.5
billion, including $1.9
billion of net
investments in hotel properties, total debt, excluding debt in the
Company's secured debt restructuring program, was $1.1 billion and stockholders' equity was $0.9 billion.
As previously disclosed, the Company is in the process of prepaying the $81.0 million mortgage on its Hilton Times Square,
and expects to complete the prepayment by September 2010.
Financial
Covenants
The
Company is subject to compliance with various covenants under its
Series C preferred stock and its 4.6% Exchangeable Senior Notes due
2027 (the "Senior Notes"). As of March
31, 2010, the Company was in compliance with all covenants
related to its Series C preferred stock and its Senior Notes.
Capital
Improvements
During
the first quarter of 2010, the Company invested $8.6 million in capital improvements to
its portfolio. In light of the industry recovery and in order to
position its portfolio for growth, the Company has expanded its
2010/2011 capital investment plan, and currently intends to invest
approximately $60.0
million to $80.0 million into
capital improvements during 2010. The Company's capital improvements
program is aimed at value-adding renovation and repositioning projects,
including the following:
Embassy
Suites Chicago -
Guest suites, corridors and the lobby to be renovated beginning in the
fourth quarter 2010.
Renaissance Washington DC – Guest rooms and certain
meeting space to be renovated beginning in the third quarter 2010.
Kahler
Grand Rochester -
Deluxe rooms, meeting space and certain public areas to be renovated,
and new energy efficient windows to be installed beginning in late
2010.
Marriott
Tysons Corner -
Guestrooms and exterior to be renovated beginning in late second
quarter 2010.
Dividend
Update
On May 6, 2010,
the Company's board of directors declared a cash dividend of $0.50 per share payable to its
Series A cumulative redeemable preferred stockholders and a cash
dividend of $0.393 per share payable to its
Series C cumulative convertible redeemable preferred stockholders. The
dividends will be paid on July
15, 2010 to
stockholders of record on June
30, 2010. No dividend was declared on the Company's common
stock.
The
Company intends to make dividends on its stock in amounts equivalent to
100% of its annual taxable income. The level of any future dividends
will be determined by the Company's board of directors after
considering taxable income projections, expected capital requirements,
and risks affecting the Company's business. In light of the
Company's intent to distribute 100% of its annual taxable income,
future dividends may be reduced from past levels, or eliminated
entirely. Dividends may be made in the form of cash or a
combination of cash and stock consistent with Internal Revenue Code
regulations.
Earnings
Call
The
Company will host a conference call to discuss first quarter results on May 10, 2010,
at 10:00
a.m. PDT. A live web cast of the call will be available via the
Investor Relations section of the Company's website at www.sunstonehotels.com.
Alternatively, investors may dial 1-877-941-2928 (for domestic callers)
or 1-480-629-9725 (for international callers) with passcode #4285247. A
replay of the web cast will also be archived on the website.
About
Sunstone Hotel Investors, Inc.
Sunstone
Hotel Investors, Inc. ("Sunstone") is a lodging real estate investment
trust ("REIT") that, as of the date hereof, owns 37 hotels comprised of
12,900 rooms and, upon completion of certain previously announced deed
back transactions, will own 29 hotels comprised of 10,966 rooms.
Sunstone's hotels are primarily in the upper upscale segment, and are
generally operated under nationally recognized brands, such as
Marriott, Fairmont, Hilton, and Hyatt. For further information, please
visit Sunstone's website at www.sunstonehotels.com.
This
press release contains forward-looking statements within the meaning of
federal securities laws and regulations. These forward-looking
statements are identified by their use of terms and phrases such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "predict," "project," "should," "will" and
other similar terms and phrases, including references to assumptions
and forecasts of future results. Forward-looking statements are not
guarantees of future performance and involve known and unknown risks,
uncertainties and other factors that may cause the actual results to
differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are not
limited to: volatility in the debt or equity markets affecting our
ability to acquire or sell hotel assets; national and local economic
and business conditions, including the likelihood of a prolonged U.S.
recession; the ability to maintain sufficient liquidity and our access
to capital markets; potential terrorist attacks, which would affect
occupancy rates at our hotels and the demand for hotel products and
services; operating risks associated with the hotel business; risks
associated with the level of our indebtedness and our ability to meet
covenants in our debt and equity agreements; relationships with
property managers and franchisors; our ability to maintain our
properties in a first-class manner, including meeting capital
expenditure requirements; our ability to compete effectively in areas
such as access, location, quality of accommodations and room rate
structures; changes in travel patterns, taxes and government
regulations, which influence or determine wages, prices, construction
procedures and costs; our ability to identify, successfully compete for
and complete acquisitions; the performance of hotels after they are
acquired; necessary capital expenditures and our ability to fund them
and complete them with minimum disruption; our ability to continue to
satisfy complex rules in order for us to qualify as a REIT for federal
income tax purposes; and other risks and uncertainties associated with
our business described in the Company's filings with the Securities and
Exchange Commission. Although the Company believes the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that the expectations will be
attained or that any deviation will not be material. All
forward-looking information in this release is as of May 10, 2010,
and the Company undertakes no obligation to update any forward-looking
statement to conform the statement to actual results or changes in the
Company's expectations.
This
release should be read in conjunction with the consolidated financial
statements and notes thereto included in our most recent reports on
Form 10-K and Form 10-Q. Copies of these reports are available on our
website at www.sunstonehotels.comand
through the SEC's Electronic Data Gathering Analysis and Retrieval
System ("EDGAR") at www.sec.gov.
