Sunstone Hotel Investors, Inc. · NYSE:SHO
Sunstone Hotel Investors — Q2 2011 Earnings Presentation
59 slides from Sunstone Hotel Investors's earnings presentation, Aug 8, 2011
Slide 1: Supplemental Financial Information
Supplemental Financial Information For the quarter ended June 30, 2011 August 8, 2011
Slide 2: Table of Contents
Supplemental Financial Information – Unaudited August 8, 2011 Table of Contents CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR ...............................................................................................................3 About Sunstone...................................
Slide 3: Table of Contents (continued)
Supplemental Financial Information – Unaudited August 8, 2011 PROPERTY-LEVEL DATA ................................................................................................................................................................................ 22 PROPERTY-LEVEL OPERATING STATISTICS ..
Slide 4: Corporate Profile, Financial Disclosures, and Safe Harbor
Supplemental Financial Information – Unaudited August 8, 2011 CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR CORPORATE PROFILE, FINANCIAL DISCLOSURES, AND SAFE HARBOR Page 3
Slide 5: About Sunstone
Supplemental Financial Information – Unaudited August 8, 2011 About Sunstone Sunstone Hotel Investors, Inc. (NYSE:SHO) is a lodging real estate investment trust (REIT) that, as of the date hereof, has interests in 32 hotels (excluding hotels held for sale) with an aggregate of 13,206 rooms primarily
Slide 6: Forward-Looking Statement
Supplemental Financial Information – Unaudited August 8, 2011 Forward-Looking Statement 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 “ant
Slide 7: Non-GAAP Financial Measures
Supplemental Financial Information – Unaudited August 8, 2011 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 Amortizat
Slide 8: Comparable portfolio definition and non-GAAP cautions
Supplemental Financial Information – Unaudited August 8, 2011 Our 32 hotel comparable portfolio includes all hotels owned by the Company as of June 30, 2011, excluding the Valley River Inn, which has been classified as Held for Sale as of June 30, 2011 and included in discontinued operations for all
Slide 9: Corporate Financial Information
Supplemental Financial Information – Unaudited August 8, 2011 CORPORATE FINANCIAL INFORMATION CORPORATE FINANCIAL INFORMATION Page 8
Slide 10: Consolidated Balance Sheets Q2 2011 – Q2 2010
Supplemental Financial Information – Unaudited August 8, 2011 Consolidated Balance Sheets Q2 2011 – Q2 2010 (In thousands) 6/30/2011 (1) 3/31/2011 (2) 12/31/2010 (3) 9/30/2010 (4) 6/30/2010 (5) Assets Investment in hotel properties: Land $ 265,108 $ 266,914 $ 274,590 $ 274,591 $ 239,564 Buildings &
Slide 11: Consolidated Balance Sheets Q2 2011 – Q2 2010 (cont.)
Supplemental Financial Information – Unaudited August 8, 2011 Consolidated Balance Sheets Q2 2011 – Q2 2010 (cont.) (In thousands) 6/30/2011 (1) 3/31/2011 (2) 12/31/2010 (3) 9/30/2010 (4) 6/30/2010 (5) Liabilities Current liabilities: Current portion of notes payable $ 292,189 $ 288,699 $ 16,486 $ 9
Slide 12: Consolidated Statements of Operations Q2 & YTD 2011/2010
Supplemental Financial Information – Unaudited August 8, 2011 Consolidated Statements of Operations Q2 & YTD 2011/2010 (In thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2011 2010 2011 2010 Revenues Room $ 150,280 $ 106,805 $ 256,760 $ 196,106 Food and bevera
Slide 13: Reconciliation to EBITDA and Adjusted EBITDA Q2 & YTD
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA Q2 & YTD 2011/2010 Three Months Ended Six Months Ended June 30, June 30, (In thousands) 2011 2010 2011 2010 Income available (loss
Slide 14: Reconciliation to FFO and Adjusted FFO Q2 & YTD
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO Q2 & YTD 2011/2010 (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2011 2010 2011 2010 Incom
Slide 15: Pro Forma Comparable Consolidated Statements of Operations
