First Free Story (1 of 3)Join Skift Pro
Host Hotels & Resorts Inc. (HST) reported a key measure of profitability in its third quarter 2105 earnings call Thursday, posting results that exceeded Wall Street expectations.
The Bethesda, Maryland-based real estate investment trust said it had funds from operations of $259 million, or 34 cents per share, in the period.
The average estimate of 10 analysts surveyed by Zacks Investment Research was for funds from operations of 32 cents per share.
Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.
The company said it had net income of $85 million, or 11 cents per share.
The lodging real estate investment trust posted revenue of $1.29 billion in the period, which missed Street forecasts. Seven analysts surveyed by Zacks expected $1.3 billion.
Host Hotels expects full-year funds from operations in the range of $1.50 to $1.52 per share.
The company’s shares have declined 30 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased 1.5 percent. The stock has declined 28 percent in the last 12 months.