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Park Hotels books 14.2% YOY rise in FY'17 AFFO; HNA signals share sale

Park Hotels & Resorts Inc. announced its earnings for the 2017 fourth quarter and full year, outlined its earning expectations for 2018 and cut its quarterly dividend.

Separately, HNA Group Co. Ltd. said it plans a partial or full sale of the shares it owns in Park Hotels. The Chinese conglomerate holds 53,651,453 shares, or approximately a 25.0% stake, in Park Hotels through HNA Tourism Group Co. Ltd.

The hotel real estate investment trust disclosed adjusted funds from operations attributable to stockholders for the 2017 fourth quarter of $145 million, or 68 cents per share, compared to $145 million, or 72 cents per share, in the 2016 fourth quarter.

For the full year 2017, AFFO amounted to $596 million, or $2.78 per share, a 14.2% increase in the aggregate from $522 million, or $2.97 per share, the previous year.

The S&P Capital IQ consensus FFO-per-share estimate for the quarter was 64 cents. For the full year 2017, the S&P Capital IQ consensus estimate for FFO was $2.74 per share.

Park Hotels & Resorts forecasts AFFO per share in the range of $2.59 to $2.75 for the 2018 full year.

For the 2018 full year, the S&P Capital IQ consensus FFO-per-share estimate is $2.77.

The company also declared a first-quarter cash dividend of 43 cents per share, down from its prior payout of 55 cents per share. Park Hotels will pay the dividend April 16 to stockholders of record as of March 30.

Park Hotels said hurricanes Irma and Maria caused damage and disruption at certain of its hotels in Florida and Puerto Rico in September 2017, noting that its Caribe Hilton hotel in San Juan, Puerto Rico, is expected to remain closed for almost all of 2018.

The company added that it recognized total casualty losses, net of $16 million for 2017, which represent losses up to the amount of its deductibles.

Park Hotels also said it received $2 million of insurance proceeds in the 2017 fourth quarter and $16 million in January for its Casa Marina and The Reach properties in Key West, Fla., and for the Caribe Hilton hotel.