MHI Hospitality Corporation Reports Second Quarter Financial Results
WASHINGTON, DC, August 8, 2005. MHI Hospitality Corporation , a lodging real estate investment trust (REIT) focused on the ownership of midscale and upscale full-service hotels, today reported results for the quarter ended June 30, 2005.
Andrew M. Sims, president and CEO of MHI Hospitality Corporation, commented, "We are pleased with the continued strong operational performance of our portfolio, in particular the 12.0 percent ADR growth component of our overall 7.9 percent RevPAR increase during the quarter. We will continue our focus on improving the operating performance of our portfolio and believe we will benefit from our ongoing renovation program and the solid fundamentals currently in the lodging industry. In addition to our focus on operations, we remain confident in our ability to identify acquisition opportunities to create value for our shareholders as evidenced by our recent acquisition of the Jacksonville Hilton."
Consolidated Financial Results
For the second quarter, the company reported consolidated total revenue of $15.2 million and consolidated net income of $1.4 million, or $0.21 per share. Funds from operations, or FFO, defined as net income excluding extraordinary items, depreciation and minority interest, was $3.2 million or $.31 per share for the quarter.
For the six month period ended June 30, 2005, the company reported consolidated total revenue of $26.7 million and consolidated net income of $1.3 million, or $0.21 per share. FFO for the period was $4.1 million or $ 0.39 per share.
FFO is a non-GAAP financial measure within the meaning of the rules of the Securities and Exchange Commission. Management believes FFO is a key measure of a REIT's performance and should be considered along with, but not as an alternative to, net income and cash flow as a measure of our operating performance. A reconciliation of this non-GAAP financial measure is included in the accompanying financial tables.
Hotel Operating Performance
For the quarter ended June 30, 2005, the company's six hotels generated $15.2 million of total revenue and $4.6 million of hotel operating profit.
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