The document is an investor presentation by Hospitality Properties Trust (HPT) from September 2017. It provides an overview of HPT's portfolio of 509 hotel and travel center properties across the US. HPT has $9.5 billion invested in 310 hotels and 199 travel centers, which are managed under long-term agreements. The presentation highlights HPT's diversified portfolio, conservative financial profile, and secure cash flows which support its growing dividend.
This document is an investor presentation by Hospitality Properties Trust regarding its portfolio. It summarizes that HPT has a diversified portfolio of 308 hotels and 198 travel centers across the US and Canada operated under recognized brands like Marriott, IHG and TravelCenters of America. The majority of HPT's properties have long term agreements in place that provide secure minimum returns and rents, with many agreements including security features like guarantees and deposits to protect cash flows. The presentation provides an overview of HPT's operating model, growth opportunities, and focus on maintaining a conservative and well-covered dividend.
Northwestern Mutual operates as a mutual company focused on policyholders' interests. It has a conservative investment strategy focused on fixed income and maintains a diversified portfolio and strong financial position despite market volatility in 2008. The document discusses Northwestern Mutual's investment objectives, strategies for managing risk, and performance over the past year.
The document provides an overview of Northwestern Mutual's investment strategy and performance in 2008. It summarizes that Northwestern Mutual maintained its focus on traditional insurance products and conservative approach, which helped it withstand market declines better than competitors. While its portfolio experienced losses, its diversification, surplus levels, and avoidance of risky products allowed it to fulfill its commitments to policyholders. It adapted its strategy by increasing liquidity and reducing equity exposure for stability in volatile times.
This document discusses the various financial services companies and partnerships that support the author's independent financial advisory practice. It describes how the broker-dealer FSC Securities Corporation provides back office support, the clearing firm Pershing LLC handles financial transactions, and excess SIPC insurance is provided through Lloyd's of London. The author works with these companies to offer clients services like investment guidance, retirement planning, insurance products and more.
Is Your Property Allocation RIght for You?Redington
The document discusses the impact of Brexit on the UK property market and different property investment options. It notes that commercial rental markets are expected to weaken due to uncertainty after Brexit. It then discusses suspensions of redemptions in some UK property funds and notes that institutional money funds have experienced less redemption pressure. Finally, it outlines different property investment strategies and their risk-return profiles that may be suitable depending on whether a pension fund is in the opening, middle, or end stage of its funding journey.
Credit insurance common misconceptions and can it be a useful tool finalIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd. presented 4-th of November 2014 a webcast “Credit Insurance: Common Misconceptions, and Can it Be a Useful Tool”, hosted by Commercial Finance Association (CFA), the international trade association dedicated to the asset-based lending and factoring industries.
The webcast was attended by major banks, asset based lenders, export credit agencies, insurance brokers and credit insurers
This document provides an investor presentation for Hospitality Properties Trust from March 2018. It summarizes that HPT owns a portfolio of 323 hotels and 199 travel centers across the United States. The portfolio is diversified across brands and operators, including Sonesta, IHG, Marriott, and TravelCenters of America. HPT's agreements with operators are designed to provide stable cash flows through minimum return guarantees, security deposits, and other protective features. The presentation highlights HPT's conservative profile and ability to support continued growth through disciplined acquisitions and improvements.
This document provides information on private captive insurance provided through a protected cell company (PCC) structure in Guernsey. The PCC allows multiple families to combine their insurable risks into individual cells to access more affordable reinsurance rates normally only available to larger entities. Families benefit from customized coverage of both personal and business assets at a lower cost than establishing their own captive. The structure provides regulatory protection and flexibility in managing insurance coverage and risk retention.
This document is an investor presentation by Hospitality Properties Trust regarding its portfolio. It summarizes that HPT has a diversified portfolio of 308 hotels and 198 travel centers across the US and Canada operated under recognized brands like Marriott, IHG and TravelCenters of America. The majority of HPT's properties have long term agreements in place that provide secure minimum returns and rents, with many agreements including security features like guarantees and deposits to protect cash flows. The presentation provides an overview of HPT's operating model, growth opportunities, and focus on maintaining a conservative and well-covered dividend.
Northwestern Mutual operates as a mutual company focused on policyholders' interests. It has a conservative investment strategy focused on fixed income and maintains a diversified portfolio and strong financial position despite market volatility in 2008. The document discusses Northwestern Mutual's investment objectives, strategies for managing risk, and performance over the past year.
The document provides an overview of Northwestern Mutual's investment strategy and performance in 2008. It summarizes that Northwestern Mutual maintained its focus on traditional insurance products and conservative approach, which helped it withstand market declines better than competitors. While its portfolio experienced losses, its diversification, surplus levels, and avoidance of risky products allowed it to fulfill its commitments to policyholders. It adapted its strategy by increasing liquidity and reducing equity exposure for stability in volatile times.
This document discusses the various financial services companies and partnerships that support the author's independent financial advisory practice. It describes how the broker-dealer FSC Securities Corporation provides back office support, the clearing firm Pershing LLC handles financial transactions, and excess SIPC insurance is provided through Lloyd's of London. The author works with these companies to offer clients services like investment guidance, retirement planning, insurance products and more.
Is Your Property Allocation RIght for You?Redington
The document discusses the impact of Brexit on the UK property market and different property investment options. It notes that commercial rental markets are expected to weaken due to uncertainty after Brexit. It then discusses suspensions of redemptions in some UK property funds and notes that institutional money funds have experienced less redemption pressure. Finally, it outlines different property investment strategies and their risk-return profiles that may be suitable depending on whether a pension fund is in the opening, middle, or end stage of its funding journey.
Credit insurance common misconceptions and can it be a useful tool finalIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd. presented 4-th of November 2014 a webcast “Credit Insurance: Common Misconceptions, and Can it Be a Useful Tool”, hosted by Commercial Finance Association (CFA), the international trade association dedicated to the asset-based lending and factoring industries.
The webcast was attended by major banks, asset based lenders, export credit agencies, insurance brokers and credit insurers
This document provides an investor presentation for Hospitality Properties Trust from March 2018. It summarizes that HPT owns a portfolio of 323 hotels and 199 travel centers across the United States. The portfolio is diversified across brands and operators, including Sonesta, IHG, Marriott, and TravelCenters of America. HPT's agreements with operators are designed to provide stable cash flows through minimum return guarantees, security deposits, and other protective features. The presentation highlights HPT's conservative profile and ability to support continued growth through disciplined acquisitions and improvements.
This document provides information on private captive insurance provided through a protected cell company (PCC) structure in Guernsey. The PCC allows multiple families to combine their insurable risks into individual cells to access more affordable reinsurance rates normally only available to larger entities. Families benefit from customized coverage of both personal and business assets at a lower cost than establishing their own captive. The structure provides regulatory protection and flexibility in managing insurance coverage and risk retention.
The United GCC Fund is an open-ended fund incorporated in Oman that invests in companies listed in the GCC countries. In the past month, equity markets in the region saw varied performance, with Dubai and Egypt rising over 7.5% and 28% respectively while other markets fell between -2.5% to 3.5%. The fund maintains a diversified portfolio across sectors like petrochemicals, banking, retail, telecom, and cement.
This document discusses the proposed regulation of leverage in the financial industry following the 2008 financial crisis. It provides background on leverage and how it contributed to the crisis. Specifically, it discusses how the SEC's 2004 rule changes allowing investment banks to calculate their own capital requirements led to significantly higher leverage ratios of 30-40x. This extreme leverage made firms like Lehman Brothers and Bear Stearns unable to withstand the housing market downturn. In response, regulators proposed nearly doubling leverage ratio requirements for banks to prevent future crises. However, the document argues these new rules are too burdensome and will not achieve their aims.
