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ALISO VIEJO, Calif., Feb. 21, 2012 -- Sunstone Hotel Investors,
Inc. (the "Company") (NYSE: SHO) today announced results for the fourth
quarter and year ended December 31, 2011.
Full Year 2011 Operational Results (as compared to Full
Year 2010) (1) :
- Comparable Hotel RevPAR increased 7.2% to $123.91.
- Comparable Hotel EBITDA Margin increased by 130 basis
points to 27.8%.
- Adjusted EBITDA increased by 33.8% to $212.5 million.
- Adjusted FFO available to common stockholders per diluted
share increased by 52.6% to $0.87.
- Income available to common stockholders was $53.0 million (vs. $17.8
million in 2010).
- Income available to common stockholders per diluted share
was $0.45 (vs. $0.18
in 2010).
Fourth Quarter 2011 Operational Results (as compared to
Fourth Quarter 2010) (1) :
- Comparable Hotel RevPAR increased 5.9% to $123.36.
- Comparable Hotel EBITDA Margin increased by 90 basis points
to 28.7%.
- Adjusted EBITDA increased by 42.7% to $63.9 million.
- Adjusted FFO available to common stockholders per diluted
share increased by 45.0% to $0.29.
- Income available to common stockholders was $43,000 (vs. $30.4
million in 2010).
- Income available to common stockholders per diluted share
was zero (vs. $0.28 in 2010).
Ken Cruse, President and Chief
Executive Officer, stated, "During 2011 we established a new leadership
team, improved our corporate governance structure and redefined our
long-term strategy around three fundamentals: enhanced hotel
profitability through aggressive asset management and capital
investment; disciplined growth through selective acquisitions and
capital recycling; and measured improvement of our cost of capital by
methodically reducing our financial leverage. We continued our focus on
enhanced hotel profitability by strengthening our asset management
team, which helped drive a solid 130 basis point improvement in hotel
EBITDA margins on a 7.2% increase in RevPAR. Additionally, we invested
over $100 million renovating our
existing portfolio, which is now well positioned to capitalize on the
lodging recovery. Our focus on disciplined growth led to the
acquisition of three high-quality hotels during 2011: the 1,190-room
Hilton San Diego Bayfront; the 460-room Doubletree Guest Suites Times
Square; and the 496-room JW Marriott New Orleans. Finally, we focused
on measured reductions in our financial leverage by refinancing our
only 2011 debt maturity, partially with cash on hand, while taking
steps to improve liquidity through the sale of non-core assets.
Furthermore, we improved our transparency and accountability by
implementing a stockholder-friendly supplemental disclosure package.
Looking ahead, we believe the combination of positive industry
fundamentals, our highly focused and experienced team, strong
liquidity, and our high-quality, recently renovated portfolio represent
a compelling formula for growth and the creation of shareholder value."
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(1)
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Comparable
Hotel RevPAR and Comparable Hotel EBITDA Margin information presented
reflect the Company's Comparable 32 Hotel Portfolio, which includes all
hotels held for investment by the Company as of December 31, 2011
. Comparable Hotel EBITDA Margin information
excludes current and prior year real estate tax credits or charges. The
Comparable 32 Hotel Portfolio also includes prior ownership results for
the Doubletree Guest Suites Times Square acquired by the Company in
January 2011, the JW Marriott New Orleans acquired by the Company in
February 2011, and the
Hilton San Diego Bayfront acquired by the Company in April 2011, for
all periods presented. The Comparable 32 Hotel Portfolio for the year
ended December 31, 2010 also includes results for the Renaissance
Westchester during the period it was held in receivership prior to the
Company's reacquisition of the hotel in June 2010.
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SELECTED
FINANCIAL DATA
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($ in
millions, except RevPAR and per share amounts)
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(unaudited)
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Three
Months Ended December 31,
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Year
Ended December 31,
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2011
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2010
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%
Change
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2011
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2010
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%
Change
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Total
Revenue
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$ 245.1
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$ 176.9
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38.6%
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$ 834.7
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$ 624.5
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33.7%
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Comparable
Hotel RevPAR
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$
123.36
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$
116.52
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5.9%
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$
123.91
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$
115.54
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7.2%
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Comparable
Hotel EBITDA Margin
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28.7%
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27.8%
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90 bps
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27.8%
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26.5%
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130 bps
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Income
available to common stockholders
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$ 0.0
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$ 30.4
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$ 53.0
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$ 17.8
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Income
available to common stockholders per diluted share
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$ 0.00
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$ 0.28
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$ 0.45
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$ 0.18
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EBITDA
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$ 63.7
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$ 79.8
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$ 292.7
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$ 227.8
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Adjusted
EBITDA
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$ 63.9
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$ 44.8
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$ 212.5
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$ 158.8
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FFO
available to common stockholders
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$ 33.3
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$ 55.8
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$ 167.4
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$ 120.9
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Adjusted
FFO available to common stockholders
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$ 34.6
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$ 21.2
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$ 102.1
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$ 57.5
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FFO
available to common stockholders per diluted share (1)
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$ 0.28
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$ 0.52
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$ 1.43
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$ 1.21
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Adjusted
FFO available to common stockholders per diluted share (1)
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$ 0.29
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$ 0.20
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$ 0.87
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$ 0.57
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(1)
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Reflects
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 $0.30 and $0.51, respectively, for the three months
ended December 31, 2011 and 2010, and $1.43 and $1.22, respectively,
for the years ended December 31, 2011 and 2010. On an "as-converted"
basis, Adjusted FFO available to common stockholders per diluted share
is $0.31 and $0.20, respectively, for the three months ended December
31, 2011 and 2010, and $0.89 and $0.61, respectively, for the years
ended December 31, 2011 and 2010.
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Disclosure regarding the non-GAAP financial measures in this
release is included on pages 5 and 6. Reconciliations of non-GAAP
financial measures to the most comparable GAAP measure for each of the
periods presented are included on pages 9 through 13 of this release.
