29.07.2016, 13:46

Host Hotels & Resorts announced results of operations for the second quarter of 2016

OREANDA-NEWS. Host Hotels & Resorts, Inc. (NYSE:HST) (“Host Hotels” or the “Company”), the nation’s largest lodging real estate investment trust (“REIT”), today announced results of operations for the second quarter of 2016.

“Consistent with our disciplined approach to capital allocation and active portfolio management, we completed the sale of five non-core properties for a total of $345 million and repurchased 5.2 million shares at an average price of $15.39,” said W. Edward Walter, President and Chief Executive Officer. “Importantly, we invested a portion of the proceeds to acquire the ground lease under the Key Bridge Marriott, which is located along the Potomac River with dynamic views of the Washington, D.C. cityscape. Notwithstanding variances in top-line performance across markets, we achieved strong margin growth, driven by improvements in productivity and efficiency across the portfolio and by food and beverage operations, resulting in strong EBITDA and FFO growth.”

OPERATING RESULTS
(in millions, except per share and hotel statistics)

	Quarter ended June 30,					Percent			Year-to-date ended June 30,					Percent
	2016			2015		Change			2016			2015		Change
Total revenues	$	1,459		$	1,439		1.4	%	$	2,798		$	2,741		2.1	%
Comparable hotel revenues ⁽¹⁾		1,323			1,288		2.7	%		2,513			2,441		2.9	%
Net income		351			214		64.0	%		535			313		70.9	%
Adjusted EBITDA ⁽¹⁾		436			422		3.3	%		782			743		5.2	%
Change in comparable hotel RevPAR:
Domestic properties		2.0	%							2.6	%
International properties - Constant US$		2.3	%							5.8	%
Total - Constant US$		2.0	%							2.7	%

Diluted earnings per share		.47			.28		67.9	%		.71			.41		73.2	%
NAREIT FFO per diluted share ⁽¹⁾		.49			.43		14.0	%		.90			.78		15.4	%
Adjusted FFO per diluted share ⁽¹⁾		.49			.46		6.5	%		.90			.81		11.1	%

___________

(1) NAREIT Funds From Operations (“FFO”) per diluted share, Adjusted FFO per diluted share, Adjusted EBITDA and comparable hotel results are non-GAAP (U.S. generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (“SEC”). See the Notes to Financial Information on why the Company believes these supplemental measures are useful, reconciliations to the most directly comparable GAAP measure, and the limitations on the use of these supplemental measures.

GAAP OPERATING PERFORMANCE

The Company’s net income increased $137 million for the quarter and $222 million year-to-date, primarily as a result of gains on the sale of non-core assets and operating profit growth. The improvement in RevPAR and food and beverage (“F&B”) revenues helped drive GAAP operating profit margin growth of 100 basis points and 90 basis points for the quarter and year-to-date, respectively. Gains on dispositions increased $119 million and $174 million for the quarter and year-to-date, respectively, as a result of the $466 million of dispositions completed thus far in 2016. The impact of this activity was an increase in diluted earnings per share of 68% and 73% for the quarter and year-to-date, respectively.

KEY COMPANY METRICS

Adjusted EBITDA increased $14 million, or 3.3%, for the quarter and $39 million, or 5.2%, year-to-date, driven by increases of 5.0% and 5.7%, respectively, in comparable hotel EBITDA. This increase was primarily a result of strong margin improvement, a significant increase in F&B revenues, and comparable RevPAR increases. The growth in Adjusted EBITDA was partially offset by our successful 2016 asset sales which reduced year-to-date growth by 110 basis points.
Comparable RevPAR on a constant dollar basis improved 2.0% for the quarter, driven by a slight increase in average room rate and a 120 basis point increase in occupancy to 82.4%, the highest occupancy level since 2000. The increase in occupancy was driven by strong group and leisure business; however, an unfavorable business mix shift from higher rated corporate transient demand to lower rated discount business affected average room rates. Year-to-date, comparable RevPAR on a constant dollar basis increased 2.7%, largely driven by a 170 basis point increase in occupancy.
Comparable RevPAR at the Company’s domestic properties improved 2.0% for the quarter and 2.6% year-to-date. The Los Angeles and Washington, D.C. markets outperformed the portfolio during the second quarter, with RevPAR increases of 9.1% and 5.5%, respectively. The Company’s New York and Florida properties lagged the portfolio, with decreases for the quarter of 4.9% and 2.2%, respectively.
RevPAR at the Company’s comparable international properties increased 2.3% in the second quarter and 5.8% year-to-date, on a constant dollar basis. The increase was predominantly due to strength at Latin America properties, driven by pre-Olympic test business, and partially offset by the Company’s Canadian properties, which continue to be negatively impacted by the oil markets and renovations.
The Company’s F&B revenues grew 4.5% for the quarter, which was positively impacted by strong growth in banquet and audio visual revenues of 6.6% in the quarter. Banquet revenues were driven by strong performances in the San Francisco and Boston markets.
The improvement in RevPAR and F&B revenues helped drive comparable hotel EBITDA margin growth of 65 basis points and 75 basis points for the quarter and year-to-date, respectively. In addition to the strong growth in F&B revenues, operating profit was positively impacted by the successful execution of cost control initiatives at many of our larger resort and convention hotels over the past two years.
As a result of the improvements in operating results described above, a reduction in interest expense, as well as the repurchase of 42.1 million shares over the past 12 months, Adjusted FFO per share increased 6.5% and 11.1% for the quarter and year-to-date, respectively.

