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Host Hotels' (HST) FFO and Revenues Beat Estimates in Q4
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Host Hotels & Resorts, Inc. (HST - Free Report) came out with better-than-anticipated fourth-quarter 2021 results in terms of adjusted funds from operations (FFO) per share and revenues. The hotel REIT reported an adjusted FFO per share of 29 cents, surpassing the Zacks Consensus Estimate of 16 cents.
HST generated total revenues of $998 million, beating the Zacks Consensus Estimate of $899.6 million.
The adjusted FFO per share came against the loss of 2 cents per share reported in the prior-year quarter. The top line also improved significantly from the prior year’s $267 million.
Host Hotels’ revenue per available room (RevPAR) was $148.5 million for the reported quarter, reflecting a 15% increase from the prior quarter’s level.
Host Hotels acquired the 173-room Alida, Savannah in GA and the 319-room Hotel Van Zandt in Austin, TX during the fourth quarter.
Behind the Headlines
In the reported quarter, all owned-hotel pro-forma RevPAR (on a constant-dollar basis) increased significantly year over year to $148. All owned-hotel pro-forma EBITDA was $269 million.
As of the fourth-quarter end, room revenues from the transient business were $443 million, indicating a fall of 12.6% from the revenues recognized in the same period of2019. Room revenues from group and contract businesses declined 43% and 33.9% each from the corresponding fourth-quarter 2019 levels to $150 million and $29 million, respectively.
Moreover, room nights for its transient, group and contract businesses declined 17.7%, 40.5% and 13.7% each from the respective same-period levels of2019. Host Hotels’ transient, group and contract businesses accounted for a roughly 61%, 35% and 4% of its 2019 room sales, respectively.
Balance-Sheet Position
Host Hotels exited the fourth quarter of 2021 with liquidity of $1.8 billion, including FF&E escrow reserves of $144 million. As of the same date, HST’s debt balance amounted to $4.9 billion. It has no significant maturities until 2024.
Capital Expenditure
Since the beginning of the year through Dec 31, 2021,Host Hotels has incurred around $427 million of capital expenditure. Of this, $293 million was return on investment capital projects spend, and $134 million was renewal and replacement project expenditure.
Remarkably, for 2022, HST expects a capital expenditure of $500-$600 million.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported an adjusted FFO of $1.97 per share for fourth-quarter 2021, up 7.1% from the year-ago quarter’s $1.84. The figure surpassed the Zacks Consensus Estimate of $1.96.
The year-over-year improvement in ARE’s FFO was led by 24.4% top-line growth to $576.9 million. Results reflected decent internal growth. Alexandria witnessed continued healthy leasing activity and rental rate growth during the quarter.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million also beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by a strong physical occupancy, a substantially improved pricing power and higher non-Residential revenues.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Host Hotels' (HST) FFO and Revenues Beat Estimates in Q4
Host Hotels & Resorts, Inc. (HST - Free Report) came out with better-than-anticipated fourth-quarter 2021 results in terms of adjusted funds from operations (FFO) per share and revenues. The hotel REIT reported an adjusted FFO per share of 29 cents, surpassing the Zacks Consensus Estimate of 16 cents.
HST generated total revenues of $998 million, beating the Zacks Consensus Estimate of $899.6 million.
The adjusted FFO per share came against the loss of 2 cents per share reported in the prior-year quarter. The top line also improved significantly from the prior year’s $267 million.
Host Hotels’ revenue per available room (RevPAR) was $148.5 million for the reported quarter, reflecting a 15% increase from the prior quarter’s level.
Host Hotels acquired the 173-room Alida, Savannah in GA and the 319-room Hotel Van Zandt in Austin, TX during the fourth quarter.
Behind the Headlines
In the reported quarter, all owned-hotel pro-forma RevPAR (on a constant-dollar basis) increased significantly year over year to $148. All owned-hotel pro-forma EBITDA was $269 million.
As of the fourth-quarter end, room revenues from the transient business were $443 million, indicating a fall of 12.6% from the revenues recognized in the same period of2019. Room revenues from group and contract businesses declined 43% and 33.9% each from the corresponding fourth-quarter 2019 levels to $150 million and $29 million, respectively.
Moreover, room nights for its transient, group and contract businesses declined 17.7%, 40.5% and 13.7% each from the respective same-period levels of2019. Host Hotels’ transient, group and contract businesses accounted for a roughly 61%, 35% and 4% of its 2019 room sales, respectively.
Balance-Sheet Position
Host Hotels exited the fourth quarter of 2021 with liquidity of $1.8 billion, including FF&E escrow reserves of $144 million. As of the same date, HST’s debt balance amounted to $4.9 billion. It has no significant maturities until 2024.
Capital Expenditure
Since the beginning of the year through Dec 31, 2021,Host Hotels has incurred around $427 million of capital expenditure. Of this, $293 million was return on investment capital projects spend, and $134 million was renewal and replacement project expenditure.
Remarkably, for 2022, HST expects a capital expenditure of $500-$600 million.
Host Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Host Hotels & Resorts, Inc. Price, Consensus and EPS Surprise
Host Hotels & Resorts, Inc. price-consensus-eps-surprise-chart | Host Hotels & Resorts, Inc. Quote
Performance of Other REITs
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported an adjusted FFO of $1.97 per share for fourth-quarter 2021, up 7.1% from the year-ago quarter’s $1.84. The figure surpassed the Zacks Consensus Estimate of $1.96.
The year-over-year improvement in ARE’s FFO was led by 24.4% top-line growth to $576.9 million. Results reflected decent internal growth. Alexandria witnessed continued healthy leasing activity and rental rate growth during the quarter.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million also beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by a strong physical occupancy, a substantially improved pricing power and higher non-Residential revenues.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.