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Equity of Host Inc. and Capital of Host L.P.
 6 Months Ended
Jun. 30, 2021
Equity [Abstract]  
Equity of Host Inc. and Capital of Host L.P.

 

7.

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

 

Equity of Host Inc.

The components of the Equity of Host Inc. are as follows (in millions):

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Retained Earnings / (Deficit)

 

 

Non-redeemable, non-controlling interests

 

 

Total equity

 

 

Redeemable, non-controlling interests

 

Balance, December 31, 2020

 

$

7

 

 

$

7,568

 

 

$

(74

)

 

$

(1,180

)

 

$

5

 

 

$

6,326

 

 

$

108

 

Net loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(212

)

 

 

—

 

 

 

(212

)

 

 

(2

)

Issuance of common stock for

     comprehensive stock plans,

     net

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

Common stock issuances

 

 

—

 

 

 

138

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

(20

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

19

 

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

Balance, June 30, 2021

 

$

7

 

 

$

7,688

 

 

$

(71

)

 

$

(1,392

)

 

$

5

 

 

$

6,237

 

 

$

125

 

 

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Retained Earnings / (Deficit)

 

 

Non-redeemable, non-controlling interests

 

 

Total equity

 

 

Redeemable, non-controlling interests

 

Balance, March 31, 2021

 

$

7

 

 

$

7,547

 

 

$

(77

)

 

$

(1,332

)

 

$

5

 

 

$

6,150

 

 

$

124

 

Net loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(60

)

 

 

—

 

 

 

(60

)

 

 

(1

)

Issuance of common stock for

     comprehensive stock plans,

     net

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

Common stock issuances

 

 

—

 

 

 

138

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

2

 

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

Balance, June 30, 2021

 

$

7

 

 

$

7,688

 

 

$

(71

)

 

$

(1,392

)

 

$

5

 

 

$

6,237

 

 

$

125

 

 

 

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Retained Earnings / (Deficit)

 

 

Non-redeemable, non-controlling interests

 

 

Total equity

 

 

Redeemable, non-controlling interests

 

Balance, December 31, 2019

 

$

7

 

 

$

7,675

 

 

$

(56

)

 

$

(307

)

 

$

6

 

 

$

7,325

 

 

$

142

 

Net loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(355

)

 

 

(1

)

 

 

(356

)

 

 

(3

)

Issuance of common stock for

     comprehensive stock plans,

     net

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

(147

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(147

)

 

 

—

 

Dividends declared on common

     stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(141

)

 

 

—

 

 

 

(141

)

 

 

—

 

Distributions to non-controlling

     interests

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Changes in ownership and other

 

 

—

 

 

 

57

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

58

 

 

 

(56

)

Other comprehensive loss

 

 

—

 

 

 

—

 

 

 

(18

)

 

 

—

 

 

 

—

 

 

 

(18

)

 

 

—

 

Balance, June 30, 2020

 

$

7

 

 

$

7,586

 

 

$

(74

)

 

$

(802

)

 

$

5

 

 

$

6,722

 

 

$

81

 

 

 

 

Common Stock

 

 

Additional Paid-in Capital

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Retained Earnings / (Deficit)

 

 

Non-redeemable, non-controlling interests

 

 

Total equity

 

 

Redeemable, non-controlling interests

 

Balance, March 31, 2020

 

$

7

 

 

$

7,580

 

 

$

(72

)

 

$

(451

)

 

$

6

 

 

$

7,070

 

 

$

84

 

Net loss

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(352

)

 

 

(1

)

 

 

(353

)

 

 

(3

)

Issuance of common stock for

     comprehensive stock plans,

     net

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Other comprehensive loss

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

—

 

Balance, June 30, 2020

 

$

7

 

 

$

7,586

 

 

$

(74

)

 

$

(802

)

 

$

5

 

 

$

6,722

 

 

$

81

 

Capital of Host L.P.

As of June 30, 2021, Host Inc. is the owner of approximately 99% of Host L.P.’s common OP units. The remaining common OP units are owned by unaffiliated 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. Under the credit facility, all redemptions must be made with Host Inc. common stock until Host L.P.’s leverage ratio (as calculated under the credit facility) is below 7.25x.

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.

The components of the Capital of Host L.P. are as follows (in millions):

 

 

 

General Partner

 

 

Limited Partner

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Non-controlling interests

 

 

Total capital

 

 

Limited partnership interests of third parties

 

Balance, December 31, 2020

 

$

1

 

 

$

6,394

 

 

$

(74

)

 

$

5

 

 

$

6,326

 

 

$

108

 

Net loss

 

 

—

 

 

 

(212

)

 

 

—

 

 

 

—

 

 

 

(212

)

 

 

(2

)

Issuance of common OP units to

     Host Inc. for comprehensive

     stock plans, net

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

Common OP unit issuances

 

 

—

 

 

 

138

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

(20

)

 

 

—

 

 

 

—

 

 

 

(20

)