SHARE REPURCHASE PROGRAM AND DIVIDENDS

Since January 1, 2016, the Company has distributed $610 million of capital to its stockholders through dividends and stock repurchases. The Company repurchased 5.2 million shares at an average price of $15.39 for the quarter and 10.3 million shares at an average price of $15.73 year-to-date, for a total year-to-date purchase price of approximately $162 million. The Company has $162 million of remaining authorized repurchase capacity under its share repurchase program. The common stock may be purchased in the open market or through private transactions from time to time through December 31, 2016, depending upon market conditions. The plan does not obligate the Company to repurchase any specific number of shares and may be suspended at any time at its discretion.

The Company paid a regular quarterly cash dividend of $0.20 per share on its common stock on July 15, 2016 to stockholders of record as of June 30, 2016. The Company is committed to sustaining a meaningful dividend, subject to approval by the Company’s Board of Directors.

CAPITAL ALLOCATION

Consistent with its strategy to enhance asset value, the Company acquired the ground leases for the Key Bridge Marriott for $54 million. Due to its prime location in Arlington, Virginia, with its view of Washington D.C. and our national monuments, the Company is in the process of exploring a number of value enhancements and redevelopment options for what is one of the first hotels built in the Marriott system.

The Company continued to strategically dispose of assets in markets where it expects lower growth or higher capital expenditure requirements. Proceeds from the sale of these non-core assets have been utilized as a source of funds for the stock repurchase program, capital expenditures, and other corporate initiatives. During the second quarter, the Company disposed of five non-core assets for $345 million. Additionally, the Company has two hotels under contract which are expected to be sold in the third quarter, subject to customary closing conditions. For the 10 properties disposed of or under contract in 2016, the combined average 2015 RevPAR was $109 compared to the Company’s year-to-date 2016 comparable RevPAR of $178. The following table is a summary of our completed and pending dispositions activity for 2016 (in US$ millions):

	Sales Price		Mortgage Debt Repayment		Net Sales Price
First Quarter Sales
Novotel Wellington	$	22	$	9	$	13
San Diego Marriott Mission Valley		76		—		76
ibis Wellington		23		11		12
Second Quarter Sales
Manhattan Beach Marriott		82		—		82
Sheraton Santiago Hotel and Convention Center and San Cristobal Tower Santiago, Chile		95		—		95
Seattle Airport Marriott		97		—		97
Atlanta Marriott Perimeter Center		71		—		71
Total Sales	$	466	$	20	$	446

Hotels Under Contract ⁽¹⁾	$	31	$	16		15

___________

(1) Represents the Novotel Christchurch Cathedral Square and ibis Christchurch hotels, which are currently under contract and subject to various closing conditions. There can be no assurances that these properties will be sold in the third quarter or at the sales price indicated.

The 2016 full year guidance includes net income (excluding gains on sale) of $8 million and Adjusted EBITDA of $13 million earned by the hotels that have been sold, or that are considered held for sale. Accordingly, earnings estimates for 2017 should not include these amounts.

REBRANDING AND FRANCHISE OPPORTUNITIES

The Company continues to pursue opportunities to appropriately match each hotel within its specific market with the best operator and brand to optimize operating performance. In June, the Company reached an agreement to franchise the Westin Cincinnati and selected HEI Hotels & Resorts as the operator. The Company now has a total of 15 third party managed hotels in its consolidated and joint venture portfolio.

BALANCE SHEET

The Company’s strong balance sheet is a key competitive advantage that provides flexibility to take advantage of investment opportunities throughout the lodging cycle. An important component of this strategy is the Company’s investment grade rating on its long term unsecured debt. Importantly, 95 of the Company’s hotels, representing 99% of its revenues, are unencumbered by mortgage debt. During the quarter, the Company made net repayments under the revolver portion of its credit facility of $142 million and repaid the $100 million mortgage loan secured by the Hyatt Regency Reston.

At June 30, 2016, the Company had approximately $266 million of cash and $739 million of available capacity under its revolving credit facility. Interest expense decreased $33 million for the quarter and $43 million year-to-date, reflecting a reduction in weighted average interest rates compared to prior year, as well as a reduction in debt extinguishment costs of $21 million for the quarter and year-to-date. As of June 30, 2016, total debt was $3.7 billion, with an average maturity of 5.6 years and an average interest rate of 3.7%. Subsequent to quarter end, the Company borrowed $50 million on the revolver portion of its credit facility.

REDEVELOPMENT, RETURN ON INVESTMENT (“ROI”) AND ACQUISITION CAPITAL PROJECTS

The Company invested approximately $68 million and $141 million in the second quarter and year-to-date 2016, respectively, on redevelopment, ROI and acquisition capital expenditures. Spending for the second quarter reflects the June opening of the exhibit hall at the Marriott Marquis San Diego Marina, which now has 280,000 square feet of meeting space, and the renovation of all of the guestrooms and over 60,000 square feet of meeting and public space at the Hyatt Regency San Francisco Airport. Additionally, the Company completed phase one of the extensive renovations at the Denver Marriott Tech Center and began its two-year renovation at The Phoenician.

For 2016, the Company expects to invest approximately $185 million to $200 million in redevelopment projects, ROI, and acquisition capital expenditures, a decline of approximately $83 million from 2015.

RENEWAL AND REPLACEMENT EXPENDITURES

The Company invested approximately $67 million and $161 million in the second quarter and year-to-date 2016, respectively, in renewal and replacement capital expenditures. Significant projects completed during the second quarter include rooms renovations at the Chicago Marriott Suites O’Hare, W Seattle, and phase one of Toronto Marriott Downtown Eaton Centre Hotel. The Company also completed the renovation of 10,000 square feet of public space at the Coronado Island Marriott Resort & Spa and certain restaurants at the Manchester Grand Hyatt San Diego and The Westin Cincinnati.

For 2016, the Company expects to invest $295 million to $310 million in renewal and replacement capital expenditures, a decrease of approximately $85 million from 2015.

