Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Debt Investor Presentation (March 2020)
20 slides from Host Hotels & Resorts's debt investor presentation, Mar 20, 2020
Slide 1: Additional Investor Information
Additional Investor Information MARCH 20, 2020 Exhibit 99.1
Slide 2: Disclosures: Forward-Looking Statements
disclosures Forward – Looking Statements: This investor presentation, and the related discussion, contains forward-looking statements. These include statements about Host Hotels & Resorts’ plans, strategies, financial performance, prospects or future events. Forward-looking statements are not guaran
Slide 3: Company overview
Company overview ROOM REVENUE COMPOSITION CREDIT RATING1 Moody’s Baa2 S&P BBB- Fitch BBB For senior unsecured debt Only investment-grade lodging REIT 2019 Room Revenue Breakdown Business Transient ~60% Leisure ~40% PORTFOLIO COMPOSITION 2019 Rooms Breakdown by Asset Type/Location A securities rating
Slide 4: Liquidity analysis
Liquidity analysis As of March 20, 2020, we have approximately $2.8 billion in cash and cash equivalents on the balance sheet $1,573 ($180) ($127) ~($1) $1,500 ~$2,800 Millions of Dollars YTD 2020 Cash Liquidity Bridge December 31, 2019 Cash & Cash Equivalents 1 Miscellaneous (Net) is the net of cap
Slide 5: Credit Facility Financial Performance Tests
CREDIT FACILITY Financial performance tests Credit Facility Financial Performance Tests1 Permitted As of 12.31.20193 Leverage Ratio Maximum 7.25x 1.6x Unsecured Interest Coverage Ratio2 Minimum 1.75x 10.1x Consolidated Fixed Charge Coverage Ratio Minimum 1.25x 6.7x Ratio of Unencumbered Assets to Un
Slide 6: Senior Notes Financial Performance Tests
SENIOR NOTES Financial performance tests Financial performance tests for our senior notes (Series D, E, F, G and H) issued after attaining investment grade (IG) status Notes: With respect to our senior notes tests, the indebtedness test, secured indebtedness test and interest coverage test are solel
Slide 7: Senior Notes Financial Performance Tests
SENIOR NOTES Financial performance tests Notes: None of the above covenant ratios apply while the notes are investment grade rated With respect to our senior notes tests, the indebtedness test, secured indebtedness test and interest coverage test are solely incurrence tests (i.e., the Company can't
Slide 8: Consolidated Debt Summary
CONSOLIDATED DEBT SUMMARY Senior Debt Rate Maturity Date As of 12.31.2019 Series C 4.75% 3/2023 447 Series D 3.75% 10/2023 398 Series E 4.00% 6/2025 497 Series F 4.50% 2/2026 397 Series G 3.87% 4/2024 397 Series H 3.37% 12/2029 640 2024 Credit facility term loan 2.8% 1/2024 498 2025 Credit facility
Slide 9: Debt maturities
Debt maturities Debt Maturity Ladder (03.20.2019) $2,405 $850 $1,000 $400 $650 Well-laddered maturities as of March 20, 2020 No material maturity until 2023 4.83 years of weighted average maturity 100% of consolidated assets unencumbered $5 The term loan and revolver under Host’s credit facility tha
Slide 10: Appendix Table of Contents
4 HOST. APPENDIX oes ‘APPENDIX TABLE OF CONTENTS Pace No. Non-GAAP Financial Measures A2 Reconciliation of GAAP 9 Facility 9 A Reconciliation of GAAP Interest Coverage Ratio to 9 AS Reconciliation of GAAP Interest ag AT Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness
Slide 11: Non-GAAP Financial Measures
Non-gaap financial measures Non-GAAP Financial Measures We have presented ratios used to determine compliance with financial covenants under our credit facility and senior notes indentures that are not calculated and presented in accordance with GAAP. The following discussion defines these measures
Slide 12: Non-GAAP Financial Measures (Cont'd)
Non-gaap financial measures (CONT’D) Limitations on Credit Facility and Senior Notes Credit Ratios These metrics are useful in evaluating the Company’s compliance with the covenants contained in its credit facility and senior notes indentures. However, because of the various adjustments taken to the
Slide 13: Leverage Ratio to Credit Facility Leverage Ratio
Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio GAAP Leverage Ratio December 31, 2019 Debt $ 3,794 Net income 932 GAAP Leverage Ratio 4.1 x Leverage Ratio per Credit Facility December 31, 2019 Net debt (1) $ 2,321 Adjusted Credit Facility EBITDA (2) 1,490 Leverage Ratio 1.6 x
Slide 14: Leverage Ratio to Credit Facility Leverage Ratio
Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio (2)The following presents the reconciliation of net income to EBITDA per our credit facility definition in determining leverage ratio (in millions): Year ended December 31, 2019 Net income $ 932 Interest expense 222 Depreciation
Slide 15: Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio
Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio A-6 Host hotels & resorts A-6 15 Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio The following tables present the calculation of host’s unsecured in
Slide 16: Interest Coverage Ratio to Credit Facility Consolidated Fixed Charge Coverage Ratio
Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Consolidated Fixed Charge Coverage Ratio A-7 Host hotels & resorts A-7 16 Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Consolidated Fixed Charge Coverage Ratio the following tables present the calculation of our g
Slide 17: Indebtedness Test to Senior Notes Indenture Indebtedness Test
Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test A-8 The following tables present the calculation of Hosts’s total indebtedness to total assets using GAAP measures and as used in the financial covenants of the senior notes indenture (in millions, except ratios) De
Slide 18: Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test
Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test A-9 The following table presents the calculation of Host’s secured indebtedness using GAAP measures and as used in the financial covenants of our senior note indenture (in millions): Mortgage and Oth
Slide 19: Interest Coverage Ratio to Senior Notes EBITDA-to-interest Coverage Ratio
Reconciliation of GAAP Interest Coverage Ratio to Senior Notes EBITDA-to-interest Coverage Ratio A-10 Interest coverage ratio the following tables presents the calculation of our interest coverage ratio using gaap measures and as used in the financial covenants of the senior notes indenture (in mill
Slide 20: Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test
Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test A-11 The following tables presents the calculation of hot’s assets to debt using gaap measures and unencumbered assets to unsecured debt as used in the financial covenants of our sen
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