 

 

19

 

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

 

 

—

 

Balance, June 30, 2021

 

$

1

 

 

$

6,302

 

 

$

(71

)

 

$

5

 

 

$

6,237

 

 

$

125

 

 

 

 

General Partner

 

 

Limited Partner

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Non-controlling interests

 

 

Total capital

 

 

Limited partnership interests of third parties

 

Balance, March 31, 2021

 

$

1

 

 

$

6,221

 

 

$

(77

)

 

$

5

 

 

$

6,150

 

 

$

124

 

Net loss

 

 

—

 

 

 

(60

)

 

 

—

 

 

 

—

 

 

 

(60

)

 

 

(1

)

Issuance of common OP units to

     Host Inc. for comprehensive

     stock plans, net

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

Common OP unit issuances

 

 

—

 

 

 

138

 

 

 

—

 

 

 

—

 

 

 

138

 

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

2

 

Other comprehensive income

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

6

 

 

 

—

 

Balance, June 30, 2021

 

$

1

 

 

$

6,302

 

 

$

(71

)

 

$

5

 

 

$

6,237

 

 

$

125

 

 

 

 

General Partner

 

 

Limited Partner

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Non-controlling interests

 

 

Total capital

 

 

Limited partnership interests of third parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2019

 

$

1

 

 

$

7,374

 

 

$

(56

)

 

$

6

 

 

$

7,325

 

 

$

142

 

Net loss

 

 

—

 

 

 

(355

)

 

 

—

 

 

 

(1

)

 

 

(356

)

 

 

(3

)

Issuance of common OP units to

     Host Inc. for comprehensive

     stock plans, net

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

Repurchase of common OP units

 

 

—

 

 

 

(147

)

 

 

—

 

 

 

—

 

 

 

(147

)

 

 

—

 

Distributions declared on common

     OP units

 

 

—

 

 

 

(141

)

 

 

—

 

 

 

—

 

 

 

(141

)

 

 

(2

)

Changes in ownership and other

 

 

—

 

 

 

58

 

 

 

—

 

 

 

—

 

 

 

58

 

 

 

(56

)

Other comprehensive loss

 

 

—

 

 

 

—

 

 

 

(18

)

 

 

—

 

 

 

(18

)

 

 

—

 

Balance, June 30, 2020

 

$

1

 

 

$

6,790

 

 

$

(74

)

 

$

5

 

 

$

6,722

 

 

$

81

 

 

 

 

 

General Partner

 

 

Limited Partner

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Non-controlling interests

 

 

Total capital

 

 

Limited partnership interests of third parties

 

Balance, March 31, 2020

 

$

1

 

 

$

7,135

 

 

$

(72

)

 

$

6

 

 

$

7,070

 

 

$

84

 

Net loss

 

 

—

 

 

 

(352

)

 

 

—

 

 

 

(1

)

 

 

(353

)

 

 

(3

)

Issuance of common OP units to

     Host Inc. for comprehensive

     stock plans, net

 

 

—

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

Changes in ownership and other

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

Other comprehensive loss

 

 

—

 

 

 

—

 

 

 

(2

)

 

 

—

 

 

 

(2

)

 

 

—

 

Balance, June 30, 2020

 

$

1

 

 

$

6,790

 

 

$

(74

)

 

$

5

 

 

$

6,722

 

 

$

81

 

 

Share Repurchases

As of June 30, 2021, we have $371 million available for repurchase under our common share repurchase program. In accordance with the restrictions in our amended credit facility, there were no share repurchases during 2021.

Issuance of Common Stock

On May 6, 2021, we entered into a distribution agreement with  J. P. Morgan Securities LLC, BofA Securities, Inc., BTIG, LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC, as sales agents, pursuant to which we may issue and sell, from time to time, shares having an aggregate offering price of up to $600 million. The sales will be made in “at the market” offerings under the SEC rules. We may sell shares of Host Inc. common stock under this program from time to time based on market conditions, although we are not under an obligation to sell any shares. During the second quarter, we issued approximately 7.8 million shares under the program at an average price of $17.99 per share, for net proceeds of approximately $138 million. In connection with the common stock issuance by Host Inc., Host L.P. issued 7.6 million common OP units. At June 30, 2021, there was $460 million of remaining capacity under the agreement.

Dividends/Distributions

As part of our response to the COVID-19 pandemic and in order to preserve cash and future financial flexibility, we have suspended our regular quarterly common cash dividends. Additionally, based on the terms of the credit facility amendments, we are restricted from paying a quarterly common cash dividend in excess of $0.01 per share during the covenant relief period, unless a higher amount is required to allow Host Inc. to maintain its REIT status or to avoid the payment of corporate income or excise taxes, until after the covenant waiver period expires. The amendment currently expires following the second quarter of 2022, although we are permitted to terminate the covenant relief period at any time, subject to demonstrating satisfaction of the financial maintenance covenants that otherwise would apply for the quarter ending June 30, 2022.