Non-GAAP
Financial Measures
We
present the following non-GAAP financial measures that we believe are
useful to investors as key measures of our operating performance: (1)
Earnings Before Interest Expense, Taxes, Depreciation and Amortization,
or EBITDA; (2) Adjusted EBITDA (as defined below); (3) Funds From
Operations, or FFO; (4) Adjusted FFO (as defined below); and (5)
adjusted pro forma hotel EBITDA and pro forma hotel EBITDA margin for
the purpose of our operating margins.
EBITDA
represents income available (loss attributable) to common stockholders
excluding: (1) preferred stock dividends; (2) interest expense
(including prepayment penalties, if any); (3) provision for income
taxes, including income taxes applicable to sale of assets; and (4)
depreciation and amortization. In addition, we have presented Adjusted
EBITDA, which excludes: (1) amortization of deferred stock
compensation; (2) the impact of any gain or loss from asset sales; (3)
impairment charges; and (4) other adjustments we have identified in
this release. We believe EBITDA and Adjusted EBITDA are useful to
investors in evaluating our operating performance because these
measures help investors evaluate and compare the results of our
operations from period to period by removing the impact of our capital
structure (primarily interest expense and preferred stock dividends)
and our asset base (primarily depreciation and amortization) from our
operating results. We also use EBITDA and Adjusted EBITDA as measures
in determining the value of hotel acquisitions and dispositions.
Reconciliations of income available (loss attributable) to common
stockholders to EBITDA and Adjusted EBITDA are set forth on pages 8 and
9. A reconciliation and the components of adjusted pro forma
hotel EBITDA and pro forma hotel EBITDA margin are set forth on page
10. We believe adjusted pro forma hotel EBITDA and pro forma hotel
EBITDA margin are also useful to investors in evaluating our
property-level operating performance.
We
compute FFO in accordance with standards established by the National
Association of Real Estate Investment Trusts, or NAREIT, an industry
trade group. The Board of Governors of NAREIT in its March 1995 White Paper (as clarified in November 1999 and April 2002)
defines FFO to mean income available (loss attributable) to common
stockholders (computed in accordance with GAAP), excluding gains and
losses from sales of property, plus real estate-related depreciation
and amortization (excluding amortization of deferred financing costs),
and after adjustment for unconsolidated partnerships and joint
ventures. We also present Adjusted FFO, which excludes prepayment
penalties, written-off deferred financing costs, impairment losses and
other adjustments we have identified in this release. We believe that
the presentation of FFO and Adjusted FFO provide useful information to
investors regarding our operating performance because they are measures
of our operations without regard to specified non-cash items such as
real estate depreciation and amortization, gain or loss on sale of
assets and certain other items which we believe are not indicative of
the performance of our underlying hotel properties. We believe
that these items are more representative of our asset base and our
acquisition and disposition activities than our ongoing operations. We
also use FFO as one measure in determining our results after taking
into account the impact of our capital structure. Reconciliations
of income available (loss attributable) to common stockholders to FFO
and Adjusted FFO are set forth on pages 8 and 9.
We
caution investors that amounts presented in accordance with our
definitions of EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, adjusted pro
forma hotel EBITDA and pro forma hotel EBITDA margin may not be
comparable to similar measures disclosed by other companies, because
not all companies calculate these non-GAAP measures in the same manner.
EBITDA, Adjusted EBITDA, FFO, Adjusted FFO, adjusted pro forma hotel
EBITDA and pro forma hotel EBITDA margin should not be considered as an
alternative measure of our net income (loss), operating performance,
cash flow or liquidity. EBITDA, Adjusted EBITDA, FFO, Adjusted FFO,
adjusted pro forma hotel EBITDA and pro forma hotel EBITDA margin may
include funds that may not be available for our discretionary use due
to functional requirements to conserve funds for capital expenditures
and property acquisitions and other commitments and uncertainties.
Although we believe that EBITDA, Adjusted EBITDA, FFO, Adjusted FFO,
adjusted pro forma hotel EBITDA and pro forma hotel EBITDA margin can
enhance an investor's understanding of our results of operations, these
non-GAAP financial measures, when viewed individually, are not
necessarily a better indicator of any trend as compared to GAAP
measures such as net income (loss) or cash flow from operations. In
addition, you should be aware that adverse economic and market
conditions may harm our cash flow.
Pro
Forma Hotel EBITDA Margin Information
The
revenue and expense items associated with the Company's two commercial
laundry facilities and the eight hotel properties held for non-sale
disposition, any guaranty payments, and other miscellaneous non-hotel
items have been shown below the adjusted pro forma hotel EBITDA line in
presenting pro forma hotel EBITDA margins. Management believes the
calculation of adjusted pro forma hotel EBITDA results in a more
accurate presentation of hotel EBITDA margins of the Company's 29 hotel
portfolio. See page 10 for a reconciliation of adjusted pro forma hotel
EBITDA to the comparable GAAP measure.
