HARRISBURG, Pa.–(BUSINESS WIRE)–March 13, 2002–Hersha Hospitality Trust (AMEX:HT) owner of nationally franchised full service and limited service hotels, announced that total revenues for the fiscal year ended December 31, 2001 increased by approximately 10.2% to $14.1 million from $12.8 million for the year ended December 31, 2000.
The Company also announced that Funds from Operations (net income less gains from asset sales plus minority interest and depreciation and amortization) increased by approximately 6.1% to $7.1 million from $6.6 million during the same time period in the prior year.
The increase in revenues and Funds from Operations was primarily attributable to the full year of operations from several properties acquired in 2000 along with three additional acquisitions completed during 2001. Lease revenues were offset by the disposition of six assets during 2001 and lower percentage lease revenues from a few of the hotels owned during the 2001.
Mr Hasu P. Shah, Chairman and CEO, commented that we are pleased with our financial results in light of the significant impact in travel and tourism following the terrorist attacks during the third and fourth quarters of 2001. We are equally pleased that our cash flow during the fourth quarter was strong enough to allow for the continuation of our $0.18 dividend per share while the majority of hotel REITs were forced to significantly reduce or eliminate dividends. The Company's selective acquisitions strategy in conjunction with the sale of numerous non-core assets have strengthened our portfolio and has positioned our Company for long term growth and stability.
We are also pleased with the managerial expertise and devotion of our lessees, Hersha Hospitality Management LP and Noble Investment Group, Ltd. Through the hands on management expertise of these lessees, our properties were able to maintain fairly stable revenues and gross operating profits during this period of turmoil.
A summary of the full year results are listed below:
($'s in 000's except per share
amounts) Year Ended Year Ended
Dec. 31, 2001 Dec. 31, 2000
Total Revenues $14,087 $12,824
Income Before Minority Interest $ 3,176 $ 2,755
Net Income $ 834 $ 847
Basic Earnings Per Common Share $ 0.37 $ 0.37
Diluted Earnings Per Common Share $ 0.37 $ 0.37
Funds from Operations (FFO) $ 7,054 $ 6,647
FFO per Diluted Share $ 0.97 $ 0.99
The Company also stated that the Board of Trustees has declared a quarterly cash dividend of $0.18 per Priority Class A Common Share for the first quarter ended March 31, 2002. This dividend properly reflects the anticipated dividend distribution of $0.72 per share on an annualized basis. The Company's current annual dividend yield is 11.7% based upon the closing share price of $6.15 on March 12, 2002.
The priority common dividends are payable on April 26, 2002 to shareholders of record as of March 28, 2002.
This is the 13th consecutive common share dividend paid by the company since its IPO in January 1999.
Further information and inquiries regarding HT should be directed to Ashish Parikh, CFO, at (717) 770-2405.
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement.