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Host Hotels' (HST) FFO & Revenues Surpass Estimates in Q4
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Host Hotels & Resorts, Inc. (HST - Free Report) reported fourth-quarter adjusted funds from operations (AFFO) per share of 44 cents, beating the Zacks Consensus Estimate by a penny. The figure jumped 51.7% from the prior-year quarter’s 29 cents. Our estimate for AFFO per share was pegged at 42 cents.
Results reflect better-than-anticipated revenues, aided by continued strong leisure demand and growth in the urban markets. The company issued its 2023 outlook.
Host Hotels generated total revenues of $1.26 billion, beating the Zacks Consensus Estimate of $1.25 million. The top line improved 26.5% from the prior-year quarter’s $998 million. We estimated total revenues of $1.24 billion.
In 2022, HST reported AFFO per share of $1.79, significantly up from the prior year’s 61 cents. Moreover, the reported figure surpassed the Zacks Consensus Estimate by a penny. Our estimate for the same was $1.77. Total revenues of $4.91 billion increased 69.8% year over year and beat the consensus mark of $4.89 billion. We estimated the same to be $4.88 billion.
Behind the Headlines
Host Hotels’ all-owned-hotel revenue per available room (RevPAR) was $196.82 in the reported quarter, climbing 28.7% from the year-ago quarter’s $152.91. The figure improved 0.6% from fourth-quarter 2019 tally. We projected the same to be $193.33.
All-owned-hotel EBITDA came in at $373 million, climbing from $274 million reported a year ago. The figure also surpassed the fourth-quarter 2019 tally of $356 million.
The average room rate improved from $268.31 in the year-ago quarter to $299.58 in the fourth quarter. The figure also grew 15.6% from $259.16 reported in fourth-quarter 2019, primarily due to continued strong leisure demand and growth in the urban markets.
The all-owned-hotel average occupancy percentage in the quarter was 65.7%, comparing favorably with the prior-year quarter’s 57%. However, the figure was lower than the all-owned-hotel average occupancy of 75.5% in fourth-quarter 2019. Our estimate for fourth-quarter 2022 occupancy was 70.9%.
The room nights for its transient and group businesses declined 17.6% and 7.8%, respectively, while it increased 33.8% for the contract business from the same-period levels of 2019. Host Hotels’ transient, group and contract businesses accounted for roughly 65%, 32% and 3% of its 2022 room sales, respectively, similar to the mix in 2019.
Balance-Sheet Position
Host Hotels exited fourth-quarter 2022 with cash and cash equivalents of $667 million, down from $883 million as of Sep 30, 2022.
HST’s liquidity totaled $2.4 billion, including FF&E escrow reserves of $200 million as of Dec 31, 2022. It had $1.5 billion available under the revolver portion of the credit facility as of the same date.
During the fourth quarter, HST repurchased 1.7 million shares at an average price of $15.93 per share for $27 million through its common share repurchase program. It had around $973 million of remaining capacity under the repurchase program as of Dec 31, 2022.
Capital Expenditure
From the beginning of the year through Dec 31, 2022, Host Hotels incurred around $504 million of capital expenditure. Of this, $307 million was the total return on investment project spend, $185 million was renewal and replacement expenditure, and $12 million was renewal and replacement insurable reconstruction.
2023 Outlook
Host Hotels issued its outlook for 2023.
It projects full-year AFFO to lie in the range of $1.60-$1.83. The Zacks Consensus Estimate for the same is presently pegged at $1.86.
It expects all comparable hotel RevPAR for the current year to be in the range of $199-$211 million while adjusted EBITDAre is estimated between $1.380 billion and $1.545 billion.
For full-year 2023, management anticipates total capital expenditure in the range of $600-$725 million.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2022 core FFO per share of $2.32, surpassing the Zacks Consensus Estimate of $2.28. The reported number improved 22.1% year over year.
This residential REIT’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. MAA also issued its outlook for 2023.
Healthpeak Properties, Inc. reported fourth-quarter 2022 FFO as adjusted per share of 44 cents, beating the Zacks Consensus Estimate by a penny. The reported figure was up 7.3% from the year-ago quarter’s 41 cents.
PEAK’s performance was backed by healthy top-line growth. Moreover, improvement in same-store portfolio cash (adjusted) NOI was witnessed across the portfolio. The company issued its 2023 outlook.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2022 AFFO per share of $2.14, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.97.
ARE’s results reflected decent leasing activity and rental rate growth during the quarter.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.
