Supertel Hospitality, Inc., a real estate investment trust (REIT) which currently owns 94 hotels in 23 states, today announced its results for the second quarter ended June 30, 2012.
Revenues from continuing operations for the 2012 second quarter rose $1.1 million, or 5.5 percent, to $21.6 million, compared to the same year-ago period. The improved performance primarily was due to the increased average daily rate (ADR) of the same store portfolio, in addition to the acquisition of the Hilton Garden Inn.
The company reported net income attributable to common shareholders of $1.6 million, or $0.07 per diluted share for the 2012 second quarter, compared to a net loss of $(4.5) million or $(0.20) per diluted share for the same 2011 period. The second quarter increase of $6.1 million is primarily attributable to a $4.4 million increase in gains related to dispositions of hotels, a $0.9 million unrealized gain from the reduction in fair market value of the derivative liabilities, and a $0.7 million decrease in total non cash impairment losses; the total non cash impairment losses for the three months ended June 30, 2012 were $4.1 million versus $4.8 million for the like prior period.
Funds from operations (FFO) in the 2012 second quarter was $3.1 million, compared to $2.6 million in the same 2011 period. Adjusted funds from operations (AFFO), which is FFO adjusted to include gain or exclude losses on derivatives and exclude acquisition expense, in the 2012 second quarter was $2.4 million, compared to $2.6 million in the same 2011 period.
Earnings before interest, taxes, depreciation and amortization, (EBITDA) increased to $6.7 million, compared to $1.0 million for the second quarter of 2011. Adjusted EBITDA, which is EBITDA before non-controlling interest, net gain on disposition of assets, impairment, preferred stock dividends, unrealized gain/loss on derivatives and acquisition expense, increased to $6.2 million, or 6.5 percent compared to $5.8 million for the second quarter of 2011.
Source: Supertel Hospitality