Hersha raises 2008 financial target after 1Q surprise

The Philadelphia real estate investment trust now expects adjusted funds from operations between $1.30 and $1.33 per share, up from the previous range of $1.27 to $1.30 per share.

The real estate industry uses funds from operations, or FFO, to measure operating performance. The measurement includes net income but adds depreciation and amortization expenses, among other items, and is considered a better gauge of REIT strength.

The company also expects revenue per room at hotels operated more than a year to rise by 5 percent to 6 percent, or 1 point higher on each end compared with the previous range.

Hersha shares rose 64 cents, or 7 percent, to $10.10 in afternoon trading. In the past year, the stock has ranged from $7.61 to $14.20.