Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q1 2020 Earnings Presentation
42 slides from Host Hotels & Resorts's earnings presentation, May 7, 2020
Slide 1: First Quarter 2020 Supplemental Financial Information
First Quarter 2020 Supplemental Financial Information March 31, 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 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 internati
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 March 31, 2020 December 31, 2019 ASSETS Property and equipment, net $9,628 $9,671 Right-of-use assets 598 595 Due from managers 37 63 Advances to
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 March 31, 2020 2019 Revenues Rooms $626 $857 Food and beverage 330 433 Other 96 100 Total revenues 1,052 1,390 Expenses Rooms 187 217
Slide 8: Earnings per Common Share
Corporate Financial Information Earnings per Common Share (unaudited, in millions, except per share amounts) ___________ (1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by minority partners and other non-cont
Slide 9: Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre
Corporate Financial Information (unaudited, in millions) Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre (1) (1) See the Notes to Supplemental Financial Information for discussion of these non-GAAP measures. (2) Reflects the sale of one hotel in 2019. Host Hotels & Reso
Slide 10: Reconciliation of Diluted EPS to NAREIT and Adjusted FFO per Diluted Share
Corporate Financial Information (unaudited, in millions, except per share amounts) Reconciliation of Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share(1) __________ (1-2) Refer to the corresponding footnote on the Reconciliation of Net Income (Loss) to
Slide 11: Property Level Data
Property Level Data Host Hotels & Resorts
Slide 12: All Owned Hotel Pro Forma Results
Property Level Data (unaudited, in millions, except hotel statistics) All Owned Hotel Pro Forma Results (1) Host Hotels & Resorts Quarter ended March 31, 2020 2019 Number of hotels 80 80 Number of rooms 46,669 46,669 Change in hotel Total RevPAR (2) - Constant US$ (21.0)% — Nominal US$ (21.1)% — Cha
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) 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 14: 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 15: Hotel Results by Location: 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 March 31, 2020 Location No. of Properties No. of Rooms Hotel Net Income (Loss) Plus: Depreciati
Slide 16: 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 17: Hotel Results by Location: Reconciliation of Hotel Net Income to Hotel EBITDA (2019)
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 March 31, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation Plus: Inter
Slide 18: 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 19: 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 20: Capitalization
Capitalization Host Hotels & Resorts
Slide 21: 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 March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019 and March 31, 2019, there were 7.5 million, 7.5 million, 7.6 million, 7.6 mi
Slide 22: Consolidated Debt Summary
Capitalization Consolidated Debt Summary (in millions) ___________ (1) The interest rate shown is the rate of the outstanding credit facility borrowings at March 31, 2020, based on LIBOR plus 90 basis points. Depending on Host L.P.’s unsecured long-term debt rating, interest on revolver borrowings i
Slide 23: Consolidated Debt Maturity
Capitalization Consolidated Debt Maturity as of March 31, 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 & Res
Slide 24: 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 25: 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 26: COVID-19 Data
COVID-19 Data Host Hotels & Resorts
Slide 27: 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 March 31, 2020(1) Credit Facility Financial Performance Tests Permitted GAAP ratio Covenant Ratio Leverage Ratio Maximum 7.25x 7.2x 2.0x U
Slide 28: 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 29: Reconciliation of GAAP Interest Coverage Ratio 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 30: Reconciliation of GAAP Interest Coverage Ratio 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 31: 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 32: 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 33: 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 34: Reconciliation of GAAP Assets to Indebtedness to Unencumbered Assets 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 35: Hotels with Suspended Operations
COVID-19 Data – Suspended Operations The following table consists of hotels with suspended operations as of May 6, 2020: Host Hotels & Resorts Hotels with Suspended Operations Location Property # of Rooms 1 Atlanta Grand Hyatt Atlanta in Buckhead 439 2 Atlanta JW Marriott Atlanta Buckhead 371 3 Bost
Slide 36: Notes to Supplemental Financial Information
Notes to Supplemental Financial Information Host Hotels & Resorts
Slide 37: 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 38: 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 39: Non-GAAP Financial Measures: Adjusted FFO per Diluted Share
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 40: Non-GAAP Financial Measures: 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 41: Non-GAAP Financial Measures (continued)
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) Similarly, EBITDAre, Adjusted EBITDAre, NAREIT FFO and Adjusted FFO per diluted share include adjustments for the pro rata share of our equity investments and NAREIT FFO and Adjusted FFO per diluted share include adj
Slide 42: Credit Facility Leverage, Unsecured Interest Coverage and Fixed Charge 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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