NEW YORK (TheStreet) -- Shares of DiamondRock Hospitality (DRH) closed higher by 3.61% to $9.47 on heavy trading volume on Friday, after the Bethesda, MD-based company reported mixed results for the 2016 first quarter.
Before today's market open, the hotel real estate investment trust posted adjusted funds from operations of 21 cents per share, surpassing analysts' estimates of 18 cents per share.
Funds from operations is a key metric in the REIT industry, which takes net income and adds back items such as depreciation and amortization.
Revenue for the quarter was $213 million, which did not meet Wall Street's expectations of $218.4 million.
Results were hurt by the company's two Chicago hotels, which faced a "difficult citywide calendar" and disruption from renovation upgrades, DiamondRock said.
"We are successfully executing on our priorities for 2016, which include increasing liquidity and investment capacity, with $400 million in financing activity and approximately $200 million in pending dispositions," President and CEO Mark Brugger said in a statement.
For 2016, DiamondRock forecasts adjusted FFO per share between $1.04 and $1.09. Analysts are looking for AFFO of $1.07 per share.
About 4.19 million of the REIT's shares changed hands today vs. its average volume of 1.99 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations.
However, the team also finds weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DRH