Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q3 2019 Earnings Presentation
44 slides from Host Hotels & Resorts's earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Supplemental Financial Information
Third Quarter 2019 Supplemental Financial Information September 30, 2019 Host Hotels & Resorts, Inc. Exhibit 99.2
Slide 2: Table of Contents
Table of Contents Host Hotels & Resorts PAGE NO.OverviewAbout Host Hotels & Resorts PAGEREF About_HHR \h \* MERGEFORMAT 3Forward-Looking Statements 4Comparable Hotel Operating Statistics and Non-GAAP Financial Measures 4Corporate Financial InformationCondensed Consolidated Balance Sheets (unaudited)
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 September 30, 2019 December 31, 2018 (unaudited) ASSETS Property and equipment, net $9,688 $9,760 Right-of-use assets (1) 549 — Assets held for sa
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 September 30, Year-to-date ended September 30, 2019 2018 2019 2018 Revenues Rooms $830 $874 $2,618 $2,691 Food and beverage 341 337 1
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 to EBITDA, EBITDAre and Adjusted EBITDAre
Corporate Financial Information (unaudited, in millions) Reconciliation of Net Income 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 12 hotels in 2019 and the sale of
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 to EBITDA,
Slide 11: Property Level Data
Property Level Data Host Hotels & Resorts
Slide 12: Comparable Hotel Results
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) Host Hotels & Resorts Quarter ended September 30, Year-to-date ended September 30, 2019 2018 2019 2018 Number of hotels 75 75 75 75 Number of rooms 43,364 43,364 43,364 43,364 Change in comparable hote
Slide 13: Comparable Hotel Results (continued) Quarter
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Quarter ended September 30, 2019 Quarter ended September 30, 2018 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (5) Depreciation and corporate level items Comparabl
Slide 14: Comparable Hotel Results (continued) Year-to-date
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Year-to-date ended September 30, 2019 Year-to-date ended September 30, 2018 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (5) Depreciation and corporate level items
Slide 15: Comparable Hotel Results by Location Q3 2019
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable Hotel Results by Location in Nominal US$ _________ (1) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and
Slide 16: Reconciliation of Hotel Net Income to Hotel EBITDA Q3 2019
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Quarter ended September 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciat
Slide 17: Comparable Hotel Results by Location Q3 2018
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable Hotel Results by Location in Nominal US$ Host Hotels & Resorts Quarter ended September 30, 2018 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Reve
Slide 18: Reconciliation of Hotel Net Income to Hotel EBITDA Q3 2018
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Quarter ended September 30, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciat
Slide 19: Comparable Hotel Results by Location YTD 2019
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable 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 oth
Slide 20: Reconciliation of Hotel Net Income to Hotel EBITDA YTD 2019
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Year-to-date ended September 30, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depr
Slide 21: Comparable Hotel Results by Location YTD 2018
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Comparable Hotel Results by Location in Nominal US$ Host Hotels & Resorts Year-to-date ended September 30, 2018 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total
Slide 22: Reconciliation of Hotel Net Income to Hotel EBITDA YTD 2018
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results by Location in Nominal US$ Reconciliation of Hotel Net Income to Hotel EBITDA Host Hotels & Resorts Year-to-date ended September 30, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depr
Slide 23: Top 40 Domestic Hotels by RevPAR
Property Level Data (unaudited, in millions, except hotel statistics and per room basis) Top 40 Domestic Hotels by RevPAR For the Year ended December 31, 2018 Year ended December 31, 2018 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues
Slide 24: Top Domestic Hotels Reconciliation of Hotel Net Income to EBITDA
Property Level Data (unaudited, in millions, except hotel statistics) Top 40 Domestic Hotels by RevPAR Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and EBITDAre Host Hotels & Resorts __________ The Westin New York Grand Central is excluded from this total as it was sold subsequent to ye
Slide 25: Capitalization
Capitalization Host Hotels & Resorts
Slide 26: Comparative Capitalization
Capitalization As of As of As of As of As of September 30, June 30, March 31, December 31, September 30, Shares/Units 2019 2019 2019 2018 2018 Common shares outstanding 718.5 730.0 740.9 740.4 740.0 Common shares outstanding assuming conversion of OP Units (1) 726.2 737.8 748.6 748.1 748.1 Preferred
