Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — FY2017 Earnings Presentation
44 slides from Host Hotels & Resorts's earnings presentation, Feb 21, 2018
Slide 1: Year End 2017 Supplemental Financial Information
Year End 2017 Supplemental Financial Information December 31, 2017 Exhibit 99.2 Host Hotels & Resorts, Inc.
Slide 2: Table of Contents
Table of Contents Host Hotels & Resorts
Slide 3: 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 87 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(1) (in millions, except shares and per share amounts) Our condensed consolidated balance sheet as of December 31, 2017 has been prepared without audit. Certain information and footnote disclosures normally included in financial st
Slide 7: Condensed Consolidated Statements of Operations
Corporate Financial Information Condensed Consolidated Statements of Operations(1) (unaudited, in millions, except per share amounts) ___________ (1) Our condensed consolidated statements of operations presented above have been prepared without audit. Certain information and footnote disclosures nor
Slide 8: Earnings per Common Share
Corporate Financial Information Earnings per Common Share (unaudited, in millions, except per share amounts) Quarter ended December 31, Year ended December 31, 2017 2016 2017 2016 Net income $ 93 $ 128 $ 571 $ 771 Less: Net income attributable to non-controlling interests (1 ) (2 ) (7 ) (9 ) Net inc
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) Quarter ended December 31, Year ended December 31, 2017 2016 2017 2016 Net income (2) $ 93 $ 128 $ 571 $ 771 Interest expense 42 38 167 154 Depreciation and amortization
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 December 31, Year ended December 31, 2017 2016 2017 2016 Net income (2) $ 93 $ 128 $ 571 $ 771 Less: Net inc
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 December 31, Year ended December 31, 2017 2016 2017 2016 Number of hotels 87 87 87 87 Number of rooms 48,357 48,357 48,357 48,357 Change in comparable hotel RevPAR(2) - Constant US$ 2.2 %
Slide 13: Comparable Hotel Results (continued) - Quarter
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results(1) (continued) Quarter ended December 31, 2017 Quarter ended December 31, 2016 Adjustments Adjustments GAAP Results Non-comparable hotel results, net(4) Depreciation and corporate level items Comparable Ho
Slide 14: Comparable Hotel Results (continued) - Year
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results(1) (continued) Year ended December 31, 2017 Year ended December 31, 2016 Adjustments Adjustments GAAP Results Non-comparable hotel results, net(4) Depreciation and corporate level items Comparable Hotel Re
Slide 15: Comparable Hotel Results by Location
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 by Location
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 17: Comparable Hotel Results by Location
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 by Location
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, 2016 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciati
Slide 19: Comparable Hotel Results by Location - Year
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
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 21: Comparable Hotel Results by Location - Prior Year
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 - Prior Year
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, 2016 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 Year ended December 31, 2017 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues per Available Room Hotel Net Income (
Slide 24: Top Domestic Hotels by RevPAR Reconciliation
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 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 2017 2017 2017 2017 2016 Common shares outstanding 739.1 738.9 738.8 738.6 737.8 Common shares outstanding assuming conversion of OP Units (1) 747.4 747.4 747.3 747.2 746.5 Preferred
Slide 27: Consolidated Debt Summary
Capitalization Consolidated Debt Summary Debt Senior debt Rate Maturity date December 31, 2017 December 31, 2016 Series Z 6 % 10/2021 $ 298 $ 297 Series B 5 1⁄4 % 3/2022 348 347 Series C 4 3⁄4 % 3/2023 447 446 Series D 3 3⁄4 % 10/2023 398 398 Series E 4 % 6/2025 496 496 Series F 4 1⁄2 % 2/2026 396 3
Slide 28: Consolidated Debt Maturity
Capitalization Consolidated Debt Maturity as of December 31, 2017 (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, 2017 Debt $ 3,954 Net income 571 GAAP Leverage Ratio 6.9 x 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
Capitalization Ground Lease Summary 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 12/13/2077 3 Coronado Island
Slide 33: 2018 Outlook
2018 Outlook Host Hotels & Resorts
Slide 34: 2018 Outlook
2018 Outlook The Company anticipates that its 2018 operating results as compared to the prior year will change in the following range: Full Year 2018 Guidance Total comparable hotel RevPAR - Constant US$ 0.5% to 2.5% Total revenues under GAAP 0.6% to 2.5% Operating profit margin under GAAP (50 bps)
Slide 35: 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 $ 547 $ 616 Interest
Slide 36: 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) 12.0 % 13.0 % Comparable hotel EBITDA margin (3) 27.7 % 28.5 % Net income $ 547 $ 616 Depreciation a
Slide 37: Notes to Supplemental Financial Information
Notes to Supplemental Financial Information Host Hotels & Resorts
Slide 38: 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 and comparable hotel results are forward-looking statements and are not guarantees of future performance and involve known
Slide 39: Comparable Hotel Operating Statistics
Notes to Supplemental Financial Information COMPARABLE HOTEL OPERATING STATISTICS (continued) Of the 94 hotels that we owned on December 31, 2017, 87 have been classified as comparable hotels. The operating results of the following hotels that we owned as of December 31, 2017 are excluded from compa
Slide 40: 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 41: 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. As a result of the reduction of corporate in
Slide 42: 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 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 and Adjusted EBITDAre We calculate NAREIT FFO per diluted share in accordance with standards established by NAR
Slide 44: 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