The Company's actual results for the year ended December 31, 2011 compare to its 2011 guidance
as follows:
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Metric
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FY
2011
Prior Guidance (1)
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FY
2011 Actual
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Performance
Relative to Prior
Midpoint
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Comparable
Hotel RevPAR
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+6% -
8%
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+7.2%
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+0.2%
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Net
Income ($ millions)
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$76 -
$81
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$81.3
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+$2.8
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Adjusted
EBITDA ($ millions)
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$204 -
$209
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$212.5
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+$6.0
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Adjusted
FFO ($ millions)
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$93 -
$98
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$102.1
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+$6.6
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Adjusted
FFO per diluted share
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$0.79
- $0.84
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$0.87
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+$0.06
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(1)
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Reflects
guidance presented on 11/07/2011. The net loss included in the prior
guidance has been adjusted to include gains on the sales of the Royal
Palm Miami Beach and the Valley River Inn ($14.9M), gain on the
remeasurement of equity interests ($69.2M), gain on the extinguishment
of debt related to discontinued operations ($18.1M) and impairment loss
on the Royal Palm note ($10.9M).
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Balance Sheet/Liquidity Update
As of December 31, 2011, the
Company had approximately $218.4 million
of cash and cash equivalents, including restricted cash of $67.9 million, total assets of $3.1 billion, including $2.8
billion of net investments in hotel properties, total
consolidated debt of $1.6 billion and
stockholders' equity of $1.3 billion.
On February 8, 2012, the
Company repurchased $4.5 million of its
4.60% Exchangeable Senior Notes (the "Senior Notes") for a price of $4.57 million plus accrued interest of
approximately $13,000. Subsequent to the
repurchase, there are $58.0 million of
the Senior Notes outstanding. The Company's only near-term debt
maturities include the $32.0 million
mortgage secured by the Renaissance Long Beach and the Senior Notes,
both of which are likely to be retired with a portion of the Company's
unrestricted cash balance of $150.5 million
when they mature or are put to the Company in July
2012 and January 2013,
respectively.
Capital Improvements
The Company invested $18.0 million
in capital improvements into its portfolio during the fourth quarter of
2011, and $100.4 million during the year
ended December 31, 2011. In 2011, the
Company renovated 3,267 hotel rooms (25% of total rooms) and
refurbished the common area, meeting space and/or restaurants at 13
hotels.
2012 Outlook
The Company is providing guidance at this time but does not
undertake to make updates for any developments in its business or
changes in the operating environment. Achievement of the anticipated
results is subject to risks and uncertainties, including those
disclosed in the Company's filings with the Securities and Exchange
Commission. The Company's guidance does not take into account any
future hotel acquisitions, dispositions, debt repurchases or financings
during 2012.
For the first quarter of 2012, the Company expects:
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Metric
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Quarter
Ended
March 31, 2012
Guidance
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Comparable
Hotel RevPAR
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+3% -
5%
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Net
Loss ($ millions)
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$(19)
- $(17)
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Adjusted
EBITDA ($ millions)
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$38 -
$40
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Adjusted
FFO ($ millions)
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$9 -
$11
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Adjusted
FFO per diluted share
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$0.07
- $0.09
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For the full year 2012, the Company expects:
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Metric
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2012
FY Guidance
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Comparable
Hotel RevPAR
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+4% -
6%
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Net
Income (Loss) ($ millions)
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$(4) -
$8
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Adjusted
EBITDA ($ millions)
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$223 -
$235
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Adjusted
FFO ($ millions)
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$105 -
$117
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Adjusted
FFO per diluted share
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$0.90
- $1.00
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Full year 2012 guidance includes the following assumptions:
- Capital investment of $85 to $100
million, including the $25 million
renovation of the Renaissance Washington DC.
- Hotel revenue renovation disruption of $3 to $5 million.
- Corporate overhead expense (excluding stock amortization
and one-time expenses related to future acquisition closing costs) of $19 to $20 million.
- Interest expense of approximately $83
to $85 million, including $4 million
in amortization of deferred financing fees.
- Preferred dividends (Series A, C, and D) of approximately $30 million.
Mr. Cruse continued, "Our leading indicators – strong group
bookings, increases in negotiated account rates and higher government
per-diems – imply continued growth in 2012 and beyond. Despite well
telegraphed instances of softness in certain markets such as Washington DC, we expect mid-single digit
RevPAR growth, margin expansion and continued growth in Adjusted FFO
per diluted share in 2012."
Dividend Update
For income tax reporting purposes, the Company paid cash
dividends of $2.50 and $1.472222 per share to its Series A and Series
D cumulative redeemable preferred stockholders, respectively, and $1.965 per share to its Series C cumulative
convertible redeemable preferred stockholders for the tax year ended December 31, 2011. All of the 2011 preferred
dividends are taxed as ordinary income. Dividends paid to the Series A,
Series C and Series D preferred stockholders satisfied the Company's
2011 taxable distribution requirements.
On February 16, 2012, the
Company's Board of Directors declared a cash dividend of $0.50 per share payable to its Series A and
Series D 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 or before April
15, 2012 to stockholders of record on March
31, 2012. No dividend was declared on the Company's common stock.
Subject to certain limitations, the Company intends to make
dividends on its stock in amounts equivalent to 100% of its annual
taxable income, which may be reduced through the application of net
operating losses. The level of any future dividends will be determined
by the Company's Board of Directors after considering taxable income
projections, expected capital requirements, risks affecting the
Company's business and in context of the Company's leverage-reduction
initiatives. As a result, common stock dividends may be made in the
form of cash or a combination of cash and stock consistent with
Internal Revenue Service guidelines.
Supplemental Disclosures
Contemporaneous with this release, the Company has furnished a
Form 8-K with unaudited financial information. This additional
information is being provided as a supplement to information prepared
in accordance with generally accepted accounting principles. The
Company undertakes no obligation to update any of the information
provided to conform to actual results or changes in the Company's
portfolio, capital structure or future expectations.
Earnings Call
The Company will host a conference call to discuss fourth
quarter and full year 2011 results on February
22, 2012, at 12:00 p.m. EST (9:00 a.m. PST). A live web cast of the call
will be available via the Investor Relations section of the Company's
website. Alternatively, investors may dial 1-877-941-9205 (for domestic
callers) or 1-480-629-9645 (for international callers). 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 December
31, 2011, has interests in 32 hotels comprised of 13,208 rooms.
Sunstone's hotels are primarily in the upper upscale segment and are
generally operated under nationally recognized brands, such as
Marriott, Hilton, Fairmont, Hyatt and Sheraton. For further
information, please visit Sunstone's website at www.sunstonehotels.com.
Sunstone's mission is to create meaningful value for our
stockholders by becoming the premier hotel owner. Our values include
transparency, trust, ethical conduct, communication and discipline. We
seek to employ a balanced, cycle-appropriate corporate strategy that
encompasses the following:
- Proactive portfolio management;
- Intensive asset management;
- Disciplined external growth; and
- Measured balance sheet improvement.
