Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — FY2020 Earnings Presentation
38 slides from Host Hotels & Resorts's earnings presentation, Feb 18, 2021
Slide 1: Supplemental Financial Information December 31, 2020
Supplemental Financial Information DECEMBER 31, 2020 Exhibit 99.2
Slide 2: Table of Contents
TABLE OF CONTENTS — 03 08 14 21 28 NOTES TO SUPPLEMENTAL FINANCIAL INEORMATION. 2 ‘lL OQunsd Hotel Onscatng Stasis and Ress 2 ‘Non-GAAP Financial Measures 2
Slide 3: Overview
OVERVIEW PROPERTY LEVEL DATA CAPITALIZATION COVID-19 DATA NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 3
Slide 4: About Host Hotels & Resorts
About host Hotels & Resorts 4 Premier US LODGING REIT LUXURY & UPPER UPSCALE CONSOLIDATED HOTELS PORTFOLIO(2) Based on market cap as of December 31, 2020. See Comparative Capitalization for calculation. At February 18, 2021.
Slide 5: Analyst Coverage
5 Analyst Coverage The Company is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of the Company or its management. The Com
Slide 6: About Host Hotels & Resorts
ABOUT HOST HOTELS & RESORTS Host Hotels& Resorts, Inc., herein referred to as “we,” “Host Inc.,” or the “Company,” is a self-managed and self-administered REIT that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resort
Slide 7: Notes on operating statistics and pro forma presentation
To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics and operating results for the periods included in this supplemental information on a comparable hotel basis. However, due to the COVID-19 pandemic and its effects on operations, there i
Slide 8: Property Level Data
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 8
Slide 9: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) Results by Location in Nominal US$ (unaudited, in millions, except hotel statistics and per room basis) RevPAR is the product of the average daily room rate charged and the average daily occupancy achieved. Total Revenue per Available Room (“Total RevPAR”) is a summary m
Slide 10: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) results by Location in Nominal US$ 10 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the results of operations of our sold hotels, whi
Slide 11: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) Results by Location in Nominal US$ 11 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the results of operations of our sold hotels, whi
Slide 12: All Owned Hotels (Pro Forma) Results by Location
All owned Hotels (pro forma) Results by Location in Nominal US$ 12 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues. Pro forma adjustments represent the following items: (i) the results of operations of our sold hotels, whi
Slide 13: Top Domestic Hotels by Total RevPAR
Top 40 Domestic Hotels by Total RevPAR For the Year ended December 31, 2020 13 (unaudited, in millions, except hotel statistics and per room basis) Other property level includes certain ancillary revenues.
Slide 14: Capitalization
Overview Property level data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 14
Slide 15: Comparative Capitalization
Comparative Capitalization (in millions, except security pricing and per share amounts) 15 Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019 , there were 7.2 mil
Slide 16: Consolidated Debt Summary
Consolidated Debt Summary 16 (in millions) The interest rate shown is the rate of the outstanding credit facility revolver borrowings at December 31, 2020, based on LIBOR plus 150 basis points. Depending on Host L.P.’s unsecured long-term debt rating, interest on revolver borrowings is equal to LIBO
Slide 17: Consolidated Debt Maturity
Consolidated Debt Maturity as of December 31, 2020 17 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.
