(RTTNews) - Wednesday, real estate investment trust Host Hotels & Resorts Inc. (HST: News ) posted a loss for the third quarter, as revenues declined from last year. Furthermore, funds from operations dipped, yet topped the Street view. In addition, the company declared a special dividend and said it now expects a narrower loss for fiscal 2009.

Q3 Results

The Bethesda, Maryland-based company's third-quarter net loss available to common stockholders was $57 million, compared to a profit of $45 million in the prior-year quarter. On a per share basis, loss amounted to $0.09, compared to a profit of $0.09 in the same quarter of last year.

Net loss attributable to common stockholders, before dividends on preferred stock, totaled $55 million, versus a profit of $47 million a year ago.

The company reported net loss from continuing operations of $69 million or $0.11 per share, compared to a profit of $29 million or $0.05 per share in the previous year.

Funds from operations or FFO for the recent quarter plunged to $66 million or $0.11 per share from $170 million or $0.31 per share in the year-earlier quarter, affected by the non-cash interest expense for all periods presented and non-cash impairment charges for the first half of 2009. FFO per share was reduced by $0.01 for the third quarter of 2009 due to non-cash interest expense.
On average, 19 analysts polled by Thomson Reuters expected the company to post earnings of $0.08 per share. Analysts' estimates typically exclude special items.

Total revenues declined 19.9% to $912 million from the prior-year's $1.14 billion, but surpassed the fourteen Wall Street analysts' consensus revenue estimate of $889.38 million. Total hotel sales were $890 million, down from $1.12 billion in the third quarter of fiscal 2008. Comparable hotel RevPAR decreased 21.3% for the third quarter.

Host Hotels noted that the operating results for 2009 and 2008 were affected by an increase in non-cash interest expense related to the company's exchangeable debentures, as well as non-cash impairment charges recorded in the first half of 2009, partially offset by gains associated with hotel dispositions. The net effect of these items on loss per share was an increase in earnings of $6 million, or $0.01 per share for both the third quarter of 2009 and 2008.

Further, the company said its results of operations included a $12 million tax benefit, or $0.02 for both the loss per share and FFO per share associated with the sale of its four non-core properties.

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