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Host Hotels & Resorts 3rd-quarter FFO improves

BETHESDA — Host Hotels & Resorts Inc.’s third-quarter funds from operations improved as its room and food and beverage revenue increased.

The lodging real estate investment trust said Wednesday that funds from operations rose to $75 million, or 11 cents per share, for the period ended Sept. 10 from $66 million, or 11 cents per share.

Adjustments for dilutive securities lowered Host’s funds from operations by 2 cents per share in the latest quarter. The results met the expectations of analysts polled by Thomson Reuters.

FFO, which adds such items as amortization and depreciation to net income, is considered key to measuring the financial performance of real estate investment trusts.

Host’s quarterly loss available to shareholders widened to $58 million or 9 cents per share, compared with a loss of $57 million, or 9 cents per share, a year earlier.

Total revenue climbed to $1.01 billion from $903 million. Hotel revenue per available room for properties open at least a year rose 8.8 percent on a better average daily rate and improved occupancy.

Revenue per available room, also known as revpar, is a key gauge of a lodging company’s performance.

For 2010, Host expects hotel revenue per available room for properties open at least a year will climb 5.5 percent to 6.5 percent. It foresees a loss of about 23 cents to 22 cents per share for the year, with FFO between about 67 cents and 69 cents per share.

Analysts predict 2010 FFO of 71 cents per share.

Host Hotels & Resorts currently owns 104 properties in the U.S. and 9 international properties. It also holds a non-controlling interest in a joint venture that owns 11 hotels in Europe. The company is based in Bethesda, Md.