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What: Shares of hotel owner Sunstone Hotel Investors
So what: Why are investors so excited about Sunstone's results today? For starters, the REIT's adjusted funds from operations of $0.20 were up 33% from last year and topped the $0.19 that Wall Street had been expecting. Revenue likewise topped estimates as it climbed 39% from 2010.
Other key metrics for the company also looked solid, with comparable hotel revenue per available room (RevPAR) up 8.6%, while the company's EBITDA margin expanded by 150 basis points.
Now what: It hasn't exactly been a smooth ride for the economy, and that's obviously a concern for a hotel owner like Sunstone. So it's good news for investors that management appears to be shrewdly operating the company to continue to produce solid results in a tough environment.
Looking at the year as a whole, management increased the midpoint of its expectations ever so slightly by tightening the range of adjusted FFO to a range of $0.79 to $0.84.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.