NYSE: SHO
Sunstone Hotel Investors, Inc.
Real Estate · REIT - Hotel & Motel
After hours: $10.80(0%) · as of 7:34 PM ET
Market Cap
$2.01B
52w High
$12.07
52w Low
$8.69
P/E
37.72
Volume
2.30M
Outstanding Shares
186.29M
Price vs Fundamentals
Why The Stock Is Moving
What changed
The stock rose 20% over the last year. Revenue grew 7.28% over the trailing twelve months. Operating margin moved from 7.77% to 9.03%. Free cash flow declined 17.15% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (91st percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 9.03% — continued expansion would be needed to justify the premium. Revenue growth of 7.28% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Sunstone Hotel Investors, Inc. functions as a real estate investment trust (REIT) focused on the hospitality sector.
Valuation
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Standard profitability metrics can be misleading for financial/insurance companies. GAAP requires unrealized investment gains/losses in net income (affecting ROE), and margins are blended across diverse business segments.
Analyst consensus
8
Buy
13
Hold
7
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Nov 6, 2026
Q4 FY26 · EPS est $0.05 · Revenue est $223.84M
View
Dividends
$0.36/shareQuarterly4yr growth streakStretchedSHO pays a dividend with a 3.33% declared yield, 4 consecutive years of growth, growing at 48.41% annually, covered 0.9× by free cash flow.
Declared Yield
3.33%
Annual Div / Share
$0.36
5yr CAGR
+48.41%
Doubles every ~1.8yr
FCF Coverage
0.9×
Stretched
Dividend Growth Rate
3yr CAGR
+53.26%
5yr CAGR
+48.41%
10yr CAGR
-12.76%
Dividend History
Annual dividends paid per share
Income Projection
Today
$3/mo
In 5 yrs
$5/mo
In 10 yrs
$9/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$33/yr $3/mo | $59/yr+76% $5/mo | $104/yr+211% $9/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 3.33% → 10.35% over 10yr
Analysis
Dividend Strengths
Strong dividend growth rate
The 5-year CAGR of 48.41% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
Dividend exceeds free cash flow
Free cash flow covers only 0.91× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.