PHOENIX, Dec. 18 /PRNewswire/ -- InnSuites Hospitality Trust (Amex: IHT)
Highlights:
-- Comparable FFO for the nine months was $353,000 or $0.17 per basic
share, compared to $451,000 or $0.19 per basic share in the prior year
period
-- Revenue totaled $21.8 million, an increase of 187% over the prior year
due to the purchase of the Lessee.
-- The Trust replaced its $12 million Credit Facility and obtained new
financing to provide greater long-term liquidity.
-- The Trust expects significant recovery from the events of September 11
by the second quarter of next year.
InnSuites Hospitality Trust today reported Comparable Funds From Operations (FFO) of $353,000 or $0.17 per basic share, which includes the adjustment for a one-time charge relating to the acquisition of the Lessee, for the first nine months of fiscal 2002. The comparable FFO was a decrease of $98,000 or $0.02 per basic share from the first nine months of the prior-year's comparable FFO of $451,000 or $0.19 per basic share. The negative impact on the travel industry as a result of the events of September 11, 2001 is the primary cause for the decrease in comparable FFO. The Trust's recovery from those events began in October and continues.
Trust revenue increased 187% to $21.8 million for the nine months ended October 31, 2001 from $7.6 million for the prior year. This large increase is the result of purchasing and consolidating the Lessee company. Effective at the beginning of the Trust's fiscal year 2002 (February 1, 2001), the Trust purchased its exclusive Lessee, InnSuites Hotels, Inc., under the provisions of the REIT Modernization Act (RMA).
The Trust's net loss attributable to shares of beneficial interest for the first nine months ended October 31, 2001, before extraordinary item and a one-time charge, was $791,000 or $(0.37) per basic share compared to a loss of $506,000 or $(0.21) per basic share for the first nine months of the prior year. The Trust believes that its net loss was also negatively impacted by the events of September 11. After deducting a $577,000 prepayment penalty as an extraordinary item for the refinancing of the Trust's Ontario property and a $1,608,000 one-time charge associated with the acquisition of the Lessee, the Trust's net loss attributable to shares of beneficial interest was $2.7 million or $(1.25) per basic share.
The Trust had a net loss attributable to shares of beneficial interest of $781,000 or $(0.36) per basic share for the third quarter of fiscal year 2002 compared to a loss of $514,000 or $(0.24) per basic share for the same period in fiscal year 2001. The Trust believes that a majority of this decline related to the events of September 11, offsetting an otherwise improving trend.
On April 18, 2001, the Trust refinanced its Ontario property and utilized $4.2 million of the net proceeds to reduce the outstanding balance of its $12 million Credit Facility from $11.3 million to $7.1 million and then, on April 27, 2001, the Trust closed the financing on its Tucson Oracle property and used $4.8 million of the net proceeds to further reduce the then outstanding balance of the Credit Facility to approximately $2.3 million. On July 11, 2001, the Trust obtained a $1,825,000 term loan secured by its Scottsdale property and a $1.5 million line of credit secured by its Flagstaff property and used $2.3 million of these proceeds to eliminate the remaining balance of the $12 Credit Facility.
Positioned for the Future
The travel and hospitality industries continue to be challenged by the negative impact of the events of September 11, 2001. The Trust expects occupancy and room rates to remain below normal at least until the end of this year with significant recovery from the September events in the first and second quarters of next year.
The Trust has adopted the provisions of the REIT Modernization Act effective on the beginning of our 2002 fiscal year (February 1, 2001). This has simplified the operating structure of the Trust which included the acquisition of the Lessee company, providing the Trust with the ability to provide a wider range of services to hotel guests.
Your Suite Choice(R) - Value Concept
InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality real estate hotel investment trust with 11 moderate service and full service hotels containing 1,698 hotel suites located in Arizona, New Mexico and Southern California. InnSuites Hotels distinguishes itself by offering a choice of Studio InnSuites, two-room Executive/Family Suites, and Presidential Suites under its program, Your Suite Choice. InnSuites Hotels create extra value for its guests with complimentary InnSuites Extras(SM), including healthy fruit and cereal breakfast buffet, afternoon social hour, HBO, local phone calls, refrigerator with bottled water, microwave, coffeemaker with coffee and tea, morning newspaper, and more. For reservations, call 1-888-INNSUITES, or visit www.innsuites.com . For investor information, visit www.innsuitestrust.com .
Certain matters within this press release may be discussed using forward-looking language as specified in the 1995 Private Securities Litigation Reform Law and InnSuites Hospitality Trust intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to:
(i) expectations of growth in the financial and operating results of the company, (ii) expectations of growth opportunities through acquisitions,
(iii) expectations of reductions in costs incurred by the Trust,
(iv) expectations to refinance individual hotels, and (v) expectations that the travel and hospitality industries will rebound in the near future from the negative events of September 11, 2001. InnSuites Hospitality Trust cautions that these statements 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 statements contained herein. Such statements include, but are not limited to: a) the ability of the Trust to increase its FFO, b) its ability to increase REVPAR, c) its success in realizing decreases in operating and other expenses, and d) the Trust's success in raising additional equity capital and/or refinancing debt. From time to time, these and other risks are discussed in the Trust's annual report on Form 10-K and other filings with the Securities and Exchange Commission.
|
Post Release
Get Content
Email News Brief
Saved Articles
Advertising
Handheld
XML/RSS
Post News