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Host Hotels & Resorts, Inc. (0J66.L)

Company Dividend Discount ModelIndustry: Real Estate - GeneralSector: Real Estate

Valuation Snapshot

Stable Growth$8.12 - $11.89$9.94
Multi-Stage$13.59 - $14.86$14.21
Blended Fair Value$12.07
Current Price$17.02
Upside-29.06%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.42%4.62%1.060.790.220.000.460.890.900.900.860.93
YoY Growth--34.73%264.67%0.00%-100.00%-48.64%-0.95%0.16%5.37%-7.74%37.74%
Dividend Yield--7.44%3.79%1.31%0.00%2.73%8.10%4.68%4.84%4.58%5.55%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)738.00
(-) Cash Dividends Paid (M)625.00
(=) Cash Retained (M)113.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)147.6092.2555.35
Cash Retained (M)113.00113.00113.00
(-) Cash Required (M)-147.60-92.25-55.35
(=) Excess Retained (M)-34.6020.7557.65
(/) Shares Outstanding (M)696.75696.75696.75
(=) Excess Retained per Share-0.050.030.08
LTM Dividend per Share0.900.900.90
(+) Excess Retained per Share-0.050.030.08
(=) Adjusted Dividend0.850.930.98
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-1.23%-0.23%0.77%
Fair Value$8.12$9.94$11.89
Upside / Downside-52.28%-41.62%-30.16%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)738.00736.33734.67733.01731.36729.70751.60
Payout Ratio84.69%85.75%86.81%87.88%88.94%90.00%92.50%
Projected Dividends (M)625.00631.41637.79644.14650.45656.73695.23

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate-1.23%-0.23%0.77%
Year 1 PV (M)573.05578.85584.65
Year 2 PV (M)525.34536.03546.83
Year 3 PV (M)481.52496.30511.37
Year 4 PV (M)441.30459.45478.14
Year 5 PV (M)404.38425.27447.01
PV of Terminal Value (M)7,040.827,404.527,783.09
Equity Value (M)9,466.419,900.4110,351.10
Shares Outstanding (M)696.75696.75696.75
Fair Value$13.59$14.21$14.86
Upside / Downside-20.17%-16.51%-12.71%

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