HARRISBURG, Pa. -- (BUSINESS WIRE) -- Nov. 20, 2000 -- Hersha Hospitality Trust (AMEX:HT) announced financial results for the third quarter and nine months ended September 30, 2000.
Funds from Operations (FFO) for the third quarter ended September 30, 2000 increased 31.6% to $2.03 million or $0.30 per diluted share compared to $1.54 million or $0.24 per diluted share for the same period in 1999. FFO for the nine months ended September 30, 2000 increased 31.9% to $4.87 million or $0.73 per diluted share from $3.69 million or $0.58 per diluted share for the same period in 1999.
FFO (net income plus minority interest and depreciation and amortization) is considered a key measurement of the performance of a real estate investment trust. The increase in FFO was propelled by the acquisition of ten hotel properties during the first nine months of the year and increases in revenue per available room (RevPAR) across the portfolio.
FFO was partially offset by approximately $107,000 of one time prepayment penalties related to a portfolio refinancing completed during the first quarter and additional expenses related to the above mentioned acquisitions.
The Company's operations also benefited from an increase in the average daily rate and occupancy percentages of the hotels leased by its primary lessee, Hersha Hospitality Management, L.P. For the nine months ending September 30, 2000, the average daily rate increased to $75.10 from $68.87 and the occupancy increased from 58.6% to 64.9% in the comparable period in 1999.
A summary of the nine month results is listed below:
($'s in 000's except per
share amounts) Nine Months Ended Nine Months Ended
September 30, September 30,
2000 1999
----------------- -----------------
Total Revenue $9,255 $5,209
Income Before Minority Interest $2,084 $2,284
Net Income $ 770 $1,032
Basic Earnings Per Common Share $ 0.34 $ 0.45
Diluted Earnings Per Common Share $ 0.31 $ 0.36
Funds from Operations (FFO) $4,874 $3,695
FFO per Diluted Share $ 0.73 $ 0.58
Hersha Hospitality Trust is a self advised real estate investment trust that owns premium limited and full service hotels in the eastern United States with strong, national franchise affiliations. The Company focuses on acquisition and joint venture opportunities in primary and secondary markets near major metropolitan markets.
The Company currently owns 21 hotels located in New York, Pennsylvania, Georgia and Maryland. Further inquiries regarding Hersha Hospitality Trust should be directed to Ashish Parikh, CFO, at 717/770-2405.
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement.
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