EUROPEAN JOINT VENTURE

The European joint venture’s comparable hotel RevPAR on a constant euro basis decreased approximately 1.3% and 2.1% for the second quarter and year-to-date 2016, respectively. The decrease in comparable hotel RevPAR was a result of reduced demand due to the uncertain economic and political climate.

2016 OUTLOOK

Due to the uncertain economic outlook, the Company has lowered its expected range for RevPAR growth for comparable properties by 100 basis points. However, based on the success of its cost control initiatives the Company expects operating margin to remain strong and improve compared to our prior forecast. Additionally, the anticipated sale of the two New Zealand hotels is expected to have minimal effect on guidance for net income and a decrease of $1.5 million for Adjusted EBITDA. No additional disposition or acquisition activity has been included in the full year forecast results. Accordingly, the Company anticipates that its 2016 operating results will be in the following range:

	Full Year 2016
	Low-end of range			High-end of range
Total comparable hotel RevPAR - Constant US$		2.0	%		3.0	%
Total revenues under GAAP		1.0	%		1.9	%
Operating profit margin under GAAP	50 bps			90 bps
Comparable hotel EBITDA margins	40 bps			70 bps

Based upon the above parameters, the Company estimates its 2016 guidance as follows (in millions, except per share amounts):

	Full Year 2016
	Low-end of range		High-end of range
Earnings per diluted share	$	.97	$	1.01
Net income		732		762
NAREIT and Adjusted FFO per diluted share		1.63		1.67
Adjusted EBITDA		1,435		1,465

See the 2016 Forecast Schedules and the Notes to Financial Information for other assumptions used in the forecasts and items that may affect forecast results.

ABOUT HOST HOTELS & RESORTS

Host Hotels & Resorts, Inc. is an S&P 500 and Fortune 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 89 properties in the United States and 9 properties internationally totaling approximately 54,500 rooms. The Company also holds non-controlling interests in six joint ventures, including one in Europe that owns 10 hotels with approximately 3,900 rooms and one in Asia that has interests in five hotels in India. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott^®, Ritz-Carlton^®, Westin^®, Sheraton^®, W^®, St. Regis^®, Le M?ridien^®, The Luxury Collection^®, Hyatt^®, Fairmont^®, Hilton^®, Swiss?tel^®, ibis^®, Pullman^®, and Novotel^® as well as independent brands in the operation of properties in over 50 major markets worldwide. For additional information, please visit the Company’s website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements include forecast results and are identified by their use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “plan,” “predict,” “project,” “will,” “continue” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: changes in national and local economic and business conditions and other factors such as natural disasters, pandemics and weather that will affect occupancy rates at our hotels and the demand for hotel products and services; the impact of geopolitical developments outside the U.S. on lodging demand; volatility in global financial and credit markets; operating risks associated with the hotel business; risks and limitations in our operating flexibility associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; risks associated with our relationships with property managers and joint venture partners; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; the effects of hotel renovations on our hotel occupancy and financial results; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; risks associated with our ability to complete acquisitions and dispositions and develop new properties and the risks that acquisitions and new developments may not perform in accordance with our expectations; our ability to continue to satisfy complex rules in order for us to remain a REIT for federal income tax purposes; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board’s decision whether to pay further dividends at levels previously disclosed or to use available cash to make special dividends; and other risks and uncertainties associated with our business described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of July 29, 2016, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

* This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.

*** Tables to Follow ***

Host Hotels & Resorts, Inc., herein referred to as “we” or “Host Inc.,” is a self-managed and self-administered real estate investment trust (“REIT”) that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P. (“Host LP”), of which we are the sole general partner. When distinguishing between Host Inc. and Host LP, the primary difference is approximately 1% of the partnership interests in Host LP held by outside partners as of June 30, 2016, which is non-controlling interests in Host LP in our consolidated balance sheets and is included in net income attributable to non-controlling interests in our consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.

HOST HOTELS & RESORTS, INC.
Condensed Consolidated Balance Sheets ⁽¹⁾
(in millions, except shares and per share amounts)

	June 30, 2016			December 31, 2015
	(unaudited)
ASSETS
Property and equipment, net	$	10,452		$	10,583
Assets held for sale		35			55
Due from managers		114			56
Advances to and investments in affiliates		311			324
Furniture, fixtures and equipment replacement fund		173			141
Other		238			261
Restricted cash		3			15
Cash and cash equivalents		266			221
Total assets	$	11,592		$	11,656

LIABILITIES, NON-CONTROLLING INTERESTS AND EQUITY
Debt
Senior notes	$	2,378		$	2,376
Credit facility, including the term loans of $997 million and $996 million, respectively		1,255			1,291
Mortgage debt		82			200
Total debt		3,715			3,867
Accounts payable and accrued expenses		228			243
Liabilities held for sale		4			—
Other		284			299
Total liabilities		4,231			4,409

Non-controlling interests - Host Hotels & Resorts, L.P.		147			143

Host Hotels & Resorts, Inc. stockholders’ equity:
Common stock, par value $.01, 1,050 million shares authorized, 740.7 million shares and 750.3 million shares issued and outstanding, respectively		7			8
Additional paid-in capital		8,146			8,302
Accumulated other comprehensive loss		(71	)		(107	)
Deficit		(907	)		(1,139	)
Total equity of Host Hotels & Resorts, Inc. stockholders		7,175			7,064
Non-controlling interests—other consolidated partnerships		39			40
Total equity		7,214			7,104
Total liabilities, non-controlling interests and equity	$	11,592		$	11,656

___________

(1) Our condensed consolidated balance sheet as of June 30, 2016 has been prepared without audit. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted.