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Host Hotels' (HST) FFO & Revenues Surpass Estimates in Q4
Host Hotels & Resorts, Inc. (HST - Free Report) reported fourth-quarter adjusted funds from operations (AFFO) per share of 44 cents, beating the Zacks Consensus Estimate by a penny. The figure jumped 51.7% from the prior-year quarter’s 29 cents. Our estimate for AFFO per share was pegged at 42 cents.
Results reflect better-than-anticipated revenues, aided by continued strong leisure demand and growth in the urban markets. The company issued its 2023 outlook.
Host Hotels generated total revenues of $1.26 billion, beating the Zacks Consensus Estimate of $1.25 million. The top line improved 26.5% from the prior-year quarter’s $998 million. We estimated total revenues of $1.24 billion.
In 2022, HST reported AFFO per share of $1.79, significantly up from the prior year’s 61 cents. Moreover, the reported figure surpassed the Zacks Consensus Estimate by a penny. Our estimate for the same was $1.77. Total revenues of $4.91 billion increased 69.8% year over year and beat the consensus mark of $4.89 billion. We estimated the same to be $4.88 billion.
Behind the Headlines
Host Hotels’ all-owned-hotel revenue per available room (RevPAR) was $196.82 in the reported quarter, climbing 28.7% from the year-ago quarter’s $152.91. The figure improved 0.6% from fourth-quarter 2019 tally. We projected the same to be $193.33.
All-owned-hotel EBITDA came in at $373 million, climbing from $274 million reported a year ago. The figure also surpassed the fourth-quarter 2019 tally of $356 million.
The average room rate improved from $268.31 in the year-ago quarter to $299.58 in the fourth quarter. The figure also grew 15.6% from $259.16 reported in fourth-quarter 2019, primarily due to continued strong leisure demand and growth in the urban markets.
The all-owned-hotel average occupancy percentage in the quarter was 65.7%, comparing favorably with the prior-year quarter’s 57%. However, the figure was lower than the all-owned-hotel average occupancy of 75.5% in fourth-quarter 2019. Our estimate for fourth-quarter 2022 occupancy was 70.9%.
The room nights for its transient and group businesses declined 17.6% and 7.8%, respectively, while it increased 33.8% for the contract business from the same-period levels of 2019. Host Hotels’ transient, group and contract businesses accounted for roughly 65%, 32% and 3% of its 2022 room sales, respectively, similar to the mix in 2019.
Balance-Sheet Position
Host Hotels exited fourth-quarter 2022 with cash and cash equivalents of $667 million, down from $883 million as of Sep 30, 2022.
HST’s liquidity totaled $2.4 billion, including FF&E escrow reserves of $200 million as of Dec 31, 2022. It had $1.5 billion available under the revolver portion of the credit facility as of the same date.
During the fourth quarter, HST repurchased 1.7 million shares at an average price of $15.93 per share for $27 million through its common share repurchase program. It had around $973 million of remaining capacity under the repurchase program as of Dec 31, 2022.
Capital Expenditure
From the beginning of the year through Dec 31, 2022, Host Hotels incurred around $504 million of capital expenditure. Of this, $307 million was the total return on investment project spend, $185 million was renewal and replacement expenditure, and $12 million was renewal and replacement insurable reconstruction.
2023 Outlook
Host Hotels issued its outlook for 2023.
It projects full-year AFFO to lie in the range of $1.60-$1.83. The Zacks Consensus Estimate for the same is presently pegged at $1.86.
It expects all comparable hotel RevPAR for the current year to be in the range of $199-$211 million while adjusted EBITDAre is estimated between $1.380 billion and $1.545 billion.
For full-year 2023, management anticipates total capital expenditure in the range of $600-$725 million.
Host Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank 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
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2022 core FFO per share of $2.32, surpassing the Zacks Consensus Estimate of $2.28. The reported number improved 22.1% year over year.
This residential REIT’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. MAA also issued its outlook for 2023.
Healthpeak Properties, Inc. reported fourth-quarter 2022 FFO as adjusted per share of 44 cents, beating the Zacks Consensus Estimate by a penny. The reported figure was up 7.3% from the year-ago quarter’s 41 cents.
PEAK’s performance was backed by healthy top-line growth. Moreover, improvement in same-store portfolio cash (adjusted) NOI was witnessed across the portfolio. The company issued its 2023 outlook.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported fourth-quarter 2022 AFFO per share of $2.14, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.97.
ARE’s results reflected decent leasing activity and rental rate growth during the quarter.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.