Sunstone Hotel Investors: An 8% Preferred Dividend With A Very Safe Balance Sheet


  • Sunstone has one of the safest balance sheets in the hospitality REIT sector with an LTV of less than 25% based on the book value of the properties.
  • That book value already includes a substantial amount of accumulated depreciation.
  • Despite the robust balance sheet, one category of preferred shares still offers an 8% yield, making the risk/reward ratio exceptionally good.
  • Looking for more investing ideas like this one? Get them exclusively at European Small-Cap Ideas. Learn More »

Santa Monica beach PCH Los Angeles

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As I have been building up my positions in preferred shares over the summer and in the past few months, I also now have to keep tabs on those positions to make sure I'm still

Data by YCharts

Hotel Breakdown

Sunstone Investor Relations

RevPAR comparison

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Income Statement

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AFFO Calculation

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Balance Sheet

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Value of Real Estate Assets

Sunstone Investor Relations

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This article was written by

The Investment Doctor profile picture
We zoom in on capital gains and dividend income in European small-caps
As I'm a long-term investor, I'll highlight some stockpicks which will have a 5-7 year investment horizon. As I strongly believe a portfolio should consist of a mixture of dividend-paying stocks and growth stocks, my articles will reflect my thoughts on this mixture.

Disclosure: I/we have a beneficial long position in the shares of SHO.PI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I also have a long position in SHO.PH.

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