Unfortunately all too often companies default on their payments to vendors or file for bankruptcy protection. Various factors may be the cause: Management deficiencies, financial restructuring, regulatory changes, product liability exposure, legal maneuvering, political upheaval, or even, as recent history has proven, regional natural disasters. No matter how wonderful we feel our customer is, a creditor may never know what future circumstances will diminish the customer’s ability to pay. Accounts Receivables (Credit) Insurance can be an indispensable credit risk management product reducing risk in an unpredictable marketplace. This Webinar will be of value to credit, financial or sales professionals who want to learn the basics of credit insurance and how using credit insurance may help their company. Specifically the speaker will cover: • Protecting Accounts Receivable from bad debt loss • How credit insurance is priced • How claims are settled • How credit insurance can be used to expand sales • Enhancing financing options • Compliance with Sarbanes-Oxley
Introduction and outlook of EU pension systemRedington
This document summarizes the pension system and challenges in Europe. It discusses the three pillars of pension systems: social security, employer pensions, and personal pensions. It then focuses on defined contribution pensions in the UK, including typical plan designs, contributions, taxation, and investment options. The document notes challenges like lack of financial literacy and planning. It proposes solutions such as personal retirement planning, lifecycle investment strategies, and education initiatives to increase participation and knowledge.
StoneCross Capital Insurance-Linked Longevity Certificates (SILC)tdgillespie
The document summarizes StoneCross Capital, a company that creates Shariah-compliant insurance-linked longevity certificates (SILC). Key points:
1) StoneCross Capital is the first U.S. asset management company to create Shariah-compliant longevity products for Islamic investors.
2) SILC are certificates backed by longevity assets that offer principal protection and projected annual returns of 6% while complying with Islamic principles.
3) Longevity assets provide diversification, low volatility, and non-correlation to other asset classes.
Regency Centers Trust is a retail REIT that focuses on generating cash from operations and continually growing that ability. The report analyzes Regency's ability to raise cash, growth potential given the retail industry environment, current economy impacts, interest rate risk, investment positives like relationships with major retailers, and investment risks around areas weak to economic changes and reliance on major tenants. It also summarizes Regency's balance sheet, capital structure, debt obligations, liquidity, net income trends and dividend policy.
Challenges and opportunities for financial market globalisationRedington
This document summarizes an event discussing opportunities and challenges of financial market globalization. It presents examples from China and Japan showing how capital controls have limited China's contribution to global financial integration compared to its contributions to trade and GDP. It also discusses how financial institutions must innovate their business models to maintain growth as traditional sources of revenue decline. Overall, the document examines how globalization brings opportunities like expanded financing sources but also challenges like increased vulnerability to external shocks for financial markets and institutions.
Ras Laffan is constructing LNG facilities in Qatar to supply Korea Gas (Kogas) under a long term contract. Broadway is considering investing in Ras Laffan's project finance bonds. The summary analyzes the bonds and recommends:
1) Initially investing in the 2006 bond which has moderate risk and return outweighs risks.
2) Negotiating a higher return if investing in the higher risk 2014 bond due to longer maturity.
3) Not investing in both bonds due to lack of diversification and higher overall risk exposure.
This document provides an overview of EMC Insurance Group Inc. for investors. It discusses EMCI's corporate structure, benefits of its pooling agreement and quota share reinsurance agreement. It also summarizes EMCI's diversified book of business, local market presence, rate increases, loss trends, financial results, and strategies for commercial auto and innovation. The document highlights reasons to invest in EMCI, including its dividend yield, and discusses maximizing stockholder value through dividends and growth in book value per share.
The document discusses secondary markets for structured cash flows, such as pensions, which allow individuals to sell future income streams for a lump sum payment. It provides details on Future Income Payments, LLC, a company that facilitates these transactions, including their process for underwriting sellers, mitigating risks through reserve accounts, and replacing cash flows if needed. Examples of purchase prices, terms, and monthly payments are given to illustrate potential returns from structured cash flows compared to other fixed income options like annuities.
Advanced Markets Insight: Life Insurance Basics—Life Insurance Pricing and Po...M Financial Group
The pricing of life insurance policies is complex and dynamic. There are four factors that primarily drive pricing and policy performance: mortality, investment earnings, expenses and taxes, and persistency. The impact of the varying pricing factors on policy performance will vary in importance depending on the type of policy design. Each pricing factor is based on current experience, usually from the insurer itself but sometimes complemented by data from actuarial consulting firms, public sources, or reinsurers.
The document discusses the implications of Solvency II on asset management for insurance companies. It covers the following key points:
1) Under Solvency II, asset values will be marked-to-market, which increases the perceived riskiness of equity and other assets compared to a book value approach. This will impact return on capital calculations for different asset classes.
2) There is debate around what interest rate should serve as the risk-free rate for discounting insurance liabilities, with options including swap rates, government bonds, or AAA-rated corporate bonds. The choice will affect capital requirements and surplus.
3) Sovereign debt from different countries may receive different capital charges under Solvency
The document discusses how annuities can provide benefits over bond mutual funds in a rising interest rate environment. It notes that bond funds will decline in value as interest rates rise, while annuities such as the SecureLiving Index 7 provide guarantees such as principal protection. The annuity offers growth potential through index-linked interest credits, guaranteed lifetime income options, and other benefits. The document advocates allocating a portion of fixed income holdings to such annuities to reduce interest rate risk compared to bond funds.
The document discusses credit investment style and events from the past year. It notes that many lending institutions relied solely on credit ratings rather than borrower creditworthiness, and focused on yield-to-maturity over liquidity and ability to repay. The philosophy discussed focuses on safety, liquidity, and returns through evaluating borrower ability and willingness to pay, adequate asset coverage, and risk-adjusted yields. Due diligence plays a key role in credit assessment using both quantitative checks like debt ratios and qualitative checks like management quality.
N1 SME Lending Fund investors performance report v. May2020Ren H Wong
N1 Holdings group of businesses provide strategic advice on businesses, corporations, project developers and property investors seeking new equity capital/debt, refinancing or refinancing existing debt. We assist companies and individuals through the complex processes of Australian major banks, private funds, and offshore debt capital providers. With the growth in alternative lending, N1 overseas strategic alliances are perfectly placed to advise businesses through this changing lending environment and debt market.
The document discusses preparing for retirement with a variable annuity product called the Northwestern Mutual Select Variable Annuity. It outlines key features like tax-deferred growth, guaranteed death benefits, and options for guaranteed retirement income. Concerns around running out of money, health costs, and inflation in retirement are addressed through the annuity's features and investment options.
Chapter 17 basel accord and standardized approachQuan Risk
This document summarizes key aspects of the Basel Capital Accords, including Basel I, Basel II, and Basel III frameworks. It outlines the standardized approach for calculating capital requirements, including calculations for exposure at default, credit conversion factors, risk weights, and regulatory capital tiers. It also provides examples of how to apply the standardized approach to calculate capital charges and ensure capital adequacy ratios are met.
The document summarizes the lending policies of banks in Australia. It outlines policies regarding maximum loan amounts and loan-to-value ratios that vary based on the size of the loan. It also discusses acceptable borrowers, income requirements, property valuations, debt consolidation, and unacceptable loan purposes. Key considerations for banks include borrower ability to repay, value of property collateral, and risk level of the loan.
factors considered when estimating the rate of returnAleck Makandwa
The major components that venture investors consider when estimating the required rate of return are:
1) The risk-free interest rate, which is the baseline rate without any risk.
2) The risk premium, which is additional return expected above the risk-free rate to compensate for investment risk.
3) Liquidity premium, maturity premium, inflation premium, and default premium, which compensate investors for additional specific risks like lack of liquidity, inflation, or default.