|
For
Additional Information:
|
|
|
|
|
Bryan
Giglia
|
|
|
Senior
Vice President – Corporate Finance
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
(949)
369-4236
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Consolidated
Balance Sheets
|
|
|
(In
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
$
333,519
|
|
$
353,255
|
|
|
Restricted
cash
|
40,520
|
|
36,858
|
|
|
Accounts
receivable, net
|
26,683
|
|
22,624
|
|
|
Due
from affiliates
|
61
|
|
62
|
|
|
Inventories
|
2,395
|
|
2,446
|
|
|
Prepaid
expenses
|
7,355
|
|
7,423
|
|
|
Investment
in hotel property of discontinued operations, net
|
-
|
|
16,471
|
|
|
Other
current assets of discontinued operations, net
|
-
|
|
1,739
|
|
|
Investment
in hotel properties of operations held for non-sale disposition, net
|
100,835
|
|
102,343
|
|
|
Other
current assets of operations held for non-sale disposition, net
|
23,147
|
|
14,140
|
|
|
Total
current assets
|
534,515
|
|
557,361
|
|
|
|
|
|
|
|
|
Investment
in hotel properties, net
|
1,908,689
|
|
1,923,392
|
|
|
Other
real estate, net
|
14,013
|
|
14,044
|
|
|
Investments
in unconsolidated joint ventures
|
669
|
|
542
|
|
|
Deferred
financing fees, net
|
5,350
|
|
7,300
|
|
|
Goodwill
|
4,673
|
|
4,673
|
|
|
Other
assets, net
|
9,467
|
|
6,218
|
|
|
|
|
|
|
|
|
Total
assets
|
$
2,477,376
|
|
$
2,513,530
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
12,652
|
|
$
12,425
|
|
|
Accrued
payroll and employee benefits
|
7,580
|
|
9,092
|
|
|
Due
to Interstate SHP
|
9,924
|
|
9,817
|
|
|
Dividends
payable
|
5,137
|
|
5,137
|
|
|
Other
current liabilities
|
25,880
|
|
21,910
|
|
|
Current
portion of notes payable
|
154,047
|
|
153,778
|
|
|
Note
payable of discontinued operations
|
-
|
|
25,499
|
|
|
Notes
payable of operations held for non-sale disposition
|
184,121
|
|
184,121
|
|
|
Other
current liabilities of discontinued operations, net
|
49,005
|
|
41,449
|
|
|
Other
current liabilities of operations held for non-sale disposition
|
12,577
|
|
6,364
|
|
|
Total
current liabilities
|
460,923
|
|
469,592
|
|
|
|
|
|
|
|
|
Notes
payable, less current portion
|
1,047,251
|
|
1,050,019
|
|
|
Other
liabilities
|
7,753
|
|
7,256
|
|
|
Total
liabilities
|
1,515,927
|
|
1,526,867
|
|
|
|
|
|
|
|
|
Commitments
and contingencies
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Preferred
stock, Series C Cumulative Convertible Redeemable Preferred
|
|
|
|
|
|
Stock,
$0.01 par value, 4,102,564 shares authorized, issued and
|
|
|
|
|
|
outstanding
at March 31, 2010 and December 31, 2009, liquidation
|
|
|
|
|
|
preference
of $24.375 per share
|
99,946
|
|
99,896
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred
stock, $0.01 par value, 100,000,000 shares authorized.
|
|
|
|
|
|
8.0% Series A Cumulative Redeemable Preferred Stock,
|
|
|
|
|
|
7,050,000 shares issued and outstanding at March 31, 2010 and
|
|
|
|
|
|
December 31, 2009, stated at liquidation preference of $25.00
per share
|
176,250
|
|
176,250
|
|
|
Common
stock, $0.01 par value, 500,000,000 shares authorized,
|
|
|
|
|
|
97,145,330 shares issued and outstanding at March 31, 2010
and
|
|
|
|
|
|
96,904,075 shares issued and outstanding at December 31,
2009
|
971
|
|
969
|
|
|
Additional
paid in capital
|
1,119,967
|
|
1,119,005
|
|
|
Retained
earnings (deficit)
|
(30,040)
|
|
(8,949)
|
|
|
Cumulative
dividends
|
(402,664)
|
|
(397,527)
|
|
|
Accumulated
other comprehensive loss
|
(2,981)
|
|
(2,981)
|
|
|
Total
stockholders' equity
|
861,503
|
|
886,767
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
2,477,376
|
|
$
2,513,530
|
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Unaudited
Consolidated Statements of Operations
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
Room
|
$
90,378
|
|
$
96,683
|
|
|
Food
and beverage
|
38,208
|
|
41,037
|
|
|
Other
operating
|
12,313
|
|
12,326
|
|
|
Revenues
of operations held for non-sale disposition
|
19,834
|
|
21,347
|
|
|
Total
revenues
|
160,733
|
|
171,393
|
|
|
Operating
expenses
|
|
|
|
|
|
Room
|
23,292
|
|
22,741
|
|
|
Food
and beverage
|
27,688
|
|
29,376
|
|
|
Other
operating
|
6,738
|
|
6,958
|
|
|
Advertising
and promotion
|
8,322
|
|
9,175
|
|
|
Repairs
and maintenance
|
6,463
|
|
6,719
|
|
|
Utilities
|
5,829
|
|
6,560
|
|
|
Franchise
costs
|
4,515
|
|
4,695
|
|
|
Property
tax, ground lease and insurance
|
10,307
|
|
9,959
|
|
|
Property
general and administrative
|
17,145
|
|
18,029
|
|
|
Corporate
overhead
|
4,580
|
|
5,707
|
|
|
Depreciation
and amortization
|
23,558
|
|
23,524
|
|
|
Operating
expenses of operations held for non-sale disposition
|
18,038
|
|
18,860
|
|
|
Goodwill
and other impairment losses
|
-
|
|
1,406
|
|
|
Goodwill
impairment losses of operations held for non-sale disposition
