Shares of Sunstone Hotel Investors (SHO) plummeted 5.00% on Friday, closing the trading session at $15.00. The steep drop came after the company reported disappointing fourth quarter and full year 2024 financial results.
Sunstone Hotel Investors reported a net income of just $0.8 million for Q4 2024, sharply lower than the $127.0 million reported in the year-ago quarter. Excluding a gain from the sale of a hotel property in Q4 2023, the company's net income of $3.2 million still showed a significant decline year-over-year. Additionally, the company's adjusted funds from operations (AFFO) per diluted share fell 15.8% to $0.16 in Q4 2024, missing analyst expectations.
The weak quarterly results weighed heavily on investor sentiment, driving SHO shares down amid concerns over the company's profitability and growth prospects. Despite some positive developments like acquisitions and renovations mentioned in the earnings release, the disappointing earnings figures appear to have overshadowed those factors in the short term.
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