HOST HOTELS & RESORTS, INC.
Condensed Consolidated Statements of Operations ⁽¹⁾
(unaudited, in millions, except per share amounts)

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Revenues
Rooms	$	933		$	937		$	1,776		$	1,755
Food and beverage		439			420			847			823
Other		87			82			175			163
Total revenues		1,459			1,439			2,798			2,741
Expenses
Rooms		228			233			449			453
Food and beverage		289			289			573			572
Other departmental and support expenses		332			330			660			651
Management fees		66			68			123			120
Other property-level expenses		100			96			193			192
Depreciation and amortization		178			178			359			351
Corporate and other expenses⁽²⁾		27			23			54			47
Gain on insurance settlements		—			—			(3	)		—
Total operating costs and expenses		1,220			1,217			2,408			2,386
Operating profit		239			222			390			355
Interest income		—			1			1			2
Interest expense		(39	)		(72	)		(78	)		(121	)
Gain on sale of assets		172			53			231			57
Gain (loss) on foreign currency transactions and derivatives		2			(1	)		3			(2	)
Equity in earnings of affiliates		9			24			11			26
Income before income taxes		383			227			558			317
Provision for income taxes		(32	)		(13	)		(23	)		(4	)
Net income		351			214			535			313
Less: Net income attributable to non-controlling interests		(4	)		(2	)		(6	)		(3	)
Net income attributable to Host Inc.	$	347		$	212		$	529		$	310
Basic and diluted earnings per common share	$	.47		$	.28		$	.71		$	.41

(1) Our condensed consolidated statements of operations presented above have been prepared without audit. Certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP have been omitted.
(2) Corporate and other expenses include the following items:

	Quarter ended June 30,				Year-to-date ended June 30,
	2016		2015		2016		2015
General and administrative costs	$	24	$	18	$	48	$	43
Non-cash stock-based compensation expense		3		3		6		8
Litigation (recoveries)/accruals and acquisition costs, net		—		2		—		(4	)
Total	$	27	$	23	$	54	$	47

HOST HOTELS & RESORTS, INC.
Earnings per Common Share
(unaudited, in millions, except per share amounts)

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Net income	$	351		$	214		$	535		$	313
Less: Net income attributable to non-controlling interests		(4	)		(2	)		(6	)		(3	)
Net income attributable to Host Inc.		347			212			529			310
Assuming conversion of exchangeable senior debentures		—			7			—			—
Diluted income attributable to Host Inc.	$	347		$	219		$	529		$	310

Basic weighted average shares outstanding		744.0			753.9			746.8			755.0
Assuming weighted average shares for conversion of exchangeable senior debentures		—			31.2			—			—
Assuming distribution of common shares granted under the comprehensive stock plans, less shares assumed purchased at market		.3			.4			.3			.4
Diluted weighted average shares outstanding ⁽¹⁾		744.3			785.5			747.1			755.4
Basic and diluted earnings per common share	$	.47		$	.28		$	.71		$	.41

___________

(1) Dilutive securities may include shares granted under comprehensive stock plans, preferred operating partnership units (“OP Units”) held by minority partners, exchangeable debt securities and other non-controlling interests that have the option to convert their limited partnership interests to common OP Units. No effect is shown for any securities that were anti-dilutive for the period.

HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels ⁽¹⁾

Comparable Hotels by Market in Constant US$
	As of June 30, 2016				Quarter ended June 30, 2016							Quarter ended June 30, 2015
Market⁽²⁾	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Boston		4		3,185	$	257.23		86.7	%	$	223.10	$	251.78		84.4	%	$	212.53		5.0	%
New York		8		6,960		286.61		89.8			257.49		301.13		89.9			270.85		(4.9	)
Washington, D.C.		12		6,023		235.21		86.9			204.51		228.63		84.8			193.86		5.5
Atlanta		5		1,939		191.43		81.4			155.73		185.44		78.8			146.07		6.6
Florida		8		4,559		221.10		75.9			167.90		220.24		78.0			171.71		(2.2	)
Chicago		6		2,392		224.61		84.8			190.52		226.15		82.4			186.30		2.3
Denver		2		735		185.98		78.2			145.42		179.81		75.4			135.57		7.3
Houston		3		1,143		210.35		74.7			157.17		211.55		73.7			155.86		0.8
Phoenix		3		1,241		199.51		72.9			145.36		196.11		72.2			141.64		2.6
Seattle		2		1,315		224.86		84.4			189.84		225.39		84.4			190.33		(0.3	)
San Francisco		4		2,912		256.22		87.0			222.92		248.95		87.1			216.87		2.8
Los Angeles		7		2,843		199.62		84.2			168.10		189.88		81.2			154.11		9.1
San Diego		3		2,981		212.54		85.3			181.33		205.24		88.2			181.12		0.1
Hawaii		3		1,682		306.58		91.3			279.80		305.49		89.6			273.85		2.2
Other		11		7,270		182.11		75.1			136.74		176.47		71.2			125.73		8.8
Domestic		81		47,180		232.14		83.1			193.02		230.87		82.0			189.24		2.0

Asia-Pacific		3		685	$	158.52		80.3	%	$	127.34	$	160.02		78.5	%	$	125.58		1.4	%
Canada		2		849		171.79		64.1			110.12		180.57		61.1			110.31		(0.2	)
Latin America		4		963		185.97		64.7			120.30		177.30		64.6			114.56		5.0
International		9		2,497		172.55		68.9			118.84		172.66		67.3			116.22		2.3
All Markets - Constant US$		90		49,677		229.62		82.4			189.26		228.42		81.2			185.54		2.0

All Owned Hotels in Constant US$⁽³⁾
	As of June 30, 2016				Quarter ended June 30, 2016							Quarter ended June 30, 2015
	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Comparable Hotels		90		49,677	$	229.62		82.4	%	$	189.26	$	228.42		81.2	%	$	185.54		2.0	%
Non-comparable Hotels (Pro forma)		8		4,790		218.29		68.0			148.41		214.26		70.5			151.14		(1.8	)
All Hotels		98		54,467		228.78		81.2			185.67		227.33		80.3			182.52		1.7