|
-
|
|
2,310
|
|
|
Total
operating expenses
|
156,475
|
|
166,019
|
|
|
Operating
income
|
4,258
|
|
5,374
|
|
|
Equity
in earnings (losses) of unconsolidated joint ventures
|
112
|
|
(1,517)
|
|
|
Interest
and other income
|
171
|
|
620
|
|
|
Interest
expense
|
(20,041)
|
|
(20,015)
|
|
|
Interest
expense of operations held for non-sale disposition
|
(5,411)
|
|
(2,895)
|
|
|
Gain
on extinguishment of debt
|
-
|
|
28,020
|
|
|
Income
(loss) from continuing operations
|
(20,911)
|
|
9,587
|
|
|
Loss
from discontinued operations
|
(180)
|
|
(3,077)
|
|
|
Net
income (loss)
|
(21,091)
|
|
6,510
|
|
|
Dividends
paid on unvested restricted stock compensation
|
-
|
|
(447)
|
|
|
Preferred
stock dividends and accretion
|
(5,187)
|
|
(5,187)
|
|
|
Income
available (loss attributable) to common stockholders
|
$
(26,278)
|
|
$
876
|
|
|
|
|
|
|
|
Basic
per share amounts:
|
|
|
|
|
|
Income (loss) from continuing operations available
|
|
|
|
|
|
(attributable) to common stockholders
|
$
(0.27)
|
|
$
0.08
|
|
|
Loss from discontinued operations
|
-
|
|
(0.06)
|
|
|
Basic
income available (loss attributable) to common
|
|
|
|
|
|
stockholders per common share
|
$
(0.27)
|
|
$
0.02
|
|
|
|
|
|
|
|
Diluted
per share amounts:
|
|
|
|
|
|
Income (loss) from continuing operations available
|
|
|
|
|
|
(attributable) to common stockholders
|
$
(0.27)
|
|
$
0.08
|
|
|
Loss from discontinued operations
|
-
|
|
(0.06)
|
|
|
Diluted
income available (loss attributable) to common
|
|
|
|
|
|
stockholders per common share
|
$
(0.27)
|
|
$
0.02
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding:
|
|
|
|
|
|
Basic
|
97,047
|
|
52,205
|
|
|
Diluted
|
97,047
|
|
52,205
|
|
|
|
|
|
|
|
Dividends
declared per common share
|
$
-
|
|
$
-
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Reconciliation
of Income Available (Loss Attributable) to Common Stockholders to
Non-GAAP Financial Measures
|
|
|
(Unaudited
and in thousands except per share amounts)
|
|
|
|
|
|
|
|
|
Reconciliation
of Income Available (Loss Attributable) to Common Stockholders to
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
March
31,
|
|
|
2010
|
2009
|
|
|
|
|
|
|
Income
available (loss attributable) to common stockholders
|
$
(26,278)
|
$
876
|
|
|
Dividends
paid on unvested restricted stock compensation
|
-
|
447
|
|
|
Series
A and C preferred stock dividends
|
5,187
|
5,187
|
|
|
Operations
held for investment:
|
|
|
|
|
Depreciation and amortization
|
23,558
|
23,524
|
|
|
Interest expense
|
16,938
|
19,057
|
|
|
Interest expense - default rate
|
764
|
-
|
|
|
Amortization of deferred financing fees
|
493
|
274
|
|
|
Write-off of deferred financing fees
|
1,462
|
-
|
|
|
Loan penalties and fees
|
138
|
-
|
|
|
Non-cash interest related to discount on Senior Notes
|
246
|
684
|
|
|
Unconsolidated
joint ventures:
|
|
|
|
|
Depreciation and amortization
|
14
|
1,272
|
|
|
Interest expense
|
-
|
685
|
|
|
Amortization of deferred financing fees
|
-
|
46
|
|
|
Operations
held for non-sale disposition:
|
|
|
|
|
Depreciation and amortization
|
1,693
|
2,708
|
|
|
Interest expense
|
2,709
|
2,763
|
|
|
Interest expense - default rate
|
2,276
|
-
|
|
|
Amortization of deferred financing fees
|
132
|
132
|
|
|
Loan penalties and fees
|
294
|
-
|
|
|
Discontinued
operations:
|
|
|
|
|
Depreciation and amortization
|
124
|
2,982
|
|
|
Interest expense
|
225
|
1,712
|
|
|
Amortization of deferred financing fees
|
2
|
11
|
|
|
Loan penalties and fees
|
48
|
-
|
|
|
EBITDA
|
30,025
|
62,360
|
|
|
|
|
|
|
Amortization
of deferred stock compensation - operations held for investment
|
962
|
1,128
|
|
|
Amortization
of deferred stock compensation - unconsolidated joint ventures
|
10
|
5
|
|
|
Gain
on sale of assets
|
-
|
(319)
|
|
|
Gain
on extinguishment of debt
|
-
|
(28,020)
|
|
|
Impairment
loss - operations held for investment
|
-
|
1,406
|
|
|
Impairment
loss - operations held for non-sale disposition
|
-
|
2,310
|
|
|
972
|
(23,490)
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
30,997
|
$
38,870
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Income Available (Loss Attributable) to Common Stockholders to FFO
and Adjusted FFO
|
|
|
|
|
|
|
|
|
|
|
Income
available (loss attributable) to common stockholders
|
$
(26,278)
|
$
876
|
|
|
Dividends
paid on unvested restricted stock compensation
|
-
|
447
|
|
|
Real
estate depreciation and amortization - operations held for investment
|
23,420
|
23,361
|
|
|
Real
estate depreciation and amortization - unconsolidated joint ventures
|
-
|
1,254
|
|
|
Real
estate depreciation and amortization - operations held for non-sale
disposition
|
1,693
|
2,708
|
|
|
Real
estate depreciation and amortization - discontinued operations
|
