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Hersha Hospitality Trust (NYSE: HT), owner of upscale hotels in urban gateway markets, today announced results for the second quarter ended June 30, 2012.
Second Quarter 2012 Financial Results
For the second quarter ended June 30, 2012, net income applicable to common shareholders significantly improved $6.5 million to $13.1 million, primarily driven by gains realized on disposition of hotel properties, compared to net income of $6.6 million for the comparable quarter of 2011.
Adjusted Funds from Operations (“AFFO”) in the second quarter increased by 6.1% or $1.5 million to $26.7 million, compared to the second quarter of 2011. AFFO per diluted common share and unit of limited partnership interest in Hersha Hospitality Limited Partnership (“OP Unit”) was consistent with the prior year quarter at $0.14. The Company’s weighted average diluted common shares and OP Units outstanding was approximately 196.3 million in the second quarter of 2012, up from approximately 181.0 million in the comparable quarter of 2011.
An explanation of Funds from Operations (“FFO”), AFFO, Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA and Hotel EBITDA, as well as reconciliations of FFO, AFFO, EBITDA and Adjusted EBITDA to net income or loss, the most directly comparable U.S. GAAP measures, is included at the end of this release.
Mr. Jay H. Shah, the Company’s Chief Executive Officer, stated, “During the second quarter we sustained our solid portfolio performance as we delivered industry leading RevPAR growth and our same store hotel’s quarterly EBITDA margins climbed to the highest in our history. Having assembled a portfolio of high quality hotels in key urban markets with strong demand drivers, we ran solid occupancy of 82% in our same store portfolio, and 92% in Manhattan with effective sellouts five nights a week. While we are not forecasting significant improvement in broader economic conditions and consumer sentiment through the balance of the year, we expect that the high occupancy levels and existing demand trends in our markets will enable further rate growth as the year progresses, allowing us to continue to drive margin growth even as our portfolio reaches new peak margins.