(RTTNews) - Hospitality Properties Trust (HPT: News ) reported Monday a decline in Funds From Operations or FFO for the third quarter, reflecting a gain on extinguishment of debt. Profit for the quarter increased from the prior year, despite a drop in revenues.

Results for the quarter included a gain on extinguishment of debt of $11.2 million or $0.09 per share, related to the repurchase of $175.4 million face amount of its 3.8% convertible senior notes for a purchase price of $159.5 million plus accrued interest.

Excluding the gain, Funds from operations for the quarter decreased to $91.08 million or $0.77 per share from $97.32 million or $1.04 per share in the preceding year.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.78 per share for the quarter. Analysts' estimates typically exclude special items.

The Newton, Massachusetts-based company's net income available to common shareholders increased to $40.8 million or $0.34 per share from $30.48 million or $0.32 per share in the previous year.

Total revenues for the quarter declined to $264.45 million from $312.58 million in the prior year. Analysts expected revenue of $272.39 million for the quarter.

For the quarter, revenue per available room, or RevPAR declined to $62.36 from $80.07 last year; and occupancy was 68.2%, down from 74.8% during the same period a year ago.

Interest income decreased to $28 thousand from $271 thousand in the preceding year.

Total expenses for the quarter declined to $227.02 million from $274.19 million a year ago. Hotel operating expenses dropped to $120.36 million from $166.9 million in the same period last year.
For the nine-month period, the company's net income available to common shareholders surged to $137.96 million or $1.34 per share from $49.47 million or $0.53 per share in the earlier year. Funds from operations decreased to $272.27 million or $2.65 per share from $300.97 million or $3.2 per share in the prior year. Total revenues for the period declined to $785.88 million from $970.54 million in the same period last year.

HPT is currently trading at $18.86, down $0.34 or 1.76%, on a volume of 355 thousand shares.

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by RTT Staff Writer

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