EX-99.1 3 dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

Selected Financial Data

The selected financial data presented below as of and for each of the years in the five-year period ended December 31, 2008, is derived from the audited consolidated financial statements of Host Hotels & Resorts, L.P. The consolidated financial statements as of December 31, 2008 and 2007, and for each of the years in the three-year period ended December 31, 2008 are included elsewhere herein. The following table presents certain selected historical financial data which has been updated to reflect the impact of the disposition of four properties and the retrospective application of two accounting standards and should be read in conjunction with the consolidated financial statements and related notes, the independent registered public accounting firm’s report, which refers to the changes in accounting for non-controlling interests, exchangeable senior debentures and contingencies related to income taxes and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” appearing elsewhere herein:

 

     Calendar year  
     2008    2007    2006    2005    2004  
     (in millions, except per unit amounts)  

Income Statement Data:

               

Revenues

    $ 5,189    $ 5,302    $ 4,708    $ 3,619    $ 3,326   

Income (loss) from continuing operations

      375      535      306      109      (100 ) 

Income from discontinued operations (1)

      39      199      461      60      96   

Net income (loss) (2)

      414      734      767      169      (4 ) 

Net income (loss) attributable to Host Hotels & Resorts, L.P. (2)(3)

      411      728      758      163      (8 ) 

Net income (loss) available to common unitholders

      402      719      738      132      (49 ) 

Basic earnings (loss) per common unit (3):

               

Income (loss) from continuing operations

      .67      .96      .55      .19      (.40 ) 

Income from discontinued operations

      .07      .37      .92      .16      .26   

Net income (loss)

      .74      1.33      1.47      .35      (.14 ) 

Diluted earnings (loss) per common unit (3):

               

Income (loss) from continuing operations

      .65      .96      .55      .19      (.40 ) 

Income from discontinued operations

      .07      .36      .92      .16      .26   

Net income (loss)

      .72      1.32      1.47      .35      (.14 ) 

Cash distributions declared per common unit

      .65      1.00      .76      .41      .05   

Balance Sheet Data:

               

Total assets

    $ 11,948    $ 11,809    $ 11,805    $ 8,224    $ 8,400   

Debt (3)

      5,876      5,515      5,833      5,312      5,454   

Preferred units

      97      97      97      241      337   

 

(1) Discontinued operations reflects the operations of properties classified as held for sale, the results of operations of properties sold and the gain or loss on those dispositions.
(2)

We have retrospectively adopted a new accounting pronouncement that requires issuers of cash-settled exchangeable debentures to separately account for the liability and capital components in a manner that will reflect the entity’s nonconvertible debt borrowing rate on the instrument’s issuance date. Therefore, we are required to record the debt components of the debentures at fair value as of the date of issuance with the adjustment to additional paid-in capital and amortize the resulting discount as an increase to interest expense over the expected life of the debt. This treatment has been applied retrospectively to all periods presented. As a result of the application of this pronouncement, our debt balance has been reduced by $106 million, $135 million, $58 million, $69 million and $77 million at December 31, 2008, 2007, 2006, 2005 and 2004, respectively, from what had been presented in the Form 10-K. The discounts will be amortized through the first date at which the holders can require the Partnership to repurchase the debentures for cash (April 2010 for the 31/4% exchangeable senior debentures and March 2012 for the 25/8% exchangeable senior debentures). The resulting amortization increased interest expense by $30 million, $25 million, $12 million, $11 million and $8 million for the years ended December 31, 2008, 2007, 2006, 2005 and 2004, respectively, which

 

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reduced net income available to common unitholders and basic and diluted earnings per unit. For additional detail see Exhibit 99.2, “Managements’ Discussion and Analysis of Results of Operations and Financial Condition – Application of New Accounting Standards”.

(3) As a result of the adoption of a new accounting pronouncement, net income attributable to non-consolidated partnerships is no longer included in the determination of net income. Prior periods have been revised to reflect this presentation. The net income attributable to non-controlling interests is included in the net income available to common unitholders; therefore, the implementation of this pronouncement had no effect on our basic or diluted earnings per unit calculation. For additional detail see Exhibit 99.2, “Managements’ Discussion and Analysis of Results of Operations and Financial Condition – Application of New Accounting Standards”.

 

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