Comparable Hotels in Nominal US$
	As of June 30, 2016				Quarter ended June 30, 2016							Quarter ended June 30, 2015
	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Asia-Pacific		3		685	$	158.52		80.3	%	$	127.34	$	167.85		78.5	%	$	131.72		(3.3	)%
Canada		2		849		171.79		64.1			110.12		189.33		61.1			115.66		(4.8	)
Latin America		4		963		185.97		64.7			120.30		205.61		64.6			132.86		(9.4	)
International		9		2,497		172.55		68.9			118.84		188.30		67.3			126.75		(6.2	)
Domestic		81		47,180		232.14		83.1			193.02		230.87		82.0			189.24		2.0
All Markets		90		49,677		229.62		82.4			189.26		229.08		81.2			186.07		1.7

Comparable Hotels by Type in Nominal US$
	As of June 30, 2016				Quarter ended June 30, 2016							Quarter ended June 30, 2015
Property type ⁽²⁾	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Urban		54		32,956	$	236.66		84.5	%	$	200.00	$	237.53		83.3	%	$	197.88		1.1	%
Suburban		19		6,947		193.44		78.5			151.85		187.13		76.0			142.24		6.8
Resort		11		7,102		261.21		73.8			192.65		257.39		75.6			194.48		(0.9	)
Airport		6		2,672		161.17		89.9			144.89		156.90		84.1			132.01		9.8
All Types		90		49,677		229.62		82.4			189.26		229.08		81.2			186.07		1.7

HOST HOTELS & RESORTS, INC.
Hotel Operating Data for Consolidated Hotels ⁽¹⁾ (cont.)

Comparable Hotels by Market in Constant US$
	As of June 30, 2016				Year-to-date ended June 30, 2016							Year-to-date ended June 30, 2015
Market⁽²⁾	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Boston		4		3,185	$	225.61		77.9	%	$	175.80	$	225.03		76.4	%	$	171.96		2.2	%
New York		8		6,960		262.20		84.7			222.17		276.26		82.7			228.53		(2.8	)
Washington, D.C.		12		6,023		222.39		78.8			175.16		218.44		75.6			165.07		6.1
Atlanta		5		1,939		193.70		78.9			152.83		187.37		76.7			143.80		6.3
Florida		8		4,559		251.99		79.3			199.95		249.97		80.5			201.19		(0.6	)
Chicago		6		2,392		192.82		72.8			140.32		196.85		70.3			138.38		1.4
Denver		2		735		176.50		71.2			125.69		173.76		70.4			122.36		2.7
Houston		3		1,143		209.19		74.3			155.41		215.26		71.2			153.33		1.4
Phoenix		3		1,241		244.60		77.6			189.79		243.17		77.2			187.77		1.1
Seattle		2		1,315		207.14		77.3			160.04		202.33		78.9			159.63		0.3
San Francisco		4		2,912		270.86		83.6			226.32		251.59		83.7			210.55		7.5
Los Angeles		7		2,843		201.18		83.3			167.69		188.37		80.7			151.93		10.4
San Diego		3		2,981		208.91		83.3			174.11		205.84		84.9			174.73		(0.4	)
Hawaii		3		1,682		331.22		90.9			301.22		328.58		89.9			295.40		2.0
Other		11		7,270		182.12		73.4			133.62		178.37		70.1			125.02		6.9
Domestic		81		47,180		228.02		79.5			181.30		226.73		78.0			176.74		2.6

Asia-Pacific		3		685	$	165.18		84.7	%	$	139.93	$	165.34		82.9	%	$	137.03		2.1	%
Canada		2		849		163.04		57.4			93.60		168.76		55.2			93.17		0.5
Latin America		4		963		188.38		65.7			123.82		184.02		59.5			109.46		13.1
International		9		2,497		173.12		68.2			118.14		172.92		64.6			111.71		5.8
All Markets - Constant US$		90		49,677		225.61		78.9			178.10		224.45		77.3			173.44		2.7

All Owned Hotels in Constant US$⁽³⁾
	As of June 30, 2016				Year-to-date ended June 30, 2016							Year-to-date ended June 30, 2015
	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Comparable Hotels		90		49,677	$	225.61		78.9	%	$	178.10	$	224.45		77.3	%	$	173.44		2.7	%
Non-comparable Hotels (Pro forma)		8		4,790		227.55		66.7			151.77		226.74		71.5			162.01		(6.3	)
All Hotels		98		54,467		225.76		77.9			175.79		224.64		76.8			172.44		1.9

Comparable Hotels in Nominal US$
	As of June 30, 2016				Year-to-date ended June 30, 2016							Year-to-date ended June 30, 2015
	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Asia-Pacific		3		685	$	165.18		84.7	%	$	139.93	$	177.58		82.9	%	$	147.17		(4.9	)%
Canada		2		849		163.04		57.4			93.60		180.55		55.2			99.69		(6.1	)
Latin America		4		963		188.38		65.7			123.82		223.12		59.5			132.71		(6.7	)
International		9		2,497		173.12		68.2			118.14		194.51		64.6			125.65		(6.0	)
Domestic		81		47,180		228.02		79.5			181.30		226.73		78.0			176.74		2.6
All Markets		90		49,677		225.61		78.9			178.10		225.37		77.3			174.15		2.3

Comparable Hotels by Type in Nominal US$
	As of June 30, 2016				Year-to-date ended June 30, 2016							Year-to-date ended June 30, 2015
Property type ⁽²⁾	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Urban		54		32,956	$	223.94		79.8	%	$	178.70	$	225.55		77.7	%	$	175.29		1.9	%
Suburban		19		6,947		198.60		74.0			146.99		192.01		72.3			138.76		5.9
Resort		11		7,102		286.78		77.2			221.34		281.91		78.6			221.71		(0.2	)
Airport		6		2,672		159.16		85.8			136.59		154.82		81.2			125.69		8.7
All Types		90		49,677		225.61		78.9			178.10		225.37		77.3			174.15		2.3
___________