Common loan restrictions for new ventures include requirements to maintain accurate financial records, limits on total debt levels, restrictions on dividends or payments to owners, reporting/disclosure obligations, and restrictions on selling fixed assets. These protections help banks assess
The document summarizes PINE's 2Q12 earnings conference call. It discusses a planned capital increase of approximately R$155 million that will raise PINE's BIS ratio to 17.5%. PINE had positive contributions across all business lines in 2Q12. The loan portfolio grew 18.6% year-over-year to R$7.5 billion with diversified sectors and regions. Asset and liability management maintains a positive 3 month gap between credit and funding portfolios.
- Hospitality Properties Trust is presenting an investor presentation in February 2017 on their diversified real estate portfolio of hotels and travel centers.
- The portfolio includes 306 hotels with 46,583 rooms and 198 travel centers located along major highways in the US, operated under brands like Marriott, InterContinental, and TravelCenters of America.
- The presentation highlights HPT's consistent dividend supported by long-term contracts with brand operators, renovations increasing revenue, and conservative financial profile with coverage of annual minimum returns and growing adjusted EBITDA.
This document is an investor presentation for Hospitality Properties Trust from August 2017. It provides an overview of HPT's diversified portfolio of 509 hotel and travel center properties across North America. The presentation highlights HPT's long-term portfolio agreements with major brands that provide secure cash flows, opportunities for external growth, and a conservative profile to support continued disciplined growth and dividends. Charts and tables in the presentation provide property counts, investment amounts, and security features for HPT's portfolio.
The United GCC Fund is an open-ended fund incorporated in Oman that invests in companies listed in the GCC countries. In the past month, equity markets in the region saw varied performance, with Dubai and Egypt rising over 7.5% and 28% respectively while other markets fell between -2.5% to 3.5%. The fund maintains a diversified portfolio across sectors like petrochemicals, banking, retail, telecom, and cement.
This document discusses the proposed regulation of leverage in the financial industry following the 2008 financial crisis. It provides background on leverage and how it contributed to the crisis. Specifically, it discusses how the SEC's 2004 rule changes allowing investment banks to calculate their own capital requirements led to significantly higher leverage ratios of 30-40x. This extreme leverage made firms like Lehman Brothers and Bear Stearns unable to withstand the housing market downturn. In response, regulators proposed nearly doubling leverage ratio requirements for banks to prevent future crises. However, the document argues these new rules are too burdensome and will not achieve their aims.
Unfortunately all too often companies default on their payments to vendors or file for bankruptcy protection. Various factors may be the cause: Management deficiencies, financial restructuring, regulatory changes, product liability exposure, legal maneuvering, political upheaval, or even, as recent history has proven, regional natural disasters. No matter how wonderful we feel our customer is, a creditor may never know what future circumstances will diminish the customer’s ability to pay. Accounts Receivables (Credit) Insurance can be an indispensable credit risk management product reducing risk in an unpredictable marketplace. This Webinar will be of value to credit, financial or sales professionals who want to learn the basics of credit insurance and how using credit insurance may help their company. Specifically the speaker will cover: • Protecting Accounts Receivable from bad debt loss • How credit insurance is priced • How claims are settled • How credit insurance can be used to expand sales • Enhancing financing options • Compliance with Sarbanes-Oxley
Introduction and outlook of EU pension systemRedington
This document summarizes the pension system and challenges in Europe. It discusses the three pillars of pension systems: social security, employer pensions, and personal pensions. It then focuses on defined contribution pensions in the UK, including typical plan designs, contributions, taxation, and investment options. The document notes challenges like lack of financial literacy and planning. It proposes solutions such as personal retirement planning, lifecycle investment strategies, and education initiatives to increase participation and knowledge.
StoneCross Capital Insurance-Linked Longevity Certificates (SILC)tdgillespie
The document summarizes StoneCross Capital, a company that creates Shariah-compliant insurance-linked longevity certificates (SILC). Key points:
1) StoneCross Capital is the first U.S. asset management company to create Shariah-compliant longevity products for Islamic investors.
2) SILC are certificates backed by longevity assets that offer principal protection and projected annual returns of 6% while complying with Islamic principles.
3) Longevity assets provide diversification, low volatility, and non-correlation to other asset classes.
Regency Centers Trust is a retail REIT that focuses on generating cash from operations and continually growing that ability. The report analyzes Regency's ability to raise cash, growth potential given the retail industry environment, current economy impacts, interest rate risk, investment positives like relationships with major retailers, and investment risks around areas weak to economic changes and reliance on major tenants. It also summarizes Regency's balance sheet, capital structure, debt obligations, liquidity, net income trends and dividend policy.
Challenges and opportunities for financial market globalisationRedington
This document summarizes an event discussing opportunities and challenges of financial market globalization. It presents examples from China and Japan showing how capital controls have limited China's contribution to global financial integration compared to its contributions to trade and GDP. It also discusses how financial institutions must innovate their business models to maintain growth as traditional sources of revenue decline. Overall, the document examines how globalization brings opportunities like expanded financing sources but also challenges like increased vulnerability to external shocks for financial markets and institutions.
Ras Laffan is constructing LNG facilities in Qatar to supply Korea Gas (Kogas) under a long term contract. Broadway is considering investing in Ras Laffan's project finance bonds. The summary analyzes the bonds and recommends:
1) Initially investing in the 2006 bond which has moderate risk and return outweighs risks.
2) Negotiating a higher return if investing in the higher risk 2014 bond due to longer maturity.
3) Not investing in both bonds due to lack of diversification and higher overall risk exposure.
This document provides an overview of EMC Insurance Group Inc. for investors. It discusses EMCI's corporate structure, benefits of its pooling agreement and quota share reinsurance agreement. It also summarizes EMCI's diversified book of business, local market presence, rate increases, loss trends, financial results, and strategies for commercial auto and innovation. The document highlights reasons to invest in EMCI, including its dividend yield, and discusses maximizing stockholder value through dividends and growth in book value per share.
The document discusses secondary markets for structured cash flows, such as pensions, which allow individuals to sell future income streams for a lump sum payment. It provides details on Future Income Payments, LLC, a company that facilitates these transactions, including their process for underwriting sellers, mitigating risks through reserve accounts, and replacing cash flows if needed. Examples of purchase prices, terms, and monthly payments are given to illustrate potential returns from structured cash flows compared to other fixed income options like annuities.
Advanced Markets Insight: Life Insurance Basics—Life Insurance Pricing and Po...M Financial Group
The pricing of life insurance policies is complex and dynamic. There are four factors that primarily drive pricing and policy performance: mortality, investment earnings, expenses and taxes, and persistency. The impact of the varying pricing factors on policy performance will vary in importance depending on the type of policy design. Each pricing factor is based on current experience, usually from the insurer itself but sometimes complemented by data from actuarial consulting firms, public sources, or reinsurers.
The document discusses the implications of Solvency II on asset management for insurance companies. It covers the following key points:
1) Under Solvency II, asset values will be marked-to-market, which increases the perceived riskiness of equity and other assets compared to a book value approach. This will impact return on capital calculations for different asset classes.
2) There is debate around what interest rate should serve as the risk-free rate for discounting insurance liabilities, with options including swap rates, government bonds, or AAA-rated corporate bonds. The choice will affect capital requirements and surplus.
3) Sovereign debt from different countries may receive different capital charges under Solvency
The document discusses how annuities can provide benefits over bond mutual funds in a rising interest rate environment. It notes that bond funds will decline in value as interest rates rise, while annuities such as the SecureLiving Index 7 provide guarantees such as principal protection. The annuity offers growth potential through index-linked interest credits, guaranteed lifetime income options, and other benefits. The document advocates allocating a portion of fixed income holdings to such annuities to reduce interest rate risk compared to bond funds.
