Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q3 2021 Earnings Presentation
40 slides from Host Hotels & Resorts's earnings presentation, Nov 3, 2021
Slide 1: Supplemental Financial Information September 30, 2021
Supplemental Financial Information September 30, 2021 Exhibit 99.2
Slide 2: Table of Contents
TABLE OF CONTENTS PROPERTY LEVEL DATA (CAPITALIZATION NOTES TO SUPPLEMENTAL FINANCIAL INI )RMATION Non-GAAP Financial Measures
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION COVID-19 DATA NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 3
Slide 4: About Host Hotels & Resorts
About host Hotels & Resorts 4 Premier US LODGING REIT LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) Based on market cap as of September 30, 2021. See Comparative Capitalization for calculation. At November 3, 2021.
Slide 5: Analyst Coverage
5 Analyst Coverage The Company is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management. The Com
Slide 6: About Host Hotels & Resorts
ABOUT HOST HOTELS & RESORTS Host Hotels & Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered real estate investment trust that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partners
Slide 7: Pro forma operating statistics presentation basis
To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and associated margins) for the periods included in this s
Slide 8: Property Level Data
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 8
Slide 9: All Owned Hotels (pro forma) Results by Location
All owned Hotels (pro forma) Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved. Total Revenues per Available Room (“Total RevPAR”) is a summary
Slide 10: All Owned Hotels (pro forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ 10 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our s
Slide 11: All Owned Hotels (pro forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ 11 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our s
Slide 12: All Owned Hotels (pro forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ 12 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our s
Slide 13: All Owned Hotels (pro forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ 13 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our s
Slide 14: All Owned Hotels (pro forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ 14 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the elimination of results of operations of our s
Slide 15: Capitalization
Overview Property level data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 15
Slide 16: Comparative Capitalization
Comparative Capitalization (in millions, except security pricing and per share amounts) 16 Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At September 30, 2021, June 30, 2021, March 31, 2021, December 31, 2020, and September 30, 2020, there were 7.1 mi
Slide 17: Consolidated Debt Summary
Consolidated Debt Summary 17 (in millions) The interest rate shown is the rate of the outstanding credit facility revolver borrowings at September 30, 2021, based on LIBOR plus 150 basis points. Depending on Host L.P.’s unsecured long-term debt rating, Prior to the termination of the covenant relief
Slide 18: Consolidated Debt Maturity as of September 30, 2021
Consolidated Debt Maturity as of September 30, 2021 18 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.
Slide 19: Ground Lease Summary as of December 31, 2020
Ground Lease Summary as of December 31, 2020 19 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 previously paid and no further r
Slide 20: Property Transactions
Property TRANSACTIONS 20 2021 dispositions include the sale of five properties through November 3, 2021. The 2021 dispositions use 2019 full year results as the trailing twelve months is not representative of normalized operations. 2021 acquisitions include five properties and two golf courses acqui
Slide 21: Historical Pro Forma Results
HISTORICAL PRO-FORMA RESULTS 21 Historical Pro forma Hotel Metrics (1) (2) Historical Pro Forma Hotel Revenues (1) (2)
Slide 22: Historical Pro Forma Adjusted EBITDAre
HISTORICAL PRO-FORMA RESULTS 22 Historical Pro forma Adjusted EBITDAre (1) (2)
Slide 23: Historical Pro Forma Results Cont.
HISTORICAL PRO FORMA RESULTS CONT. 23 Historical All Owned Hotels Pro Forma EBITDA(1) (2) The tables above include pro forma adjustments for six assets acquired as of September 30, 2021, one property sold in 2020, 14 properties sold in 2019 and one property acquired in 2019. The sale of five assets
Slide 24: COVID-19 Data
Overview Property Level Data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 24
Slide 25: Financial Covenants: Credit Facility Amendments
financial Covenants: Credit Facility Amendments 25 (unaudited, in millions, except ratios) Subsequent to quarter end, we terminated the Credit Facility covenant relief period prior to its expiration, as we met the minimum fixed charge coverage ratio of 1.0x required for our first phase-in quarterly
Slide 26: Financial Covenants: Credit Facility and Senior Notes Financial Performance Tests
financial Covenants: Credit Facility and Senior Notes Financial Performance Tests 26 (unaudited, in millions, except ratios) Covenant ratios are calculated using Host’s credit facility definitions and are for informational purposes only, as the covenants are not currently in effect under the Amendme
Slide 27: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
Financial covenants: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio 27 (unaudited, in millions, except ratios) The following table presents the calculation of our leverage ratio as used in the financial covenants of the credit facility: The following presents the reconciliat
Slide 28: Reconciliation of GAAP Interest Coverage Ratio to Unsecured Interest Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio 28 (unaudited, in millions, except ratios) The following tables present the calculation of our unsecured interest coverage ratio using GAAP measures and as used in the financial c
Slide 29: Reconciliation of GAAP Interest Coverage Ratio to Fixed Charge Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio 29 (unaudited, in millions, except ratios) The following tables present the calculation of our GAAP Interest coverage ratio and our fixed charge coverage ratio as used in the financial
Slide 30: Reconciliation of GAAP Indebtedness Test to Senior Notes Indebtedness Test
Financial Covenants: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test 30 (unaudited, in millions, except ratios) The following tables present the calculation of our total indebtedness to total assets using GAAP measures and as used in the financial covenants of ou
Slide 31: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Test
Financial Covenants: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test 31 (unaudited, in millions, except ratios) The following table presents the calculation of our secured indebtedness using GAAP measures and as used in the financial covenants of
Slide 32: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio 32 (unaudited, in millions, except ratios) The following tables present the calculation of our interest coverage ratio using our GAAP measures and as used in the financial
Slide 33: Reconciliation of GAAP Assets to Unencumbered Assets to Unsecured Indebtedness Test
Financial Covenants: Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test 33 (unaudited, in millions, except ratios) The following tables present the calculation of our total assets to total debt using GAAP measures and unencumbered as
Slide 34: Notes to Supplemental Financial Information
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 34
Slide 35: All Owned Hotel Pro Forma Operating Statistics and Results
All Owned Hotel Pro Forma Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA
Slide 36: Non-GAAP Financial Measures: EBITDAre and Adjusted EBITDAre
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,” to provide an additional performance measure
Slide 37: Non-GAAP Financial Measures: Limitations on Use of EBITDA Measures
Non-GAAP financial measures (continued) Limitations on the Use of EBITDA, EBITDAre, Adjusted EBITDAre and NOI EBITDA, EBITDAre, Adjusted EBITDAre, and NOI, as presented, may not be comparable to measures calculated by other companies. We calculate EBITDAre in accordance with standards established by
Slide 38: Non-GAAP Financial Measures: Hotel Property Level Operating Results
Non-GAAP financial measures (continued) Hotel Property Level Operating Results We present certain operating results for our hotels, such as hotel revenues, expenses, food and beverage profit, and EBITDA (and the related margins), on a hotel-level pro forma basis as supplemental information for our i
Slide 39: Non-GAAP Financial Measures: Credit Facility Ratios
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 coverage and fixed charge ratios, which are dete
Slide 40: Non-GAAP Financial Measures: Limitations on Credit Ratios
Non-GAAP financial measures (continued) 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
Host Hotels & Resorts — Q3 2021 Earnings Presentation on 6ix