Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC

Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q1 2022 Earnings Presentation

32 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, May 4, 2022

  1. Slide 1: First Quarter 2022 Supplemental Operating and Financial Data

    Royal Sonesta Chase Park Plaza St. Louis, MO FIRST QUARTER 2022 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Sonesta Irvine - Orange County Airport Irvine, CA

  2. Slide 2: Table of Contents

    Supplemental Q1 2022 2 Table of Contents CORPORATE INFORMATION Company Profile .......................................................................................................................................................................................................... 3 Investor Informa

  3. Slide 3: Company Profile

    Supplemental Q1 2022 3 Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (t) (617) 964-8389 Stock Exchange Listing: Nasdaq Trading Symbol: Common Shares: SVC Key Data (as of and for the three months ended March 31, 2022): (dollars in 000s) Total properti

  4. Slide 4: Investor Information

    Supplemental Q1 2022 4 Board of Trustees Laurie B. Burns Robert E. Cramer Donna D. Fraiche Independent Trustee Independent Trustee Lead Independent Trustee John L. Harrington William A. Lamkin John G. Murray Independent Trustee Independent Trustee Managing Trustee Adam D. Portnoy Chair of the Board

  5. Slide 5: Research Coverage

    Supplemental Q1 2022 5 Equity Research Coverage (1) B. Riley Securities, Inc. Oppenheimer & Co. Inc. Wells Fargo Securities Bryan Maher Tyler Batory Dori Kesten (646) 885-5423 (212) 667-7230 (617) 603-4233 bmaher@brileyfin.com tyler.batory@opco.com dori.kesten@wellsfargo.com Rating Agencies (1) Seni

  6. Slide 6: Key Financial Data

    Supplemental Q1 2022 6 As of and For the Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Selected Balance Sheet Data: Total gross assets $ 12,048,367 $ 12,434,974 $ 12,852,602 $ 12,845,383 $ 12,892,150 Total assets $ 9,017,072 $ 9,153,315 $ 9,334,831 $ 9,415,735 $ 9,514,515 Tot

  7. Slide 7: Condensed Consolidated Balance Sheets

    Supplemental Q1 2022 7 March 31, 2022 December 31, 2021 ASSETS Real estate properties: Land $ 1,919,126 $ 1,918,385 Buildings, improvements and equipment 7,989,900 8,307,248 Total real estate properties, gross 9,909,026 10,225,633 Accumulated depreciation (3,031,295) (3,281,659) Total real estate pr

  8. Slide 8: Condensed Consolidated Statements of Income (Loss)

    Supplemental Q1 2022 8 Three Months Ended March 31, 2022 2021 Revenues: Hotel operating revenues (1) $ 297,406 $ 168,953 Rental income (2) 96,358 92,217 Total revenues 393,764 261,170 Expenses: Hotel operating expenses (1)(3) 290,343 195,352 Other operating expenses 2,269 3,417 Depreciation and amor

  9. Slide 9: Calculation of FFO and Normalized FFO

    Supplemental Q1 2022 9 For the Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Net loss $ (119,822) $ (198,793) $ (59,714) $ (91,110) $ (194,990) Add (Less): Depreciation and amortization 104,113 115,757 124,163 121,677 124,368 Loss on asset impairment,net (4) 5,500 76,510 — 89

  10. Slide 10: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre

    Supplemental Q1 2022 10 For the Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Net loss $ (119,822) $ (198,793) $ (59,714) $ (91,110) $ (194,990) Add (Less): Interest expense 92,344 92,494 92,458 91,378 89,391 Income tax (benefit) expense 695 (1,950) (55) 211 853 Depreciation

  11. Slide 11: Notes to Condensed Consolidated Statements of Income (Loss)

    Supplemental Q1 2022 11 Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollar in thousands) RETURN TO TABLE OF CONTENTS (1) As of March 31, 2022, we owned 298 hotels. Our condensed consolidate

  12. Slide 12: Debt Summary

    Supplemental Q1 2022 12 (1) We are required to pay interest on borrowings under our revolving credit facility at a rate of LIBOR plus a premium of 235 basis points per annum, subject to an interest rate floor of 0.50%. We also pay a facility fee of 30 basis points per annum on the total amount of le

  13. Slide 13: Debt Maturity Schedule

    Supplemental Q1 2022 13 (1) Represents amounts outstanding under our $1.0 billion revolving credit facility at March 31, 2022. On April 14, 2022, we entered into an amendment to our revolving credit facility to, among other things, extend the waiver period to December 31, 2022. As part of the amendm

  14. Slide 14: Leverage Ratios, Coverage Ratios and Public Debt Covenants

    Supplemental Q1 2022 14 As of and For the Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Leverage Ratios: Net debt / total gross assets 51.7 % 50.3 % 48.9 % 48.9 % 49.1 % Net debt / gross book value of real estate assets and cash and cash equivalents 53.4 % 51.9 % 50.8 % 50.7

  15. Slide 15: Capital Expenditures and Restricted Cash

    Supplemental Q1 2022 15 Capital Expenditures For the Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Hotel capital improvements & FF&E Reserve fundings (1) $ 28,144 $ 30,010 $ 19,384 $ 24,167 $ 28,881 Net lease capital improvements 740 402 403 227 156 Total capital improvements

