Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (November 2022)
31 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, Nov 15, 2022
Slide 1: Service Properties Trust Investor Presentation November 2022
Service Properties Trust (Nasdaq: SVC) Investor Presentation November 2022
Slide 2: Warning Concerning Forward-Looking Statements
2 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Warning Concerning Forward - Looking Statements 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 . Whenever
Slide 3: SVC: Company Overview
3 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 SVC: Company Overview SVC invests in two asset categories: hotels and service - focused retail net lease properties to provide diversification to its cash flows. Necessity - based retail assets with strong rent coverage , low capex requirement
Slide 4: SVC: Company Overview
4 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 SVC: Company Overview 242 HOTELS 40,563 KEYS $6.2B INVESTMENT 769 RETAIL NET LEASE ASSETS 13.4M RENTABLE SQUARE FEET $5.1B INVESTMENT 1,011 PROPERTIES $11.3B INVESTMENT Diversified Portfolio with National Scale
Slide 5: SVC: Recent Events
5 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 SVC: Recent Events Property Sales : Sold 80 properties for $532 million YTD Line of Credit : Extended maturity date to July 2023 Quarterly Dividend Increased: To $0.20 per share Hotel Portfolio Improv ement: Q3 RevPAR increased 29.6% from prio
Slide 6: Geographically Diverse Portfolio Highlights
6 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 SVC’s assets are located in 4 6 states, Washington DC, Puerto Rico, and Canada. Portfolio Highlights: Geographically Diverse • SVC has invested $1 1 . 3 billion in its real estate portfolio. • SVC’s investments are located in various markets n
Slide 7: Hotel Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Hotel Portfolio
Slide 8: Hotel Portfolio: Diversified by Location and Service Level
8 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 BY SERVICE LEVEL (1) BY CHAIN SCALE (1) BY LOCATION Full Service , 37.2% Select Service , 27.2% Extended Stay , 35.6% Upscale , 50.2% Upper Upscale , 14.0% Upper Midscale/ Midscale , 35.8% Location Keys % of Portfolio Suburban 20,573 50.7% Urb
Slide 9: Hotel Portfolio: Monthly Operating Metrics vs. 2019
9 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Hotel Portfolio: Monthly Operating Metrics vs. 2019 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% - 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 RevPAR vs 2019 (All 242 Hotels) RevPAR As a Percent of 2019 Full Service September 2
Slide 10: Hotel Portfolio: Monthly Operating Metrics (All Hotels)
10 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Hotel Portfolio: Monthly Operating Metrics ( All 242 Hotels) Monthly Hotel EBITDA ($ in Millions) 62.3% 56.2% 59.6% 60.1% 55.0% 50.2% 44.7% 52.7% 61.5% 65.2% 65.5% 69.5% 68.00% 63.10% 66.20% $123 $118 $118 $121 $114 $116 $110 $121 $128 $134 $
Slide 11: Hotel Portfolio: By Service Level
11 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Hotel Portfolio: By Service Level Top 5 Hotel EBITDA Generators # of Keys Hotel EBITDA ( (000’s) Royal Sonesta Kaua’i 356 $ 5,473 Sonesta Hilton Head, SC 340 4,610 Royal Sonesta Cambridge/Boston, MA 400 4,542 Royal Sonesta Toronto (Yorkville)
Slide 12: Hotel Portfolio: Dispositions Improving Overall Quality
12 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Hotel Portfolio: Dispositions Improving Overall Quality of Hotel Portfolio (1) $88 $101 $111 $110 $113 $119 $113 $108 $106 $112 $93 $76 $51 $59 $71 $79 $88 $93 $86 $85 $80 $88 $67 $51 Jan '19 Feb '19 Mar '19 Apr '19 May '19 Jun '19 Jul '19 Au
Slide 13: Hotel Portfolio: Sonesta at a Glance
13 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 111 49 40 7 838 56 US Extended Stay US Select Service US Full Service International Domestic Franchised International Franchised • Sonesta manages 2 00 hotels for SVC. • SVC owns 34% of Sonesta. • Equity investment has a carrying value of $13
Slide 14: Net Lease Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Net Lease Portfolio
Slide 15: Net Lease Portfolio: High-Quality Service & Necessity Based Assets
15 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Net Lease Portfolio: High - Quality Service & Necessity Based Assets Net Lease Portfolio Statistics 7 69 $37 3 mm Properties Annual ized Minimum Rent 13. 4 mm 9.8 Rentable Square Feet Weighted Average Lease Term (1) 9 8.1 % 2. 88x Occupancy R