Supplemental Financial Information – Unaudited August 8, 2011 Pro Forma Comparable Consolidated Statements of Operations Q2 2011 – Q1 2010 Three Months Ended (1) (Unaudited and in thousands) June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, 2011 2011 2010 2010 2010 2010 Revenues Room $ 152,79
Slide 16: Earnings Guidance for Full Year 2011
Supplemental Financial Information – Unaudited August 8, 2011 EARNINGS GUIDANCE FOR FULL YEAR 2011 CAPITALIZATION Page 15
Slide 17: Earnings Guidance for Full Year 2011
Supplemental Financial Information – Unaudited August 8, 2011 Earnings Guidance for Full Year 2011 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 result
Slide 18: Reconciliation of Loss Attributable to Adjusted EBITDA and Adjusted FFO FY 2011
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Loss Attributable to Adjusted EBITDA and Adjusted FFO FY 2011 Reconciliation of Loss Attributable to Common Stockholders to Adjusted EBITDA (Unaudited and in thousands except per share amounts) Year Ended December 31, 20
Slide 19: Capitalization
Supplemental Financial Information – Unaudited August 8, 2011 CAPITALIZATION CAPITALIZATION Page 18
Slide 20: Comparative Capitalization Q2 2011 – Q2 2010
Supplemental Financial Information – Unaudited August 8, 2011 Comparative Capitalization Q2 2011 – Q2 2010 (In thousands, except per share data) 6/30/2011 3/31/2011 12/31/2010 9/30/2010 6/30/2010 Common Share Price & Dividends At the end of the quarter $ 9.27 $ 10.19 $ 10.33 $ 9.07 $ 9.93 High durin
Slide 21: Debt Summary Schedule as of June 30, 2011
Supplemental Financial Information – Unaudited August 8, 2011 Debt Summary Schedule as of June 30, 2011 (In thousands) Interest Rate / Maturity June 30, 2011 Subsequent August 8, 2011 Full Year 2011 Balance At Debt Collateral Spread Date Balance Event Balance Principal Amortization Maturity Fixed Ra
Slide 22: Amortization and Debt Maturity Schedule
Supplemental Financial Information – Unaudited August 8, 2011 Amortization and Debt Maturity Schedule as of June 30, 2011 Principal Payment at Maturity Scheduled Principal Amortization $500 $10.5 $450 $400 $350 (dollar amounts in millions) $22.8 $300 $6.0 $5.5 $250 $21.0 $455.4 $200 $150 $302.0 $231
Slide 23: Property-Level Data
Supplemental Financial Information – Unaudited August 8, 2011 PROPERTY-LEVEL DATA PROPERTY-LEVEL DATA Page 22
Slide 24: Property-Level Data
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level Data Number % of of Total Ownership Leasehold Year Hotel Location Brand Rooms Rooms Interest Interest Maturity (1) Acquired Hilton San Diego Bayfront California Hilton 1,190 9.01% 75% Leasehold 2071 2011 Renaissance Washing
Slide 25: Property-Level Operating Statistics
Supplemental Financial Information – Unaudited August 8, 2011 PROPERTY-LEVEL OPERATING STATISTICS PROPERTY-LEVEL OPERATING STATISTICS Page 24
Slide 26: Property-Level Operating Statistics Q2 2011/2010
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level Operating Statistics Q2 2011/2010 ADR Occupancy RevPAR For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2011 2010 Variance 2011 2010 Variance 2011 2010 Variance 1 C
Slide 27: Property-Level Operating Statistics YTD Q2 2011/2010
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level Operating Statistics YTD Q2 2011/2010 ADR Occupancy RevPAR For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30, 2011 2010 Variance 2011 2010 Variance 2011 2010 Variance 1 Cou
Slide 28: Property-Level Operating Statistics FY 2010/2009
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level Operating Statistics FY 2010/2009 ADR Occupancy RevPAR For the Years Ended December 31, For the Years Ended December 31, For the Years Ended December 31, 2010 2009 Variance 2010 2009 Variance 2010 2009 Variance 1 Courtyard
Slide 29: Operating Statistics by Brand & Geography
Supplemental Financial Information – Unaudited August 8, 2011 OPERATING STATISTICS BY BRAND & GEOGRAPHY OPERATING STATISTICS BY BRAND & GEOGRAPHY Page 28
Slide 30: Comparable Portfolio Operating Statistics by Brand Q2 & YTD 2011/2010
