GERMANTOWN, TN— Equity Inns, a hotel real estate investment trust (REIT), today announced first quarter results for the period ended March 31, 2002. Highlights include: first quarter FFO per share of $.05, or 31% higher than consensus analysts expectations; dividend reinstated to $0.12 a share, in line with guidance; and a decline in RevPAR of 7.2%, compared to 10.5% industry wide, outpacing the industry for fifth consecutive quarter. The company also reported significant gains in overall occupancy penetration and RevPAR yield, compared to its competitive set. In addition, the company raised approximately $27 million from the sale of common stock and used the proceeds to pay down debt to its lowest level in four years. Funds from operations (FFO) for the 2002 first quarter decreased to $7.9 million, compared to $10.9 million for the same period a year ago. FFO per share was $0.21, compared to $0.29 in the 2001 first reporting period. FFO per share was $.05 higher than consensus analysts estimates, the company reported. “We knew wed have a down quarter, given the post-September 11 consumer sentiment,” said Phillip McNeill, Sr., chairman of Equity Inns. “Fortunately, our ability to control costs, together with our strong brands and geographic diversity, enabled us to post results that surpassed expectations. Ultimately, these are the qualities that reduce our exposure to a downturn in any one segment or region and the same characteristics that will drive our growth over the next 12 to 24 months.”
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