Host Hotels & Resorts Posts Profit In Q3, Cuts Annual Forecast On Shutdown

(RTTNews) - Host Hotels & Resorts, Inc. (HST), a lodging real estate investment trust, Tuesday reported a profit for the third quarter, compared to a loss last year, amid improved revenues. The firm cut the upper end of its full year adjusted FFO per share forecast.

The company noted that as of January 1, it adopted calendar quarter reporting periods, compared to 2012 where it reported based on the fiscal quarters that had been used by Marriott International.

Net income attributable to the company was $19 million or $0.03 per share compared to a loss of $34 million or $0.05 per share last year.

Adjusted FFO per share was $0.25 while it totaled $0.23 last year. On average, 23 analysts polled by Thomson Reuters expected earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items. Total revenues improved to $1.223 billion from $1.158 billion in the prior year. Wall Street expected revenues of $1.25 billion.

Owned hotel revenues increased 5.5 percent to $1.214 billion and comparable hotel revenues advanced 4.6 percent. Comparable hotel Revenue Per Available Room or RevPAR rose 5.5 percent.

Revenue growth also reflected strong performance from properties that have benefited from recently completed renovations.

On October 15, the company paid a regular quarterly cash dividend of $0.12 per share on its common stock to stockholders of record on September 30. The amount of any future dividend is dependent on the company's taxable income.

According to the company, operating results for the fourth quarter were hurt by the government shutdown in October. The company believes the shutdown will decrease full year comparable RevPAR by 25 to 30 basis points and will decrease net income and Adjusted EBITDA by $6 million to $7 million.

After considering the shutdown, the company expects that for 2013 earnings per share should range from $0.39 to $0.41 and adjusted FFO per share should range from $1.28 to $1.30. Wall Street expects annual earnings of $1.31 per share.

The previous forecast was for adjusted FFO per share to range from $1.28 to $1.32 and earnings per share to range from $0.34 to $0.38.

Comparable hotel RevPAR is expected to increase 5.5 to 5.7 percent, compared to the previous forecast of 5.5 percent and 6.25 percent growth.

The stock ended up 1.3 percent at $19.06 on Monday.