DiamondRock Hospitality Co., a real estate investment trust, on Tuesday reported its first-quarter results declined as both occupancy and room rates at its hotels continued to suffer in the economic downturn.
The company's adjusted results beat Wall Street's expectations.
For the fiscal quarter ended March 27, funds from operations, or FFO, dropped to $13.4 million, or 15 cents per share, from $21.9 million, or 23 cents per share, in the year-ago period. Excluding one-time items, DiamondRock said its adjusted FFO totaled 16 cents per share in the latest quarter.
Funds from operations, or FFO, adds depreciation and amortization expenses, as well as other non-operating items, back to net income. It is a widely used gauge of real estate operating performance
Quarterly revenue fell 11 percent to $118.5 million during the period.
Analysts polled by Thomson Reuters, who generally exclude one-time items from their, forecast FFO of 13 cents per share on revenue of $114.1 million.
DiamondRock said revenue per available room for its portfolio of hotels dropped 16.5 percent during the quarter. Revenue per available room, or revpar, is a key gauge of an hotelier's performance because it measures both occupancy and room rate.
DiamondRock declined to provide an outlook for 2009, citing lack of visibility.
The company also said it has not yet received any attractive bids on the 11 hotels it has put up for sale. DiamondRock has said it is considering selling one of two of those hotels, depending on the offers it receives.
Shares of the company declined 28 cents, or 4 percent, to $6.74 in afternoon trading. The stock has traded between $2.30 and $14.65 during the past 52 weeks
Terms & Conditions
RSS Headlines
Fool UK