The document discusses credit investment style and events from the past year. It notes that many lending institutions relied solely on credit ratings rather than borrower creditworthiness, and focused on yield-to-maturity over liquidity and ability to repay. The philosophy discussed focuses on safety, liquidity, and returns through evaluating borrower ability and willingness to pay, adequate asset coverage, and risk-adjusted yields. Due diligence plays a key role in credit assessment using both quantitative checks like debt ratios and qualitative checks like management quality.
N1 SME Lending Fund investors performance report v. May2020Ren H Wong
N1 Holdings group of businesses provide strategic advice on businesses, corporations, project developers and property investors seeking new equity capital/debt, refinancing or refinancing existing debt. We assist companies and individuals through the complex processes of Australian major banks, private funds, and offshore debt capital providers. With the growth in alternative lending, N1 overseas strategic alliances are perfectly placed to advise businesses through this changing lending environment and debt market.
The document discusses preparing for retirement with a variable annuity product called the Northwestern Mutual Select Variable Annuity. It outlines key features like tax-deferred growth, guaranteed death benefits, and options for guaranteed retirement income. Concerns around running out of money, health costs, and inflation in retirement are addressed through the annuity's features and investment options.
Chapter 17 basel accord and standardized approachQuan Risk
This document summarizes key aspects of the Basel Capital Accords, including Basel I, Basel II, and Basel III frameworks. It outlines the standardized approach for calculating capital requirements, including calculations for exposure at default, credit conversion factors, risk weights, and regulatory capital tiers. It also provides examples of how to apply the standardized approach to calculate capital charges and ensure capital adequacy ratios are met.
The document summarizes the lending policies of banks in Australia. It outlines policies regarding maximum loan amounts and loan-to-value ratios that vary based on the size of the loan. It also discusses acceptable borrowers, income requirements, property valuations, debt consolidation, and unacceptable loan purposes. Key considerations for banks include borrower ability to repay, value of property collateral, and risk level of the loan.
factors considered when estimating the rate of returnAleck Makandwa
The major components that venture investors consider when estimating the required rate of return are:
1) The risk-free interest rate, which is the baseline rate without any risk.
2) The risk premium, which is additional return expected above the risk-free rate to compensate for investment risk.
3) Liquidity premium, maturity premium, inflation premium, and default premium, which compensate investors for additional specific risks like lack of liquidity, inflation, or default.
Common loan restrictions for new ventures include requirements to maintain accurate financial records, limits on total debt levels, restrictions on dividends or payments to owners, reporting/disclosure obligations, and restrictions on selling fixed assets. These protections help banks assess
The document summarizes PINE's 2Q12 earnings conference call. It discusses a planned capital increase of approximately R$155 million that will raise PINE's BIS ratio to 17.5%. PINE had positive contributions across all business lines in 2Q12. The loan portfolio grew 18.6% year-over-year to R$7.5 billion with diversified sectors and regions. Asset and liability management maintains a positive 3 month gap between credit and funding portfolios.
- Hospitality Properties Trust is presenting an investor presentation in February 2017 on their diversified real estate portfolio of hotels and travel centers.
- The portfolio includes 306 hotels with 46,583 rooms and 198 travel centers located along major highways in the US, operated under brands like Marriott, InterContinental, and TravelCenters of America.
- The presentation highlights HPT's consistent dividend supported by long-term contracts with brand operators, renovations increasing revenue, and conservative financial profile with coverage of annual minimum returns and growing adjusted EBITDA.
This document is an investor presentation for Hospitality Properties Trust from August 2017. It provides an overview of HPT's diversified portfolio of 509 hotel and travel center properties across North America. The presentation highlights HPT's long-term portfolio agreements with major brands that provide secure cash flows, opportunities for external growth, and a conservative profile to support continued disciplined growth and dividends. Charts and tables in the presentation provide property counts, investment amounts, and security features for HPT's portfolio.
This document is an investor presentation by Hospitality Properties Trust from August 2017. It provides an overview of HPT, including that it has a diversified portfolio of 509 hotel and travel center properties across North America, operated under brands like Marriott, IHG, and TA. It also notes some of HPT's financial highlights like increasing revenues and coverage of minimum returns/rents. The presentation includes forward-looking statements and disclaimers about non-GAAP financial measures.
- Hospitality Properties Trust (HPT) owns 503 hotel and travel center properties across the United States and Canada, operated under brands such as Marriott, InterContinental, and TravelCenters of America.
- HPT focuses on long-term portfolio agreements that provide stable cash flows through minimum returns and rents. 79% of payments are secured by deposits or guarantees.
- The presentation highlights recent financial results showing increases in revenues, adjusted EBITDA, and normalized funds from operations compared to prior year. Portfolio occupancy has outperformed industry averages.
The document is a Q2 2016 investor presentation for Hospitality Properties Trust. It summarizes that HPT has a diversified portfolio of 502 hotel and travel center properties across the US, operated under agreements with major brands that provide stable cash flows. The presentation provides details on HPT's 305 hotel properties and 197 travel center properties, describing the brands, operators, and security features of the various operating agreements.
This document provides an investor presentation for Hospitality Properties Trust for Q4 2015. It summarizes HPT's diversified portfolio of 302 hotels and 193 travel centers across the US, operated under leading brands like Marriott, Intercontinental, and Travel Centers of America. It highlights recent portfolio renovation activity and notes that HPT's hotel portfolio has outperformed industry RevPAR growth for the past 12 quarters. Financial metrics like coverage, EBITDA, and FFO are improving. Examples of specific properties in the portfolio are also provided.
Hospitality Properties Trust held a Q1 2016 investor presentation. The presentation provided an overview of HPT's portfolio of 499 hotel and travel center properties across the United States. It summarized positive industry trends in lodging and travel. It also outlined the security features of HPT's agreements with major hotel operators and travel center tenant TravelCenters of America, noting that 79% of minimum rents are secured by deposits or guarantees. Finally, it discussed HPT's acquisition activity including recent purchases and planned renovations across its portfolio.
Marriott operates, franchises, and licenses hotels and resorts across 72 countries and territories under 30 brands. In 2013, Marriott had nearly 676,000 rooms across 3,916 properties. Marriott's portfolio includes brands across different market segments including luxury (Ritz-Carlton), full service (Marriott), select service (Courtyard), and all-suites (TownePlace Suites). While Marriott saw increases in revenue, operating costs, and profits from 2012 to 2013, its international segment results decreased due to factors such as higher expenses and lower management fees. Marriott manages foreign exchange risk through hedging strategies and translates foreign subsidiaries' financial statements to US dollars
This document provides an investor presentation for a Bermuda-based specialty property and casualty reinsurer. It discusses the company's profile, including its A- financial strength rating from A.M. Best. It also outlines key metrics such as diluted book value per share, shareholders' equity, returns, and growth in book value. Additionally, it summarizes the company's total return business model, exceptional management team, organizational structure, underwriting strategy focusing on flexible and opportunistic deals, diversified premium base, and reinsurance risk management approach.
Third Point Reinsurance Ltd. Investor Presentationirthirdpointre
This document provides an investor presentation for Third Point Reinsurance Ltd. It summarizes the company as a specialty property and casualty reinsurer based in Bermuda with an A- financial strength rating. Key metrics on growth in book value per share and shareholders' equity are provided for recent periods. The presentation outlines the company's total return business model, exceptional management team, flexible underwriting strategy, diversified premium base, risk management approach, relationship with leading investment manager Third Point LLC, strong capital base, and growth in premiums since inception.
