* Q1 FFO loss C$0.041/unit vs FFO C$0.006/unit last year
* Hotel operating margins falls 150 basis points
May 7 (Reuters) - Canada’s InnVest Real Estate Investment Trust INN_u.TO posted a loss in funds from operations (FFO) in the first quarter, hurt in part by lower hotel operating income, but said it is hopeful about improvements in the broader economy.
“We are hopeful that improvements in the broader economy will continue to positively affect the lodging industry and our hotel operating results,” Chief Executive Kenneth Gibson said in a statement.
FFO — a property measure that strips out the distorting effects of depreciation and other factors from earnings — for the REIT in the quarter was a loss of C$3.6 million, or 4.1 Canadian cents per unit.
That compares with FFO of C$447,000, or .06 Canadian cents a unit last year.
Hotel operating margins declined 150 basis points, reflecting a decline in revenue per available room (revpar), the trust said.
Revpar on a same hotel basis in the quarter fell 5 percent, driven by continued caution in economic environment and impact on discretionary travel demand.
Higher interest expenses as well as the higher number of units outstanding following an equity offering in Oct 2009 also impacted first quarter results.
“While we expect that the worst may be behind us, we continue to manage our portfolio conservatively with ongoing emphasis on maximizing profits.”
Units of the REIT closed at C$6.60 Thursday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Prem Udayabhanu) ((firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: email@example.com))