Slide 16: Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements
16 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 70% 14% 13% 4% Percentage Rent Fixed/Scheduled CPI Flat (1) By annual ized minimum rent. Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements Well - Laddered Lease Expirations (1) 9 6 % of Leases Have Contractual Increases o
Slide 17: Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk
17 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk (1) By annualized minimum rent . Tenants by Brand (1) Tenants by Industry (1) Travel Centers , 66.9% Restaurants - Quick Service , 5.3% Movie Theaters , 3.7% Restaurants - Ca
Slide 18: Net Lease Portfolio: Recent Developments - TravelCenters of America
18 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 • Represents approximately 30 % of SVC’s portfolio based on investment. • Rent comprised of annual minimum cash payments of $24 6 million , plus a percentage rent based on increases in certain sales . • LTM rent coverage of 2. 54x through Sep
Slide 19: Financial Information
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Financial Information
Slide 20: Balance Sheet Overview as of September 30, 2022
20 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Balance Sheet Overview as of September 3 0 , 2022 Well Laddered Debt Maturities Book Capitalization Leverage/Coverage Ratios Net Debt / Total Gross Assets 5 4 . 2 % Net Debt / Gross Book Value of Real Estate Assets 5 6 . 5 % Adjusted EBITDA r
Slide 21: Public Debt Covenants
21 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Public Debt Covenants Metric Covenant September 3 0 , 2022 Total Debt / Adjusted Total Assets Allowable Maximum: 60.0% 5 3 . 8 % Secured Debt / Adjusted Total Assets Allowable Maximum: 40.0% 0.9 % Consolidated Income Available for Debt Servic
Slide 22: SVC Is Managed by The RMR Group
22 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Financial Services: Real Estate Services: Business Services: Accounting Acquisitions/ Dispositions Administration Capital Markets Asset Management Human Resources Compliance/ Audit Construction/ Development Information Technology (IT) Finance
Slide 23: Alignment of Interests: RMR Fee Structure
23 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 RMR base management fee tied to SVC share price performance. RMR incentive fees contingent on total shareholder return (1) outperformance. • Equal to 12% of value generated by SVC in excess of the benchmark index total returns ( MSCI U.S. REI
Slide 24: Appendix
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Appendix
Slide 25: Calculation of FFO and Normalized FFO
25 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Calculation of Funds From Operations (FFO) and Normalized FFO See accompanying notes on page 29 . Three Months Ended For the Nine Months Ended (amounts in thousands, except per share data) 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30
Slide 26: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
26 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Calculation of EBITDA, EBITDA re and Adjusted EBITDA re See accompanying notes on page 29 . (dollars in thousands) 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 9/30/22 9/30/21 $ 7,500 $ 11,350 $ (119,822) $ (198,793) $ (59,714) $ (100,972) $ (345
Slide 27: Reconciliation of Hotel EBITDA - Comparable Hotels
27 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - Comparable Hotels See accompanying notes on page 29 . (dollars in thousands) For the Three Months Ended For Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021
Slide 28: Reconciliation of Hotel EBITDA - All Hotels
28 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels See accompanying notes on page 29 . (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/3
Slide 29: Notes to Calculations of FFO, EBITDA and Hotel EBITDA
29 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Notes to Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA 29 1) We recorded a loss on asset impairment of $1,172 to reduce the carrying value of three hotels and one net lease pr
Slide 30: Non-GAAP Financial Measures Definitions
30 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2022 Non - GAAP Financial Measures Definitions 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
Slide 31: Service Properties Trust
Service Properties Trust (Nasdaq: SVC) Investor Presentation November 2022 Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458 SVCREIT.COM
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