Equity Inns Lowers 3Q Outlook

GERMANTOWN, TN— Hotel REIT Equity Inns Inc. has lowered its profit outlook for the third-quarter due to a non-cash adjustment in the companys deferred tax benefit asset, according to a Reuters report Funds from operations (FFO) will be between $0.29-$0.30 a share in the quarter, down from an earlier forecast of $0.33-$0.34 a share. For the fourth-quarter, FFO will be between $0.13-$0.17 a share. This includes a $0.4 a share income tax benefit, the company said. “The business climate remains uncertain and inconsistent to the point we believe it is prudent to provide conservative fourth-quarter guidance,” said Chief Executive Phillip McNeill. The stock has a 52-week trading low of $5.75 reached in late July and a high of $8.85 in October 2001. SOURCE: Reuters