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Press Release: Hersha Hospitality Trust
November 15, 2002
HARRISBURG, PA -- Hersha Hospitality Trust (AMEX:HT) announced results for the third quarter and nine months ended
September 30, 2002.
Funds from Operations ("FFO"), (net income plus minority interest, depreciation and amortization and
gain and loss on property sales) was $6.69 million for the nine months ended September 30, 2002, which is an increase
of $1.15 million or 20.5% over FFO in the comparable period in 2001 of $5.55 million.
FFO per diluted share was $0.88 for the nine months ended September 30, 2002, which is a 15.8% increase over FFO
per diluted share for the similar period in 2001 of $0.76. FFO is considered a key measurement of the performance
of a real estate investment trust.
Percentage lease revenues during the nine month period ended September 30, 2002 were $11.50 million, an increase
of $790,000, or 7.4%, as compared to percentage lease revenues of $10.71 million for the same period during 2001.
The improvements in percentage lease revenues and FFO can be attributed to higher room revenues at several of the
Company's hotels in addition to lower interest and depreciation expenses. Lease revenues and FFO were also positively
impacted by the sale of certain non-strategic assets during 2001 and a full nine months of operating results for
three properties acquired during 2001.
HT also announced that its Board of Trustees has declared a quarterly cash dividend of $0.18 per Priority Class
A Common Share for the fourth quarter ended December 31, 2002. This dividend properly reflects the anticipated
dividend distribution of $0.72 per share on an annualized basis.
This dividend represents an approximate yield of 11.90% based upon yesterday's closing share price of $6.05. The
priority common dividends are payable on January 17, 2003 to shareholders of record on December 27, 2002.
This is the 15th consecutive common share quarterly dividend of $0.18 per share paid by the company since its initial
public offering in January 1999.
Additionally, HT announced that its operating partnership, Hersha Hospitality, L.P., of which HT is the general
partner and has a 34% ownership interest, also declared a regular quarterly cash dividend of $0.18 per subordinated
limited partnership unit.
Hersha Hospitality, L.P. is current on all dividends owed to its limited partnership unit holders and does not
maintain an accrual from previous periods. Dividends to the limited partnership unit holders are also payable on
January 17, 2003 to unit holders of record on December 27, 2002.
A summary of the three and nine month results is listed below:
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
------- ------- ------- -------
Total Revenue $ 4,670 $ 4,204 $11,680 $10,839
Net income $ 297 $ 234 $ 915 $ 595
Basic and Diluted
Earnings Per Common
Share $ 0.12 $ 0.10 $ 0.37 $ 0.26
Funds from
Operations (FFO) $ 3,035 $ 2,437 $ 6,697 $ 5,553
FFO per Diluted
Common Share $ 0.40 $ 0.33 $ 0.88 $ 0.76
Hersha Hospitality Trust is a self advised real estate investment trust that owns premium limited and full service
hotels in the eastern United States with strong, national franchise affiliations. The Company focuses on acquisition
and joint venture opportunities in primary and secondary markets near major metropolitan markets.
Further inquiries regarding Hersha Hospitality Trust 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.
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Contact:
Hersha Hospitality Trust
Ashish Parikh, 717/770-2405
Source: Hersha Hospitality Trust