3.	Earnings (Loss) Per Common Share (Unit)

Host Inc. Earnings (Loss) per Common Share

Basic earnings (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares of Host Inc. common stock outstanding. Diluted earnings (loss) per common share is computed by dividing net income (loss) available to common stockholders as adjusted for potentially dilutive securities, by the weighted average number of shares of Host Inc. common stock outstanding plus other potentially dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, other non-controlling interests that have the option to convert their limited partnership interests to common OP units and convertible debt securities. Due to the net loss for all periods presented, all of our securities are anti-dilutive and, therefore, no effect for such securities is shown.


	Quarter ended						Year-to-date ended
	September 9, 2011			September 10, 2010			September 9, 2011			September 10, 2010
	(in millions, except per unit amounts)
Net loss	$	(35	)	$	(61	)	$	(32	)	$	(126	)
Net loss attributable to non-controlling interests		2			3			—			2
Dividends on preferred stock		—			—			—			(4	)
Issuance costs of redeemed preferred stock (a)		—			—			—			(4	)

Loss available to common stockholders		(33	)		(58	)		(32	)		(132	)

Diluted loss available to common stockholders	$	(33	)	$	(58	)	$	(32	)	$	(132	)

Basic weighted average shares outstanding		702.1			654.5			688.4			651.7
Diluted weighted average shares outstanding (b)		702.1			654.5			688.4			651.7
Basic loss per share	$	(.05	)	$	(.09	)	$	(.05	)	$	(.20	)
Diluted loss per share	$	(.05	)	$	(.09	)	$	(.05	)	$	(.20	)

(a)	Represents the original issuance costs associated with the Class E preferred stock, which was redeemed during the second quarter 2010.

(b)

There were approximately 42 million and 48 million for the quarter and year-to-date periods ended September 9, 2011, respectively, and 52 million for the quarter and year-to-date periods ended September 10. 2010, potentially dilutive shares related to our Exchangeable Senior Debentures and shares granted under comprehensive stock plans, which were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the period.

Host L.P. Earnings (Loss) Per Common Unit

Basic earnings (loss) per common unit is computed by dividing net income available to common unitholders by the weighted average number of common units outstanding. Diluted earnings (loss) per common unit is computed by dividing net income (loss) available to common unitholders as adjusted for potentially dilutive securities, by the weighted average number of common units outstanding plus other potentially dilutive securities. Dilutive securities may include units distributed to Host Inc. to support Host Inc. common shares granted under comprehensive stock plans, other non-controlling interests that have the option to convert their limited partnership interests to common OP units and convertible debt securities. Due to the net loss for all periods presented, all of our securities are anti-dilutive and, therefore, no effect for such securities is shown.


	Quarter ended						Year-to-date ended
	September 9, 2011			September 10, 2010			September 9, 2011			September 10, 2010
	(in millions, except per unit amounts)
Net loss	$	(35	)	$	(61	)	$	(32	)	$	(126	)
Net loss attributable to non-controlling interests		1			2			—			—
Distributions on preferred OP units		—			—			—			(4	)
Issuance costs of redeemed preferred OP units (a)		—			—			—			(4	)

Loss available to common unitholders		(34	)		(59	)		(32	)		(134	)

Diluted loss available to common unitholders	$	(34	)	$	(59	)	$	(32	)	$	(134	)

Basic weighted average units outstanding		697.9			651.4			684.5			648.8
Diluted weighted average units outstanding (b)		697.9			651.4			684.5			648.8
Basic loss per unit	$	(.05	)	$	(.09	)	$	(.05	)	$	(.21	)
Diluted loss per unit	$	(.05	)	$	(.09	)	$	(.05	)	$	(.21	)

(a)	Represents the original issuance costs associated with the Class E preferred OP units, which was redeemed during the second quarter 2010.

(b)

There were approximately 41 million and 47 million for the quarter and year-to-date periods ended September 9, 2011, respectively, and 51 million for the quarter and year-to-date periods ended September 10, 2010, potentially dilutive units related to our Exchangeable Senior Debentures and units that would be distributable to Host Inc. for shares granted under comprehensive stock plans, which were not included in the computation of diluted earnings per unit because to do so would have been anti-dilutive for the period.