Temple REIT has published its 2012 second quarter results, showing a net income rise of $1.81 million. The investment fund, which acquired two properties during this period, announced it will continue to pursue the acquisition of hotel properties.
Temple Real Estate Investment Trust has reported its operating results for the quarter ended June 30, 2012. Net income increased by $1.81 million in relation to the same period last year. This includes income of $3.28 million associated with the change in fair value of financial instruments, without which net income decreased by $0.21 million, reflecting an increase in interest expenses of $1.30 million and increases in amortization and depreciation of $0.63 million.Total room revenue increased by $4.20 million or 35% compared to the second quarter 2011, comprised of an increase of $0.87 million or 7% in "same property" revenue and incremental revenue of $3.33 million from new hotel acquisitions.Two hotels were acquired during the second quarter of 2012: the Clearwater Suites Timberlea in May 2012 and the Inn at the Quay in June 2012. Operating income from the "same property" portfolio increased by $0.37 million or 5% during the second quarter of 2012, compared to the second quarter of 2011. The four new hotels acquired by Temple REIT between December 2011 and June 30, 2012 generated an operating income of $1.41 million. Earlier this month, Temple acquired the 160-room Hilton Garden Inn West Edmonton in Alberta (pictured above), for $31 million. This was funded by a first mortgage loan of $20 million, with the balance in cash.Temple REIT’s portfolio currently consists of 15 hotels with a total of 1,868 guest rooms. Temple announced the proceeds from the convertible debentures and the existing cash reserves will enable it to further expand its portfolio of hotel properties by $250 million.