124
|
2,982
|
|
|
Gain
on sale of assets
|
-
|
(319)
|
|
|
FFO
available to common stockholders
|
(1,041)
|
31,309
|
|
|
|
|
|
|
Operations
held for investment:
|
|
|
|
|
Interest expense - default rate
|
764
|
-
|
|
|
Write-off of deferred financing fees
|
1,462
|
-
|
|
|
Loan penalties and fees
|
138
|
-
|
|
|
Operations
held for non-sale disposition:
|
|
|
|
|
Interest expense - default rate
|
2,276
|
-
|
|
|
Loan penalties and fees
|
294
|
-
|
|
|
Discontinued
operations:
|
|
|
|
|
Loan penalties and fees
|
48
|
-
|
|
|
Gain
on extinguishment of debt
|
-
|
(28,020)
|
|
|
Impairment
loss - operations held for investment
|
-
|
1,406
|
|
|
Impairment
loss - operations held for non-sale disposition
|
-
|
2,310
|
|
|
4,982
|
(24,304)
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders
|
$
3,941
|
$
7,005
|
|
|
|
|
|
|
FFO
available to common stockholders per diluted share
|
$
(0.01)
|
$
0.60
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders per diluted share
|
$
0.04
|
$
0.13
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
97,047
|
52,205
|
|
|
Shares
associated with unvested restricted stock awards
|
328
|
-
|
|
|
Diluted
weighted average shares outstanding (1)
|
97,375
|
52,205
|
|
|
|
|
|
|
|
|
|
|
(1)
Diluted weighted average shares outstanding includes the Series C
convertible preferred stock on a "non-converted" basis. On an
"as-converted" basis, FFO available to common stockholders per diluted
share is $0.01 and $0.58, respectively, for the three months ended
March 31, 2010 and 2009, and Adjusted FFO available to common
stockholders per diluted share is $0.05 and $0.15,
respectively, for the three months ended March 31, 2010 and 2009.
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Pro
Forma Reconciliation of Loss Attributable to Common Stockholders to
Non-GAAP Financial Measures
|
|
|
(Unaudited
and in thousands except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Reconciliation of Loss Attributable to Common Stockholders to
EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2010
|
|
|
|
Held
for
|
Non-Sale
|
Discontinued
|
|
|
|
Actual
(1)
|
Investment
(2)
|
Disposition
(3)
|
Operations
(4)
|
Pro
Forma (5)
|
|
|
|
|
|
|
|
|
|
Loss
attributable to common stockholders
|
$
(26,278)
|
$
1,802
|
$
3,615
|
$
180
|
$
(20,681)
|
|
|
Series
A and C preferred stock dividends
|
5,187
|
-
|
-
|
-
|
5,187
|
|
|
Operations
held for investment:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
23,558
|
-
|
-
|
-
|
23,558
|
|
|
Interest expense
|
16,938
|
(910)
|
-
|
-
|
16,028
|
|
|
Interest expense - default rate
|
764
|
(764)
|
-
|
-
|
-
|
|
|
Amortization of deferred financing fees
|
493
|
(29)
|
-
|
-
|
464
|
|
|
Write-off of deferred financing fees
|
1,462
|
-
|
-
|
-
|
1,462
|
|
|
Loan penalties and fees
|
138
|
(99)
|
-
|
-
|
39
|
|
|
Non-cash interest related to discount on Senior Notes
|
246
|
-
|
-
|
-
|
246
|
|
|
Unconsolidated
joint ventures:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
14
|
-
|
-
|
-
|
14
|
|
|
Operations
held for non-sale disposition:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
1,693
|
-
|
(1,693)
|
-
|
-
|
|
|
Interest expense
|
2,709
|
-
|
(2,709)
|
-
|
-
|
|
|
Interest expense - default rate
|
2,276
|
-
|
(2,276)
|
-
|
-
|
|
|
Amortization of deferred financing fees
|
132
|
-
|
(132)
|
-
|
-
|
|
|
Loan penalties and fees
|
294
|
-
|
(294)
|
-
|
-
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
124
|
-
|
-
|
(124)
|
-
|
|
|
Interest expense
|
225
|
-
|
-
|
(225)
|
-
|
|
|
Amortization of deferred financing fees
|
2
|
-
|
-
|
(2)
|
-
|
|
|
Loan penalties and fees
|
48
|
-
|
-
|
(48)
|
-
|
|
|
EBITDA
|
30,025
|
-
|
(3,489)
|
(219)
|
26,317
|
|
|
|
|
|
|
|
|
|
Amortization
of deferred stock compensation - operations held for investment
|
962
|
-
|
-
|
-
|
962
|
|
|
Amortization
of deferred stock compensation - unconsolidated joint ventures
|
10
|
-
|
-
|
-
|
10
|
|
|
972
|
-
|
-
|
-
|
972
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
30,997
|
$
-
|
$
(3,489)
|
$
(219)
|
$
27,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Reconciliation of Loss Attributable to Common Stockholders to FFO
and Adjusted FFO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
attributable to common stockholders
|
$
(26,278)
|
$
1,802
|
$
3,615
|
$
180
|
$
(20,681)
|
|
|
Real
estate depreciation and amortization - operations held for investment
|
23,420
|
-
|
-
|
-
|
23,420
|
|
|
Real
estate depreciation and amortization - operations held for non-sale
disposition
|
1,693
|
-
|
(1,693)
|
-
|
-
|
|
|
Real
estate depreciation and amortization - discontinued operations
|
124
|
-
|
-
|
(124)
|
-
|
|
|
FFO
available to common stockholders
|
(1,041)
|
1,802
|
1,922
|
56
|