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 February 21, 2012, 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.com and
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: Earnings Before Interest Expense, Taxes, Depreciation and
Amortization, or EBITDA; Adjusted EBITDA (as defined below); Funds From
Operations, or FFO; Adjusted FFO (as defined below); and comparable
hotel EBITDA and comparable hotel EBITDA margin.
EBITDA represents net income (loss) excluding: non-controlling
interests; interest expense; provision for income taxes, including
income taxes applicable to sale of assets; and depreciation and
amortization. In addition, we have presented Adjusted EBITDA, which
excludes: amortization of deferred stock compensation; the impact of
any gain or loss from asset sales; impairment charges; and any 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 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. A
reconciliation of net income to EBITDA and Adjusted EBITDA is set forth
on page 9. Reconciliations and the components of comparable hotel
EBITDA and comparable hotel EBITDA margin are set forth on pages 12 and
13. We believe comparable hotel EBITDA and comparable 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 net income (loss) (computed in
accordance with GAAP), excluding non-controlling interests, gains and
losses from sales of property, plus real estate-related depreciation
and amortization (excluding amortization of deferred financing costs)
and real estate-related impairment losses, and after adjustment for
unconsolidated partnerships and joint ventures. We also present
Adjusted FFO, which excludes penalties, written-off deferred financing
costs, non-real estate-related impairment losses and any 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. A reconciliation of
net income to FFO and Adjusted FFO is set forth on page 9.
The revenue and expense items associated with our commercial
laundry facility, BuyEfficient and other miscellaneous non-hotel items
have been excluded in presenting comparable hotel EBITDA margins.
Management believes the calculation of comparable hotel EBITDA results
in a more accurate presentation of hotel EBITDA margins of the
Company's 32 comparable hotels. See pages 12 and 13 for reconciliations
of comparable hotel EBITDA to the most comparable GAAP measure. Our 32
comparable hotels include all hotels in which the Company has interests
as of December 31, 2011, plus the
results of operations for the Renaissance Westchester during the period
it was held in receivership prior to the Company's reacquisition of the
hotel in June 2010, as well as prior
ownership results for the Doubletree Guest Suites Times Square acquired
by the Company in January 2011, the JW
Marriott New Orleans acquired by the Company in February
2011, and the Hilton San Diego Bayfront acquired by the Company
in April 2011.
We caution investors that amounts presented in accordance with
our definitions of EBITDA, Adjusted EBITDA, FFO, Adjusted FFO,
comparable hotel EBITDA and comparable 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, comparable hotel EBITDA and
comparable 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,
comparable hotel EBITDA and comparable 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, comparable
hotel EBITDA and comparable 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.
For Additional Information:
Bryan Giglia
Senior Vice President – Corporate Finance
Sunstone Hotel Investors, Inc.
(949) 382-3036
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Sunstone
Hotel Investors, Inc.
|
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Consolidated
Balance Sheets
|
|
|
(In
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
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December
31,
|
|
|
|
2011
|
|
2010
|
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|
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|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
$
150,533
|
|
$
276,034
|
|
|
Restricted
cash
|
67,898
|
|
54,954
|
|
|
Accounts
receivable, net
|
32,536
|
|
17,285
|
|
|
Due
from affiliates
|
6
|
|
44
|
|
|
Inventories
|
2,608
|
|
2,101
|
|
|
Prepaid
expenses
|
10,272
|
|
7,808
|
|
|
Investment
in hotel properties of discontinued operations, net
|
-
|
|
131,404
|
|
|
Investment
in other real estate of discontinued operations, net
|
-
|
|
896
|
|
|
Other
current assets of discontinued operations, net
|
-
|
|
5,128
|
|
|
Total
current assets
|
263,853
|
|
495,654
|
|
|
|
|
|
|
|
|
Investment
in hotel properties, net
|
2,777,826
|
|
1,902,819
|
|
|
Other
real estate, net
|
11,859
|
|
11,116
|
|
|
Investments
in unconsolidated joint ventures
|
-
|
|
246
|
|
|
Deferred
financing fees, net
|
14,651
|
|
8,855
|
|
|
Interest
rate cap derivative agreements
|
386
|
|
-
|
|
|
Goodwill
|
13,088
|
|
4,673
|
|
|
Other
assets, net
|
19,577
|
|
12,743
|
|
|
|
|
|
|
|
|
Total
assets
|
$
3,101,240
|
|
$
2,436,106
|
|
|
|
|
|
|
|
|
Liabilities
and Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
26,854
|
|
$
20,889
|
|
|
Accrued
payroll and employee benefits
|
20,863
|
|
12,674
|
|
|
Due to
Third-Party Managers
|
9,227
|
|
7,573
|
|
|
Dividends
payable
|
7,437
|
|
5,137
|
|
|
Other
current liabilities
|
28,465
|
|
16,907
|
|
|
Current
portion of notes payable
|
53,935
|
|
16,196
|
|
|
Note
payable of discontinued operations
|
-
|
|
11,773
|
|
|
Other
current liabilities of discontinued operations, net
|
-
|
|
21,600
|
|
|
Total
current liabilities
|
146,781
|
|
112,749
|
|
|
|
|
|
|
|
|
Notes
payable, less current portion
|
1,516,542
|
|
1,115,334
|
|
|
Interest
rate swap derivative agreement
|
1,567
|
|
-
|
|
|
Other
liabilities
|
11,056
|
|
8,724
|
|
|
Total
liabilities
|
1,675,946
|
|
1,236,807
|
|
|
|
|
|
|
|
|
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 December 31, 2011 and 2010, liquidation
|
|
|
|
|
|