Encore's first Hospitality Fund, which was sold as a portfolio to Goldman Sach's Archon Group in 2007, generated an annual IRR of 51%. We see a similar environment today and are raising money for our second fund. Please see the attached presentation, and reach out to me with any questions.
The document provides an overview of OUTFRONT Media Inc., including:
- It operates billboards, transit displays, and other outdoor advertising assets across major U.S. markets.
- Its assets include traditional bulletins as well as newer digital displays, and it has franchise agreements with municipalities for transit and other properties.
- It restructured as a real estate investment trust (REIT) in 2014 to benefit from lower corporate taxes and pay higher dividends.
Host Hotels & Resorts is a real estate investment trust that owns high-quality hotels in major markets. It focuses on maximizing cash flows from its assets by relying on masterful third-party management companies to operate its 110 hotels totaling over 50,000 rooms. Host owns luxury and upper-upscale hotels under 18 brands. It has a market capitalization of $16 billion, significantly larger than its main competitors. Host was formed in 1993 and has grown through acquisitions, joint ventures, and capital expenditures. It is led by an experienced management team and board and expects continued growth in operating profit and net income through 2014 and beyond.
This document provides an investor presentation for Third Point Reinsurance Ltd. It begins with cautionary statements about forward-looking statements and non-GAAP financial measures included. It then summarizes the company as a Bermuda-based specialty property and casualty reinsurer with an A- rating. Key metrics on growth in book value per share and returns are provided for 2014 and prior periods. The document discusses the company's total return business model, management team, flexible underwriting strategy, relationship with investment manager Third Point LLC, strong capital base, and growth in gross premiums written.
Starwood has a first-mover advantage in the Middle East region due to its five decades of experience operating hotels. It currently has 79 hotels totaling over 22,000 rooms across 13 countries in the region. The Middle East is experiencing strong economic growth and increasing tourism as populations grow and diversify. Starwood is well-positioned to capitalize on the region's dynamics with its diverse portfolio of brands and pipeline hotels in high-growth markets like the UAE and KSA.
Captive Insurance Group - A Risk Management Strategycaptiveinsurance
We provide our clients with unique risk management tools & support designed to help them control their costs with private insurance companies.
With extensive experience, our team of dedicated professionals can help deliver the stability and predictability you need in order to lower costs and drive profits.
With creative concepts and an intuitive grasp on our clients’ goals, we design policies that help you strengthen your position in the present and protect you as you head into the future.
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Hpt investor presentation 2_q17_final.final
1. Hospitality Properties Trust
Investor Presentation
September 2017
Sonesta ES Suites Princeton, Princeton , NJ
Operator: Sonesta International Hotels Corp.
Guest Rooms: 124
2. Hospitality Properties Trust
Disclaimer.
THIS PRESENTATION CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN
THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES
LAWS. ALSO, WHENEVER HPT USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”,
“ESTIMATE”, "WILL", “MAY” AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, HPT IS
MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON
HPT’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT
GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
CONTAINED IN OR IMPLIED BY HPT’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS.
YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.
EXCEPT AS REQUIRED BY LAW, HPT DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING
STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
THIS PRESENTATION CONTAINS NON-GAAP FINANCIAL MEASURES, INCLUDING ADJUSTED EBITDAAND
NORMALIZED FUNDS FROM OPERATIONS. FOR A RECONCILIATION OF THESE NON-GAAP FINANCIAL
MEASURES TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURE, SEE THE APPENDIX TO THIS
PRESENTATION.
2Unless otherwise noted, all data presented is as of June 30, 2017.
3. Hospitality Properties Trust
HPT’s high quality properties, conservative profile and secure
cash flows provide a growing and well covered dividend.
3
• Diversified portfolio of well maintained, high quality properties.
• Long term portfolio agreements that can provide security of cash flow.
• Ramping portfolio and external growth opportunities.
• Conservative profile. Capacity to support continued disciplined growth.
• Dividend payout ratio only 49.1% in the second quarter 2017.
4. Hospitality Properties Trust (1) Represents historical cost of properties plus capital improvements funded by HPT less impairment writedowns, if any, and excludes capital improvements made from
FF&E reserves funded from hotel operations which do not result in minimum returns or rent.
HPT is one of the most geographically diverse lodging REITs and owns
hotels and travel centers operated under recognized brands.
• $9.5 billion investment portfolio (historical investment basis(1)).
• Total of 509 properties located in 45 states, Puerto Rico and Canada.
310 hotels with 48,087 rooms.
199 travel centers located adjacent to the U.S. interstate highway system.
4
HPT Hotel Brands HPT Travel Center Brands
5. Hospitality Properties Trust
HPT has $6.0 billion invested in 310 full service, select service and extended
stay hotels.
5(1) Represents historical cost of properties plus capital improvements funded by HPT less impairment writedowns, if any, and excludes capital improvements made from
FF&E reserves funded from hotel operations.
Sonesta International Hotels
Corporation
35 hotels / 6,718 rooms
$1,291 million
InterContinental Hotels Group
plc (“IHG”)
97 hotels / 15,518 rooms
$1,942 million
Carlson Hotels
Worldwide
11 hotels / 2,090 rooms
$210 million
Marriott International, Inc.
122 hotels / 17,086 rooms
$1,786 million
HPT Hotel Managers
(by $ invested)
Morgans Hotel
Group
1 hotel / 372 rooms
$120 million
Global Hyatt Corporation
22 hotels / 2,724 suites
$302 million
Wyndham Hotel Group
22 hotels / 3,579 rooms
$392 million
• 9 Hotel Management Agreements/Leases.
• HPT’s operating agreement structure reduces cash flow
volatility in a downturn and allows for upside participation in
a recovery.
• The majority of HPT’s 310 hotel properties are secured by
deposits or guarantees and have potential additional
returns based on performance.
Six agreements covering 221 hotels feature manager
guarantees and/or security deposits that protect HPT’s
cash flow when hotel operations fail to cover minimum
rents or returns.
Hotel management agreements provide for additional
returns to HPT based on hotel net operating income
above certain thresholds.
Unique Agreements
6. Hospitality Properties Trust
HPT’s mostly upscale hotel portfolio is operated under 21
recognized brands.
Based on hotel unit count as of 6/30/2017.
6
~85%
(263 Hotels)
Midscale to Upscale
Select Service + Extended Stay Hotels
~15%
(47 Hotels)
Primarily Upscale to Luxury
Full Service Hotels
7. Hospitality Properties Trust
NYSE: HPT
October 2013
www.hptreit.com
Crowne Plaza San Jose – Silicon Valley, San Jose, CA
Operator: InterContinental Hotels Group
Guest Rooms: 304
7Hospitality Properties Trust
9. Hospitality Properties Trust
HPT has $3.5 billion invested in 199 travel centers located along the U.S.
Interstate Highway System.
9
HPT owns or leases 149 “TA” travel centers located in 40 states.
HPT owns 50 “Petro” travel centers located in 26 states.
Seville, OH
Wilmington, IN
• TravelCenters of America operates two of the strongest travel center brands in the
industry.
• 5 Triple Net Leases.
• HPT's travel centers are part of TA’s network of 256 “TA”
and “Petro” branded travel centers in 43 states and
Canada.
• Difficult to replicate real estate located near exits along the
U.S. Interstate Highway System.
• Average site is over 25 acres with parking for 200 tractor
trailers and 100 cars.
• Multiple diesel fuel and gasoline islands, plus a table
service restaurant (approx. 135 seats) and one or more
quick service restaurants (QSRs) at each site.(1)
• Large travel and convenience stores averaging over 5,000
square feet of interior space.
• Truck repair facilities and parts stores; the only nationwide
on the road truck repair service along the U.S. Interstate
Highway System.
