Terms

Series

6.125% Series H Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.125%

Rate Type

Fixed

Annual Dividend

$1.53

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

May 24, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Debt Obligations Of The Issuer, Any Capital Stock Expressly Designated As Senior To The Series H Preferred; Pari Passu With: 6.950% Series E Cumulative Redeemable Preferred Stock, 6.450% Series F Cumulative Redeemable Preferred Stock, Series G Cumulative Redeemable Preferred Stock; Senior To: Common Stock, Any Capital Stock Expressly Designated As Junior To The Series H Preferred

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,000,000

Prospectus Summary

Sunstone Hotel Investors, Inc. (NYSE: SHO), a hotel-focused REIT, is offering 4,000,000 shares of its 6.125% Series H Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference, paying a fixed annual dividend of $1.53125 per share ($0.3828 quarterly) with an optional redemption date of May 24, 2026. The Series H is cumulative, meaning that any unpaid dividends accrue and must be paid in full before the issuer can resume distributions on common stock or parity/junior securities — providing meaningful dividend protection for investors compared to non-cumulative structures. The Series H preferred sits senior to Sunstone's common stock and any junior capital stock, but ranks on parity with the existing Series E (6.950%), Series F (6.450%), and Series G preferred shares. Critically, as a holding company issuer, the Series H preferred is expressly subordinated to all existing and future debt obligations of Sunstone, meaning bondholders and lenders are paid first in any stress scenario. There is no regulatory capital call provision (Sunstone is a REIT, not a bank), though the issuer may redeem shares in limited circumstances to preserve its REIT qualification. Upon a Change of Control where the surviving entity is de-listed, holders may convert into common stock at up to 4.085 shares per preferred share (the Share Cap). At par, the Series H yields 6.125% annually, paid quarterly on January 15, April 15, July 15, and October 15, commencing July 15, 2021. As a REIT issuer, dividends are generally not eligible for the 15%/20% qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD), and will typically be taxed as ordinary income. The dividend stopper prevents Sunstone from paying any common, Series E, F, or G dividends (or repurchasing such shares) unless all accumulated Series H dividends have been fully paid or set aside — offering practical protection against dividend interruption absent a severe financial deterioration.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the issuer has not paid all accumulated dividends on the Series H preferred, it is prohibited from paying dividends on or redeeming its common stock or any parity/junior preferred stock (including Series E, F, and G preferred), until all past-due Series H dividends are paid or set aside.

Other Preferreds from Sunstone Hotel Investors Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 48 (Average)