preference
of $24.375 per share
|
100,000
|
|
100,000
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
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 December 31, 2011 and 2010,
|
|
|
|
|
|
stated at liquidation preference of $25.00 per share
|
176,250
|
|
176,250
|
|
|
8.0%
Series D Cumulative Redeemable Preferred Stock,
|
|
|
|
|
|
4,600,000 shares issued and outstanding at December 31, 2011 and zero
issued
|
|
|
|
|
|
and
outstanding at December 31, 2010, stated at liquidation preference of
|
|
|
|
|
|
$25.00 per share
|
115,000
|
|
-
|
|
|
Common
stock, $0.01 par value, 500,000,000 shares authorized,
|
|
|
|
|
|
117,265,090 shares issued and outstanding at December 31, 2011 and
|
|
|
|
|
|
116,950,504 shares issued and outstanding at December 31, 2010
|
1,173
|
|
1,170
|
|
|
Additional
paid in capital
|
1,312,566
|
|
1,313,498
|
|
|
Retained
earnings
|
110,580
|
|
29,593
|
|
|
Cumulative
dividends
|
(445,396)
|
|
(418,075)
|
|
|
Accumulated
other comprehensive loss
|
(4,916)
|
|
(3,137)
|
|
|
Total
stockholders' equity
|
1,265,257
|
|
1,099,299
|
|
|
Non-controlling
interest in consolidated joint ventures
|
60,037
|
|
-
|
|
|
Total
equity
|
1,325,294
|
|
1,099,299
|
|
|
|
|
|
|
|
|
Total
liabilities and equity
|
$
3,101,240
|
|
$
2,436,106
|
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Consolidated
Statements of Operations
|
|
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December
31,
|
|
Year
Ended December 31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Room
|
|
$
164,945
|
|
$
116,910
|
|
$
572,289
|
|
$
418,943
|
|
|
Food
and beverage
|
|
62,043
|
|
48,159
|
|
196,524
|
|
159,365
|
|
|
Other
operating
|
|
18,095
|
|
11,821
|
|
65,916
|
|
46,236
|
|
|
Total
revenues
|
|
245,083
|
|
176,890
|
|
834,729
|
|
624,544
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Room
|
|
41,552
|
|
30,410
|
|
144,334
|
|
107,788
|
|
|
Food
and beverage
|
|
42,406
|
|
34,088
|
|
143,120
|
|
116,856
|
|
|
Other
operating
|
|
7,033
|
|
6,152
|
|
26,092
|
|
23,265
|
|
|
Advertising
and promotion
|
|
12,627
|
|
9,443
|
|
41,952
|
|
32,225
|
|
|
Repairs
and maintenance
|
|
9,896
|
|
7,914
|
|
33,766
|
|
27,161
|
|
|
Utilities
|
|
8,496
|
|
6,777
|
|
31,014
|
|
24,527
|
|
|
Franchise
costs
|
|
8,439
|
|
5,596
|
|
29,115
|
|
21,474
|
|
|
Property
tax, ground lease and insurance
|
|
17,661
|
|
9,626
|
|
63,423
|
|
40,980
|
|
|
Property
general and administrative
|
|
28,629
|
|
21,336
|
|
98,642
|
|
74,535
|
|
|
Corporate
overhead
|
|
4,830
|
|
7,461
|
|
25,746
|
|
21,971
|
|
|
Depreciation
and amortization
|
|
34,888
|
|
23,110
|
|
127,945
|
|
92,374
|
|
|
Impairment
loss
|
|
-
|
|
-
|
|
10,862
|
|
1,943
|
|
|
Total
operating expenses
|
|
216,457
|
|
161,913
|
|
776,011
|
|
585,099
|
|
|
Operating
income
|
|
28,626
|
|
14,977
|
|
58,718
|
|
39,445
|
|
|
Equity
in earnings of unconsolidated joint ventures
|
|
-
|
|
80
|
|
21
|
|
555
|
|
|
Interest
and other income
|
|
145
|
|
121
|
|
3,118
|
|
111
|
|
|
Interest
expense
|
|
(22,236)
|
|
(16,939)
|
|
(82,965)
|
|
(70,174)
|
|
|
Gain
on remeasurement of equity interests
|
|
-
|
|
-
|
|
69,230
|
|
-
|
|
|
Income
(loss) from continuing operations
|
|
6,535
|
|
(1,761)
|
|
48,122
|
|
(30,063)
|
|
|
Income
from discontinued operations
|
|
1,053
|
|
37,433
|
|
33,177
|
|
68,605
|
|
|
Net
income
|
|
7,588
|
|
35,672
|
|
81,299
|
|
38,542
|
|
|
Income
from consolidated joint venture attributable to non-controlling
interest
|
|
(99)
|
|
-
|
|
(312)
|
|
-
|
|
|
Distributions
to non-controlling interest
|
|
(8)
|
|
-
|
|
(30)
|
|
-
|
|
|
Preferred
stock dividends and accretion
|
|
(7,437)
|
|
(5,137)
|
|
(27,321)
|
|
(20,652)
|
|
|
Undistributed
income allocated to unvested restricted stock compensation
|
|
(1)
|
|
(174)
|
|
(636)
|
|
(102)
|
|
|
Income
available to common stockholders
|
|
$ 43
|
|
$
30,361
|
|
$
53,000
|
|
$
17,788
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
per share amounts:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations available (attributable) to
common stockholders
|
|
$
(0.01)
|
|
$
(0.07)
|
|
$ 0.17
|
|
$
(0.51)
|
|
|
Income from discontinued operations
|
|
0.01
|
|
0.35
|
|
0.28
|
|
0.69
|
|
|
Basic
income available to common stockholders per common share
|
|
$ -
|
|
$ 0.28
|
|
$ 0.45
|
|
$ 0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
per share amounts:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations available (attributable) to
common stockholders
|
|
$
(0.01)
|
|
$
(0.07)
|
|
$ 0.17
|
|
$
(0.51)
|
|
|
Income from discontinued operations
|
|
0.01
|
|
0.35
|
|
0.28
|
|
0.69
|
|
|
Diluted
income available to common stockholders per common share
|
|
$ -
|
|
$ 0.28
|
|
$ 0.45
|
|
$ 0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
117,265
|
|
107,266
|
|
117,206
|
|
99,709
|
|
|
Diluted
|
|
117,265
|
|
107,266
|
|
117,206
|
|
99,709
|
|
|
|
|
|
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Reconciliation
of Net Income to Non-GAAP Financial Measures
|
|
|
(Unaudited
and in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Income to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 7,588
|
$
35,672
|
|
$
81,299
|
$
38,542
|
|
|
Operations
held for investment:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
34,888
|
23,110
|
|
127,945
|
92,374
|
|
|
Amortization of lease intangibles
|
1,036
|
55
|
|
4,007
|
281
|
|
|
Interest expense
|
20,414
|
16,057
|
|
75,995
|
64,813
|
|
|
Interest expense - default rate
|
-
|
-
|
|
-
|
884
|
|
|
Amortization of deferred financing fees
|
967
|
492
|
|
3,232
|
1,585
|
|
|
Write-off of deferred financing fees
|
21
|
-
|
|
21
|
1,585
|
|
|
Loan
penalties and fees
|
-
|
137
|
|
-
|
311
|
|
|
Non-cash interest related to discount on Senior Notes
|
270
|
253
|
|
1,062
|
996
|
|
|
Non-cash interest related to loss on derivatives
|
564
|
-
|
|
2,655
|
-
|
|
|
Non-controlling
interests:
|
|
|
|
|
|
|
|