(1) In total, TA operates 633 quick service restaurants (QSRs) under contracts with 35 national franchisors including: Arby’s®; Burger King®;
Popeye's Chicken & Biscuits®; Pizza Hut®; Starbucks Coffee®; Subway®; Taco Bell® and Wendy’s®.
10. Hospitality Properties Trust
Economic growth continues. Increasing regulation may cater to
full service travel center advantages.
10
Issue Implication
Fuel and non-fuel demand is
expected to see continued steady
growth over the next decade.
Travel centers which provide
services to professional truck
drivers from restaurants to clean
showers and bathrooms to truck
repair facilities will be in demand.
Larger full service truck stops
with ample parking, for over 200
tractor trailer trucks will have a
competitive advantage – TA’s
reservation program proves
value.
11. Hospitality Properties Trust
The defining business characteristic of HPT remains its strong
operating agreement terms.
• Portfolio Agreements. 507 of HPT’s 509 properties are part of pooled portfolio agreements. Each
portfolio agreement includes between 11 and 97 geographically diverse properties.
• Minimum Returns and Rents. The majority of HPT’s agreements require its managers or tenants to
pay HPT fixed minimum returns or rents.
• Security Features. The majority of HPT’s agreements include security features to protect HPT’s
cash flows, including some or all of: cash security deposits; subordination of management fees to
HPT’s minimum returns/rents; and full or limited guarantees from parent companies.
• Long Term Agreements. New agreements are generally entered for 15 to 25 years. The weighted
average term remaining for our agreements (weighted by our investment) is 16 years.
• High Likelihood of Contract/Lease Renewals. Renewals are permitted only for all properties in each
portfolio. Because HPT’s agreements generally represent significant percentages of its operators’
brands, renewals are highly likely.
• FF&E Reserves. Hotel operators are generally required to escrow 5-6% of gross revenues for
renovations.
11
12. Hospitality Properties Trust
Q2 LTM Security Features
Total/Average 14 agreements 509 48,087 816,187$ 100% 1.38x 1.22x
8 brand owners
Subtotal Travel Centers 199 N/A 280,747 34% 1.62x 1.52x
TA guaranty.
14 TA No. 5 40 N/A 68,841 8% TA guaranty.
13 TA No. 4 40 N/A 53,062 7% 1.53x
1.64x
TA guaranty.
11 TA No. 2 40 N/A 53,067 7% 1.61x
1.61x12 TA No. 3 39 N/A 53,472
TA guaranty.
-
10 TA No. 1 40 N/A 52,305 5% TA guaranty.
9 Morgans 1 372 7,595 1% 0.47x
1.69x
Subtotal Hotels 310 48,087 535,440 66% 1.26x 1.07x
0.90x
Limited guaranty.
8 Carlson 11 2,090 12,920 2% Limited guaranty.
7 Hyatt 22 2,724 22,037 3% 1.37x
1.53x
1.13x
1.35x
-
6 Wyndham 22 3,579 28,798 4% Limited guaranty.
5 Sonesta 35 6,718 97,134 12% 1.05x
1.19x
0.72x
0.83x
No. of
Properties
No. of
Rooms
Annual Minimum
Return/Rent
(1)
% of Total
1.28x
1.12x
Marriott guaranty.
4 InterContinental 97 15,518 181,485 22% Security deposit.
3 Marriott No. 5 1 356 10,159 1% 0.76x
1.30x
0.80x
1.18x
1.60x
1.51x
1.52x
1.45x
1.54x
7%
Coverage (2)
Operating Agreement
-
2 Marriott No. 234 68 9,120 106,360 13% Limited guaranty + deposit.
1 Marriott No. 1 53 7,610 68,952$ 8% 1.51x
1.30x
79% of HPT’s total minimum rents and returns are secured by
deposits or guarantees.
12
(1) Annualized minimum rent amounts represent cash rent amounts due to us and exclude adjustments, if any, necessary to recognize rental income on a straight line basis in accordance with GAAP.
(2) We define coverage as combined total property level revenues minus all property level expenses and FF&E reserve escrows which are not subordinated to minimum returns and minimum rent payments due to us
(which data is provided to us by our managers or tenants), divided by the minimum return or minimum rent payments due to us. Coverage amounts for our Sonesta, InterContinental and TA Nos.1,2,3 and 4 agreements
include data for periods prior to our ownership of certain properties.
15. Hospitality Properties Trust
Sonesta Philadelphia Rittenhouse Square, Philadelphia, PA
Operator: Sonesta International Hotels Corp.
Guest Rooms: 439
15
16. Hospitality Properties Trust 16
Hyatt Place Tempe / Phoenix Airport, Tempe, AZ
Operator: Carlson Rezidor Hotel Group
Guest Rooms: 123
17. Hospitality Properties Trust
Financial highlights.
(1) Annualized minimum rent amounts represent cash rent amounts due to us and exclude adjustments, if any, necessary to recognize rental income on a straight line basis in accordance with GAAP.
(2) We define coverage as combined total property level revenues minus all property level expenses and FF&E reserve escrows which are not subordinated to minimum returns and minimum rent payments to us (which data is provided to us by our managers or tenants), divided by the minimum
return or minimum rent payments due to us (which data is provided to us by our managers or tenants), divided by the minimum return or minimum rent payments due to us. Coverage amounts for our InterContinental Hotels Group, plc, or InterContinental, and our Sonesta and TA Nos. 2 and 4
agreements include data for periods prior to our ownership of certain hotels and travel centers.
(3) See exhibits on page 25 for the calculation of EBITDA and Adjusted EBITDA, and a reconciliation of net income determined in accordance with GAAP to these amounts. See exhibits on page 26 for a reconciliation of FFO to nearest GAAP measure.
(4) Debt amounts are net of unamortized discounts and certain issuance costs.
(5) Total Gross assets is total assets plus accumulated depreciation.
(In thousands except number of properties,
number of rooms and per share data.)
As of and for the three months ended
June 30,
2017 2016 Change % Change
Property data:
Number of properties 509 502 7
Number of rooms 48,087 46,347 1,740
Annual minimum returns and rents(1)
$ 816,187 $ 769,006 $ 47,181 6.1%
Coverage of annual minimum returns
and rents - hotels(2) 1.26x 1.34x
Coverage of annual minimum returns
and rents - travel centers(2) 1.62x 1.64x
Key financial data:
Total revenues $ 570,603 $ 550,299 $ 20,304 3.7%
Adjusted EBITDA(3)
$ 220,297 $ 215,608 $ 4,689 2.2%
Normalized funds from operations
(FFO)(3) $ 173,604 $ 165,714 $ 7,890 4.8%
Total Debt (book value)(4)
/total gross
assets(5) 39.9.% 39.0% 0.9 pts.
Total Debt (book value)(4)
/annualized
Adjusted EBITDA(3) 4.4x 4.1x
Per share data:
Annualized Common dividend $ 2.08 $ 2.04 $ 0.04 2.0%
Normalized FFO(3)
$ 1.06 $ 1.09 $ -0.03 -2.8%
Normalized FFO payout ratio(3)
49.1% 46.6% 2.5 pts.
17
18. Hospitality Properties Trust
HPT believes it will continue benefitting from a well maintained portfolio.
• HPT funded $5.1 million of hotel improvements during Q2. HPT expects to fund
an additional $39.3 million of hotel improvements for the remainder of 2017.
• HPT expects to have 9 hotels under renovation for all or part of the third
quarter.
• HPT funded $25.5 million of travel center improvements in Q2. HPT expects to
fund an additional $32.9 million of travel center improvements during the
remainder of 2017.
