Host Hotels Revises FY16 Forecast; Q2 Adj. FFO Meets View - Quick Facts

(RTTNews) - Host Hotels & Resorts, Inc. (HST), a lodging real estate investment trust, announced Friday that the company now expects fiscal 2016 NAREIT and adjusted Funds From Operations or FFO per share to be in the range of $1.63 to 1.67 per share. Previously, the company was projecting FFO per share in the range of $1.65 - $1.69.

On average, 19 analysts polled by Thomson Reuters expect the company to report earnings of $1.68 per share for fiscal year 2016. Analysts' estimates typically exclude special items.

For the year, the company now expects net income of $732 million to $762 million or earnings per share of $0.97 to $1.01. Previously, the company expected net income in the range of $726 million - $759 million and earnings per share of $0.96 - $1.00.

Adjusted EBITDA is now expected to be $1.435 billion to $1.465 billion, total revenue growth of 1 percent to 1.9 percent and total comparable hotel RevPAR at constant rates at 2 percent to 3 percent.

Due to the uncertain economic outlook, the Company has lowered its expected range for RevPAR growth for comparable properties by 100 basis points.

For its second quarter, the company's net income climbed 64 percent to $351 million from last year's $214 million. Earnings per share were $0.47, up 67.9 percent from $0.28 last year.

NAREIT FFO per share increased 14 percent to $0.49 from $0.43 last year. Adjusted FFO per share grew 6.5 percent to $0.49 from $0.46 a year ago. Analysts expected earnings of $0.49 per share for the quarter.

Total revenues edged up 1.4 percent to $1.459 billion from $1.439 billion last year. Analysts expected revenues of $1.47 billion.

Adjusted EBITDA increased 3.3% for the quarter, driven by increases of 5.0% in comparable hotel EBITDA. Comparable RevPAR on a constant dollar basis improved 2% for the quarter.