Income from consolidated joint venture attributable to non-controlling
interest
|
(99)
|
-
|
|
(312)
|
-
|
|
|
Depreciation and amortization
|
(1,416)
|
-
|
|
(4,014)
|
-
|
|
|
Interest expense
|
(557)
|
-
|
|
(1,562)
|
-
|
|
|
Amortization of deferred financing fees
|
(57)
|
-
|
|
(160)
|
-
|
|
|
Non-cash interest related to gain (loss) on derivative
|
1
|
-
|
|
(31)
|
-
|
|
|
Unconsolidated
joint ventures:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
-
|
12
|
|
3
|
52
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
-
|
2,216
|
|
1,951
|
8,558
|
|
|
Interest expense
|
43
|
969
|
|
515
|
9,283
|
|
|
Interest expense - default rate
|
-
|
679
|
|
-
|
7,071
|
|
|
Amortization of deferred financing fees
|
1
|
47
|
|
10
|
453
|
|
|
Write-off of deferred financing fees
|
42
|
-
|
|
42
|
-
|
|
|
Loan
penalties and fees
|
-
|
94
|
|
-
|
1,021
|
|
|
EBITDA
|
63,706
|
79,793
|
|
292,658
|
227,809
|
|
|
|
|
|
|
|
|
|
Operations
held for investment:
|
|
|
|
|
|
|
|
Amortization of deferred stock compensation
|
575
|
1,537
|
|
2,745
|
3,942
|
|
|
Non-cash straightline lease expense
|
696
|
206
|
|
2,398
|
944
|
|
|
(Gain) loss on sale of assets
|
(10)
|
(1)
|
|
(83)
|
382
|
|
|
Gain
on remeasurement of equity interests
|
-
|
-
|
|
(69,230)
|
-
|
|
|
Due
diligence costs - abandoned project
|
-
|
21
|
|
-
|
959
|
|
|
Closing costs - completed acquisitions
|
31
|
-
|
|
3,403
|
-
|
|
|
Impairment loss
|
-
|
-
|
|
10,862
|
1,943
|
|
|
Lawsuit settlement costs
|
-
|
-
|
|
1,620
|
-
|
|
|
Costs
associated with CEO severance
|
-
|
2,242
|
|
-
|
2,242
|
|
|
Non-controlling
interests:
|
|
|
|
|
|
|
|
Non-cash straightline lease expense
|
(111)
|
-
|
|
(354)
|
-
|
|
|
Unconsolidated
joint ventures:
|
|
|
|
|
|
|
|
Amortization of deferred stock compensation
|
-
|
11
|
|
2
|
32
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Gain
on sale of assets
|
(946)
|
-
|
|
(14,912)
|
-
|
|
|
Impairment loss
|
-
|
-
|
|
1,495
|
-
|
|
|
Gain
on extinguishment of debt
|
-
|
(39,015)
|
|
(18,145)
|
(86,235)
|
|
|
Closing costs - completed acquisition
|
-
|
22
|
|
-
|
6,796
|
|
|
235
|
(34,977)
|
|
(80,199)
|
(68,995)
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
63,941
|
$
44,816
|
|
$
212,459
|
$
158,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Income to FFO and Adjusted FFO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$ 7,588
|
$
35,672
|
|
$
81,299
|
$
38,542
|
|
|
Preferred
stock dividends
|
(7,437)
|
(5,137)
|
|
(27,321)
|
(20,652)
|
|
|
Operations
held for investment:
|
|
|
|
|
|
|
|
Real
estate depreciation and amortization
|
34,590
|
22,966
|
|
126,776
|
91,824
|
|
|
Real
estate impairment loss
|
-
|
-
|
|
-
|
1,943
|
|
|
Amortization of lease intangibles
|
1,036
|
55
|
|
4,007
|
281
|
|
|
(Gain) loss on sale of assets
|
(10)
|
(1)
|
|
(83)
|
382
|
|
|
Non-controlling
interests:
|
|
|
|
|
|
|
|
Income from consolidated joint venture attributable to non-controlling
interest
|
(99)
|
-
|
|
(312)
|
-
|
|
|
Real
estate depreciation and amortization
|
(1,416)
|
-
|
|
(4,014)
|
-
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Real
estate depreciation and amortization
|
-
|
2,216
|
|
1,951
|
8,558
|
|
|
Gain
on sale of assets
|
(946)
|
-
|
|
(14,912)
|
-
|
|
|
FFO
available to common stockholders
|
33,306
|
55,771
|
|
167,391
|
120,878
|
|
|
|
|
|
|
|
|
|
Operations
held for investment:
|
|
|
|
|
|
|
|
Interest expense - default rate
|
-
|
-
|
|
-
|
884
|
|
|
Write-off of deferred financing fees
|
21
|
-
|
|
21
|
1,585
|
|
|
Loan
penalties and fees
|
-
|
137
|
|
-
|
311
|
|
|
Non-cash straightline lease expense
|
696
|
206
|
|
2,398
|
944
|
|
|
Non-cash interest related to loss on derivatives
|
564
|
-
|
|
2,655
|
-
|
|
|
Gain
on remeasurement of equity interests
|
-
|
-
|
|
(69,230)
|
-
|
|
|
Due
diligence costs - abandoned project
|
-
|
21
|
|
-
|
959
|
|
|
Closing costs - completed acquisitions
|
31
|
-
|
|
3,403
|
-
|
|
|
Impairment loss
|
-
|
-
|
|
10,862
|
-
|
|
|
Lawsuit settlement costs
|
-
|
-
|
|
1,620
|
-
|
|
|
Costs
associated with CEO severance
|
-
|
2,242
|
|
-
|
2,242
|
|
|
Amortization of deferred stock compensation associated with CEO
severance
|
-
|
1,074
|
|
-
|
1,074
|
|
|
Non-controlling
interests:
|
|
|
|
|
|
|
|
Non-cash straightline lease expense
|
(111)
|
-
|
|
(354)
|
-
|
|
|
Non-cash interest related to gain (loss) on derivative
|
1
|
-
|
|
(31)
|
-
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Interest expense - default rate
|
-
|
679
|
|
-
|
7,071
|
|
|
Write-off of deferred financing fees
|
42
|
-
|
|
42
|
-
|
|
|
Loan
penalties and fees
|
-
|
94
|
|
-
|
1,021
|
|
|
Impairment loss
|
-
|
-
|
|
1,495
|
-
|
|
|
Gain
on extinguishment of debt
|
-
|
(39,015)
|
|
(18,145)
|
(86,235)
|
|
|
Closing costs - completed acquisition
|
-
|
22
|
|
-
|
6,796
|
|
|
1,244
|
(34,540)
|
|
(65,264)
|
(63,348)
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders
|
$
34,550
|
$
21,231
|
|
$
102,127
|
$
57,530
|
|
|
|
|
|
|
|
|
|
FFO
available to common stockholders per diluted share
|
$ 0.28
|
$ 0.52
|
|
$ 1.43
|
$ 1.21
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders per diluted share
|
$ 0.29
|
$ 0.20
|
|
$ 0.87
|
$ 0.57
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
117,265
|
107,266
|
|
117,206
|
99,709
|
|
|
Shares
associated with unvested restricted stock awards
|
-
|
441
|
|
84
|
390
|
|
|
Diluted
weighted average shares outstanding (1)
|
117,265
|
107,707
|
|
117,290
|
100,099
|
|
|
|
|
|
|
|
|
|
|
|
(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 $0.30 and
$0.51, respectively, for the three months ended December 31, 2011 and
2010, and $1.43 and $1.22, respectively, for the years ended December
31, 2011 and 2010. On an "as-converted" basis, Adjusted FFO available
to common stockholders per diluted share is $0.31 and $0.20,
respectively, for the three months ended December 31, 2011 and 2010,
and $0.89 and $0.61, respectively, for the years ended December 31,
2011 and 2010.