• HPT’s managers have expectations for hotel occupancy to remain relatively flat
with modest increases to rate such that 2017 RevPAR growth may be 0.5% to
1.0%. GOP margins are forecasted to be within the flat to down 50 basis points
range reflecting slower revenue growth and continued cost pressures
especially from wages and commissions.
18
19. Hospitality Properties Trust
During 2017, HPT has acquired or agreed to acquire 20 hotels and one
travel center.
Courtyard Guestroom Residence Inn Kitchen
• In February, HPT acquired the 483 room Hotel Allegro in Chicago, IL for $85.5 million. HPT added this Kimpton®
branded hotel to its management agreement with IHG. HPT obtained an additional $6.9 million to supplement the
existing security deposit in connection with this transaction.
• In March, HPT acquired the 121 room Hotel Alexis in Seattle, WA for a purchase price of $71.6 million. HPT added
this Kimpton® branded hotel to its management agreement with IHG. HPT obtained an additional $5.7 million to
supplement the existing security deposit in connection with this purchase.
• In May, HPT acquired from and leased back to TA a newly developed travel center in Columbia, SC for a purchase
price of $27.6 million, excluding acquisition related costs. This Petro® branded property features 134 truck parking
spots, a Quaker Steak and Lube restaurant, a Starbucks Coffee Company® amongst many other trucking and
entertainment amenities. This property was added to TA No. 4 lease. HPT expects its minimum annual rent under the
lease to increase by $2.3 million.
• In June, HPT acquired the 389 room Chase Park Plaza hotel in St. Louis, MO for $87.6 million. HPT converted this
hotel to the Royal Sonesta® hotel brand and added it to its management agreement with Sonesta.
• Also in June, HPT acquired the 495 room Crowne Plaza Ravinia hotel in Atlanta, GA for $88.6 million. HPT added
this Crowne Plaza® branded hotel to its management agreement with IHG. HPT obtained an additional $7.1 million to
supplement the existing security deposit in connection with this transaction.
• In August, HPT acquired the 419 room Crowne Plaza & Lofts hotel in Columbus, OH for $49.0 million. HPT plans to
rebrand the Lofts as an Indigo Hotel® and has added it to its management agreement with IHG.
19
20. Hospitality Properties Trust
HPT Acquisitions, Cont.
Courtyard Guestroom Residence Inn Kitchen
• In July, HPT entered into an agreement to acquire the 300 room Crowne Plaza Charlotte
Executive Park Hotel in Charlotte, NC for $44.0 million. HPT expects to complete this acquisition
during the third quarter of 2017. HPT plans to add this hotel to its management agreement with
IHG.
• Also in July, HPT entered into an agreement to acquired14 extended stay hotels with 1,653
suites located in 12 states, for $138 million. HPT expects to complete this acquisition during the
third quarter of 2017. HPT plans to convert these hotels to the Sonesta ES Suites® brand and will
add them to its management agreement with Sonesta.
20
21. Hospitality Properties Trust 21
During 2017, HPT has sold or agreed to sell three hotels.
HPT and Carlson agreed to sell three Carlson® branded hotels that as of June
30th had an aggregate carrying value of $14.1 million.
• In June, HPT began marketing for sale its Park Plaza® branded hotel in
Bloomington, MN.
• In July, HPT entered into an agreement to sell its 143 room Country Inn &
Suites in Naperville, IL for $6.6 million. HPT expects to complete the sale of
this Country Inn & Suites® branded hotel during the third quarter of 2017.
• In August, HPT sold its 159 room Radisson® branded hotel in Chandler, AZ
for $9.5 million.
• Sales proceeds to be reinvested in remaining portfolio hotels.
22. Hospitality Properties Trust
HPT has a conservative financial profile.
22
($ in thousands)
Book Capitalization as of June 30, 2017
Unsecured floating rate debt (1)
676,753$
Unsecured fixed rate debt (1)
3,162,275
Total debt 3,839,028
Shareholders equity (book value) 2,780,198
Total Book Capitalization 6,619,226$
$2,780
42%
$3,162
48%
$677
10%
Shareholders equity Unsecured fixed rate debt Unsecured floating rate debt
(1) Debt amounts are net of unamortized discounts and certain issuance costs.
(2) Total gross assets is total assets plus accumulated depreciation.
(3) See exhibits on page 25 for the calculation of EBITDA and Adjusted EBITDA, and a reconciliation of net income determined in accordance with GAAP to these amounts.
Total debt(book value)(1)
/ total gross assets(2)
39.9%
Total debt(book value)(1)
/ annualized adjusted EBITDA(3)
4.4x
Adjusted EBITDA(3)
/ interestexpense and preferred distributions 4.9x
As of and For the Three Months Ended June 30, 2017
23. Hospitality Properties Trust
HPT has well laddered debt maturities and the capacity for
disciplined growth.
23
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2017 2018 2019 2021 2022 2023 2024 2025 2026 2027
• No secured debt.
• Unsecured senior notes:
$3,200 million as of June 30, 2017
($3,162 million net of discounts).
All fixed rate.
• Unsecured term loan:
$400 million.
April 2019 maturity.
• Revolving credit facility:
$1 billion ($278 million outstanding as of
June 30, 2017).
July 2018 maturity plus one year
extension option.
• No derivatives, no off balance sheet liabilities
and no material adverse change clauses or
ratings triggers.
HPT Term Debt Maturities as of
June 30, 2017
($ in millions)
24. Hospitality Properties Trust
HPT’s high quality properties, conservative profile and secure
cash flows provide a growing and well covered dividend.
24
• Diversified portfolio of well maintained, high quality properties.
• Long term portfolio agreements that can provide security of cash flow.
• Ramping portfolio and external growth opportunities.
• Conservative profile. Capacity to support continued disciplined growth.
• Dividend payout ratio only 49.1% in the second quarter 2017.
25. Hospitality Properties Trust
Calculation of EBITDA and Adjusted EBITDA.
25
(1) Please see page 27 for definitions of EBITDA and Adjusted EBITDA and a description of why we believe the presentation of these measures provide useful information to investors.
(2) Represents costs associated with our acquisition activities. Acquisition costs incurred during the 2017 period have been capitalized in purchase accounting pursuant to a change in GAAP.
(3) Amounts represent the equity compensation awarded to our trustees, our officers and certain other employees of RMR LLC.
(4) Incentive fees under our business management agreement are payable after the end of each calendar year, are calculated based on common share total return, as defined, and are included in
general and administrative expense in our consolidated statements of income. In calculating net income in accordance with GAAP, we recognize estimated business management incentive fee
expense, if any, in the first, second and third quarters. Although we recognize this expense, if any, in the first , second and third quarters for purposes of calculating net income, we do not
include these amounts in the calculation of Adjusted EBITDA until the fourth quarter, which is when the actual business management incentive fee expense amount for the year, if any, is
determined. Adjusted EBITDA includes business management incentive fee expense of $52,407 for three months ended December 31, 2016. Business management incentive fees for 2016
were paid in cash in January 2017.
(5) We recorded losses of $158 and $70 on early extinguishment of deb during the three months ended September 30, 2016 and March 31, 2016, respectively, in connection with redemptions of
certain senior unsecured notes.
CALCULATION OF EBITDA AND ADJUSTED EBITDA (1)
(in thousands)
For the Three Months Ended,
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016
Net income 60,699 37,171 63,186 $ 51,812 $ 56,061
Add: Interest expense 45,189 43,566 37,349 41,280 41,698
Income tax expense 786 356 537 948 2,160
Depreciation and amortization 95,155 93,451 91,150 90,139 88,782
EBITDA 201,829 174,544 192,222 184,179 188,701
Add
(Less): Acquisition related costs (2) -- -- 482 156 117
General and administrative expense paid in
common shares (3) 718 412 557 985 870
Estimated business management incentive fee (4) 17,750 19,620 (56,272) 25,036 25,920
Loss on early extinguishment of debt (5) — — — 158 —
Adjusted EBITDA $ 220,297 $ 194,576 $ 136,989 $ 210,514 $ 215,608
26. Hospitality Properties Trust
Calculation of Funds From Operations (FFO) and Normalized FFO.