Supplemental Financial Information – Unaudited August 8, 2011 Comparable Portfolio Operating Statistics by Brand Q2 & YTD 2011/2010 FY11 FY10 Q-T-D(Jun) Q-T-D(Jun) # of Hotels Occ ADR RevPAR Occ ADR RevPAR Change (1) Marriott 19 76.5% $ 159.98 $ 122.38 74.5% $ 155.50 $ 115.85 5.6% Hilton (2) 8 82.5%
Slide 31: Comparable Portfolio Property-Level 2010 EBITDA Contribution by Brand
Supplemental Financial Information – Unaudited August 8, 2011 Comparable Portfolio Property-Level 2010 EBITDA Contribution by Brand Hyatt Fairmont Starwood 2% 2% 1% Independent 4% Marriott 50% Renaissance 24.2% Marriott 21.0% Hilton JW Marriott 3.4% 41% Courtyard 1.0% Residence Inn 0.7% Hilton 24.5%
Slide 32: Comparable Portfolio Operating Statistics by Region Q2 & YTD 2011/2010
Supplemental Financial Information – Unaudited August 8, 2011 Comparable Portfolio Operating Statistics by Region Q2 & YTD 2011/2010 FY11 FY10 Q-T-D(Jun) Q-T-D(Jun) # of Hotels Occ ADR RevPAR Occ ADR RevPAR Change (1) California 10 79.8% $ 144.21 $ 115.08 76.3% $ 140.54 $ 107.23 7.3% Other West 4 70
Slide 33: Property-Level EBITDA & EBITDA Margins
Supplemental Financial Information – Unaudited August 8, 2011 PROPERTY-LEVEL EBITDA & EBITDA MARGINS PROPERTY LEVEL EBITDA & EBITDA MARGINS Page 32
Slide 34: Property-Level EBITDA Q2 2011/2010, YTD 2011/2010, FY 2010/2009
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Q2 2011/2010, YTD 2011/2010, FY 2010/2009 For the Three Months Ended June 30, For the Six Months Ended June 30, For the Year Ended December 31, (Unaudited and in thousands) 2011 2010 2011 2010 2010 2009 Hotel EBITDA
Slide 35: Property-Level EBITDA Margins Q2 2011/2010, YTD 2011/2010, FY 2010/2009
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Margins Q2 2011/2010, YTD 2011/2010, FY 2010/2009 For the Three Months Ended June 30, For the Six Months Ended June 30, For the Year Ended December 31, 2011 2010 2011 2010 2010 2009 Hotel EBITDA Hotel EBITDA Change i
Slide 36: Appendix
Supplemental Financial Information – Unaudited August 8, 2011 APPENDIX APPENDIX Page 35
Slide 37: Pro Forma Reconciliation to EBITDA and Adjusted EBITDA Q1 2011
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA Q1 2011 Three Months Ended March 31, 2011 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity O
Slide 38: Pro Forma Reconciliation to FFO and Adjusted FFO Q1 2011
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO Q1 2011 Three Months Ended March 31, 2011 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Offerin
Slide 39: Pro Forma Reconciliation to EBITDA and Adjusted EBITDA Q2 2011
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA Q2 2011 Three Months Ended June 30, 2011 Acquisition: Loan Origination: Equity Offering: Discontinued Hilton San Royal P
Slide 40: Pro Forma Reconciliation to FFO and Adjusted FFO Q2 2011
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO Q2 2011 Three Months Ended June 30, 2011 Acquisition: Loan Origination: Equity Offering: Discontinued Hilton San Royal Palm Pr
Slide 41: Pro Forma Reconciliation to EBITDA and Adjusted EBITDA Q1 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA Q1 2010 Three Months Ended March 31, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity O
Slide 42: Pro Forma Reconciliation to FFO and Adjusted FFO Q1 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO Q1 2010 Three Months Ended March 31, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Offerin
Slide 43: Pro Forma Reconciliation to EBITDA and Adjusted EBITDA Q2 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA Q2 2010 Three Months Ended June 30, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Of
Slide 44: Pro Forma Reconciliation to FFO and Adjusted FFO Q2 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO Q2 2010 Three Months Ended June 30, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Offering
Slide 45: Pro Forma Reconciliation to EBITDA and Adjusted EBITDA Q3 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA Q3 2010 Three Months Ended September 30, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equi
