Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q2 2020 Earnings Presentation
48 slides from Host Hotels & Resorts's earnings presentation, Jul 31, 2020
Slide 1: Second Quarter 2020 Supplemental Financial Information
Second Quarter 2020 Supplemental Financial Information June 30, 2020 Host Hotels & Resorts, Inc. Exhibit 99.2
Slide 2: Table of Contents
Table of Contents Host Hotels & Resorts PAGE NO. I. Overview i. About Host Hotels & Resorts 3 ii. Forward-Looking Statements 4 iii. All Owned Hotel Operating Statistics and Results and Non-GAAP Financial Measures 4 II. Corporate Financial Information i. Condensed Consolidated Balance Sheets (unaudit
Slide 3: About Host Hotels & Resorts
Overview About Host Hotels & Resorts Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust (“REIT”) and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 75 properties in the United States and five properties
Slide 4: Forward-Looking Statements
Overview Forward-Looking Statements This supplemental information contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,”
Slide 5: Corporate Financial Information
Corporate Financial Information Host Hotels & Resorts
Slide 6: Condensed Consolidated Balance Sheets
Corporate Financial Information Condensed Consolidated Balance Sheets (unaudited, in millions, except shares and per share amounts) Host Hotels & Resorts June 30, 2020 December 31, 2019 ASSETS Property and equipment, net $9,613 $9,671 Right-of-use assets 595 595 Due from managers 6 63 Advances to an
Slide 7: Condensed Consolidated Statements of Operations
Corporate Financial Information Condensed Consolidated Statements of Operations (unaudited, in millions, except per share amounts) Host Hotels & Resorts Quarter ended June 30, Year-to-date ended June 30, 2020 2019 2020 2019 Revenues Rooms $61 $931 $687 $1,788 Food and beverage 11 449 341 882 Other 3
Slide 8: Earnings (Loss) per Common Share
Corporate Financial Information Earnings (Loss) per Common Share (unaudited, in millions, except per share amounts) ___________ (1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by minority partners and other n
Slide 9: Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre
Corporate Financial Information (unaudited, in millions) Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre (1) (1) See the Notes to Supplemental Financial Information for discussion of these non-GAAP measures. (2)Net income (loss), EBITDA, EBITDAre, Adjusted EBITDAre, NAR
Slide 10: Reconciliation of Diluted EPS to NAREIT and Adjusted FFO per Diluted Share
Corporate Financial Information (unaudited, in millions, except per share amounts) Reconciliation of Diluted Earnings (Loss) per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share(1) __________ (1-3) Refer to the corresponding footnote on the Reconciliation of Net Income (Lo
Slide 11: Property Level Data
Property Level Data Host Hotels & Resorts
Slide 12: All Owned Hotel Pro Forma Results
Property Level Data (unaudited, in millions, except hotel statistics) All Owned Hotel Pro Forma Results (1) Host Hotels & Resorts Quarter ended June 30, Year-to-date ended June 30, 2020 2019 2020 2019 Number of hotels 80 80 80 80 Number of rooms 46,670 46,670 46,670 46,670 Change in hotel Total RevP
Slide 13: All Owned Hotel Pro Forma Results (continued)
Property Level Data (unaudited, in millions, except hotel statistics) All Owned Hotel Pro Forma Results (1) (continued) Host Hotels & Resorts Quarter ended June 30, 2020 Quarter ended June 30, 2019 Adjustments Adjustments GAAP Results Depreciation and corporate level items All Owned Hotel Pro Forma
Slide 14: All Owned Hotel Pro Forma Results (continued)
Property Level Data (unaudited, in millions, except hotel statistics) All Owned Hotel Pro Forma Results (1) (continued) See the Notes to Supplemental Financial Information for a discussion of non-GAAP measures and the calculation of all owned hotel pro forma results, including the limitations on the
Slide 15: Hotel Results by Location in Nominal US$
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Hotel Results by Location in Nominal US$ _________ Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses,
Slide 16: Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA
Property Level Data (unaudited, in millions, except hotel statistics) Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA Host Hotels & Resorts Quarter ended June 30, 2020 Location No. of Properties No. of Rooms Hotel Net Income (Loss) Plus: Depreciatio
Slide 17: Hotel Results by Location in Nominal US$
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Hotel Results by Location in Nominal US$ _________ Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses,
Slide 18: Reconciliation of Hotel Net Income to Hotel EBITDA
Property Level Data (unaudited, in millions, except hotel statistics) Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Quarter ended June 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Intere
Slide 19: Hotel Results by Location in Nominal US$
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Hotel Results by Location in Nominal US$ _________ Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses,
Slide 20: Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA
Property Level Data (unaudited, in millions, except hotel statistics) Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA Host Hotels & Resorts Year-to-date ended June 30, 2020 Location No. of Properties No. of Rooms Hotel Net Income (Loss) Plus: Deprec
Slide 21: Hotel Results by Location in Nominal US$
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Hotel Results by Location in Nominal US$ _________ Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and other expenses,
Slide 22: Reconciliation of Hotel Net Income to Hotel EBITDA
Property Level Data (unaudited, in millions, except hotel statistics) Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Year-to-date ended June 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: I
Slide 23: Top 40 Domestic Hotels by Total RevPAR
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Top 40 Domestic Hotels by Total RevPAR For the Year ended December 31, 2019 Host Hotels & Resorts __________ *Represents 72% of our EBITDAre. Certain items from our statement of operations are not allocated to i
Slide 24: Top 40 Domestic Hotels Reconciliation to Hotel EBITDA and EBITDAre
Property Level Data (unaudited, in millions, except hotel statistics) Top 40 Domestic Hotels by Total RevPAR Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and EBITDAre Host Hotels & Resorts __________ The Hotel EBITDA results for the 1 Hotel South Beach acquired in February 2019 are incl
