Humphrey Hospitality Trust, Inc. (Nasdaq: HUMP) owner of nationally franchised limited service hotels, today announced results for the second quarter ended June 30, 1999. For the second quarter ended June 30, 1999, FFO per share on a diluted basis increased by 3% to $.32 from $.31 for the same quarter in 1998. For the six months ended June 30, 1999, FFO per share on a diluted basis increased by 6% to $.57 from $.54 for the same period in 1998.
Net income for the three months ended June 30, 1999 was adversely affected by the $78,487 loss recognized on the sale of the hotel in Wytheville, VA on June 24, 1999 and an $83,409 increase to amortization expense for a non-recurring adjustment for the change in accounting method used for changes in lines of credit or revolving debt arrangements in accordance with EITF 98-14. Net income for the six months ended June 30, 1999 was also adversely affected by a $97,225 increase to amortization expense resulting from the early retirement of bonds secured by the Comfort Inn located in Morgantown, WV. Net income for the three and six months ended June 30, 1998 was aided by the $195,001 gain on the sale of the Comfort Inn in Elizabethton, VA sold in June 1998. If not for the non-recurring items above, net income for the three month period ended June 30, 1999 and June 30, 1998 would have been $860,651 and $828,709 respectively, and net income for the six months ended June 30, 1999 and June 30, 1998 would have been $1,435,978 and $1,179,682 respectively. James I. Humphrey, Jr., Chairman and President noted “We were pleased to see funds from operations per share improve in the second quarter in an environment where several hotels were still undergoing significant capital work and despite an $83,000 adjustment to debt amortization expense in accordance with EITF 98- 14. Our commitment to maintaining our hotels in excellent condition is a critical cornerstone to sustaining internal growth.” Humphrey Hospitality Trust, Inc. is a self-advised real estate investment trust headquartered in Silver Spring, Maryland, which owns twenty-five hotels located in nine eastern states. Humphrey Hospitality Trust just recently announced a merger agreement with Supertel Hospitality, Inc., (Nasdaq/National Market: SPPR) and if approved by shareholders and closed, the combined company will own 88 hotels in 19 mid-western and eastern states. FFO, as defined under the NAREIT standards, consists of net income computed in accordance with generally accepted accounting principles, excluding non-recurring items, gains or losses on properties, plus depreciation and amortization of real estate assets after adjustments for unconsolidated partnerships and joint ventures. FFO is considered a key measurement of the performance of a real estate investment trust. 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. From time to time, these risks are discussed in the Company`s filings with the Securities and Exchange Commission