Host Hotels & Resorts, Inc. · NASDAQ:HST
Host Hotels & Resorts — Q1 2019 Earnings Presentation
40 slides from Host Hotels & Resorts's earnings presentation, May 1, 2019
Slide 1: First Quarter 2019 Supplemental Financial Information
First Quarter 2019 Supplemental Financial Information March 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 87 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 March 31, 2019 December 31, 2018 ASSETS Property and equipment, net $10,296 $9,760 Right-of-use assets (1) 616 — Assets held for sale 31 281 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 March 31, 2019 2018 Revenues Rooms $857 $844 Food and beverage 433 413 Other 100 89 Total revenues 1,390 1,346 Expenses Rooms 217 224
Slide 8: Earnings per Common Share
Corporate Financial Information Earnings per Common Share (unaudited, in millions, except per share amounts) ___________ (1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by minority partners and other non-cont
Slide 9: Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre
Corporate Financial Information (unaudited, in millions) Reconciliation of Net Income to EBITDA, EBITDAre and Adjusted EBITDAre (1) __________ (1) See the Notes to Supplemental Financial Information for discussion of these non-GAAP measures. (2) Reflects the sale of one hotel in each of 2019 and 201
Slide 10: Reconciliation of Diluted EPS to NAREIT and Adjusted FFO per Diluted Share
Corporate Financial Information (unaudited, in millions, except per share amounts) Reconciliation of Diluted Earnings per Common Share to NAREIT and Adjusted Funds From Operations per Diluted Share(1) __________ (1-2) Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA,
Slide 11: Property Level Data
Property Level Data Host Hotels & Resorts
Slide 12: Comparable Hotel Results
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) Host Hotels & Resorts Quarter ended March 31, 2019 2018 Number of hotels 87 87 Number of rooms 47,982 47,982 Change in comparable hotel RevPAR (2) Constant US$ (1.0)% — Nominal US$ (1.1)% — Operating p
Slide 13: Comparable Hotel Results (continued)
Property Level Data (unaudited, in millions, except hotel statistics) Comparable Hotel Results (1) (continued) Quarter ended March 31, 2019 Quarter ended March 31, 2018 Adjustments Adjustments GAAP Results Non-comparable hotel results, net (4) Depreciation and corporate level items Comparable Hotel
Slide 14: 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 15: 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 March 31, 2019 Location No. of Properties No. of Rooms Hotel Net Income Plus: Depreciation
Slide 16: Comparable Hotel Results by Location in Nominal US$ (2018)
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 17: Reconciliation of Hotel Net Income to Hotel EBITDA (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 18: Top 40 Domestic Hotels by RevPAR, Year Ended December 31, 2018
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, 2018 Year ended December 31, 2018 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues
Slide 19: Top Domestic Hotels by RevPAR Reconciliation (2018)
Property Level Data (unaudited, in millions, except hotel statistics) Top 40 Domestic Hotels by RevPAR Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and EBITDAre Host Hotels & Resorts __________ The Westin New York Grand Central is excluded from this total as it was sold subsequent to ye
Slide 20: Top 40 Domestic Hotels by RevPAR, Year Ended December 31, 2016
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, 2016 Year ended December 31, 2016 Hotel Location No. of Rooms Average Room Rate Average Occupancy Percentage RevPAR Total Revenues Total Revenues
Slide 21: Top Domestic Hotels by RevPAR Reconciliation (2016)
Property Level Data (unaudited, in millions, except hotel statistics) Top 40 Domestic Hotels by RevPAR Reconciliation of Hotel Net Income (Loss) to Hotel EBITDA and EBITDAre Host Hotels & Resorts __________ W New York – Union Square, W New York, and the Westin New York Grand Central were sold during
Slide 22: Capitalization
Capitalization Host Hotels & Resorts
Slide 23: Comparative Capitalization
Capitalization As of As of As of As of As of March 31, December 31, September 30, June 30, March 31, Shares/Units 2019 2018 2018 2018 2018 Common shares outstanding 740.9 740.4 740.0 739.8 739.5 Common shares outstanding assuming conversion of OP Units (1) 748.6 748.1 748.1 748.0 747.8 Preferred OP
Slide 24: Consolidated Debt Summary
Capitalization Consolidated Debt Summary Debt Senior debt Rate Maturity date March 31, 2019 December 31, 2018 Series Z 6% 10/2021 $299 $299 Series B 5 1⁄4% 3/2022 348 348 Series C 4 3⁄4% 3/2023 448 447 Series D 3 3⁄4% 10/2023 398 398 Series E 4% 6/2025 497 497 Series F 4 1⁄2% 2/2026 397 397 Series G
Slide 25: Consolidated Debt Maturity as of March 31, 2019
Capitalization Consolidated Debt Maturity as of March 31, 2019 (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 26: 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, 2019 Debt $3,862 Net income – trailing twelve months 1,084 GAAP Leverage Ratio 3.6x The following table presents the calculation of Host's leve
Slide 27: Reconciliation of GAAP Fixed Charge Coverage Ratio to Credit Facility 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 28: Reconciliation of GAAP Interest Coverage Ratio to EBITDA to 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 29: Ground Lease Summary
Capitalization Ground Lease Summary as of December 31, 2018 As of December 31, 2018 Hotel No. of rooms Lessor Institution Type Minimum rent Current expiration Expiration after all potential options(1) 1 Atlanta Marriott Midtown Suites 254 Private 743,092 1/3/2025 1/3/2105 2 Boston Marriott Copley Pl
Slide 30: 2019 Outlook
2019 Outlook Host Hotels & Resorts
Slide 31: 2019 Outlook
2019 Outlook The Company estimates its 2019 operating results as compared to the prior year will change in the following range: Based upon the above parameters, the Company estimates its 2019 guidance as follows: See the 2019 Forecast Schedules and the Notes to Supplemental Financial Information for
Slide 32: Reconciliation of Net Income to EBITDA and FFO for 2019 Forecasts
2019 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 2019 Forecasts(1) (1) The forecasts are based on the below
Slide 33: Schedule of Comparable Hotel Results for 2019 Forecasts
2019 Outlook (unaudited, in millions, except hotel statistics) Schedule of Comparable Hotel Results for 2019 Forecasts(1) Full Year 2019 Low-end of range High-end of range Operating profit margin (2) 14.2% 15.1% Comparable hotel EBITDA margin (3) 28.9% 29.5% Net income $ 619 $ 683 Depreciation and a
Slide 34: Notes to Supplemental Financial Information
Notes to Supplemental Financial Information Host Hotels & Resorts
Slide 35: 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 36: Comparable Hotel Operating Statistics (continued)
Notes to Supplemental Financial Information Comparable Hotel Operating Statistics (continued) Of the 93 hotels that we owned on March 31, 2019, 87 have been classified as comparable hotels. The operating results of the following hotels that we owned as of March 31, 2019 are excluded from comparable
Slide 37: Non-GAAP Financial Measures (continued)
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) We believe that NAREIT FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of NAREIT FFO per diluted share, when combined with the primary GAAP presentation o
Slide 38: Non-GAAP Financial Measures: EBITDA
Notes to Supplemental Financial Information Non-GAAP Financial Measures (continued) EBITDA 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
Slide 39: Limitations on the Use of NAREIT FFO, EBITDA and Adjusted 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 40: 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 and depreciation and amortization, the comparable hotel operating results we present do not represent our total revenues, expenses, operating profit or
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