Equity of Host Inc. and Capital of Host L.P.

3 Months Ended

Mar. 31, 2014

Equity of Host Inc. and Capital of Host L.P.

6.	Equity of Host Inc. and Capital of Host L.P.
	Equity of Host Inc.

Equity of Host Inc. is allocated between controlling and non-controlling interests as follows (in millions):

	Equity of Host Inc.			Non-redeemable non-controlling interests		Total equity			Redeemable non-controlling interests
Balance, December 31, 2013	$	7,228		$	34	$	7,262		$	190
Net income		179			4		183			2
Issuance of common stock		8			—		8			—
Dividends declared on common stock		(106	)		—		(106	)		—
Distributions to non-controlling interests		—			—		—			(1	)
Other changes in ownership		(5	)		—		(5	)		5
Other comprehensive income		7			—		7			—
Balance, March 31, 2014	$	7,311		$	38	$	7,349		$	196

Capital of Host L.P.

As of March 31, 2014, Host Inc. is the owner of approximately 99% of Host L.P.’s common OP units. The remaining common OP units are held by third party limited partners. Each OP unit may be redeemed for cash or, at the election of Host Inc., Host Inc. common stock, based on the conversion ratio of 1.021494 shares of Host Inc. common stock for each OP unit.

In exchange for any shares issued by Host Inc., Host L.P. will issue OP units to Host Inc. based on the applicable conversion ratio. Additionally, funds used by Host Inc. to pay dividends on its common stock are provided by distributions from Host L.P.

Capital of Host L.P. is allocated between controlling and non-controlling interests as follows (in millions):

									Limited
				Non-					Partnership
	Capital of			controlling		Total			Interests of
	Host L.P			Interests		Capital			Third Parties
Balance, December 31, 2013	$	7,228		$	34	$	7,262		$	190
Net income		179			4		183			2
Issuance of common OP units		8			—		8			—
Distributions declared on common OP units		(106	)		—		(106	)		(1	)
Distributions to non-controlling interests		—			—		—			—
Other changes in ownership		(5	)		—		(5	)		5
Other comprehensive income		7			—		7			—
Balance, March 31, 2014	$	7,311		$	38	$	7,349		$	196

For Host Inc. and Host L.P., there were no material amounts reclassified out of accumulated other comprehensive income (loss) to net income for the quarter ended March 31, 2014.  

Dividends/Distributions

On February 18, 2014, Host Inc.’s Board of Directors declared a regular dividend of $0.14 per share on its common stock. The dividend was paid on April 15, 2014 to stockholders of record as of March 31, 2014. Accordingly, Host L.P. made a distribution of $0.14300916 per unit on its common OP units based on the current conversion ratio.