Investor FAQs

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SHAREHOLDER AND STOCK INFORMATION
Q:On what exchange is Sunstone Hotel Investors' stock traded?
A:Sunstone Hotel Investors' Common Stock trades on the New York Stock Exchange under the symbol “SHO”. Our Series D Cumulative Redeemable Preferred Stock trades on the New York Stock Exchange under the Symbol "SHO-PRD".

Q:When did Sunstone Hotel Investors go public?
A:Sunstone Hotel Investors completed its public offering on October 26, 2004 at a price of $17.00 per share. The IPO was co-led by Citigroup, Merrill Lynch and Morgan Stanley. A.G. Edwards, Bear Stearns, Calyon Securities, Deutsche Bank and UBS acted as co-managers.

Q:Whom should I contact for additional information about my stockholder account, such as a change of address or lost stock certificates?
A:For shareholder inquiries, including change of name, address or telephone number, canceling or issuing stock certificates, and resolving problems related to lost, destroyed, or stolen certificates, please contact our transfer agent:

American Stock Exchange
59 Maiden Lane
Plaza Level
New York, New York 10038
1-800-937-5449
www.amstock.com

Q:What is Sunstone Hotel Investors' CUSIP number for its Common Stock?
A:Our CUSIP number is 867892-10-1.

Q:What is Sunstone Hotel Investors' CUSIP number for its Series D?
A:Our CUSIP number is 867892-50-7.

Q:How can I buy shares of Sunstone Hotel Investors’ stock?
A:You can purchase shares of Sunstone Hotel Investors' stock through any licensed brokerage firm.

Q:Can I purchase Sunstone Hotel Investors' stock directly from the Company?
A:No, Sunstone Hotel Investors does not have a direct stock purchase plan. Sunstone Hotel Investors' stock must be purchased through a licensed brokerage firm.

Q:Does Sunstone Hotel Investors have a dividend reinvestment program?
A:No, Sunstone Hotel Investors does not have a dividend reinvestment program at this time.

Q:Can I listen to an archive of your last earnings conference call?
A:Click here for access to past conference calls.

Q:Who are the members of your senior management team?
A:Click here to view Sunstone Hotel Investors’ management team.

Q:Who are the members of your Board of Directors?
A:Click here to view Sunstone Hotel Investors’ board of directors.

Q:What are Sunstone Hotel Investors’ corporate governance policies?
A:Click here to review our corporate governance policies.

Q:Where can I find news about Sunstone Hotel Investors?
A:Click here to read our recent press releases.

Q:Does Sunstone Hotel Investors have any upcoming investor events?
A:Click here to access our calendar of events.

Q:How can I receive additional information on Sunstone Hotel Investors?
A:Click here to request materials.

Q:How can I contact the Investor Relations Department at Sunstone Hotel Investors?
A:Sunstone Hotel Investors' Investor Relations department can be reached at the following: InvestorRelations@sunstonehotels.com

GENERAL COMPANY INFORMATION
Q.How can I get a copy of Sunstone Hotel Investors’ latest annual and quarterly reports?
A.Click here to view our latest annual and quarterly reports online. Click here to have the information sent to you by mail.

Q.What does Sunstone Hotel Investors do?
A.Sunstone Hotel Investors is a real estate investment trust (REIT) that owns primarily upper-upscale and upscale hotels in the United States.

Q.Do you manage the hotels you own?
A.We engage an independent hotel manager to manage our hotel properties. This serves two purposes:

1. It allows us to be in compliance with the applicable rules governing lodging REITs; and
2. We believe we can capture certain operational efficiencies through our relationship with a third-party manager that we could not capture if we were to manage the properties ourselves.

Q.When was Sunstone Hotel Investors founded?
A.Sunstone Hotel Investors was originally founded in 1995. In 1999, the predecessor company went private through a management-led buyout. In October 2004 we successfully completed our initial public offering.

Q.When was Sunstone Hotel Investors incorporated?
A.Sunstone Hotel Investors was incorporated in the State of Maryland in June 2004.

Q.Who is your independent Registered public Accounting Firm?
A.Sunstone Hotel Investors' independent accountant is Ernst & Young LLP.

Q.How many employees does Sunstone Hotel Investors have?
A.Sunstone Hotel Investors has 46 employees as of February 18, 2013.

Q.Where is Sunstone Hotel Investors headquartered?
A.Sunstone Hotel Investors is headquartered in Aliso Viejo, California, which is in southern California.

Q.When does Sunstone Hotel Investors’ fiscal year end?
A.The Company’s fiscal year end is December 31.

QUESTIONS ABOUT REAL ESTATE INVESTMENT TRUSTS
Q.What is a REIT?
A.The National Association of Real Estate Investment Trusts (NAREIT) defines a REIT as a company that owns, and in most cases operates, income-producing real estate, such as hotels, apartments, offices, shopping centers and warehouses. Some REITs also engage in financing real estate. The shares of many REITs are freely traded, usually on a major stock exchange.

Q.How is the Sunstone Hotel Investors' REIT structured?
A.We are structured as an umbrella partnership real estate investment trust, or UPREIT. In a typical UPREIT, the partners of existing partnerships and a newly-formed REIT become partners in a new partnership termed the Operating Partnership. For their respective interests in the Operating Partnership ("Units"), the partners contribute the properties from the existing partnership and the REIT contributes the cash proceeds from its public offering. The REIT typically is the general partner of The Operating Partnership and the majority owner of the Operating Partnership Units.

Q.What are the benefits of operating as a REIT?
A.According to NAREIT, a company that qualifies as a REIT is permitted to deduct dividends paid to its shareholders from its corporate income tax bill. As a result, most REITs remit at least 100 percent of their taxable income to their shareholders and therefore owe no corporate taxes. Most states honor this federal tax treatment and do not require REITs to pay state income taxes.

Q.How does a company qualify as a REIT?
A.To qualify as a REIT, a company must comply with certain provisions specified in the Internal Revenue Code and its underlying regulations. A REIT must:

    
  • Be an entity that is taxable as a corporation;
  • Be managed by a board of directors or trustees;
  • Have shares that are fully transferable;
  • Have a minimum of 100 shareholders;
  • Have no more than 50% of its shares held by five or fewer individuals during the last half of each taxable year;
  • Invest at least 75% of its total assets in real estate;
  • Derive at least 75% of its gross income from rents from real property, or interest on mortgages on real property;
  • Have no more than 20% of its assets consist of stocks in taxable REIT subsidiaries; and
  • Pay dividends of at least 90% of its taxable income in the form of shareholder dividends.

  • Q.What is FFO?
    A.FFO, or funds from operations, is a supplemental performance measurement that has been adopted by NAREIT as an industry-wide measure of REIT operating performance. NAREIT and its member companies believe that real estate values have historically risen and fallen with market conditions, and therefore, that historical cost accounting for real estate companies may be misleading. FFO addresses this industry problem by excluding historical cost depreciation from the calculation of net income. FFO is not a financial measure that is calculated in accordance with U.S. generally accepted accoung principles ( "GAAP"). FFO should not be considered as an alternative measure of net income ( loss), operating performance or liquity as calculated in accordance with GAAP.

    Q.What is RevPAR?
    A.RevPAR, which is a widely used statistic by lodging REITs, stands for revenue per available room.

    Q.How can I get additional information about REITs?
    A.For additional information about REITs, please visit our industry trade association’s website at www.nareit.org.