26
(1) Please see page 27 for definitions of FFO and Normalized FFO available for common shareholders, a description of why we believe the presentation of these measures provides useful information to investors regarding our
financial condition and results of operations and a description of how we use these measures.
(2) Represents costs associated with our acquisition activities. Acquisition costs incurred during the 2017 period have been capitalized in purchase accounting pursuant to change GAAP.
(3) Incentive fees under our business management agreement are payable after the end of each calendar year, are calculated based on common share total return, as defined, and are included in general and administrative
expense in our consolidated statements of income . In calculating net income in accordance with GAAP, we recognize estimated business management incentive fee expense, if any, in the first, second and third quarters.
Although we recognize this expense, if any, in the first , second and third quarters for purposes of calculating net income, we do not include these amounts in the calculation of Normalized FFO available for common
shareholders until the fourth quarter, which is when the business management incentive fee expense amount for the year, if any, is determined. Normalized FFO available for common shareholders includes business
management incentive fee expense of $52,407 for three months ended December 31,2016. Business management incentive fees for 2016 were paid in cash in January 2017.
(4) We recorded losses of $158 and $70 on early extinguishment of debt during the three months ended September 30, 2016 and March 31, 2016, respectively, in connection with the redemptions of certain senior unsecured
notes.
(5) On February 10, 2017, we redeemed all 11,600,000 of our outstanding 7.125% Series D cumulative redeemable preferred shares at the stated liquidation preference of $25.00 per share plus accrued and unpaid
distributions to the date of redemption (an aggregate of $291,435). The liquidation preference of the redeemed shares exceeded the carrying amount for the redeemed shares as of the date of redemption by $9,893, or
$0.06 per share, and we reduced net income available to common shareholders in the three months ended March 31, 2017 by that excess amount.
6/30/2017 3/31/2017 12/31/2016 9/30/2016 6/30/2016 2017 2016
$ 60,699 $ 25,483 $ 58,020 $ 46,646 $ 50,895 $ 86,542 $ 97,780
Add: 95,155 93,451 91,150 90,139 88,782 188,606 176,053
155,854 119,294 149,170 136,785 139,677 275,148 273,833
— — 482 156 117 — 729
17,750 19,620 -56,272 25,036 25,920 37,370 31,236
— — — 158 — — 70
9,893 9,893 — — — 9,893 —
$173,604 $148,807 $ 93,380 $162,135 $165,714 $322,411 $ 305,868
164,123 164,120 164,120 157,217 151,408 164,121 151,405
164,165 164,128 164,128 157,263 151,442 164,157 151,428
$ 0.16 $ 0.16 $ 0.35 $ 0.30 $ 0.34 $ 0.53 $ 0.65
$ 0.73 $ 0.73 $ 0.91 $ 0.87 $ 0.92 $ 1.68 $ 1.81
$ 0.91 $ 0.91 $ 0.57 $ 1.03 $ 1.09 $ 1.96 $ 2.02
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO AVAILABLE FOR COMMON SHAREHOLDERS
(1)
For the Three Months Ended, For the Six Months Ended
(dollar amounts in thousands, except per share data)
Net income available for common shareholders
FFO available for common shareholders
Add (Less): Acquisition related costs (2)
Estimated business management
Loss on earlyextinguishment of debt (4)
Excess of liquidation preference over
Preferred Shares redeemed (5)
Normalized FFO available for common shareholders
Depreciation and amortization
Normalized FFO available for common shareholders
Weighted average shares outstanding (basic)
Weighted average shares outstanding (diluted)
Basic and diluted per share common share amounts:
Net income available for common shareholders
FFO available for common shareholders
27. Hospitality Properties Trust
Non-GAAP financial measures definitions.
27
Definition of EBITDA and Adjusted EBITDA
We calculate EBITDA and Adjusted EBITDA as shown on page 25. We consider EBITDA and Adjusted EBITDA to be appropriate supplemental measures of our operating
performance, along with net income, net income available for common shareholders and operating income. We believe that EBITDA and Adjusted EBITDA provide useful information
to investors because by excluding the effects of certain historical amounts, such as interest, depreciation and amortization expense, EBITDA and Adjusted EBITDA may facilitate a
comparison of current operating performance with our past operating performance. In calculating Adjusted EBITDA, we include business management incentive fees only in the fourth
quarter versus the quarter when they are recognized as expense in accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating
performance and the uncertainty as to whether any such business management incentive fees will be payable when all contingencies for determining such fees are known at the end
of the calendar year. EBITDA and Adjusted EBITDA do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net
income, net income available for common shareholders or operating income as indicators of operating performance or as measures of our liquidity. These measures should be
considered in conjunction with net income, net income available for common shareholders and operating income as presented in our condensed consolidated statements of income.
Other real estate companies and REITs may calculate EBITDA and Adjusted EBITDA differently than we do.
Definition of FFO and Normalized FFO
We calculate FFO available for common shareholders and Normalized FFO available for common shareholders as shown on page 26. FFO available for common shareholders is
calculated on the basis defined by The National Association of Real Estate Investment Trusts, or NAREIT, which is net income available for common shareholders calculated in
accordance with GAAP, excluding any gain or loss on sale of properties and loss on impairment of real estate assets, if any, plus real estate depreciation and amortization, as well as
certain other adjustments currently not applicable to us. Our calculation of Normalized FFO available for common shareholders differs from NAREIT's definition of FFO available for
common shareholders because we include business management incentive fees, if any, only in the fourth quarter versus the quarter when they are recognized as expense in
accordance with GAAP due to their quarterly volatility not necessarily being indicative of our core operating performance and the uncertainty as to whether any such business
management incentive fees will be payable when all contingencies for determining such fees are known at the end of the calendar year, and we exclude the excess of liquidation
preference over carrying value of preferred shares redeemed, acquisition related costs expensed under GAAP and loss on early extinguishment of debt. We consider FFO available for
common shareholders and Normalized FFO available for common shareholders to be appropriate supplemental measures of operating performance for a REIT, along with net income,
net income available for common shareholders and operating income. We believe that FFO available for common shareholders and Normalized FFO available for common
shareholders provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation expense, FFO available for common
shareholders and Normalized FFO available for common shareholders may facilitate a comparison of our operating performance between periods and with other REITs. FFO available
for common shareholders and Normalized FFO available for common shareholders are among the factors considered by our Board of Trustees when determining the amount of
distributions to shareholders. Other factors include, but are not limited to, requirements to maintain our qualification for taxation as a REIT, limitations in our credit agreement and
public debt covenants, the availability to us of debt and equity capital, our expectation of our future capital requirements and operating performance and our expected needs for and
availability of cash to pay our obligations. FFO available for common shareholders and Normalized FFO available for common shareholders do not represent cash generated by
operating activities in accordance with GAAP and should not be considered as alternatives to net income, net income available for common shareholders or operating income as
indicators of our operating performance or as measures of our liquidity. These measures should be considered in conjunction with net income, net income available for common
shareholders and operating income as presented in our condensed consolidated statements of income. Other real estate companies and REITs may calculate FFO available for
common shareholders and Normalized FFO available for common shareholders differently than we do.
28. Hospitality Properties Trust
Investor Presentation
September 2017
Sonesta ES Suites Princeton, Princeton , NJ
Operator: Sonesta International Hotels Corp.
Guest Rooms: 124