Host Hotels & Resorts’ 4th-quarter FFO improves

BETHESDA — Host Hotels & Resorts Inc.’s fourth-quarter funds from operations improved as the lodging real estate investment trust’s occupancy improved and room rates rose.

Host Hotels funds from operations climbed to $224 million, or 31 cents per share, for the three months ended Dec. 30 from $191 million, or 26 cents per share, a year earlier.

Taking out acquisition costs and other items, adjusted FFO was 32 cents per share.

Analysts surveyed by FactSet predicted adjusted FFO of 22 cents per share.

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.

The Bethesda-based company reported on Tuesday that its net income was $17 million, or 2 cents per share. That compares with a net loss of $6 million, or 1 cent per share, a year ago.

Revenue increased 11 percent to $1.66 billion from $1.49 billion.

Revenue per available room from hotels open at least a year climbed about 6 percent as the average room rate improved 3.8 percent and average occupancy increased to 69.7 percent from 68 percent.

Revenue per available room, or revpar, is a key gauge of a hotel operator’s performance.

For the year, Host Hotels’ FFO rose to $626 million, or 89 cents per share, from $452 million, or 68 cents per share, in the prior year. The company’s full year loss narrowed to $15 million, or 2 cents per share, from a loss of $138 million, or 21 cents per share, in the previous year.

Annual revenue rose 13 percent to $5 billion from $4.43 billion.

Revpar from hotels open at least a year climbed 6.1 percent.

For 2012, Host Hotels expects adjusted FFO of about 97 cents to $1.04 per share, with earnings between approximately 8 cents per share and 15 cents per share.

Host Hotels & resorts currently owns 105 properties in the U.S. and 16 internationally.

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