
8.	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, 2017	$	6,973		$	29		$	7,002		$	167
Net income		784			53			837			8
Issuance of common stock for comprehensive stock plans, net		10			—			10			—
Dividends declared on common stock		(445	)		—			(445	)		—
Distributions to non-controlling interests		—			(1	)		(1	)		(5	)
Changes in ownership and other		—			(8	)		(8	)		—
Other comprehensive loss		(5	)		—			(5	)		—
Cumulative effect of accounting change		5			—			5			—
Balance, September 30, 2018	$	7,322		$	73		$	7,395		$	170

Capital of Host L.P.

As of September 30, 2018, 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 common 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 common OP unit.

In exchange for any shares issued by Host Inc., Host L.P. will issue common 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):

	Capital of Host L.P.			Non-controlling interests			Total capital			Limited partnership interests of third parties
Balance, December 31, 2017	$	6,973		$	29		$	7,002		$	167
Net income		784			53			837			8
Issuance of common OP units to Host Inc. for comprehensive stock plans, net		10			—			10			—
Distributions declared on common OP units		(445	)		—			(445	)		(5	)
Distributions to non-controlling interests		—			(1	)		(1	)		—
Changes in ownership and other		—			(8	)		(8	)		—
Other comprehensive loss		(5	)		—			(5	)		—
Cumulative effect of accounting change		5			—			5			—
Balance, September 30, 2018	$	7,322		$	73		$	7,395		$	170

Dividends/Distributions

On September 14, 2018, Host Inc.’s Board of Directors declared a regular quarterly cash dividend of $0.20 per share on its common stock. The dividend was paid on October 15, 2018 to stockholders of record as of September 28, 2018. Accordingly, Host L.P. made a distribution of $0.2042988 per unit on its common OP units based on the current conversion ratio.