Slide 18: Ground Lease Summary
Ground Lease Summary as of December 31, 2020 18 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 previously paid and no further r
Slide 19: Property Dispositions
Property Dispositions 19 The table includes 14 properties sold in 2019 and one property sold in 2020. The cap rate is calculated as the ratio between the trailing twelve month net operating income (NOI) and the sales price plus avoided capital expenditures. However, due to the impact of the COVID-19
Slide 20: Historical Pro-Forma Results
HISTORICAL PRO-FORMA RESULTS 20 Historical Pro-forma Hotel Metrics (1) (2) Historical Pro-forma Hotel Revenues (1) (2) Historical Pro-forma Adjusted EBITDAre (1) (2) The tables above include pro forma adjustments for 14 properties sold in 2019, one property sold in 2020, and one property acquired in
Slide 21: COVID-19 Data
Overview Property Level Data Capitalization COVID-19 Data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 21
Slide 22: Credit Facility Amendments
Credit Facility Amendments(1) 22 We have completed two amendments to our credit facility agreement since June 2020. The foregoing reflects the combined terms of the Amendments, but does not purport to be a complete description of the terms of the Amendments and such description is qualified in its e
Slide 23: Financial Covenants: Credit Facility and Senior Notes Financial Performance Tests
financial Covenants: Credit Facility and Senior Notes Financial Performance Tests 23 (unaudited, in millions, except ratios) The following tables present the financial performance tests for our credit facility and senior notes: Covenant ratios are calculated using Host’s credit facility definitions
Slide 24: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio
Financial covenants: Reconciliation of GAAP Leverage Ratio to Credit Facility Leverage Ratio 24 (unaudited, in millions, except ratios) The following table presents the calculation of our leverage ratio as used in the financial covenants of the credit facility: The following presents the reconciliat
Slide 25: Reconciliation to Credit Facility Unsecured Interest Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Unsecured Interest Coverage Ratio 25 (unaudited, in millions, except ratios) The following tables present the calculation of our unsecured interest coverage ratio using GAAP measures and as used in the financial c
Slide 26: Reconciliation to Credit Facility Fixed Charge Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Credit Facility Fixed Charge Coverage Ratio 26 (unaudited, in millions, except ratios) The following tables present the calculation of our GAAP Interest coverage ratio and our fixed charge coverage ratio as used in the financial
Slide 27: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture
Financial Covenants: Reconciliation of GAAP Indebtedness Test to Senior Notes Indenture Indebtedness Test 27 (unaudited, in millions, except ratios) The following tables present the calculation of our total indebtedness to total assets using GAAP measures and as used in the financial covenants of ou
Slide 28: Reconciliation of Secured Indebtedness Test to Senior Notes Indenture
Financial Covenants: Reconciliation of GAAP Secured Indebtedness Test to Senior Notes Indenture Secured Indebtedness Test 28 (unaudited, in millions, except ratios) The following table presents the calculation of our secured indebtedness using GAAP measures and as used in the financial covenants of
Slide 29: Reconciliation to Senior Notes EBITDA-to-Interest Coverage Ratio
Financial Covenants: Reconciliation of GAAP Interest Coverage Ratio to Senior Notes Indenture EBITDA-to-Interest Coverage Ratio 29 (unaudited, in millions, except ratios) The following tables present the calculation of our interest coverage ratio using our GAAP measures and as used in the financial
Slide 30: Reconciliation of Unencumbered Assets to Unsecured Indebtedness Test
Financial Covenants: Reconciliation of GAAP Assets to Indebtedness Test to Senior Notes Unencumbered Assets to Unsecured Indebtedness Test 30 (unaudited, in millions, except ratios) The following tables present the calculation of our total assets to total debt using GAAP measures and unencumbered as
Slide 31: Hotels with Suspended Operations
Hotels with Suspended Operations 31 The following table consists of hotels with suspended operations as of February 18, 2021:
Slide 32: Notes to Supplemental Financial Information
Overview Property level data capitalization Covid-19 data NOTES TO SUPPLEMENTAL FINANCIAL INFORMATION 32
Slide 33: All Owned Hotel Operating Statistics and Results
All Owned Hotel Operating Statistics and Results To facilitate a quarter-to-quarter comparison of our operations, we typically present certain operating statistics (i.e., Total RevPAR, RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses, hotel EBITDA and assoc
Slide 34: Non-GAAP Financial Measures: EBITDA and NOI
Non-GAAP financial measures (continued) EBITDA and NOI 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 investors regarding our results of o
Slide 35: Non-GAAP Financial Measures (continued)
Non-GAAP financial measures (continued) Acquisition Costs – Under GAAP, costs associated with completed property acquisitions that are considered business combinations are expensed in the year incurred. We exclude the effect of these costs because we believe they are not reflective of the ongoing pe
Slide 36: Non-GAAP Financial Measures (continued)
Non-GAAP financial measures (continued) Our consolidated statements of operations and consolidated statements of cash flows (“Statements of Cash Flows”) in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q include interest expense, capital expenditures, and other excluded i
Slide 37: Non-GAAP Financial Measures (continued)
Non-GAAP financial measures (continued) Because of the elimination of corporate-level costs and expenses, gains or losses on disposition, certain severance expenses and depreciation and amortization expense, the hotel operating results we present do not represent our total revenues, expenses, operat
Slide 38: Non-GAAP Financial Measures: Senior Notes Indenture
Non-GAAP financial measures (continued) Senior Notes Indenture – Indebtedness Test, Secured Indebtedness to Total Assets Test, EBITDA-to-Interest Coverage Ratio and Ratio of Unencumbered Assets to Unsecured Indebtedness Host’s senior notes indentures contains certain financial covenants, including a