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Reconciliation
of Net Loss to Non-GAAP Financial Measures
|
|
|
Guidance
for First Quarter 2012
|
|
|
(Unaudited
and in thousands except per share amounts)
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Loss to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
March
31, 2012
|
|
|
Low
|
High
|
|
|
|
|
|
|
Net
loss
|
$
(18,650)
|
$
(16,650)
|
|
|
Depreciation and amortization
|
35,000
|
35,000
|
|
|
Amortization of lease intangibles
|
1,000
|
1,000
|
|
|
Interest expense
|
20,250
|
20,250
|
|
|
Amortization of deferred financing fees
|
1,000
|
1,000
|
|
|
Non-controlling interests
|
(2,500)
|
(2,500)
|
|
|
Non-cash interest related to discount on Senior Notes
|
275
|
275
|
|
|
Amortization of deferred stock compensation
|
875
|
875
|
|
|
Non-cash straightline lease expense
|
750
|
750
|
|
|
Adjusted
EBITDA
|
$
38,000
|
$
40,000
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Loss to Adjusted FFO
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(18,650)
|
$
(16,650)
|
|
|
Preferred stock dividends
|
(7,500)
|
(7,500)
|
|
|
Real
estate depreciation and amortization
|
34,750
|
34,750
|
|
|
Non-controlling interests
|
(1,750)
|
(1,750)
|
|
|
Amortization of lease intangibles
|
1,000
|
1,000
|
|
|
Non-cash straightline lease expense
|
750
|
750
|
|
|
Adjusted
FFO available to common stockholders
|
$ 8,600
|
$
10,600
|
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders per diluted share
|
$ 0.07
|
$ 0.09
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
117,800
|
117,800
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Reconciliation
of Net Income (Loss) to Non-GAAP Financial Measures
|
|
|
Guidance
for Full Year 2012
|
|
|
(Unaudited
and in thousands except per share amounts)
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Income (Loss) to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
December
31, 2012
|
|
|
Low
|
High
|
|
|
|
|
|
|
Net
income (loss)
|
$
(3,600)
|
$ 8,400
|
|
|
Depreciation and amortization
|
140,000
|
140,000
|
|
|
Amortization of lease intangibles
|
4,000
|
4,000
|
|
|
Interest expense
|
81,000
|
81,000
|
|
|
Amortization of deferred financing fees
|
4,000
|
4,000
|
|
|
Non-controlling interests
|
(10,000)
|
(10,000)
|
|
|
Non-cash interest related to discount on Senior Notes
|
1,100
|
1,100
|
|
|
Amortization of deferred stock compensation
|
3,500
|
3,500
|
|
|
Non-cash straightline lease expense
|
3,000
|
3,000
|
|
|
Adjusted
EBITDA
|
$
223,000
|
$
235,000
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Net Income (Loss) to Adjusted FFO
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
$
(3,600)
|
$ 8,400
|
|
|
Preferred stock dividends
|
(30,000)
|
(30,000)
|
|
|
Real
estate depreciation and amortization
|
139,000
|
139,000
|
|
|
Non-controlling interests
|
(7,000)
|
(7,000)
|
|
|
Amortization of lease intangibles
|
4,000
|
4,000
|
|
|
Non-cash straightline lease expense
|
3,000
|
3,000
|
|
|
Adjusted
FFO available to common stockholders
|
$
105,400
|
$
117,400
|
|
|
|
|
|
|
|
|
|
|
Adjusted
FFO available to common stockholders per diluted share
|
$ 0.90
|
$ 1.00
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
117,800
|
117,800
|
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Comparable
Hotel EBITDA Margins
|
|
|
(Unaudited
and in thousands except hotels and rooms)
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31, 2011
|
|
|
Three
Months Ended December 31, 2010
|
|
|
Actual
(1)
|
|
|
Actual
(2)
|
|
Acquired
Hotels (3)
|
|
Comparable
(4)
|
|
|
Number
of Hotels
|
32
|
|
|
29
|
|
3
|
|
32
|
|
|
Number
of Rooms
|
13,208
|
|
|
11,062
|
|
2,146
|
|
13,208
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA Margin (5)
|
28.7%
|
|
|
25.9%
|
|
36.1%
|
|
28.4%
|
|
|
Hotel
EBITDA Margin adjusted for prior year property tax credits (6)
|
28.7%
|
|
|
25.1%
|
|
|
|
27.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Revenues
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
164,945
|
|
|
$
116,910
|
|
$
38,790
|
|
$
155,700
|
|
|
Food
and beverage revenue
|
62,043
|
|
|
48,159
|
|
11,202
|
|
59,361
|
|
|
Other
operating revenue
|
13,374
|
|
|
8,633
|
|
4,400
|
|
13,033
|
|
|
Total
Hotel Revenues
|
240,362
|
|
|
173,702
|
|
54,392
|
|
228,094
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Expenses
|
|
|
|
|
|
|
|
|
|
|
Room
expense
|
41,711
|
|
|
30,697
|
|
8,724
|
|
39,421
|
|
|
Food
and beverage expense
|
42,437
|
|
|
34,139
|
|
7,887
|
|
42,026
|
|
|
Other
hotel expense
|
60,046
|
|
|
42,740
|
|
13,288
|
|
56,028
|
|
|
General and administrative expense
|
27,289
|
|
|
21,057
|
|
4,832
|
|
25,889
|
|
|
Total
Hotel Expenses
|
171,483
|
|
|
128,633
|
|
34,731
|
|
163,364
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA
|
68,879
|
|
|
45,069
|
|
19,661
|
|
64,730
|
|
|
Prior
year property tax credits
|
-
|
|
|
(1,429)
|
|
-
