Hospitality Properties' 1Q results edge up on rental income

Hotel real estate investment trust Hospitality Properties Trust said Tuesday its first-quarter results edged up nearly 13 percent on higher rental income, narrowly beating Wall Street's expectations.

Funds from operations, or FFO, rose to $110.9 million, or $1.18 per share, in the first quarter, from $98.5 million, or $1.08 per share, in the year-ago period.

On average, analysts surveyed by Thomson Financial expected FFO of $1.17 per share.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key gauge of REIT strength because it gives a more accurate picture of cash performance.

Quarterly net income after paying preferred dividends increased to $48.3 million, or 51 cents per share, from $39 million, or 43 cents per share, in the prior year.

Revenue rose nearly 10 percent to $319.2 million from $290.7 million on higher rental income from the REIT's leased hotels and travel centers.

Hospitality Properties shares added 22 cents to $32.18 in afternoon trading.