Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q1 2018 Earnings Presentation
39 slides from Host Hotels & Resorts's earnings presentation, May 2, 2018
Slide 1: First Quarter 2018 Supplemental Financial Information
First Quarter 2018 Supplemental Financial Information March 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 and Fortune 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 90 properties in the United States and six prope
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) March 31, 2018 December 31, 2017 ASSETS Property and equipment, net $10,650 $9,692 Assets held for sale 181 250 Due from managers 146 79 Advances to and investments in
Slide 7: Condensed Consolidated Statements of Operations
Corporate Financial Information Condensed Consolidated Statements of Operations (unaudited, in millions, except per share amounts) Quarter ended March 31, 2018 2017 Revenues Rooms $844 $843 Food and beverage 413 422 Other 89 83 Total revenues 1,346 1,348 Expenses Rooms 224 219 Food and beverage 278
Slide 8: Earnings per Common Share
Corporate Financial Information Earnings per Common Share (unaudited, in millions, except per share amounts) Quarter ended March 31, 2018 2017 Net income $256 $161 Less: Net income attributable to non-controlling interests (3) (3) Net income attributable to Host Inc. $253 $158 Basic weighted average
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, NAREIT
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) Quarter ended March 31, 2018 2017 Net income (2) $256 $161 Less: Net income attributable to non-controlling interests (3)
Slide 11: Property Level Data
Property Level Data Host Hotels & Resorts
Slide 12: Comparable Hotel Results
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results(1) Quarter ended March 31, 2018 2017 Number of hotels 90 90 Number of rooms 50,684 50,684 Change in comparable hotel RevPAR(2) Constant US$ 1.7% — Nominal US$ 1.8% — Operating profit margin (3) 12.7% 12.7%
Slide 13: Comparable Hotel Results (continued)
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results(1) (continued) Quarter ended March 31, 2018 Quarter ended March 31, 2017 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel R
Slide 14: Comparable Hotel Results by Location, Q1 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 15: Reconciliation of Hotel Net Income to Hotel EBITDA, Q1 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 March 31, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation
Slide 16: Comparable Hotel Results by Location, Q1 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 17: Reconciliation of Hotel Net Income to Hotel EBITDA, Q1 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 March 31, 2017 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation
Slide 18: 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, 2017 Year ended December 31, 2017 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues
Slide 19: Top Domestic Hotels: Hotel Net Income to Hotel EBITDA
Property Level Data (unaudited, in millions, except hotel statistics) Top 40 Domestic Hotels by RevPAR Reconciliation of Hotel Net Income to Hotel EBITDA Year ended December 31, 2017 Hotel Location No. of Rooms Hotel Net Income (Loss) Plus: Depreciation Plus: Interest Expense Plus: Income Tax Equals
Slide 20: Capitalization
Capitalization Host Hotels & Resorts
Slide 21: Capitalization
Capitalization As of As of As of As of As of March, 31 December 31, September 30, June 30, March, 31 Shares/Units 2018 2017 2017 2017 2017 Common shares outstanding 739.5 739.1 738.9 738.8 738.6 Common shares outstanding assuming conversion of OP Units (1) 747.8 747.4 747.4 747.3 747.2 Preferred OP
Slide 22: Consolidated Debt Summary
Capitalization Consolidated Debt Summary Debt Senior debt Rate Maturity date March 31, 2018 December 31, 2017 Series Z 6% 10/2021 $ 298 $ 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 496 496 Series F 4 1⁄2% 2/2026 396 396 Series
Slide 23: Consolidated Debt Maturity
Capitalization Consolidated Debt Maturity as of March 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 Hote
Slide 24: 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 March 31, 2018 Debt $4,266 Net income - trailing twelve months 666 GAAP Leverage Ratio 6.4x The following table presents the calculation of Host's levera
Slide 25: 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 26: 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 27: Ground Lease Summary
Capitalization Ground Lease Summary as of December 31, 2017 As of December 31, 2017 Hotel No. of rooms Minimum rent Current expiration Expiration after all potential options(1) 1 Atlanta Marriott Midtown Suites 254 714,236 1/3/2025 1/3/2105 2 Boston Marriott Copley Place 1,144 N/A(2) 12/13/2077 12/1
Slide 28: 2018 Outlook
2018 Outlook Host Hotels & Resorts
Slide 29: 2018 Outlook
2018 Outlook The Company anticipates that its 2018 operating results as compared to the prior year will change in the following range: Based upon the above parameters, the Company estimates its 2018 guidance as follows: See the 2018 Forecast Schedules and the Notes to Supplemental Financial Informat
Slide 30: Reconciliation of Net Income to EBITDA and FFO for 2018 Forecasts
2018 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 2018 Forecasts(1) Full Year 2018 Low-end of range High-end of range Net income $617 $657 Interest ex
Slide 31: Schedule of Comparable Hotel Results for 2018 Forecasts
2018 Outlook (unaudited, in millions, except hotel statistics) Schedule of Comparable Hotel Results for 2018 Forecasts(1) Full Year 2018 Low-end of range High-end of range Operating profit margin (2) 12.5% 13.1% Comparable hotel EBITDA margin (3) 28.3% 28.7% Net income $617 $657 Depreciation and amo
Slide 32: Notes to Supplemental Financial Information
Notes to Supplemental Financial Information Host Hotels & Resorts
Slide 33: 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 34: Comparable Hotel Operating Statistics
Notes to Supplemental Financial Information COMPARABLE HOTEL OPERATING STATISTICS (continued) Of the 96 hotels that we owned on March 31, 2018, 90 have been classified as comparable hotels. The operating results of the following hotels that we owned as of March 31, 2018 are excluded from comparable
Slide 35: 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 36: Non-GAAP Financial Measures (continued)
Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) In unusual circumstances, we may also 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 37: Non-GAAP Financial Measures: Adjusted EBITDAre
Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regar
Slide 38: 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 and Adjusted EBITDAre We calculate NAREIT FFO per diluted share in accordance with standards established by NAR
Slide 39: Non-GAAP Financial Measures (continued)
Notes to Supplemental Financial Information NON-GAAP FINANCIAL MEASURES (continued) As a result 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 profi
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