|
|
(1,429)
|
|
|
Hotel
EBITDA adjusted for prior year property tax credits
|
68,879
|
|
|
43,640
|
|
19,661
|
|
63,301
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-hotel
operating income
|
1,197
|
|
|
740
|
|
-
|
|
740
|
|
|
Amortization
of lease intangibles
|
(1,036)
|
|
|
(55)
|
|
(1,007)
|
|
(1,062)
|
|
|
Non-cash
straightline lease expense
|
(696)
|
|
|
(206)
|
|
(489)
|
|
(695)
|
|
|
Prior
year property tax credits
|
-
|
|
|
1,429
|
|
-
|
|
1,429
|
|
|
Corporate
overhead
|
(4,830)
|
|
|
(7,461)
|
|
-
|
|
(7,461)
|
|
|
Depreciation
and amortization
|
(34,888)
|
|
|
(23,110)
|
|
(7,261)
|
|
(30,371)
|
|
|
Operating
Income
|
28,626
|
|
|
14,977
|
|
10,904
|
|
25,881
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in earnings of unconsolidated joint ventures
|
-
|
|
|
80
|
|
-
|
|
80
|
|
|
Interest
and other income
|
145
|
|
|
121
|
|
-
|
|
121
|
|
|
Interest
expense
|
(22,236)
|
|
|
(16,939)
|
|
(3,886)
|
|
(20,825)
|
|
|
Income
from discontinued operations
|
1,053
|
|
|
37,433
|
|
-
|
|
37,433
|
|
|
Net
Income
|
$ 7,588
|
|
|
$
35,672
|
|
$ 7,018
|
|
$
42,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Actual
represents the Company's ownership results for the 32 hotels held for
investment as of December 31, 2011.
|
|
|
(2)
|
Actual
represents the Company's ownership results for the 29 hotels held for
investment as of December 31, 2010. Excludes the Royal Palm Miami
Beach, which was sold in April 2011, and the Valley River Inn, which
was sold in October 2011. Room count as of December 31, 2010 has been
adjusted by 6 additional rooms which were added to the Courtyard by
Marriott Los Angeles during the second quarter of 2011.
|
|
|
(3)
|
Acquired
Hotels represents prior ownership results for the Doubletree Guest
Suites Times Square acquired by the Company on January 14, 2011, the JW
Marriott New Orleans acquired by the Company on February 15, 2011, and
the Hilton San Diego Bayfront acquired by the Company on April 15,
2011. Room count as of December 31, 2010 has been adjusted by 2
additional rooms which were added to the JW Marriott New Orleans during
the fourth quarter of 2011.
|
|
|
(4)
|
Comparable
represents the Company's ownership results for the 29 hotels held for
investment as of December 31, 2010, plus the Doubletree Guest Suites
Times Square acquired by the Company on January 14, 2011, the JW
Marriott New Orleans acquired by the Company on February 15, 2011, and
the Hilton San Diego Bayfront acquired by the Company on April 15, 2011.
|
|
|
(5)
|
Hotel
EBITDA Margin is calculated as Hotel EBITDA divided by Total Hotel
Revenues.
|
|
|
(6)
|
Hotel
EBITDA Margin for the three months ended December 31, 2010 includes the
benefit of $1.4 million in prior year property tax credits. Without
this benefit, Comparable Hotel EBITDA Margin for the three months ended
December 31, 2010 would have been 27.8%, or 90 basis points lower than
the three months ended December 31, 2011.
|
|
|
|
|
Sunstone
Hotel Investors, Inc.
|
|
|
Comparable
Hotel EBITDA Margins
|
|
|
(Unaudited
and in thousands except hotels and rooms)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended December 31, 2011
|
|
Year
Ended December 31, 2010
|
|
|
Actual
(1)
|
|
Acquired
Hotels (2)
|
|
Comparable
(3)
|
|
|
Actual
(4)
|
|
Reacquired
Hotel (5)
|
|
Acquired
Hotels (2)
|
|
Comparable
(6)
|
|
|
Number
of Hotels
|
32
|
|
|
|
32
|
|
|
29
|
|
|
|
3
|
|
32
|
|
|
Number
of Rooms
|
13,208
|
|
|
|
13,208
|
|
|
11,062
|
|
|
|
2,146
|
|
13,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA Margin (7)
|
27.6%
|
|
32.3%
|
|
27.8%
|
|
|
25.1%
|
|
10.9%
|
|
32.4%
|
|
26.7%
|
|
|
Hotel
EBITDA Margin adjusted for prior year property tax credits, net (8)
|
27.5%
|
|
|
|
27.8%
|
|
|
24.9%
|
|
|
|
|
|
26.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
572,289
|
|
$
24,150
|
|
$
596,439
|
|
|
$
418,943
|
|
$ 4,931
|
|
$
132,022
|
|
$
555,896
|
|
|
Food
and beverage revenue
|
196,524
|
|
11,753
|
|
208,277
|
|
|
159,365
|
|
3,114
|
|
40,259
|
|
202,738
|
|
|
Other
operating revenue
|
47,541
|
|
2,873
|
|
50,414
|
|
|
33,754
|
|
240
|
|
16,240
|
|
50,234
|
|
|
Total
Hotel Revenues
|
816,354
|
|
38,776
|
|
855,130
|
|
|
612,062
|
|
8,285
|
|
188,521
|
|
808,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
expense
|
145,137
|
|
5,926
|
|
151,063
|
|
|
109,140
|
|
1,417
|
|
30,733
|
|
141,290
|
|
|
Food
and beverage expense
|
143,289
|
|
7,589
|
|
150,878
|
|
|
117,016
|
|
2,355
|
|
28,028
|
|
147,399
|
|
|
Other
hotel expense
|
208,855
|
|
9,120
|
|
217,975
|
|
|
158,756
|
|
2,403
|
|
50,460
|
|
211,619
|
|
|
General and administrative expense
|
93,672
|
|
3,597
|
|
97,269
|
|
|
73,222
|
|
1,203
|
|
18,144
|
|
92,569
|
|
|
Total
Hotel Expenses
|
590,953
|
|
26,232
|
|
617,185
|
|
|
458,134
|
|
7,378
|
|
127,365
|
|
592,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA
|
225,401
|
|