(1) See the Notes to Financial Information for a discussion of comparable hotel operating statistics and constant US$ presentation. Nominal US$ results include the effect of currency fluctuations, consistent with our financial statement presentation.
(2) See the Notes to Financial Information for a description of these markets and property types.
(3) Operating statistics are presented for all consolidated properties owned as of June 30, 2016 and do not include the results of operations for properties sold in 2016 or 2015. Additionally, all owned hotel operating statistics include hotels that we did not own for the entirety of the periods presented and properties that are undergoing large-scale capital projects during the periods presented and, therefore, are not considered comparable hotel information upon which we usually evaluate our performance. Specifically, comparable RevPAR is calculated as revenues divided by the available room nights, which will rarely vary on a year-over-year basis. Conversely, the available room nights included in the non-comparable RevPAR statistic will vary widely based on the timing of hotel closings, the scope of a capital project, or the development of a new property. As a result, the RevPAR increase of 1.7% and 1.9% for the quarter and year-to-date periods, respectively, for the 98 hotels owned as of June 30, 2016 is non-comparable because the available room nights are not consistent and certain of these properties had little or no revenues during those periods. See the Notes to Financial Information for further information on these pro forma statistics and the limitations on their use. The following hotels are considered non-comparable for the periods presented:

Non-comparable hotels - This represents seven hotels under significant renovations in either 2015 or 2016: The Camby Hotel, The Logan, Axiom Hotel, the Houston Airport Marriott at George Bush Intercontinental, the Hyatt Regency San Francisco Airport, the Denver Marriott Tech Center, and the Marriott Marquis San Diego Marina. It also includes The Phoenician, acquired in June 2015, which we were able to obtain historical operating data for periods prior to our ownership, which are presented on a pro forma basis assuming we owned the hotel as of January 1, 2015. As a result, the RevPAR decrease of 1.8% and 6.3% for the quarter and year-to-date, respectively, for these eight hotels is considered non-comparable.

HOST HOTELS & RESORTS, INC.
Hotel Operating Data – European Joint Venture

	As of June 30, 2016				Quarter ended June 30, 2016							Quarter ended June 30, 2015
	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Total comparable - in Constant Euros⁽¹⁾		10		3,896	€	231.33		80.3	%	€	185.86	€	221.71		84.9	%	€	188.28		(1.3	)%
Total comparable - in Nominal Euros⁽¹⁾		10		3,896		231.33		80.3			185.86		223.72		84.9			189.98		(2.2	)

	As of June 30, 2016				Year-to-date ended June 30, 2016							Year-to-date ended June 30, 2015
	No. of Properties		No. of Rooms		Average Room Rate		Average Occupancy Percentage			RevPAR		Average Room Rate		Average Occupancy Percentage			RevPAR		Percent Change in RevPAR
Total comparable - in Constant Euros⁽¹⁾		10		3,896	€	214.22		72.0	%	€	154.13	€	206.24		76.3	%	€	157.45		(2.1	)%
Total comparable - in Nominal Euros⁽¹⁾		10		3,896		214.22		72.0			154.13		207.76		76.3			158.61		(2.8	)

___________

(1) Total comparable statistics include the operating performance for the 10 properties in the joint venture with comparable results (determined on the same basis as our consolidated comparable hotel portfolio). See Notes to Financial Information for a discussion of the constant Euro and nominal Euro presentation.

HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results ⁽¹⁾
(unaudited, in millions, except hotel statistics)

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Number of hotels		90			90			90			90
Number of rooms		49,677			49,677			49,677			49,677
Change in comparable hotel RevPAR -
Constant US$		2.0	%		—			2.7	%		—
Nominal US$		1.7	%		—			2.3	%		—
Operating profit margin ⁽²⁾		16.4	%		15.4	%		13.9	%		13.0	%
Comparable hotel EBITDA margin ⁽²⁾		30.7	%		30.05	%		28.65	%		27.9	%
Comparable hotel revenues
Room	$	856		$	841		$	1,611		$	1,565
Food and beverage ⁽³⁾		395			378			759			739
Other		72			69			143			137
Comparable hotel revenues ⁽⁴⁾		1,323			1,288			2,513			2,441
Comparable hotel expenses
Room		209			207			408			402
Food and beverage ⁽⁵⁾		260			256			512			507
Other		25			31			51			62
Management fees, ground rent and other costs		423			407			822			789
Comparable hotel expenses ⁽⁶⁾		917			901			1,793			1,760
Comparable hotel EBITDA		406			387			720			681
Non-comparable hotel results, net ⁽⁷⁾		38			36			83			72
Depreciation and amortization		(178	)		(178	)		(359	)		(351	)
Interest expense		(39	)		(72	)		(78	)		(121	)
Provision for income taxes		(32	)		(13	)		(23	)		(4	)
Gain on sale of property and corporate level income/expense		156			54			192			36
Net income	$	351		$	214		$	535		$	313

___________

(1) See the Notes to Financial Information for a discussion of non-GAAP measures and the calculation of comparable hotel results. For additional information on comparable hotel EBITDA by market, see the supplemental information posted on our website.
(2) Operating profit margins are calculated by dividing the applicable operating profit by the related revenue amount. GAAP operating profit margins are calculated using amounts presented in the consolidated statements of operations. Comparable hotel EBITDA margins are calculated using amounts presented in the above table.
(3) The reconciliation of total food and beverage sales per the consolidated statements of operations to the comparable food and beverage sales is as follows:

