Portfolio Re-Investment and Growth Opportunities Presentation
COMPANY
OVERVIEW
RECENT
HIGHLIGHTS
PORTFOLIO
UPDATE
GROWTH
OPPORTUNITIES
CORPORATE
RESPONSIBILITY
RECONCILIATIONS &
SUPPLEMENTAL INFO
Key Terms And Statistics.
Credit Facility - Leverage Ratio
Host's credit facility contains certain financial covenants, including allowable leverage, which is determined using earnings before interest expense, income taxes,
depreciation and amortization ("EBITDA") as calculated under the terms of our credit facility ("Adjusted Credit Facility EBITDA"). The leverage ratio is defined as net debt
plus preferred equity to Adjusted Credit Facility EBITDA. These calculations are based on results for the prior four fiscal quarters giving effect to transactions such as
acquisitions, dispositions and financings as if they occurred at the beginning of the period.
Additionally, total debt used in the calculation of our leverage ratio is based on a "net debt" concept, under which cash and cash equivalents in excess of $100 million are
deducted from our total debt balance. Management believes these financial ratios provide useful information to investors regarding our compliance with the covenants in
our credit facility and our ability to access the capital markets, in particular debt financing.
Limitations on Credit Facility Credit Ratios
These metrics are useful in evaluating the Company's compliance with the covenants contained in its credit facility. However, because of the various adjustments taken to
the ratio components as a result of negotiations with the Company's lenders they should not be considered as an alternative to the same ratios determined in accordance
with GAAP. For instance, interest expense as calculated under the credit facility excludes items such as deferred financing charges and amortization of debt premiums or
discounts, all of which are included in interest expense on our consolidated statement of operations. Management compensates for these limitations by separately
considering the impact of these excluded items to the extent they are material to operating decisions or assessments of performance. In addition, because the credit
facility ratio components are also based on results for the prior four fiscal quarters, giving effect to transactions such as acquisitions, dispositions and financings as if they
occurred at the beginning of the period, they are not reflective of actual performance over the same period calculated in accordance with GAAP.
2024 Host Hotels & Resorts, Inc.
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