PHOENIX— InnSuites Hospitality Trust reported comparable funds from operations (FFO) of $353,000 or $0.17 per basic share, which includes the adjustment for a one-time charge relating to the acquisition of the lessee, for the first nine months of fiscal 2002. The comparable FFO was a decrease of $98,000 or $0.02 per basic share from the first nine months of the prior-years comparable FFO of $451,000 or $0.19 per basic share, said the company. The negative impact on the travel industry as a result of the events of September 11, 2001 is the primary cause for the decrease in comparable FFO, said company executives. The trusts recovery from those events began in October and continues, executives said. Trust revenue increased 187% to $21.8 million for the nine months ended October 31, 2001 from $7.6 million for the prior year. This large increase is the result of purchasing and consolidating the lessee company. Effective at the beginning of the trusts fiscal year 2002 (February 1, 2001), the trust purchased its exclusive Lessee, InnSuites Hotels, Inc., under the provisions of the REIT Modernization Act (RMA). The trusts net loss attributable to shares of beneficial interest for the first nine months ended October 31, 2001, before extraordinary item and a one-time charge, was $791,000 or $(0.37) per basic share compared to a loss of $506,000 or $(0.21) per basic share for the first nine months of the prior year, according to the company. After deducting a $577,000 prepayment penalty as an extraordinary item for the refinancing of the trusts Ontario property and a $1,608,000 one-time charge associated with the acquisition of the lessee, the trusts net loss attributable to shares of beneficial interest was $2.7 million or $(1.25) per basic share, said the company.
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