Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q2 2018 Earnings Presentation
44 slides from Host Hotels & Resorts's earnings presentation, Aug 7, 2018
Slide 1: Second Quarter 2018 Supplemental Financial Information
Second Quarter 2018 Supplemental Financial Information June 30, 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 89 properties in the United States and six properties internatio
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 June 30, 2018 December 31, 2017 ASSETS Property and equipment, net $10,377 $9,692 Assets held for sale 163 250 Due from managers 161 79 Advances t
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 June 30, Year-to-date ended June 30, 2018 2017 2018 2017 Revenues Rooms $973 $940 $1,817 $1,783 Food and beverage 449 416 862 838 Oth
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, 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) __________ (1-4)Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted E
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 June 30, Year-to-date ended June 30, 2018 2017 2018 2017 Number of hotels 88 88 88 88 Number of rooms 49,537 49,537 49,537 49,537 Change in comparable hotel RevPAR (2
Slide 13: Comparable Hotel Results (continued) Quarter
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results(1) (continued) Quarter ended June 30, 2018 Quarter ended June 30, 2017 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel Res
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 June 30, 2018 Year-to-date ended June 30, 2017 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable
Slide 15: Comparable Hotel Results by Location, Q2 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: Hotel Net Income to Hotel EBITDA by Location, Q2 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 June 30, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation P
Slide 17: Comparable Hotel Results by Location, Q2 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: Hotel Net Income to Hotel EBITDA by Location, Q2 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 June 30, 2017 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation P
Slide 19: 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$ _________ (1) Certain items from our statement of operations are not allocated to individual properties, including interest on our senior notes, corporate and
Slide 20: Hotel Net Income to Hotel EBITDA by Location, 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 June 30, 2018 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciat
Slide 21: Comparable Hotel Results by Location, YTD 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: Hotel Net Income to Hotel EBITDA by Location, YTD 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-to-date ended June 30, 2017 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciat
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, 2017 Year ended December 31, 2017 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues
Slide 24: Top Domestic Hotels by RevPAR: 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 25: Capitalization
Capitalization Host Hotels & Resorts
Slide 26: Capitalization
Capitalization As of As of As of As of As of June 30, March 31, December 31, September 30, June 30, Shares/Units 2018 2018 2017 2017 2017 Common shares outstanding 739.8 739.5 739.1 738.9 738.8 Common shares outstanding assuming conversion of OP Units (1) 748.0 747.8 747.4 747.4 747.3 Preferred OP U
Slide 27: Consolidated Debt Summary
Capitalization Consolidated Debt Summary Debt Senior debt Rate Maturity date June 30, 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 397 396 Series
Slide 28: Consolidated Debt Maturity
Capitalization Consolidated Debt Maturity as of June 30, 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 Hotel
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 June 30, 2018 Debt $4,228 Net income - trailing twelve months 665 GAAP Leverage Ratio 6.4x The following table presents the calculation of Host's leverag
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 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 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: 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 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 $662 $698 Interest ex
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) 13.3% 13.9% Comparable hotel EBITDA margin (3) 28.7% 29.2% Net income $662 $698 Depreciation and amo
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 (continued)
Notes to Supplemental Financial Information COMPARABLE HOTEL OPERATING STATISTICS (continued) Of the 95 hotels that we owned on June 30, 2018, 88 have been classified as comparable hotels. The operating results of the following hotels that we owned as of June 30, 2018 are excluded from comparable ho
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. For example, in 2017, as a result of the red
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
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