Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q4 2024 Earnings Presentation
39 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Feb 26, 2025
Slide 1: Fourth Quarter 2024 Financial Results and Supplemental Information
Sonesta Fort Lauderdale Beach Fort Lauderdale, FL Service Properties Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 26, 2025
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS FINANCIALS Service Properties Trust Announces Fourth Quarter 2024 Financial Results .............................................................................................................................................. Fourth Quarter 2024 Highlights ......
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces Fourth Quarter 2024 Financial Results
Service Properties Trust Announces Fourth Quarter 2024 Financial Results “During the fourth quarter both top line and bottom Newton, MA (February 26, 2025): Service Properties Trust (Nasdaq: SVC) today announced its financial line hotel results came in at the high end of our results for the quarter
Slide 5: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights • Net loss of $76.4 million, or $0.46 per common share. Financial • Normalized FFO of $28.6 million, or $0.17 per common share. Results • Adjusted EBITDAre of $130.6 million. • Hotel RevPAR of $84.13. Portfolio • Adjusted Hotel EBITDA of $42.8 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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 Selected Income Statement Data: Capitalization: Sonesta ES Suites Fort Lauderdale, FL Total revenues $ 456,559 $ 491,171 $ 512,94
Slide 8: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenues: Hotel operating revenues (1) $ 357,048 $ 343,385 $ 1,496,705 $ 1,478,034 Rental income (2) 99,511 100,665 400,223 395,829 Total
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands, except per share data) December 31, 2024 2023 ASSETS Real estate properties: Land $ 1,930,459 $ 1,972,145 Buildings, improvements and equipment 7,682,885 7,814,192 Total real estate properties, gross 9,613,344 9,786,337 Accumulated depreciation (3,2
Slide 10: Debt Summary
Debt Summary As of December 31, 2024 (dollars in thousands) Interest Principal Maturity Due at Years to (1) SVC is required to pay interest at a rate of SOFR Rate Balance Date Maturity Maturity plus a premium, which was 250 basis points per annum as of December 31, 2024. SVC also pays Secured Floati
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of December 31, 2024 (dollars in thousands) Secured vs. Unsecured Debt $1,250,000 $1,958 $1,000,000 Secured $150,000 30.1% $1,958 $750,000 $600,737 Unsecured 69.9% $1,125,000 $500,000 $1,000,000 $850,000 $800,000 $250,000 $500,000 $400,000 $400,000 $1,958 $0 2025 2026 2027
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 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Leverage Ratios: Net debt / total gross assets 54.9 % 54.8 % 55.1 % 53.1 % 51.8 % Net debt / gross book value of real estate assets and cash and cash
Slide 13: Capital Expenditures Summary
Capital Expenditures Summary (dollars in thousands) For the Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Hotel capital improvements $ 81,514 $ 80,075 $ 65,205 $ 68,253 $ 105,391 Lease related costs 1,464 1,611 1,001 510 596 Recurring capital expenditures 82,978 81,686 66,20
Slide 14: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2024 (dollars in thousands, except per room or suite data) ACQUISITIONS: Quarter Number of Property Rooms or Suites / Average Purchase Price per Acquired Properties Type Brand Location Square Footage Purchase Price (1) Room or Suite / Square Fo
Slide 15: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 15
Slide 16: Portfolio Summary
Portfolio Summary As of December 31, 2024 (dollars in thousands) Number of Properties Hotel Properties 206 Number of hotel rooms 35,871 Net Lease Properties 742 Average hotel property size 174 rooms Total Properties 948 Net lease square feet 13,292,519 Average net lease property size 17,914 sq. ft.
Slide 17: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of December 31, 2024 (dollars in thousands) No. of Rooms / Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 206 35,871 $ 6,372,312 55.8% 1410 N. Roosevelt Avenue 2. Travel Centers 178 5,099,794 3,311,787 29.0%
Slide 18: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of December 31, 2024 (dollars in thousands) Investments The Stephen F Austin Royal Sonesta Hotel Net Austin, TX Total Property Hotel Lease Hotel % Net Lease State Count Count Count Total % of Total Hotel of Total Net Lease % of Total California
Slide 19: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of December 31, 2024 (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 Investm
Slide 20: Hotel Operating Statistics by Service Level - Comparable Hotels (Fourth Quarter)
Hotel Operating Statistics by Service Level - Comparable Hotels (Fourth Quarter) Occupancy ADR RevPAR Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2024 2023 Change 2024 2023 Change 2024 2023 C
Slide 21: Hotel Operating Statistics by Service Level - Comparable Hotels (Full Year)
Hotel Operating Statistics by Service Level - Comparable Hotels (Full Year) Occupancy ADR RevPAR Year Ended December 31, Year Ended December 31, Year Ended December 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2024 2023 Change 2024 2023 Change 2024 2023 Change Sonesta Hotels & Resort
Slide 22: Hotel Operating Statistics by Service Level - All Hotels (Fourth Quarter)
Hotel Operating Statistics by Service Level - All Hotels (Fourth Quarter) (dollars in thousands, except ADR and RevPAR) Occupancy ADR RevPAR Adjusted Hotel EBITDA Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, No. of No
Slide 23: Hotel Operating Statistics by Service Level - All Hotels (Full Year)
Hotel Operating Statistics by Service Level - All Hotels (Full Year) (dollars in thousands, except ADR and RevPAR) Occupancy ADR RevPAR Adjusted Hotel EBITDA Year Ended December 31, Year Ended December 31, Year Ended December 31, Year Ended December 31, No. of No. of Rooms or Brand Hotels Suites 202
Slide 24: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of December 31, 2024 (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 % $ 17
Slide 25: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of December 31, 2024 (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 65.7% $ 262,359 68.9
Slide 26: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of December 31, 2024 (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. TravelCent
Slide 27: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of December 31, 2024 (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 26 470,584 $ 8,475 2
Slide 28: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of December 31, 2024 As of and For the Three Months Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Properties (end of period) 742 745 749 749 752 Vacant properties beginning of period 18 20 20 22 32 Vacant properties sold (3) (4) — (3) (9) Vacant
Slide 29: Appendix
Appendix RETURN TO TABLE OF CONTENTS 29
Slide 30: 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 HSBC Oppenheimer & Co. Inc. retail net lease properties throughout the United Meredith Jensen Tyler Batory States and in Puerto Rico and Canada. (212) 525-6858 (212) 667-723
Slide 31: Governance Information
Governance Information 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 Rajan C. Penkar Adam D. Portnoy Ind
Slide 32: 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 For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net loss $ (76,392) $ (46,901) $ (73,850) $ (78,383) $ (43,323) $ (275,526) $ (32,779) Add
Slide 33: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net loss $ (76,392) $ (46,901) $ (73,850) $ (78,383) $ (43,323) $ (275,526) $ (32,779) Add (Less): Inte
Slide 34: 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 For the Year Ended 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Number of hotels 206 214 220 220 221 206 221 Room revenues $ 278,614 $
Slide 35: Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, EBITDA
Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollars in thousands) (1) As of December 31, 2024, SVC owned 206 hotels. SVC's consolidated statements of income (loss) include hotel operating revenu
Slide 36: 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 37: 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 38: 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 39: 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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