2,739
|
|
|
|
|
|
|
|
|
|
Operations
held for investment:
|
|
|
|
|
|
|
|
Interest expense - default rate
|
764
|
(764)
|
-
|
-
|
-
|
|
|
Write-off of deferred financing fees
|
1,462
|
-
|
-
|
-
|
1,462
|
|
|
Loan penalties and fees
|
138
|
(99)
|
-
|
-
|
39
|
|
|
Operations
held for non-sale disposition:
|
|
|
|
|
|
|
|
Interest expense - default rate
|
2,276
|
-
|
(2,276)
|
-
|
-
|
|
|
Loan penalties and fees
|
294
|
-
|
(294)
|
-
|
-
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Loan penalties and fees
|
48
|
-
|
-
|
(48)
|
-
|
|
|
4,982
|
(863)
|
(2,570)
|
(48)
|
1,501
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders
|
$
3,941
|
$
939
|
$
(648)
|
$
8
|
$
4,240
|
|
|
|
|
|
|
|
|
|
FFO
available to common stockholders per diluted share
|
$
(0.01)
|
$
0.02
|
$
0.02
|
$
0.00
|
$
0.03
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders per diluted share
|
$
0.04
|
$
0.01
|
$
(0.01)
|
$
0.00
|
$
0.04
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
97,047
|
97,047
|
97,047
|
97,047
|
97,047
|
|
|
Shares
associated with unvested restricted stock awards
|
328
|
328
|
328
|
328
|
328
|
|
|
Diluted
weighted average shares outstanding (6)
|
97,375
|
97,375
|
97,375
|
97,375
|
97,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Actual includes results for the 29 hotels held for investment, eight
hotels held for non-sale disposition and three hotels held in
receivership at March 31, 2010.
(2)
Held for Investment includes only the interest and penalties associated
with the Three Released Mass Mutual hotels. Hotel operations for these
three hotels are included in the "Actual" column.
(3)
Non-Sale Disposition includes all hotel operations, interest and
penalties for the Eight Mass Mutual hotels that are in the process of
being transferred to a receiver.
(4)
Discontinued Operations includes the W San Diego, Renaissance
Westchester and Marriott Ontario Airport hotels that have been
transferred to a receiver as of March 31, 2010.
(5)
Pro forma includes the 29 hotels held for investment by the Company at
March 31, 2010.
(6)
Diluted weighted average shares outstanding includes the Series C
convertible preferred stock on a "non-converted" basis since such
treatment is dilutive.
|
|
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Pro
Forma Hotel EBITDA Margins
|
|
|
(Unaudited
and in thousands except hotels and rooms)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31,
|
|
|
2010
(1)
|
|
2009
(1)
|
|
|
Number
of Hotels
|
29
|
|
29
|
|
|
Number
of Rooms
|
10,966
|
|
10,966
|
|
|
|
|
|
|
|
Hotel
Pro Forma EBITDA Margin (2)
|
21.7%
|
|
24.1%
|
|
|
|
|
|
|
|
Hotel
Revenues
|
|
|
|
|
|
Room revenue
|
$
90,378
|
|
$
96,683
|
|
|
Food and beverage revenue
|
38,208
|
|
41,037
|
|
|
Other operating revenue
|
8,361
|
|
8,356
|
|
|
Total
Hotel Revenues
|
136,947
|
|
146,076
|
|
|
|
|
|
|
|
Hotel
Expenses
|
|
|
|
|
|
Room expense
|
23,803
|
|
22,954
|
|
|
Food and beverage expense
|
27,707
|
|
29,386
|
|
|
Other hotel expense
|
38,990
|
|
40,892
|
|
|
General and administrative expense
|
16,727
|
|
17,587
|
|
|
Total
Hotel Expenses
|
107,227
|
|
110,819
|
|
|
|
|
|
|
|
Adjusted
Pro Forma Hotel EBITDA
|
29,720
|
|
35,257
|
|
|
|
|
|
|
|
Mass
Mutual Eight Hotels:
|
|
|
|
|
|
Revenues of operations held for non-sale disposition
|
19,834
|
|
21,347
|
|
|
Operating expenses of operations held for non-sale disposition
|
(18,038)
|
|
(18,860)
|
|
|
Goodwill impairment losses of operations held for non-sale
disposition
|
-
|
|
(2,310)
|
|
|
Non-hotel
operating income
|
880
|
|
577
|
|
|
Corporate
overhead
|
(4,580)
|
|
(5,707)
|
|
|
Depreciation
and amortization
|
(23,558)
|
|
(23,524)
|
|
|
Goodwill
and other impairment losses
|
-
|
|
(1,406)
|
|
|
Operating
Income
|
4,258
|
|
5,374
|
|
|
|
|
|
|
|
Equity
in earnings (losses) of unconsolidated joint ventures
|
112
|
|
(1,517)
|
|
|
Interest
and other income
|
171
|
|
620
|
|
|
Interest
expense
|
(20,041)
|
|
(20,015)
|
|
|
Interest
expense of operations held for non-sale disposition
|
(5,411)
|
|
(2,895)
|
|
|
Gain
on extinguishment of debt
|
-
|
|
28,020
|
|
|
Loss
from discontinued operations
|
(180)
|
|
(3,077)
|
|
|
Net
Income (Loss)
|
$
(21,091)
|
|
$
6,510
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Represents our ownership results for the 29 hotels held for investment
as of the
end of the period, excluding eight of the 11 hotels included in the
Mass Mutual portfolio, which have been reclassified as "Operations
Held for Non-Sale Disposition" on our balance sheets and statements of
operations, and the W San Diego, Renaissance Westchester and
Marriott Ontario Airport, which have
been reclassified as discontinued operations on our balance sheets and
statements of operations.