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Food and beverage sales per the consolidated statements of operations	$	439		$	420		$	847		$	823
Non-comparable hotel food and beverage sales		(44	)		(42	)		(88	)		(84	)
Comparable food and beverage sales	$	395		$	378		$	759		$	739

HOST HOTELS & RESORTS, INC.
Schedule of Comparable Hotel Results⁽¹⁾
(unaudited, in millions, except hotel statistics)

(4) The reconciliation of total revenues per the consolidated statements of operations to the comparable hotel revenues is as follows:

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Revenues per the consolidated statements of operations	$	1,459		$	1,439		$	2,798		$	2,741
Non-comparable hotel revenues		(136	)		(151	)		(285	)		(300	)
Comparable hotel revenues	$	1,323		$	1,288		$	2,513		$	2,441

(5) The reconciliation of total food and beverage expenses per the consolidated statements of operations to the comparable food and beverage expenses is as follows:

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Food and beverage expenses per the consolidated statements of operations	$	289		$	289		$	573		$	572
Non-comparable hotel food and beverage expenses		(29	)		(33	)		(61	)		(65	)
Comparable food and beverage expenses	$	260		$	256		$	512		$	507

(6) The reconciliation of operating costs and expenses per the consolidated statements of operations to the comparable hotel expenses is as follows:

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Operating costs and expenses per the consolidated statements of operations	$	1,220		$	1,217		$	2,408		$	2,386
Non-comparable hotel expenses		(98	)		(115	)		(202	)		(228	)
Depreciation and amortization		(178	)		(178	)		(359	)		(351	)
Corporate and other expenses		(27	)		(23	)		(54	)		(47	)
Comparable hotel expenses	$	917		$	901		$	1,793		$	1,760

(7) Non-comparable hotel results, net, includes the following items: (i) the results of operations of our non-comparable hotels and sold hotels, which operations are included in our consolidated statements of operations as continuing operations, (ii) gains on insurance settlements, and (iii) the results of our office buildings.

HOST HOTELS & RESORTS, INC.
Other Financial Data
(unaudited, in millions, except per share amounts)

					June 30, 2016				December 31, 2015
Equity
Common shares outstanding							740.7				750.3
Common shares outstanding assuming conversion of OP Units ⁽¹⁾							749.7				759.7
Preferred OP Units outstanding							.02				.02

Security pricing
Common stock ⁽²⁾					$		16.21		$		15.34

						Quarter ended			Year-to-date ended
					June 30,				June 30,
Dividends declared per common share
2016					$	.20			$	.40
2015						.20				.40

Debt
Senior debt	Rate			Maturity date	June 30, 2016				December 31, 2015
Series Z		6	%	10/2021	$		297		$		297
Series B	5 ¹?₄%			3/2022			347				347
Series C	4 ³?₄%			3/2023			446				445
Series D	3 ³?₄%			10/2023			397				397
Series E		4	%	6/2025			495				495
Series F	4 ¹?₂%			2/2026			396				395
2014 Credit facility term loan		1.6	%	6/2017			500				499
2015 Credit facility term loan		1.6	%	9/2020			497				497
Credit facility revolver ⁽³⁾		1.5	%	6/2018			258				295
							3,633				3,667
Mortgage debt and other
Mortgage debt (non-recourse)	3.5-6%			11/2016-2/2018			82				200
Total debt⁽⁴⁾⁽⁵⁾					$		3,715		$		3,867
Percentage of fixed rate debt							65	%			64	%
Weighted average interest rate							3.7	%			3.7	%
Weighted average debt maturity							5.6 years				5.9 years
Forecast GAAP Interest Expense ⁽⁶⁾					$		156
Forecast cash interest, net ⁽⁶⁾					$		146
Forecast GAAP cash provided by operating activities ⁽⁷⁾					$		1,239
Forecast adjusted cash from operations ⁽⁷⁾					$		936

___________

(1)    Each OP Unit is redeemable for cash or, at our option, for 1.021494 common shares of Host Inc. At June 30, 2016 and December 31, 2015, there were 8.9 million and 9.1 million common OP Units, respectively, held by non-controlling interests.
(2)    Share prices are the closing price as reported by the New York Stock Exchange.
(3)    The interest rate shown is the weighted average rate of the outstanding credit facility at June 30, 2016.
(4)    In accordance with GAAP, total debt includes the debt of entities that we consolidate, but of which we do not own 100%, and excludes the debt of entities that we do not consolidate, but of which we have a non-controlling ownership interest and record our investment therein under the equity method of accounting. As of June 30, 2016, our non-controlling partners’ share of consolidated debt is $16 million and our share of debt in unconsolidated investments is $402 million.
(5)    Total debt as of June 30, 2016 and December 31, 2015 includes net discounts and deferred financing costs of $28 million and $32 million, respectively.
(6)    Reflects 2016 forecast cash interest expense, net of debt extinguishment costs, as of the balance sheet date. The following chart reconciles Forecast Full Year 2016 GAAP interest expense to forecast cash interest expense. See footnote (1) to the Reconciliation of Net Income to EBITDA, Adjusted EBITDA and NAREIT and Adjusted Funds From Operations per diluted share for 2016 Forecasts for full year forecast assumptions:

Forecast GAAP interest expense full year 2016	$	156
Amortization of deferred financing costs		(6	)
Change in accrued interest		(4	)
Forecast cash interest full year 2016, net	$	146

(7) The following chart reconciles forecast full year 2016 GAAP cash provided by operating activities to forecast adjusted cash from operations:

Forecast GAAP cash provided by operating activities	$	1,239
Renewal and replacement expenditures		(303	)
Forecast adjusted cash from operations	$	936

HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to
EBITDA and Adjusted EBITDA ⁽¹⁾
(unaudited, in millions)