Slide 27: Consolidated Debt Summary
Capitalization Consolidated Debt Summary Debt Senior debt Rate Maturity date September 30, 2019 December 31, 2018 Series Z (1) 6% 10/2021 $299 $299 Series B (1) 5 1⁄4% 3/2022 349 348 Series C 4 3⁄4% 3/2023 448 447 Series D 3 3⁄4% 10/2023 398 398 Series E 4% 6/2025 497 497 Series F 4 1⁄2% 2/2026 397
Slide 28: Consolidated Debt Maturity
Capitalization Consolidated Debt Maturity as of October 31, 2019 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 & R
Slide 29: Reconciliation of Credit Facility Leverage Ratio
Capitalization (unaudited, in millions, except ratios) Reconciliation of Credit Facility Leverage Ratio The following table presents the calculation of Host's leverage ratio as used in the financial covenants of the credit facility: Leverage Ratio per Credit Facility September 30, 2019 Net debt (1)
Slide 30: Reconciliation of Credit Facility Fixed Charge Coverage Ratio
Capitalization (unaudited, in millions, except ratios) Reconciliation of Credit Facility Fixed Charge Coverage Ratio The following tables present our GAAP measures and the calculation of our fixed charge coverage ratio as used in the financial covenants of the credit facility: Credit Facility Fixed
Slide 31: Reconciliation of EBITDA to Interest Coverage Ratio
Capitalization (unaudited, in millions, except ratios) Reconciliation of EBITDA to Interest Coverage Ratio The following tables present our GAAP measures and the calculation of our interest coverage ratio as used in the senior notes indenture covenants: EBITDA to Interest Coverage Ratio Trailing twe
Slide 32: Ground Lease Summary
Capitalization Ground Lease Summary as of September 30, 2019 As of September 30, 2019 Hotel No. of rooms Lessor Institution Type Minimum rent Current expiration Expiration after all potential options(1) 1 Boston Marriott Copley Place 1,144 Public N/A (2) 12/13/2077 12/13/2077 2 Coronado Island Marri
Slide 33: 2019 Property Dispositions
Capitalization 2019 Property Dispositions Host Hotels & Resorts Trailing Twelve Months from Disposition Date (in millions) Hotel Net Income (Loss) Plus: Depreciation Equals: Hotel EBITDA Renewal & Replacement funding Hotel Net Operating Income 2019 completed sales $59.4 $53.9 $113.3 $(22.9) $90.4 __
Slide 34: 2019 Outlook
2019 Outlook Host Hotels & Resorts
Slide 35: 2019 Outlook
2019 Outlook The Company estimates its 2019 operating results as compared to the prior year will change in the following range: Based upon the above parameters, the Company estimates its 2019 guidance as follows: See the 2019 Forecast Schedules and the Notes to Supplemental Financial Information for
Slide 36: Reconciliation of Net Income to EBITDA and FFO for 2019 Forecasts
2019 Outlook (unaudited, in millions, except per share amounts) Reconciliation of Net Income to EBITDA, EBITDAre, and Adjusted EBITDAre and Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share for 2019 Forecasts(1) (1) The forecasts are based on the below
Slide 37: Schedule of Comparable Hotel Results for 2019 Forecasts
2019 Outlook (unaudited, in millions, except hotel statistics) Schedule of Comparable Hotel Results for 2019 Forecasts(1) Full Year 2019 Low-end of range High-end of range Operating profit margin (2) 14.4% 14.7% Comparable hotel EBITDA margin (3) 28.9% 29.2% Net income $912 $935 Depreciation and amo
Slide 38: Notes to Supplemental Financial Information
Notes to Supplemental Financial Information Host Hotels & Resorts
Slide 39: Notes to Supplemental Financial Information: Forecasts
Notes to Supplemental Financial Information Forecasts Our forecast of earnings per diluted share, NAREIT and Adjusted FFO per diluted share, EBITDA, EBITDAre, Adjusted EBITDAre, NOI and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve k
Slide 40: Comparable Hotel Operating Statistics (continued)
Notes to Supplemental Financial Information Comparable Hotel Operating Statistics (continued) Of the 82 hotels that we owned on September 30, 2019, 75 have been classified as comparable hotels. The operating results of the following hotels that we owned as of September 30, 2019 are excluded from com
Slide 41: Non-GAAP Financial Measures (continued) NAREIT FFO
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation o
Slide 42: Non-GAAP Financial Measures (continued) EBITDA and NOI
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) EBITDA and NOI Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (“EBITDA”) is a commonly used measure of performance in many industries. Management believes EBITDA provides useful informa
Slide 43: Limitations on the Use of Non-GAAP Measures
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) Limitations on the Use of NAREIT FFO per Diluted Share, Adjusted FFO per Diluted Share, EBITDA, EBITDAre, Adjusted EBITDAre and NOI We calculate NAREIT FFO per diluted share in accordance with standards established b
Slide 44: Non-GAAP Financial Measures (continued)
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) Because of the elimination of corporate-level costs and expenses and depreciation and amortization, the comparable hotel operating results we present do not represent our total revenues, expenses, operating profit or
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