(2)
Hotel Pro Forma EBITDA Margin is calculated as Adjusted Pro Forma Hotel
EBITDA divided by total hotel revenues.
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Operating
Statistics by Region
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2010
|
|
Three
Months Ended March 31, 2009
|
|
Change
in
|
|
|
|
Number
|
|
Number
|
|
Occupancy
|
|
Average
|
|
Comparable
|
|
Occupancy
|
|
Average
|
|
Comparable
|
|
Comparable
|
|
|
Region
|
|
of
Hotels
|
|
of
Rooms
|
|
Percentages
|
|
Daily
Rate
|
|
RevPAR
|
|
Percentages
|
|
Daily
Rate
|
|
RevPAR
|
|
RevPAR
|
|
|
California
(1)
|
|
9
|
|
2,983
|
|
74.0%
|
|
$
122.99
|
|
$
91.01
|
|
69.5%
|
|
$
136.60
|
|
$
94.94
|
|
-4.1%
|
|
|
Other
West (2)
|
|
5
|
|
1,575
|
|
67.8%
|
|
121.47
|
|
82.36
|
|
75.2%
|
|
129.66
|
|
97.50
|
|
-15.5%
|
|
|
Midwest
(3)
|
|
7
|
|
2,177
|
|
59.6%
|
|
116.71
|
|
69.56
|
|
56.6%
|
|
124.13
|
|
70.26
|
|
-1.0%
|
|
|
East
(4)
|
|
8
|
|
4,231
|
|
65.4%
|
|
176.70
|
|
115.56
|
|
63.8%
|
|
194.41
|
|
124.03
|
|
-6.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
29
|
|
10,966
|
|
67.0%
|
|
$
141.31
|
|
$
94.68
|
|
65.6%
|
|
$
154.32
|
|
$
101.23
|
|
-6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Does not include four hotels in the Mass Mutual portfolio, reclassified
as "Operations
Held for Non-Sale Disposition" on our balance sheets and statements of
operations, and the W San Diego and Marriott Ontario Airport,
reclassified as discontinued operations on our balance sheets and
statements of operations.
(2)
Includes Oregon, Texas and Utah. Does not include two hotels in the
Mass Mutual portfolio, reclassified as "Operations Held for Non-Sale
Disposition" on our balance sheets and statements of operations.
(3)
Includes Illinois, Michigan and Minnesota.
(4)
Includes Florida, Maryland, Massachusetts, New York, Pennsylvania,
Virginia and District of Columbia. Does not include two hotels in the
Mass Mutual portfolio, reclassified as "Operations Held for Non-Sale
Disposition" on our balance sheets and statements of operations, and
the Renaissance Westchester, reclassified as discontinued operations on
our balance sheets and statements of operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Operating
Statistics by Brand
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2010
|
|
Three
Months Ended March 31, 2009
|
|
Change
in
|
|
|
|
Number
|
|
Number
|
|
Occupancy
|
|
Average
|
|
Comparable
|
|
Occupancy
|
|
Average
|
|
Comparable
|
|
Comparable
|
|
|
Brand
|
|
of
Hotels
|
|
of
Rooms
|
|
Percentages
|
|
Daily
Rate
|
|
RevPAR
|
|
Percentages
|
|
Daily
Rate
|
|
RevPAR
|
|
RevPAR
|
|
|
Marriott
(1)
|
|
17
|
|
6,587
|
|
66.4%
|
|
$
151.13
|
|
$
100.35
|
|
66.0%
|
|
$
166.68
|
|
$
110.01
|
|
-8.8%
|
|
|
Hilton
(2)
|
|
6
|
|
2,133
|
|
69.4%
|
|
148.75
|
|
103.23
|
|
67.6%
|
|
155.99
|
|
105.45
|
|
-2.1%
|
|
|
Hyatt
|
|
1
|
|
403
|
|
82.5%
|
|
104.09
|
|
85.87
|
|
64.8%
|
|
125.52
|
|
81.34
|
|
5.6%
|
|
|
Other
Brand Affiliations (3)
|
|
2
|
|
647
|
|
73.9%
|
|
120.39
|
|
88.97
|
|
68.1%
|
|
136.89
|
|
93.22
|
|
-4.6%
|
|
|
Independent
|
|
3
|
|
1,196
|
|
56.5%
|
|
98.04
|
|
55.39
|
|
59.1%
|
|
100.48
|
|
59.38
|
|
-6.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
29
|
|
10,966
|
|
67.0%
|
|
$
141.31
|
|
$
94.68
|
|
65.6%
|
|
$
154.32
|
|
$
101.23
|
|
-6.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Does not include five hotels included in the Mass Mutual portfolio,
reclassified as "Operations Held for Non-Sale Disposition" on our
balance sheets and statements of operations, and the Renaissance
Westchester and Marriott Ontario Airport, reclassified as discontinued
operations on our balance sheets and statements of operations.
