Host Hotels & Resorts Inc cut its full-year outlook and offered third-quarter guidance below Wall Street expectations. The company now forecasts funds from operations between 27 cents to 29 cents per share for the third quarter and $1.75 to $1.85 per share for the full year.

Analysts polled by Thomson Financial, on average, expect FFO of 34 cents per share for the third quarter, and $1.88 per share for the year.

In April, the company had said it expected annual FFO between $1.88 and $1.98 per share.

Funds from operations, or FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of REIT strength because it gives a more accurate picture of cash performance.

The full-year outlook, as well as its third-quarter forecast, assumes a same-hotel revenue per available room decline between about 2 percent and 4 percent for the third quarter. Host Hotels expects it to range from a decrease of 1 percent to an increase of 1 percent for the full year.

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