Slide 46: Pro Forma Reconciliation to FFO and Adjusted FFO Q3 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO Q3 2010 Three Months Ended September 30, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Off
Slide 47: Pro Forma Reconciliation to EBITDA and Adjusted EBITDA Q4 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA Q4 2010 Three Months Ended December 31, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equit
Slide 48: Pro Forma Reconciliation to FFO and Adjusted FFO Q4 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO Q4 2010 Three Months Ended December 31, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Offe
Slide 49: Pro Forma Reconciliation to EBITDA and Adjusted EBITDA FY 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to EBITDA and Adjusted EBITDA FY 2010 Year Ended December 31, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Offeri
Slide 50: Pro Forma Reconciliation to FFO and Adjusted FFO FY 2010
Supplemental Financial Information – Unaudited August 8, 2011 Reconciliation of Pro Forma Income Available (Loss Attributable) to Common Stockholders to FFO and Adjusted FFO FY 2010 Year Ended December 31, 2010 Acquisition: Acquisition: Acquisition: Acquisition: Loan Origination: Equity Offering: He
Slide 51: Property-Level EBITDA Reconciliation FY 2010
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation FY 2010 For the Year Ended December 31, 2010 Adjusted Plus: Plus: Equals: Hotel (Unaudited and in thousands) Total Net Income / Hotel EBITDA Revenues (Loss) (3) Depreciation Interest Expense EBITDA Mar
Slide 52: Property-Level EBITDA Reconciliation FY 2009
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation FY 2009 For the Year Ended December 31, 2009 Adjusted Plus: Plus: Equals: Hotel (Unaudited and in thousands) Total Net Income / Hotel EBITDA Revenues (Loss) Depreciation Interest Expense EBITDA Margins
Slide 53: Property-Level EBITDA Reconciliation
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation (1) Total Comparable Portfolio for the year ended December 31, 2010 includes operating results for the Renaissance Westchester while it was held in receivership prior to the Company's reacquisition of
Slide 54: Property-Level EBITDA Reconciliation Q2 2011
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation Q2 2011 For the Three Months Ended June 30, 2011 Adjusted Plus: Plus: Equals: Hotel (Unaudited and in thousands) Total Net Income / Hotel EBITDA Revenues (Loss) (3) Depreciation Interest Expense EBITDA
Slide 55: Property-Level EBITDA Reconciliation Q2 2010
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation Q2 2010 For the Three Months Ended June 30, 2010 Adjusted Plus: Plus: Equals: Hotel (Unaudited and in thousands) Total Net Income / Hotel EBITDA Revenues (Loss) (5) Depreciation Interest Expense EBITDA
Slide 56: Property-Level EBITDA Reconciliation Q2 2011/2010
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation Q2 2011/2010 (1) Total Comparable Portfolio for the three months ended June 30, 2011 includes prior ownership results for the Hilton San Diego Bayfront acquired by the Company on April 15, 2011. (2) In
Slide 57: Property-Level EBITDA Reconciliation YTD Q2 2011
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation YTD Q2 2011 For the Six Months Ended June 30, 2011 Adjusted Plus: Plus: Equals: Hotel (Unaudited and in thousands) Total Net Income / Hotel EBITDA Revenues (Loss) (3) Depreciation Interest Expense EBIT
Slide 58: Property-Level EBITDA Reconciliation YTD Q2 2010
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation YTD Q2 2010 For the Six Months Ended June 30, 2010 Adjusted Plus: Plus: Equals: Hotel (Unaudited and in thousands) Total Net Income / Hotel EBITDA Revenues (Loss) (5) Depreciation Interest Expense EBIT
Slide 59: Property-Level EBITDA Reconciliation YTD 2011/2010
Supplemental Financial Information – Unaudited August 8, 2011 Property-Level EBITDA Reconciliation YTD 2011/2010 (1) Total Comparable Portfolio for the six months ended June 30, 2011 includes prior ownership results for the Doubletree Guest Suites Times Square acquired by the Company on January 14,
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