(2)
Does not include one hotel included in the Mass Mutual portfolio,
reclassified as "Operations Held for Non-Sale Disposition" on our
balance sheets and statements of operations.
(3)
Includes a Fairmont and a Sheraton. Does not include two hotels
included in the Mass Mutual portfolio, reclassified as "Operations Held
for Non-Sale Disposition" on our balance sheets and statements of
operations, and the W San Diego, reclassified as discontinued
operations on our balance sheets and statements of operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Debt
Summary
|
|
|
(Unaudited
- dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Rate /
|
|
Maturity
|
|
March
31, 2010
|
|
|
Debt
|
|
Collateral
|
|
Spread
|
|
Date
|
|
Balance
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
Rate Debt
|
|
|
|
|
|
|
|
|
|
|
Secured
Mortgage Debt
|
|
Hilton
Times Square
|
|
5.92%
|
|
12/1/2010
|
|
$
81,000
|
|
|
Secured
Mortgage Debt
|
|
Renaissance
Long Beach
|
|
4.98%
|
|
7/1/2012
|
|
33,813
|
|
|
Secured
Mortgage Debt
|
|
Rochester
laundry facility
|
|
9.88%
|
|
6/1/2013
|
|
3,124
|
|
|
Secured
Mortgage Debt
|
|
Doubletree
Minneapolis
|
|
5.34%
|
|
5/1/2015
|
|
17,925
|
|
|
Secured
Mortgage Debt
|
|
Hilton
Del Mar
|
|
5.34%
|
|
5/1/2015
|
|
25,996
|
|
|
Secured
Mortgage Debt
|
|
Marriott
Houston
|
|
5.34%
|
|
5/1/2015
|
|
23,863
|
|
|
Secured
Mortgage Debt
|
|
Marriott
Park City
|
|
5.34%
|
|
5/1/2015
|
|
15,556
|
|
|
Secured
Mortgage Debt
|
|
Marriott
Philadelphia
|
|
5.34%
|
|
5/1/2015
|
|
28,186
|
|
|
Secured
Mortgage Debt
|
|
Marriott
Troy
|
|
5.34%
|
|
5/1/2015
|
|
36,492
|
|
|
Secured
Mortgage Debt
|
|
Marriott
Tysons Corner
|
|
5.34%
|
|
5/1/2015
|
|
46,566
|
|
|
Secured
Mortgage Debt
|
|
The
Kahler Grand
|
|
5.34%
|
|
5/1/2015
|
|
28,705
|
|
|
Secured
Mortgage Debt
|
|
Valley
River Inn
|
|
5.34%
|
|
5/1/2015
|
|
11,978
|
|
|
Secured
Mortgage Debt
|
|
Renaissance
Harborplace
|
|
5.13%
|
|
1/1/2016
|
|
105,241
|
|
|
Secured
Mortgage Debt
|
|
Marriott
Del Mar
|
|
5.69%
|
|
1/11/2016
|
|
48,000
|
|
|
Secured
Mortgage Debt
|
|
Hilton
Houston North
|
|
5.66%
|
|
3/11/2016
|
|
33,583
|
|
|
Secured
Mortgage Debt
|
|
Renaissance
Orlando at SeaWorld®
|
|
5.52%
|
|
7/1/2016
|
|
85,256
|
|
|
Secured
Mortgage Debt
|
|
Embassy
Suites Chicago
|
|
5.58%
|
|
3/1/2017
|
|
75,000
|
|
|
Secured
Mortgage Debt
|
|
Marriott
Boston Long Wharf
|
|
5.58%
|
|
4/11/2017
|
|
176,000
|
|
|
Secured
Mortgage Debt
|
|
Embassy
Suites La Jolla
|
|
6.60%
|
|
6/1/2019
|
|
70,000
|
|
|
Secured
Mortgage Debt
|
|
Renaissance
Washington D.C.
|
|
5.95%
|
|
5/1/2021
|
|
133,612
|
|
|
Exchangeable
Senior Notes
|
|
Guaranty
|
|
4.60%
|
|
7/15/2027
|
|
62,500
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
DEBT
|
|
|
|
|
|
|
|
$
1,142,396
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
|
|
|
|
|
|
|
|
Series
A cumulative redeemable preferred
|
|
|
|
8.00%
|
|
perpetual
|
|
$
176,250
|
|
|
Series
C cumulative convertible redeemable preferred
|
|
|
|
6.45%
|
|
perpetual
|
|
$
100,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Statistics
|
|
|
|
|
|
|
|
|
|
|
%
Fixed Rate Debt
|
|
|
|
|
|
|
|
100.0%
|
|
|
%
Floating Rate Debt
|
|
|
|
|
|
|
|
0.0%
|
|
|
Average
Interest Rate
|
|
|
|
|
|
|
|
5.56%
|
|
|
Weighted
Average Maturity of Debt (2)
|
|
|
|
|
|
|
|
6.9
years
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Excludes debt in the Company's secured debt restructuring program.
(2)
Assumes the exchangeable senior notes remain outstanding to maturity.
If the exchangeable
senior notes were redeemed upon the first
|
|
