Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q1 2025 Earnings Presentation
37 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, May 6, 2025
Slide 1: Financial Results and Supplemental Information
Financial Results and Supplemental Information FIRST QUARTER 2025 May 6, 2025
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS Service Properties Trust Announces First Quarter 2025 Financial Results ................................................................................................................... First Quarter 2025 Highlights ..............................................
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces First Quarter 2025 Financial Results
Service Properties Trust Announces First Quarter 2025 Financial Results “SVC began the year with first quarter financial Newton, MA (May 6, 2025): Service Properties Trust (Nasdaq: SVC) today announced its financial results for results that met our expectations, highlighted by a the quarter ended Ma
Slide 5: First Quarter 2025 Highlights
First Quarter 2025 Highlights • Net loss of $116.4 million, or $0.70 per common share. Financial • Normalized FFO of $10.8 million, or $0.07 per common share. Results • Adjusted EBITDAre of $115.8 million. • Hotel RevPAR of $83.52. Portfolio • Adjusted Hotel EBITDA of $23.0 million. Update • Net Lea
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS 6
Slide 7: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and for the Three Months Ended As of 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 3/31/2025 Selected Income Statement Data: Capitalization: Sonesta ES Suites Fort Lauderdale, FL Total revenues $ 435,179 $ 456,559 $ 491,171
Slide 8: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended March 31, 2025 2024 Revenues: Hotel operating revenues (1) $ 334,963 $ 336,236 Rental income (2) 100,216 100,014 The Stephen F Austin Royal Sonesta Hotel Total revenues 435,179 436,250
Slide 9: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) March 31, December 31, 2025 2024 ASSETS Real estate properties: Land $ 1,733,591 $ 1,930,459 Buildings, improvements and equipment 6,133,031 7,682,885 Total real estate properties, gross 7,866,622 9,613,344 Accumulat
Slide 10: Debt Summary
Debt Summary As of March 31, 2025 (dollars in thousands) Interest Principal Maturity Due at Years to (1) SVC is required to pay interest at a rate of SOFR plus a premium, which was 250 basis points per annum as of Rate Balance Date Maturity Maturity March 31, 2025. SVC also pays an unused commitment
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of March 31, 2025 (dollars in thousands) Secured vs. Unsecured Debt $1,250,000 $1,000,000 $1,958 Secured 29.5% $95,000 $1,958 $750,000 $600,737 Unsecured 70.5% $1,125,000 $500,000 $1,000,000 $850,000 $800,000 $250,000 $500,000 $400,000 $400,000 $1,469 $0 2025 2026 2027 2028
Slide 12: Leverage Ratios, Coverage Ratios and Debt Covenants
Leverage Ratios, Coverage Ratios and Debt Covenants As of and for the Trailing Twelve Months Ended Royal Sonesta New Orleans 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 New Orleans, LA Leverage Ratios: Net debt / total gross assets 60.8 % 54.9 % 54.8 % 55.1 % 53.1 % (1) Net debt / gross book
Slide 13: Capital Expenditures Summary
Capital Expenditures Summary (dollars in thousands) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Hotel capital improvements $ 42,498 $ 81,514 $ 80,075 $ 65,205 $ 68,253 Lease related costs 274 1,464 1,611 1,001 510 Recurring capital expenditures 42,772 82,978 81,686
Slide 14: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2025 (dollars in thousands, except per room or suite data) ACQUISITIONS: Average Average Weighted Quarter Number of Property Number of Square Purchase Purchase Price per Cash Cap GAAP Cap Average Lease Average Rent Acquired Properties Type Bran
Slide 15: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 15
Slide 16: Portfolio Summary
Portfolio Summary As of March 31, 2025 (dollars in thousands) Number of Properties The Yorkville Royal Sonesta Hotel Hotel Properties 202 Number of hotel rooms 35,359 Toronto, ON Net Lease Properties 739 Average hotel property size 175 rooms Total Properties 941 Net lease square feet 13,189,476 Aver
Slide 17: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of March 31, 2025 (dollars in thousands) No. of Rooms / Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 202 35,359 $ 6,331,737 55.7% 2. Travel Centers 178 5,099,794 3,311,787 29.1% 3. Restaurants - Quick Servi
Slide 18: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of March 31, 2025 (dollars in thousands) Investments Net Total Property Hotel Lease Hotel % Net Lease State Count Count Count Total % of Total Hotel of Total Net Lease % of Total California 58 36 22 $ 1,483,760 13.0 % $ 1,210,695 19.1 % $ 273,0
