Hospitality Properties' results rise on rental income

Hotel real estate investment trust Hospitality Properties Trust said today that its first-quarter results edged up nearly 13 percent on higher rental income, narrowly beating Wall Street's expectations.

(According to the REIT's website, one property in its portfolio is Candlewood Suites in Burlington, shown at right.)

Funds from operations, or FFO, rose to $110.9 million, or $1.18 per share, in the first quarter, from $98.5 million in the year-ago period, the Newton REIT said.

On average, analysts surveyed by Thomson Financial expected FFO of $1.17 per share.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key gauge of REIT strength because it gives a more accurate picture of cash performance.

Quarterly net income after paying preferred dividends increased to $48.3 million from $39 million in the prior year.

Revenue rose nearly 10 percent to $319.2 million from $290.7 million on higher rental income from the REIT's leased hotels and travel centers.

Hospitality Properties shares added 22 cents to $32.18 in afternoon trading on the New York StocK Exchange. (AP)