  16. Slide 16: Acquisitions and Dispositions

    Supplemental Q1 2022 16 ACQUISITIONS: We have not acquired any properties since January 1, 2022. DISPOSITIONS: Rooms or Suites/ Square Footage Average Sales Price per Room or Suite / Square FootDate Disposed Properties Property Type Brand Location Sales Price (1) 01/19/2022 1 Hotel Sonesta ES Suites

  17. Slide 17: Portfolio Summary

    Supplemental Q1 2022 17 Number of Properties Hotel Properties 298 Number of hotel rooms 47,285 Net Lease Properties 786 Square feet 13,515,100 Total Properties 1,084 Average hotel property size 159 rooms Average net lease property size 17,195 sq. feet Investments Diversification Facts Hotels $ 6,870

  18. Slide 18: Investments by Industry

    Supplemental Q1 2022 18 Industry No. of Properties Rooms/ Square Footage Investments Percent of Total Investment 1. Hotels 298 47,285 $ 6,870,113 57.3% 2. Travel Centers 182 5,238,766 3,352,096 28.0% 3. Restaurants-Quick Service 226 681,495 301,088 2.5% 4. Restaurants-Casual Dining 53 415,547 192,17

  19. Slide 19: Investments by State

    Supplemental Q1 2022 19 Investments State Total Property Count Hotel Count Net Lease Count Total ($000s) % of Total Hotel ($000s) Hotel % of Total Net Lease ($000s) Net Lease % of Total California 58 36 22 $ 1,351,483 11.0 % $ 1,078,661 15.7 % $ 272,822 5.0 % Texas 90 32 58 1,002,980 8.0 % 482,452 7

  20. Slide 20: Hotel Brand Summary

    Supplemental Q1 2022 20 Brand Service Level Chain Scale Number of Hotels Percent of Total Number of Hotels Number of Rooms or Suites Percent of Total Number of Rooms or Suites Investment Percent of Total Hotel Investment Investment Per Room or Suite Royal Sonesta Hotels® Full Service Upper Upscale 1

  21. Slide 21: Hotel Operating Statistics by Brand

    Supplemental Q1 2022 21 Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (1) Full Service 22 7,145 51.9 % 31.2 % 20.7 Pts $ 1

  22. Slide 22: Hotel Operating Statistics by Brand (Alternate Basis)

    Supplemental Q1 2022 22 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (2) Full Service 23 7,364 51.9 % 30.9 % 21.0 Pts $ 1

  23. Slide 23: Comparable Hotel Results

    Supplemental Q1 2022 23 (dollars in thousands) Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Number of hotels 295 295 295 295 295 Room revenues $ 254,623 $ 266,272 $ 291,663 $ 243,054 $ 147,785 Food and beverage revenues 25,145 30,429 24,989 18,428 7,834 Other revenues 12,614

  24. Slide 24: Hotel Results

    Supplemental Q1 2022 24 (dollars in thousands) For the Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Number of hotels 298 303 304 310 310 Room revenues $ 258,620 $ 272,458 $ 298,607 $ 248,618 $ 152,728 Food and beverage revenues 25,902 31,503 25,822 18,933 8,172 Other revenue

  25. Slide 25: Net Lease Portfolio by Brand

    Supplemental Q1 2022 25 Brand No. of Buildings Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America 134 3,720,693 $ 2,289,189 44.8 % $ 168,012 45.2 % 2.35x 2. Petro Stopping Centers 45 1,470,004

  26. Slide 26: Net Lease Portfolio by Industry

    Supplemental Q1 2022 26 Industry No. of Buildings Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 182 5,238,766 $ 3,352,096 65.5% $ 249,325 67.1% 2.29x 2. Restaurants-Quick Service 226 681,495 301,088

  27. Slide 27: Net Lease Portfolio by Tenant

    Supplemental Q1 2022 27 Tenant Brand Affiliation No. of Buildings Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Weighted Average Lease Term Rent Coverage 1. TravelCenters of America Inc.(1) TravelCenters of America / Petro Stoppin

  28. Slide 28: Net Lease Lease Expiration Schedule

    Supplemental Q1 2022 28 Year (1) Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2022 210,412 2,390 0.6% 0.6% 2023 315,142 2,799 0.8% 1.4% 2024 779,371 11,656 3.1% 4.5% 2025 436,043 8,906 2.4% 6.9%

  29. Slide 29: Net Lease Portfolio Occupancy Summary

    Supplemental Q1 2022 29 As of and For the Three Months Ended 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Properties (end of period) 786 788 794 796 798 Total square feet 13,515,100 13,522,060 13,574,656 13,587,068 13,452,608 Square feet leased 13,185,809 13,266,385 13,332,049 13,380,458 13,25

  30. Slide 30: Non-GAAP Financial Measures

    Supplemental Q1 2022 30 Non-GAAP Financial Measures We present certain “non-GAAP financial measures” within the meaning of the applicable Securities and Exchange Commission, or SEC, rules, including FFO, Normalized FFO, EBITDA, Hotel EBITDA, Adjusted Hotel EBITDA, EBITDAre and Adjusted EBITDAre. The

  31. Slide 31: Definitions: FF&E Reserve and Other Terms

    Supplemental Q1 2022 31 FF&E Reserve: Various percentages of total sales at certain of our hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. We own all the FF&E reserve escrows for our hotels. FF&E Reserve Deposits Not Funded by Hotel Operations: The

  32. Slide 32: Forward-Looking Statements

    Supplemental Q1 2022 32 This supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “esti

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