FelCor Lodging Trust Earnings Cheat Sheet: FFO Up and Revenue Rise

FelCor Lodging Trust (NYSE:FCH) reported its results for the third quarter. Felcor Lodging Trust is a real estate investment trust that is engaged in hospitality business.

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FelCor Lodging Earnings Cheat Sheet for the Third Quarter

Results: Reported Funds from Operations (FFO) of $3.9 million or 3 cents per share in the quarter. This compares to a loss of $58.3 million or a loss of 61 cents a share in the same quarter a year earlier. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.

Revenue: Total revenue rose 9.6% to $245.5 million from a year earlier.

Actual vs. Wall St. Expectations: FCH reported adjusted FFO of 5 cents a share. By this measure, it fell short of the mean analyst estimate of 6 cents per share.

Quoting Management: “We continue to execute our strategic plan to increase long-term stockholder value, and our accretive portfolio repositioning continues to progress steadily. In the past year, we sold eight non-strategic hotels at roughly 12 times EBITDA, which is above the trading multiple for our common stock. We used substantially all of the asset sale proceeds to pay down debt and we remain committed to reducing leverage and strengthening our balance sheet,” said Richard A. Smith, FelCor’s President and Chief Executive Officer.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 2 cents per share, down from 4 cents ninety days ago. The average estimate for the fiscal year is 19 cents per share, down from 29 cents ninety days ago.

Competitors to Watch: Morgans Hotel Group Co. (NASDAQ:MHGC), InnSuites Hospitality Trust (AMEX:IHT), DiamondRock Hospitality Co. (NYSE:DRH), Chatham Lodging Trust (NYSE:CLDT), Sunstone Hotel Investors, Inc (NYSE:SHO), Hersha Hospitality Trust (NYSE:HT), Pebblebrook Hotel Trust (NYSE:PEB), LaSalle Hotel Properties (NYSE:LHO), Hospitality Properties Trust (NYSE:HPT), and Supertel Hospitality Inc. (NASDAQ:SPPR).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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