BETHESDA — Host Hotels & Resorts Inc. said Wednesday that its second-quarter funds from operations improved as the lodging real estate investment trust saw occupancy improve and room rates climb.
Funds from operations, or FFO, increased to $210 million, or 30 cents per share, for the period ended June 17 from $151 million, or 23 cents per share, in the prior-year period.
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.
Analysts polled by FactSet expected FFO of 29 cents per share.
Host earned $62 million, or 9 cents per share, compared with $13 million, or 2 cents per share, a year earlier.
Revenue rose 17 percent to $1.3 billion from $1.11 billion as the company made more money from its rooms and food and beverage.
Revenue per available room, or revpar, climbed 6.7 percent. This figure is a key gauge of a lodging company’s health. Host said the average room rate increased 5 percent, while occupancy climbed 1.1 percentage points.
Hotel revenue for owned hotels rose 14 percent to $1.24 billion.
Host said part of its total revenue came from 14 hotels acquired since June 2010.
Looking ahead, the company predicts full-year FFO of about 87 cents to 91 cents per share and an approximately loss of 4 cents per share to break-even results.
Analysts forecast FFO of 92 cents per share.
Its shares slipped a penny to $16.50 in morning trading.