Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — FY2018 Earnings Presentation
43 slides from Host Hotels & Resorts's earnings presentation, Feb 19, 2019
Slide 1: Year End 2018 Supplemental Financial Information
Year End 2018 Supplemental Financial Information December 31, 2018 Host Hotels & Resorts, Inc. Exhibit 99.2
Slide 2: Table of Contents
Table of Contents Host Hotels & Resorts
Slide 3: Overview: 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 88 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 December 31, 2018 December 31, 2017 ASSETS Property and equipment, net $9,760 $9,692 Assets held for sale 281 250 Due from managers 71 79 Advances
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 December 31, Year ended December 31, 2018 2017 2018 2017 Revenues Rooms $856 $847 $3,547 $3,490 Food and beverage 417 409 1,616 1,561
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) Net Income, EBITDA, EBITDAre, Adjusted EBITDAre, NAREI
Slide 10: Reconciliation of Net Income to NAREIT and Adjusted FFO per Diluted Share
Corporate Financial Information (unaudited, in millions, except per share amounts) Reconciliation of Net Income to NAREIT and Adjusted Funds From Operations per Diluted Share(1) __________ (1-4) Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted
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 December 31, Year ended December 31, 2018 2017 2018 2017 Number of hotels 85 85 85 85 Number of rooms 47,455 47,455 47,455 47,455 Change in comparable hotel RevPAR (
Slide 13: Comparable Hotel Results (continued) Quarter ended December 31
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Quarter ended December 31, 2018 Quarter ended December 31, 2017 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable
Slide 14: Comparable Hotel Results (continued) Year ended December 31
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Year ended December 31, 2018 Year ended December 31, 2017 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel
Slide 15: Comparable Hotel Results by Location, Q4 2018
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, Q4 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 December 31, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciati
Slide 17: Comparable Hotel Results by Location, Q4 2017
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 18: Reconciliation of Hotel Net Income to Hotel EBITDA, Q4 2017
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 December 31, 2017 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciati
Slide 19: Comparable Hotel Results by Location, Year 2018
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 20: Reconciliation of Hotel Net Income to Hotel EBITDA, Year 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 ended December 31, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation
Slide 21: Comparable Hotel Results by Location, Year 2017
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 22: Reconciliation of Hotel Net Income to Hotel EBITDA, Year 2017
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 ended December 31, 2017 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation
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 by RevPAR: 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: Capitalization
Capitalization As of As of As of As of As of December 31, September 30, June 30, March 31, December 31, Shares/Units 2018 2018 2018 2018 2017 Common shares outstanding 740.4 740.0 739.8 739.5 739.1 Common shares outstanding assuming conversion of OP Units (1) 748.1 748.1 748.0 747.8 747.4 Preferred
Slide 27: Consolidated Debt Summary
Capitalization Consolidated Debt Summary Debt Senior debt Rate Maturity date December 31, 2018 December 31, 2017 Series Z 6% 10/2021 $299 $298 Series B 5 1⁄4% 3/2022 348 348 Series C 4 3⁄4% 3/2023 447 447 Series D 3 3⁄4% 10/2023 398 398 Series E 4% 6/2025 497 496 Series F 4 1⁄2% 2/2026 397 396 Serie
Slide 28: Consolidated Debt Maturity as of December 31, 2018
Capitalization Consolidated Debt Maturity as of December 31, 2018 (1) The term loan and revolver under our credit facility that are due in 2021 have extension options that would extend the maturity of both instruments to 2022, subject to meeting certain conditions, including payment of a fee. Host H
Slide 29: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
Capitalization (unaudited, in millions, except ratios) Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio GAAP Leverage Ratio December 31, 2018 Debt $3,837 Net income 1,151 GAAP Leverage Ratio 3.3x The following table presents the calculation of Host's leverage ratio using GAAP
Slide 30: Reconciliation of GAAP Fixed Charge Coverage Ratio
Capitalization (unaudited, in millions, except ratios) Reconciliation of GAAP Fixed Charge Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio The following tables present the calculation of our fixed charge coverage ratio using GAAP measures and as used in the financial covenants of the c
Slide 31: Reconciliation of GAAP Interest Coverage Ratio
Capitalization (unaudited, in millions, except ratios) Reconciliation of GAAP Interest Coverage Ratio to EBITDA to Interest Coverage Ratio The following tables present the calculation of our interest coverage ratio using GAAP measures and as used in the senior notes indenture covenants: GAAP Interes
Slide 32: Ground Lease Summary as of December 31, 2018
Capitalization Ground Lease Summary as of December 31, 2018 As of December 31, 2018 Hotel No. of rooms Minimum rent Current expiration Expiration after all potential options(1) 1 Atlanta Marriott Midtown Suites 254 743,092 1/3/2025 1/3/2105 2 Boston Marriott Copley Place 1,144 N/A (2) 12/13/2077 12/
Slide 33: 2019 Outlook
2019 Outlook Host Hotels & Resorts
Slide 34: 2019 Outlook: Full Year Guidance
2019 Outlook The Company anticipates that 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 Financial Information for other
Slide 35: 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, Adjusted EBITDAre and NAREIT and Adjusted Funds From Operations per Diluted Share for 2019 Forecasts(1) (1) The forecasts are based on the below assumptions: Total comparable hotel RevPA
Slide 36: 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) 14.0% 14.9% Comparable hotel EBITDA margin (3) 28.4% 29.0% Net income $587 $652 Depreciation and amo
Slide 37: Notes to Supplemental Financial Information
Notes to Supplemental Financial Information Host Hotels & Resorts
Slide 38: Notes: 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 and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known
Slide 39: Comparable Hotel Operating Statistics (continued)
Notes to Supplemental Financial Information Comparable Hotel Operating Statistics (continued) Of the 93 hotels that we owned on December 31, 2018, 85 have been classified as comparable hotels. The operating results of the following hotels that we owned as of December 31, 2018 are excluded from compa
Slide 40: 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 41: Non-GAAP Financial Measures (continued): EBITDA
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) EBITDA 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 information to
Slide 42: Limitations on the Use of FFO and EBITDA 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 and Adjusted EBITDAre We calculate NAREIT FFO per diluted share in accordance with standards established by NAR
Slide 43: 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