Largest U.S. REIT, Host Hotels & Resorts, rose nearly 4% in pre-market action (as of 8 a.m. ET) on a beat and raise earnings report (check back later for HST's latest earnings call transcript). Host's Q3 EPS more than doubled to $0.18 (net profit $97 million), up from EPS of just $0.07 a year ago. Revenue rose 8.6% to $1.21 billion; consensus analyst estimates were for EPS of $0.13 on revenue of $1.19 billion. Funds from operations [FFO], considered an important measure of a REIT's cash performance since it adds such items as amortization and depreciation back into net income, rose to 38 cents a share, from 28 cents a share a year earlier. Rate increases and higher occupancy sent revenue per available room [RevPar] up 7.2%. Host sees FY EPS of between $1.33-$1.37, FFO of $1.81-$1.85 including an $0.08 a share charge, and RevPar growth of 6.5%-7.5%. The FFO figure is up from the company's previous guidance of $1.78-$1.84; analysts were previously expecting FFO of $1.88 per share, excluding charges.
Sources: Press Release, Marketwatch, Reuters, AP
Commentary: Mark Hillman: Buys, Sells, Portfolio • Projected Dividend Growth, Shrinkage Rates of High Yielding S&P 500 Stocks
Stocks/ETFs to watch: HST. Competitors: MAR, HLT. ETFs: VNQ, ICF, RWR, FTY
Earnings call transcript: Host Hotels & Resorts Q2 2007
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