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Net income ⁽²⁾	$	351		$	214		$	535		$	313
Interest expense		39			72			78			121
Depreciation and amortization		178			178			359			351
Income taxes		32			13			23			4
EBITDA ⁽²⁾		600			477			995			789
Gain on dispositions ⁽³⁾		(172	)		(53	)		(230	)		(56	)
Gain on property insurance settlement		—			—			(1	)		—
Acquisition costs		—			1			—			1
Equity investment adjustments:
Equity in earnings of affiliates		(9	)		(24	)		(11	)		(26	)
Pro rata Adjusted EBITDA of equity investments		20			23			35			40
Consolidated partnership adjustments:
Pro rata Adjusted EBITDA attributable to non- controlling partners in other consolidated partnerships		(3	)		(2	)		(6	)		(5	)
Adjusted EBITDA ⁽²⁾	$	436		$	422		$	782		$	743

___________

(1)    See the Notes to Financial Information for discussion of non-GAAP measures.
(2)    Net Income, EBITDA, Adjusted EBITDA, NAREIT FFO and Adjusted FFO include a gain of $1 million for the year-to-date periods ended June 30, 2016 and 2015 for the sale of the portion of land attributable to individual units sold by the Maui timeshare joint venture.
(3)    Reflects the sale of eight hotels in 2016 and the sale of four hotels in 2015.

HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to NAREIT and
Adjusted Funds From Operations per Diluted Share ⁽¹⁾
(unaudited, in millions, except per share amounts)

	Quarter ended June 30,						Year-to-date ended June 30,
	2016			2015			2016			2015
Net income⁽²⁾	$	351		$	214		$	535		$	313
Less: Net income attributable to non-controlling interests		(4	)		(2	)		(6	)		(3	)
Net income attributable to Host Inc.		347			212			529			310
Adjustments:
Gain on dispositions ⁽³⁾		(172	)		(53	)		(230	)		(56	)
Tax on dispositions		9			—			9			—
Gain on property insurance settlement		—			—			(1	)		—
Depreciation and amortization		177			177			357			349
Equity investment adjustments:
Equity in earnings of affiliates		(9	)		(24	)		(11	)		(26	)
Pro rata FFO of equity investments		16			18			26			28
Consolidated partnership adjustments:
FFO adjustment for non-controlling partnerships		(1	)		(1	)		(3	)		(3	)
FFO adjustments for non-controlling interests of Host L.P.		—			(2	)		(1	)		(4	)
NAREIT FFO ⁽²⁾		367			327			675			598
Adjustments to NAREIT FFO:
Loss on debt extinguishment		—			24			—			24
Acquisition costs		—			1			—			1
Adjusted FFO ⁽²⁾	$	367		$	352		$	675		$	623

For calculation on a per share basis:

Adjustments for dilutive securities ⁽⁴⁾:
Assuming conversion of Exchangeable Senior Debentures	$	—		$	7		$	—		$	14
Diluted NAREIT FFO	$	367		$	334		$	675		$	612
Diluted Adjusted FFO	$	367		$	359		$	675		$	637

Diluted weighted average shares outstanding - EPS		744.3			785.5			747.1			755.4
Assuming conversion of Exchangeable Senior Debentures		—			—			—			31.1
Diluted weighted average shares outstanding - NAREIT FFO and Adjusted FFO		744.3			785.5			747.1			786.5
NAREIT FFO per diluted share	$	.49		$	.43		$	.90		$	.78
Adjusted FFO per diluted share	$	.49		$	.46		$	.90		$	.81

___________

(1-3) Refer to the corresponding footnote on the Reconciliation of Net Income to EBITDA and Adjusted EBITDA.
(4) Earnings per diluted share and NAREIT FFO and Adjusted FFO per diluted share are adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, preferred OP units held by non-controlling partners, exchangeable debt securities and other non-controlling interests that have the option to convert their limited partnership interests to common OP units. No effect is shown for securities if they are anti-dilutive.

HOST HOTELS & RESORTS, INC.
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and
NAREIT and Adjusted Funds From Operations per Diluted Shares for 2016 Forecasts ⁽¹⁾
(unaudited, in millions, except per share amounts)

	Full Year 2016
	Low-end of range			High-end of range
Net income	$	732		$	762
Interest expense		156			156
Depreciation and amortization		717			717
Income taxes		43			43
EBITDA		1,648			1,678
Gain on dispositions		(246	)		(246	)
Gain on property insurance settlement		(1	)		(1	)
Equity investment adjustments:
Equity in earnings of affiliates		(21	)		(21	)
Pro rata Adjusted EBITDA of equity investments		66			66
Consolidated partnership adjustments:
Pro rata Adjusted EBITDA attributable to non-controlling partners in other consolidated partnerships		(11	)		(11	)
Adjusted EBITDA	$	1,435		$	1,465

	Full Year 2016
	Low-end of range			High-end of range
Net income	$	732		$	762
Less: Net income attributable to non-controlling interests		(8	)		(8	)
Net income attributable to Host Inc.		724			754
Gain on dispositions		(246	)		(246	)
Tax on dispositions		9			9
Gain on property insurance settlement		(1	)		(1	)
Depreciation and amortization		714			714
Equity investment adjustments:
Equity in earnings of affiliates		(21	)		(21	)
Pro rata FFO of equity investments		48			48
Consolidated partnership adjustments:
FFO adjustment for non-controlling partners in other consolidated partnerships		(6	)		(6	)
FFO adjustment for non-controlling interests of Host LP		(5	)		(5	)
NAREIT FFO and Adjusted FFO		1,216			1,246
Diluted NAREIT FFO and Adjusted FFO	$	1,216		$	1,246

Weighted average diluted shares - EPS		744.1			744.1
Weighted average diluted shares - NAREIT and Adjusted FFO		744.1			744.1
Earnings per diluted share	$	0.97		$	1.01
NAREIT and Adjusted FFO per diluted share	$	1.63		$	1.67