Highlights:
• Operating income increased $247,000, or 21.1%, to $1.4 million for the first six months of fiscal year 2008 ended July 31, 2007 compared to the six-month period ended July 31, 2006.
• Net income attributable to Shares of Beneficial Interest was $548,000, or $0.06 per basic share for the six months ended July 31, 2007 up from $0.04 in the prior year period.
• The Trust's operations, including revenue per available room ("REVPAR") and average daily rate, continue to follow the industry trends upward.
InnSuites Hospitality Trust reported operating income of $1.4 million for the six months ended July 31, 2007, an improvement of $247,000, or 21.1%, from the prior year six-month period operating income of $1.2 million. This increase is consistent with the strong hospitality industry and is reflective of the Trust's continued improvement in the operations of its five core suite hotels as well as improved management and licensing fee revenues.
The Trust reported net income attributable to Shares of Beneficial Interest of $548,000, or $0.06 per basic and $0.04 per diluted share, an increase of over 58.7% for the six months ended July 31, 2008, from $345,000, or $0.04 per basic and $0.02 per diluted share, for the prior year period.
"The industry trends in terms of occupancy and rate were strong in fiscal 2007 (February 1, 2006 to January 31, 2007) and we expect these trends to continue in fiscal 2008," said James Wirth, President and CEO. "InnSuites has benefited from these trends in the last eighteen months and looks forward to continued benefits over the next eighteen months. In addition, InnSuites has controlled labor costs, increased technology and upgraded suites to augment the strong industry trends in the year ahead and to improve operating profits and asset value."
For the three-month period ended July 31, 2007, the Trust reported revenue of $4.9 million, consistent with the prior year period. Net loss attributable to Shares of Beneficial Interest was $(354,311) down $14,000 from the prior year three month period ended July 31, 2006. The Trust's revenues for the three month period ended July 31, 2007 reflect the strong economy producing high occupancies and rates, increased management and licensing fees, and payroll reimbursements received in connection with management agreements.
For the six-month period ended July 31, 2007 the Trust's hotel operations continued to benefit from improved economic and industry conditions, with occupancy remaining strong at 74.6% and average daily rate increasing $5.11 over the prior year period. In addition, the Trust continues to benefit from management and trademark licensing agreements acquired during fiscal year 2005.
Funds From Operations ("FFO") is a widely used measure of a REIT's performance that excludes non-cash charges, including depreciation of real estate and gains and losses on disposal of assets. FFO is an alternative non- GAAP measure of a company's cash flow and its ability to pay dividends.
FFO increased approximately $165,000 for the six month period ended July 31, 2007, reflecting an increase of 15.4%, when compared to the prior year period. The increase was due primarily to stronger operating results at the hotel properties. See reconciliation below.
For the Six Months Ended July 31,
2007 2006
Net Income (Loss) Attributable to
Shares of Beneficial Interest $ 547,520 344,995
Hotel Property Depreciation 978,453 1,038,880
Loss on Disposition of Hotels 773 1,628
Minority Interest Share of
Depreciation and (Gain) Loss on
Dispositions (226,399) (249,908)
Funds from Operations $ 1,300,347 1,135,595
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