12,544
|
|
237,945
|
|
|
153,928
|
|
907
|
|
61,156
|
|
215,991
|
|
|
Prior
year property tax credits, net
|
(600)
|
|
-
|
|
(600)
|
|
|
(1,429)
|
|
-
|
|
-
|
|
(1,429)
|
|
|
Hotel
EBITDA adjusted for prior year property tax credits, net
|
224,801
|
|
12,544
|
|
237,345
|
|
|
152,499
|
|
907
|
|
61,156
|
|
214,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-hotel
operating income
|
4,357
|
|
-
|
|
4,357
|
|
|
3,262
|
|
-
|
|
-
|
|
3,262
|
|
|
Amortization
of lease intangibles
|
(4,007)
|
|
(140)
|
|
(4,147)
|
|
|
(281)
|
|
-
|
|
(4,028)
|
|
(4,309)
|
|
|
Non-cash
straightline lease expense
|
(2,398)
|
|
(386)
|
|
(2,784)
|
|
|
(944)
|
|
-
|
|
(1,963)
|
|
(2,907)
|
|
|
Management
company transition costs
|
(82)
|
|
-
|
|
(82)
|
|
|
(232)
|
|
-
|
|
-
|
|
(232)
|
|
|
Prior
year property tax credits, net
|
600
|
|
-
|
|
600
|
|
|
1,429
|
|
-
|
|
-
|
|
1,429
|
|
|
Corporate
overhead
|
(25,746)
|
|
-
|
|
(25,746)
|
|
|
(21,971)
|
|
-
|
|
-
|
|
(21,971)
|
|
|
Depreciation
and amortization
|
(127,945)
|
|
(6,308)
|
|
(134,253)
|
|
|
(92,374)
|
|
(561)
|
|
(29,046)
|
|
(121,981)
|
|
|
Impairment
loss
|
(10,862)
|
|
-
|
|
(10,862)
|
|
|
(1,943)
|
|
|
|
|
|
(1,943)
|
|
|
Operating
Income
|
58,718
|
|
5,710
|
|
64,428
|
|
|
39,445
|
|
346
|
|
26,119
|
|
65,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
in earnings of unconsolidated joint ventures
|
21
|
|
-
|
|
21
|
|
|
555
|
|
-
|
|
-
|
|
555
|
|
|
Interest
and other income
|
3,118
|
|
-
|
|
3,118
|
|
|
111
|
|
-
|
|
-
|
|
111
|
|
|
Interest
expense
|
(82,965)
|
|
(3,008)
|
|
(85,973)
|
|
|
(70,174)
|
|
-
|
|
(15,657)
|
|
(85,831)
|
|
|
Gain
on remeasurement of equity interests
|
69,230
|
|
-
|
|
69,230
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Income
from discontinued operations
|
33,177
|
|
-
|
|
33,177
|
|
|
68,605
|
|
-
|
|
-
|
|
68,605
|
|
|
Net
Income
|
$
81,299
|
|
$ 2,702
|
|
$
84,001
|
|
|
$
38,542
|
|
$ 346
|
|
$
10,462
|
|
$
49,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Actual
represents the Company's ownership results for the 32 hotels held for
investment as of December 31, 2011.
|
|
|
(2)
|
Acquired
Hotels represents prior ownership results for the Doubletree Guest
Suites Times Square acquired by the Company on January 14, 2011, the JW
Marriott New Orleans acquired by the Company on February 15, 2011, and
the Hilton San Diego Bayfront acquired by the Company on April 15,
2011. Room count as of December 31, 2010 has been adjusted by 2
additional rooms which were added to the JW Marriott New Orleans during
the fourth quarter of 2011.
|
|
|
(3)
|
Comparable
represents the Company's ownership results and prior ownership results
for the 32 comparable hotels held for investment as of December 31,
2011.
|
|
|
(4)
|
Actual
represents the Company's ownership results for the 29 hotels held for
investment as of December 31, 2010. Excludes the Royal Palm Miami Beach
which was sold in April 2011, the Valley River Inn which was sold in
October 2011, the W San Diego which was deeded back to the lender in
July 2010, the Marriott Ontario Airport which was sold by the receiver
in August 2010, and eight hotels included in the Mass Mutual portfolio
deeded back to the lender in November 2010, which have been
reclassified as discontinued operations for the year ended December 31,
2010. Room count as of December 31, 2010 has been adjusted by 6
additional rooms which were added to the Courtyard by Marriott Los
Angeles during the second quarter of 2011.
|
|
|
(5)
|
Reacquired
Hotel represents operating results for the Renaissance Westchester
while it was held in receivership prior to the Company's reacquisition
of the hotel on June 14, 2010.
|
|
|
(6)
|
Comparable
represents the Company's ownership results for the 29 hotels held for
investment as of December 31, 2010, plus the Renaissance Westchester
during the period it was held in receivership prior to the Company's
reacquisition of the hotel on June 14, 2010, the Doubletree Guest
Suites Times Square acquired by the Company on January 14, 2011, the JW
Marriott New Orleans acquired by the Company on February 15, 2011, and
the Hilton San Diego Bayfront acquired by the Company on April 15, 2011.
|
|
|
(7)
|
Hotel
EBITDA Margin is calculated as Hotel EBITDA divided by Total Hotel
Revenues.
|
|
|
(8)
|
Hotel
EBITDA Margin for the year ended December 31, 2011 includes the
additional benefit of $0.9 million due to prior year property tax
refunds, net of appeal fees, less additional expense of $0.3 million
due to a prior year property tax assessment. Hotel EBITDA Margin for
the year ended December 31, 2010 includes the benefit of $1.4 million
in prior year property tax credits. Without the benefit of these tax
adjustments, 2011 Comparable Hotel EBITDA Margin would have been 27.8%,
or 130 basis points higher than 2010's Comparable Hotel EBITDA Margin
of 26.5%.
|
|
|
|