Slide 19: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of March 31, 2025 (dollars in thousands, except per room or suite data) Percent of Percent of Number of Total Number Percent of Number of Total Number Rooms or of Rooms or Total Hotel Investment Per Brand Service Level Chain Scale Hotels of Hotels Suites Suites Investment
Slide 20: Hotel Operating Statistics by Service Level - Comparable Hotels (First Quarter)
Hotel Operating Statistics by Service Level - Comparable Hotels (First Quarter) Occupancy ADR RevPAR Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2025 2024 Change 2025 2024 Change 2025 2024 Change Sone
Slide 21: Hotel Operating Statistics by Service Level - All Hotels (First Quarter)
Hotel Operating Statistics by Service Level - All Hotels (First Quarter) (dollars in thousands, except ADR and RevPAR) Occupancy ADR RevPAR Adjusted Hotel EBITDA Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, No. of No. of Rooms Br
Slide 22: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of March 31, 2025 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. TravelCenters of America Inc. 131 3,683,923 $ 2,254,950 44.8 % $ 176,7
Slide 23: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of March 31, 2025 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Industry Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. Travel Centers 178 5,099,794 $ 3,311,787 65.8% $ 262,392 68.9% 1
Slide 24: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of March 31, 2025 (dollars in thousands) Percent of Total Percent of Annualized Annualized Weighted No. of Total Minimum Minimum Average Rent Tenant Brand Affiliation Properties Square Feet Investment Investment Rent Rent Lease Term Coverage 1. TravelCenters
Slide 25: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of March 31, 2025 (dollars in thousands) Number Percent of Total Cumulative Percent of of Annualized Minimum Annualized Minimum Rent Total Annualized Year (1) Properties Square Feet Rent Expiring Expiring Minimum Rent Expiring 2025 23 422,477 $ 8,130 2.1%
Slide 26: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of March 31, 2025 As of and For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Properties (end of period) 739 742 745 749 749 Vacant properties beginning of period 18 18 20 20 22 Vacant properties sold (3) (3) (4) — (3) Vacant pro
Slide 27: Appendix
Appendix RETURN TO TABLE OF CONTENTS 27
Slide 28: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage SVC is a REIT that owns hotels and service-focused B. Riley Securities, Inc. HSBC retail net lease properties throughout the United John Massocca Meredith Jensen States and in Puerto Rico and Canada. (646) 885-5424 (212) 525
Slide 29: Governance Information
Governance Information Board of Trustees Christopher J. Bilotto Rajan C. Penkar Adam D. Portnoy Managing Trustee Independent Trustee Chair of the Board & Managing Trustee Laurie B. Burns Robert E. Cramer Donna D. Fraiche Independent Trustee Independent Trustee Lead Independent Trustee John L. Harrin
Slide 30: Calculation of FFO, Normalized FFO and CAD
Calculation of FFO, Normalized FFO and CAD (amounts in thousands, except per share data) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net loss $ (116,435) $ (76,392) $ (46,901) $ (73,850) $ (78,383) Add (Less): Depreciation and amortization 89,100 94,000 89,005 95,67
Slide 31: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net loss $ (116,435) $ (76,392) $ (46,901) $ (73,850) $ (78,383) Add (Less): Interest expense 101,517 99,402 99,126 93,850 91,414 Income tax expe
Slide 32: Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels
Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels* (dollars in thousands) For the Three Months Ended 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Number of hotels 202 206 214 220 220 Room revenues $ 266,439 $ 278,614 $ 322,803 $ 334,118 $ 269,926 Food and be
Slide 33: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA (dollars in thousands) (1) As of March 31, 2025, SVC owned 202 hotels. SVC's condensed consolidated statements of inco
Slide 34: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions Non-GAAP Financial Measures SVC presents certain “non-GAAP financial measures” within the meaning of the applicable Securities and Exchange Commission, or SEC, rules, including FFO, Normalized FFO, CAD, EBITDA, Hotel EBITDA, Adjusted Hotel EBITDA,
Slide 35: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Other Definitions Adjusted Hotel EBITDA Margin: Adjusted Hotel EBITDA as a percentage of hotel operating revenues. Adjusted Total Assets and Total Unencumbered Assets: Adjusted total assets and total unencumbered assets include the orig
Slide 36: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Investment: SVC defines hotel investment as historical cost of its properties plus capital improvements funded by it less impairment write-downs, if any, and excludes capital improvements made from FF&E Reserves funded from hotel operat
Slide 37: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe”,
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