two hotel r.e.i.t. s
This is a look at two hotel R.E.I.T.s -Innvest and Temple Hotels.Innvest is quite larger and a part of it is a 50% share of the Comfort Hotel chain.It's business is buying up hotels whose business is going downhill and sprucing them up.They spend a lot of their investment capital on renovations of the newly acquired hotels.They have spent $41 million on renovations this year and have committed to another $18 million for the rest of the year.Revenue declined by $12 million over the last quarter because of divesting some of these hotels.They ,in fact, sold off $93 million of mostly non-core assets and have agreements to sell another $33 million by the end of the year.
Their net income was $13.9 million in comparison to a loss of $221 million in the previous quarter;their adjusted net income was $31.5 million in comparison to $30 million for the earlier quarter.The best measure of their profitability is distribuable income that increased from $26.5 million to $31.5 million.
Temple Hotels is a smaller company whose operating income increased by $5.8 million or 58% from the earlier quarter and funds from operations increased by $7.2 million or 465%.This company made new acquisitions in Fort Mcmurray and Yellowknife.It's funds from operations for nine months was $16.3 million.Net income went from $4.2 to $42 million for nine months of this year.
Temple is a smaller company that is growing and the increases from quarter to quarter will be unstable.Their revenue comes from operating hotels that it buys and is more stable than Innvest.Innvest gets some big gains and some big losses but it insures that it's adjusted net income (which includes asset dispositions) is fairly stable.It also has reduced debt and liabilities over the last two years while Temple Hotels has increased debt. The yield on both stocks is about 9% but the P/E ratio on Innvest is a lot better.For a better dividend and stable price growth Innvest is a good buy whereas for greater growth in price Temple is probably better.The dividend looks safe for both.
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Their net income was $13.9 million in comparison to a loss of $221 million in the previous quarter;their adjusted net income was $31.5 million in comparison to $30 million for the earlier quarter.The best measure of their profitability is distribuable income that increased from $26.5 million to $31.5 million.
Temple Hotels is a smaller company whose operating income increased by $5.8 million or 58% from the earlier quarter and funds from operations increased by $7.2 million or 465%.This company made new acquisitions in Fort Mcmurray and Yellowknife.It's funds from operations for nine months was $16.3 million.Net income went from $4.2 to $42 million for nine months of this year.
Temple is a smaller company that is growing and the increases from quarter to quarter will be unstable.Their revenue comes from operating hotels that it buys and is more stable than Innvest.Innvest gets some big gains and some big losses but it insures that it's adjusted net income (which includes asset dispositions) is fairly stable.It also has reduced debt and liabilities over the last two years while Temple Hotels has increased debt. The yield on both stocks is about 9% but the P/E ratio on Innvest is a lot better.For a better dividend and stable price growth Innvest is a good buy whereas for greater growth in price Temple is probably better.The dividend looks safe for both.
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