Ahead of the Bell: Host Hotels & Resorts
NEW YORK (AP) — Shares of Host Hotels & Resorts Inc. are rising in premarket trading on Wednesday as a key measure of profitability climbed in the fourth quarter and beat Wall Street's expectations.
Host Hotels & Resorts reported adjusted funds from operations of 33 cents per share. Analysts surveyed by FactSet expected 31 cents per share.
Funds from operations, or FFO, are considered key to measuring the financial performance of real estate investment trusts. FFO adds items such as amortization and depreciation back to net income.
Average room rates rose 4.1 percent, while occupancy improved to 73 percent from 71.5 percent.
JP Morgan's Joseph Greff said in a client note that he considered the quarter slightly better than recent investor expectations, particularly since Host has a sizable exposure to the Washington D.C. market — which the analyst said will probably lag the U.S. market again this year.
Greff said he was also pleased that the company has continued to improve its balance sheet and lower debt.
The stock gained 14 cents to $19 before the market open.