Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — FY2019 Earnings Presentation
44 slides from Host Hotels & Resorts's earnings presentation, Feb 19, 2020
Slide 1: Year End 2019 Supplemental Financial Information
Year End 2019 Supplemental Financial Information December 31, 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 December 31, 2019 December 31, 2018 ASSETS Property and equipment, net $9,671 $9,760 Right-of-use assets(1) 595 — Assets held for sale — 281 Due f
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, 2019 2018 2019 2018 Revenues Rooms $813 $856 $3,431 $3,547 Food and beverage 424 417 1,647 1,616
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 14 hotels in 2019 and four hotels, the New Y
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 December 31, Year ended December 31, 2019 2018 2019 2018 Number of hotels 72 72 72 72 Number of rooms 41,279 41,279 41,279 41,279 Change in comparable hotel Total Re
Slide 13: Comparable Hotel Results (continued)
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Host Hotels & Resorts Quarter ended December 31, 2019 Quarter ended December 31, 2018 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (5) Depreciation and corporate l
Slide 14: Comparable Hotel Results (continued) Notes
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) See the Notes to Supplemental Financial Information for a discussion of non-GAAP measures and the calculation of comparable hotel results. Total Revenue per Available Room (“Total RevPAR”)
Slide 15: Comparable Hotel Results by Location in Nominal US$
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
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, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciati
Slide 17: Comparable Hotel Results by Location in Nominal US$ (Q4 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 December 31, 2018 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Reven
Slide 18: Reconciliation of Hotel Net Income to Hotel EBITDA
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 19: Comparable Hotel Results by Location in Nominal US$ (Year 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
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, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation
Slide 21: Comparable Hotel Results by Location in Nominal US$ (Year 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 ended December 31, 2018 Location No. of Properties No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues
Slide 22: Reconciliation of Hotel Net Income to Hotel EBITDA
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 23: 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 24: Reconciliation of Hotel Net Income (Loss) 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 25: Capitalization
Capitalization Host Hotels & Resorts
Slide 26: 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 December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019 and December 31, 2018, there were 7.5 million, 7.6 million, 7.6 million, 7.6
Slide 27: Consolidated Debt Summary
Capitalization Consolidated Debt Summary (in millions) ___________ (1) There are no outstanding credit facility borrowings at December 31, 2019. Amount shown represents deferred financing costs related to the credit facility revolver. (2) In accordance with GAAP, total debt includes the debt of enti
Slide 28: Consolidated Debt Maturity
Capitalization Consolidated Debt Maturity as of December 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 &
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 The following table presents the calculation of our leverage ratio as used in the financial covenants of the credit facility: (1) The following presents the reconciliation o
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 __________ (1) See Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio for the calculation of Adjusted Credit Facility EBITDA and reconciliat
Slide 32: 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 33: 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 34: 2020 Outlook
2020 Outlook Host Hotels & Resorts
Slide 35: 2020 Outlook
2020 Outlook The Company estimates its 2020 operating results as compared to the prior year will change in the following range: Based upon the above parameters, the Company estimates its 2020 guidance as follows: See the 2020 Forecast Schedules and the Notes to Supplemental Financial Information for
Slide 36: Reconciliation of Net Income to EBITDA and FFO for 2020 Forecasts
2020 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 2020 Forecasts(1) (1) The forecasts are based on the below
Slide 37: Schedule of Comparable Hotel Results for 2020 Forecasts
2020 Outlook (unaudited, in millions, except hotel statistics) Schedule of Comparable Hotel Results for 2020 Forecasts(1) Full Year 2020 Low-end of range High-end of range Operating profit margin (2) 12.2% 12.9% Comparable hotel EBITDA margin (3) 28.0% 28.4% Net income $496 $539 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 diluted earnings per common 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 in
Slide 40: Comparable Hotel Operating Statistics (continued)
Notes to Supplemental Financial Information Comparable Hotel Operating Statistics (continued) 2020 Comparable Hotel Definition Change Effective January 1, 2020, the Company will adjust its definition of comparable hotels to include recent acquisitions on a pro forma basis assuming they have comparab
Slide 41: Non-GAAP Financial Measures: NAREIT FFO
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) NAREIT FFO and NAREIT FFO per Diluted Share We present NAREIT FFO and NAREIT FFO per diluted share as non-GAAP measures of our performance in addition to our earnings per share (calculated in accordance with GAAP). W
Slide 42: Non-GAAP Financial Measures: EBITDA and NOI
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) In unusual circumstances, we also may adjust NAREIT FFO for gains or losses that management believes are not representative of the Company’s current operating performance. For example, in 2017, as a result of the red
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, gains or losses on disposition and depreciation and amortization, the comparable hotel operating results we present do not represent our total revenue