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Host Hotels (HST) Q4 Revenues Top Estimates, RevPAR Declines
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Host Hotels & Resorts, Inc.(HST - Free Report) reported fourth-quarter 2020 adjusted funds from operations (FFO) per share of negative 2 cents. The Zacks Consensus Estimate for the same was pegged at negative 21 cents. Notably, the company reported adjusted FFO per share of 41 cents in the prior-year quarter.
It generated total revenues of $267 million, which beat the Zacks Consensus Estimate of 236.4 million. The top line, however, declined 80% year over year.
Results were affected by a decline in travel and restrictions amid the coronavirus pandemic. In fact, revenue per available room (RevPAR) witnessed a significant decline.
For 2020, the company’s adjusted FFO per share came in at negative 17 cents. The Zacks Consensus Estimate for the same was negative 36 cents. In the prior year, the company reported adjusted FFO per share of $1.78. Total revenues of $1.6 billion slid 70.4% year over year.
Behind the Headlines
In the fourth quarter, all owned-hotel pro-forma RevPAR (on a constant-dollar basis) fell 79.9% year over year to $61.49. All owned-hotel pro-forma EBITDA was negative $62 million for the fourth quarter. The company reported EBITDA of $361 million in the prior-year quarter.
Demand during the December-end quarter was primarily driven by drive-to and resort destinations. As of the fourth-quarter end, room revenues from the transient business were $126 million, indicating a year-over-year plunge of 74.9%. Room revenues from group and contract businesses declined 91% and 63.6% year over year to $24 million and $12 million, respectively.
Moreover, room nights for its transient, group and contract business declined 70.1%, 86% and 47.1%, respectively, from the prior-year quarter. Notably, the company’s transient, group and contract businesses accounted for roughly 61%, 35% and 4%, respectively, of its 2019 room sales.
Balance Sheet Position
Host Hotels exited the fourth quarter with liquidity of $2.5 billion, including cash and cash equivalents of $2.3 billion, and FF&E escrow reserves of $139 million. As of the same date, its debt balance amounted to $5.5 billion. The company has no maturities until 2023.
Capital Expenditure
In 2020, the company invested around $499 million in capital expenditure. Of this, $343 million was return on investment capital projects spend, and $156 million was renewal and replacement project expenditure.
Remarkably, for 2021, the company now guided capital expenditure spending of $375-$475 million.
Host Hotels currently carries a Zacks Rank #3 (Hold).
Highwoods Properties, Inc. Price, Consensus and EPS Surprise
Equinix’s (EQIX - Free Report) fourth-quarter 2020 adjusted FFO per share was $5.76, beating the Zacks Consensus Estimate of $5.65. The figure also improved 4.5% from the year-ago quarter’s $5.51.
Healthpeak Properties, Inc. reported fourth-quarter 2020 FFO as adjusted per share of 41 cents, surpassing the Zacks Consensus Estimate of 40 cents. However, the reported figure compared unfavorably with FFO as adjusted of 44 cents per share recorded in the prior-year quarter.
Highwoods Properties, Inc.’s (HIW - Free Report) fourth-quarter 2020 FFO per share of 87 cents missed the Zacks Consensus Estimate of 88 cents. Also, the reported figure declined 4.4% from 91 cents recorded in the year-ago period.
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.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Host Hotels (HST) Q4 Revenues Top Estimates, RevPAR Declines
Host Hotels & Resorts, Inc.(HST - Free Report) reported fourth-quarter 2020 adjusted funds from operations (FFO) per share of negative 2 cents. The Zacks Consensus Estimate for the same was pegged at negative 21 cents. Notably, the company reported adjusted FFO per share of 41 cents in the prior-year quarter.
It generated total revenues of $267 million, which beat the Zacks Consensus Estimate of 236.4 million. The top line, however, declined 80% year over year.
Results were affected by a decline in travel and restrictions amid the coronavirus pandemic. In fact, revenue per available room (RevPAR) witnessed a significant decline.
For 2020, the company’s adjusted FFO per share came in at negative 17 cents. The Zacks Consensus Estimate for the same was negative 36 cents. In the prior year, the company reported adjusted FFO per share of $1.78. Total revenues of $1.6 billion slid 70.4% year over year.
Behind the Headlines
In the fourth quarter, all owned-hotel pro-forma RevPAR (on a constant-dollar basis) fell 79.9% year over year to $61.49. All owned-hotel pro-forma EBITDA was negative $62 million for the fourth quarter. The company reported EBITDA of $361 million in the prior-year quarter.
Demand during the December-end quarter was primarily driven by drive-to and resort destinations. As of the fourth-quarter end, room revenues from the transient business were $126 million, indicating a year-over-year plunge of 74.9%. Room revenues from group and contract businesses declined 91% and 63.6% year over year to $24 million and $12 million, respectively.
Moreover, room nights for its transient, group and contract business declined 70.1%, 86% and 47.1%, respectively, from the prior-year quarter. Notably, the company’s transient, group and contract businesses accounted for roughly 61%, 35% and 4%, respectively, of its 2019 room sales.
Balance Sheet Position
Host Hotels exited the fourth quarter with liquidity of $2.5 billion, including cash and cash equivalents of $2.3 billion, and FF&E escrow reserves of $139 million. As of the same date, its debt balance amounted to $5.5 billion. The company has no maturities until 2023.
Capital Expenditure
In 2020, the company invested around $499 million in capital expenditure. Of this, $343 million was return on investment capital projects spend, and $156 million was renewal and replacement project expenditure.
Remarkably, for 2021, the company now guided capital expenditure spending of $375-$475 million.
Host Hotels currently carries a Zacks Rank #3 (Hold).
Highwoods Properties, Inc. Price, Consensus and EPS Surprise
Highwoods Properties, Inc. price-consensus-eps-surprise-chart | Highwoods Properties, Inc. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITS
Equinix’s (EQIX - Free Report) fourth-quarter 2020 adjusted FFO per share was $5.76, beating the Zacks Consensus Estimate of $5.65. The figure also improved 4.5% from the year-ago quarter’s $5.51.
Healthpeak Properties, Inc. reported fourth-quarter 2020 FFO as adjusted per share of 41 cents, surpassing the Zacks Consensus Estimate of 40 cents. However, the reported figure compared unfavorably with FFO as adjusted of 44 cents per share recorded in the prior-year quarter.
Highwoods Properties, Inc.’s (HIW - Free Report) fourth-quarter 2020 FFO per share of 87 cents missed the Zacks Consensus Estimate of 88 cents. Also, the reported figure declined 4.4% from 91 cents recorded in the year-ago period.
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.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>