Slide 25: Capitalization
Capitalization Host Hotels & Resorts
Slide 26: Comparative Capitalization
Capitalization Comparative Capitalization __________ (1) Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, there were 7.3 million, 7.5 million, 7.5 million, 7.6 mil
Slide 27: Consolidated Debt Summary
Capitalization Consolidated Debt Summary (in millions) ___________ (1) The interest rate shown is the rate of the outstanding credit facility borrowings at June 30, 2020, based on LIBOR plus 90 basis points. Depending on Host L.P.’s unsecured long-term debt rating, interest on revolver borrowings is
Slide 28: Consolidated Debt Maturity
Capitalization Consolidated Debt Maturity as of June 30, 2020 The term loan and revolver under our credit facility that are due in 2024 have extension options that would extend maturity of both instruments to 2025, subject to meeting certain conditions, including payment of a fee. Host Hotels & Reso
Slide 29: Ground Lease Summary
Capitalization Ground Lease Summary as of December 31, 2019 __________ Exercise of Host’s option to extend is subject to certain conditions, including the existence of no defaults and subject to any applicable rent escalation or rent re-negotiation provisions. All rental payments have been previousl
Slide 30: 2019 Property Dispositions
Capitalization 2019 Property Dispositions Host Hotels & Resorts _________ The table includes 14 properties that have sold as of December 31, 2019. The cap rate is calculated as the ratio between the trailing twelve month net operating income (NOI) and the sales price plus avoided capital expenditure
Slide 31: COVID-19 Data
COVID-19 Data Host Hotels & Resorts
Slide 32: Credit Facility Amendment
COVID-19 Data Credit Facility Amendment(1) Host Hotels & Resorts Financial Covenants • Obtained waiver of existing quarterly-tested financial covenants beginning July 1, 2020 through July 1, 2021. • Option to terminate the Covenant Relief Period early. • Obtained a modification of the quarterly-test
Slide 33: Credit Facility and Senior Notes Financial Performance Tests
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) Credit Facility and Senior Notes Financial Performance Tests Host Hotels & Resorts At June 30, 2020(1) Credit Facility Financial Performance Tests Permitted GAAP ratio Covenant Ratio Leverage Ratio Maximum 7.25x 48.3x 4.6x U
Slide 34: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio The following table presents the calculation of our leverage ratio as used in the financial covenants of the credit facility: (1) The following presents
Slide 35: Reconciliation of GAAP Interest Coverage to Unsecured Interest Coverage Ratio
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio The following tables present the calculation of our unsecured interest coverage ratio using GAAP measures and as used in the
Slide 36: Reconciliation of GAAP Interest Coverage to Fixed Charge Coverage Ratio
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio The following tables present the calculation of our GAAP Interest coverage ratio and our fixed charge coverage ratio as used in th
Slide 37: Reconciliation of GAAP Indebtedness Test to Senior Notes Indebtedness Test
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test The following tables present the calculation of our total indebtedness to total assets using GAAP measures and as used in the financial cov
Slide 38: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Test
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test The following table presents the calculation of our secured indebtedness using GAAP measures and as used in the financial c
Slide 39: Reconciliation of GAAP Interest Coverage to EBITDA-to-Interest Coverage Ratio
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio __________ (1) See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for the calculation of Adj
Slide 40: Reconciliation of GAAP Assets to Indebtedness Test
COVID-19 Data – Financial Covenants (unaudited, in millions, except ratios) The following tables present the calculation of our total assets to total debt using GAAP measures and unencumbered assets to unsecured debt as used in the financial covenants of our senior notes indenture: (2) The following
Slide 41: Suspended Operations
COVID-19 Data – Suspended Operations The following table consists of hotels with suspended operations as of July 30, 2020: Host Hotels & Resorts Hotels with Suspended Operations Location Property # of Rooms 1 Boston Boston Marriott Copley Place 1,144 2 Boston Sheraton Boston Hotel 1,220 3 Chicago Th
Slide 42: Notes to Supplemental Financial Information
Notes to Supplemental Financial Information Host Hotels & Resorts
Slide 43: All Owned Hotel Operating Statistics and Results
Notes to Supplemental Financial Information All Owned Hotel Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics and operating results for the periods included in this presentation on a comparable hotel ba
Slide 44: Non-GAAP Financial Measures
Notes to Supplemental Financial Information Host Hotels & Resorts Non-GAAP Financial Measures Included in this supplemental information are certain “non-GAAP financial measures,” which are measures of our historical or future financial performance that are not calculated and presented in accordance
Slide 45: Non-GAAP Financial Measures (continued)
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) Adjusted FFO per Diluted Share We also present Adjusted FFO per diluted share when evaluating our performance because management believes that the exclusion of certain additional items described below provides useful
Slide 46: EBITDAre and Adjusted EBITDAre
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) EBITDAre and Adjusted EBITDAre We present EBITDAre in accordance with NAREIT guidelines, as defined in its September 2017 white paper “Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate,”
Slide 47: Non-GAAP Financial Measures (continued)
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) Our consolidated statements of operations and consolidated statements of cash flows in the Company’s quarterly report on Form 10-Q (“Statements of Cash Flows”) include interest expense, capital expenditures, and othe
Slide 48: Credit Facility Leverage and Coverage Ratios
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) Credit Facility – Leverage, Unsecured Interest Coverage and Consolidated Fixed Charge Coverage Ratios Host’s credit facility contains certain financial covenants, including allowable leverage, unsecured interest cove
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