Host Hotels & Resorts 3Q FFO Declines

BETHESDA, Md. (AP) — Host Hotels & Resorts Inc. said Wednesday that its third-quarter funds from operations declined, weighed down by an interest expense and impairment charges as revenue, occupancy and room rates continued to slip.

The lodging real estate investment trust said funds from operations fell to $66 million, or 11 cents per share, from $170 million, or 31 cents per share, a year earlier.

Analysts polled by Thomson Reuters predicted funds from operations of 8 cents per share.

Funds from operations, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other non-operating items, to net income.

Host posted a loss of $57 million, or 9 cents per share, after preferred dividends compared with a profit of $45 million, or 9 cents per share, a year ago.

Revenue for the three months ended Sept. 11 tumbled 20 percent to $912 million from $1.14 billion as room and food and beverage revenue declined. Consumers have pulled back on their discretionary spending during the recession, spending less on "extras" like dinner and drinks and often shortening their hotel stays.