Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q1 2023 Earnings Presentation
38 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, May 8, 2023
Slide 1: First Quarter 2023 Financial Results and Supplemental Information
Service Properties Trust First Quarter 2023 Financial Results and Supplemental Information May 8, 2023 Royal Sonesta Chicago Riverfront Chicago, IL
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS SVC Service Properties Trust Announces First Quarter 2023 Financial Results .................................................................................................................................................. 4 First Quarter 2023 Highlights .........
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces First Quarter 2023 Financial Results
Service Properties Trust Announces First Quarter 2023 Financial Results "In the first quarter, the financial performance of our hotel Newton, MA (May 8, 2023): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended March 31, 2023. portfolio continued to im
Slide 5: First Quarter 2023 Highlights
First Quarter 2023 Highlights • Net income of $26.0 million, or $0.16 per common share. Financial • Normalized FFO of $37.1 million, or $0.23 per share. Results • Adjusted EBITDAre of $116.8 million. • Hotel RevPAR of $79.91. Portfolio • Hotel EBITDA of $32.3 million. Update • Net Lease occupancy of
Slide 6: First Quarter 2023 Results
First Quarter 2023 Results Three Months Ended March 31, 2023 Consolidated Financial Results 2023 2022 Change Net income (loss) $ 25,950 $ (119,822) $ 145,772 Net income (loss) per common share (basic and diluted) $ 0.16 $ (0.73) $ 0.89 FFO $ 35,894 $ (4,831) $ 40,725 FFO per common share (basic and
Slide 7: Financials
Financials RETURN TO TABLE OF CONTENTS 7
Slide 8: Key Financial Data
Key Financial Data (amounts in thousands, except per share data) As of and For the Three Months Ended As of Sonesta ES Suites 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 3/31/2023 Fort Lauderdale, FL Capitalization: Selected Income Statement Data: Total common shares (at end of period) 165,44
Slide 9: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended March 31, 2023 2022 Revenues: Hotel operating revenues (1) $ 334,796 $ 297,406 Rental income (2) 94,413 96,358 Total revenues 429,209 393,764 Expenses: Hotel operating expenses (1)(3)
Slide 10: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except share data) March 31, 2023 December 31, 2022 ASSETS Real estate properties: Land $ 1,902,587 $ 1,902,587 Sonesta Select Los Angeles LAX Buildings, improvements and equipment 7,637,054 7,658,282 El Segundo, CA Total real estate prope
Slide 11: Debt Summary
Debt Summary As of March 31, 2023 (dollars in thousands) Weighted Average Principal Maturity Due at Years to (1) SVC is required to pay interest on borrowings under its revolving credit facility at a rate of Interest Rate Balance Date Maturity Maturity LIBOR plus a premium of 250 basis points per an
Slide 12: Debt Maturity Schedule
Debt Maturity Schedule As of March 31, 2023 1,250 $2 $2 1,000 $601 $2 $2 750 $ (Millions) $1,175 $1,150 500 $800 $850 250 $400 $425 $400 647 E. Main Street Pulaski, VA $1 0 2023 2024 2025 2026 2027 2028 2029 2030 (1) SVC's net lease mortgage notes are partially amortizing and (1) (2) require balloon
Slide 13: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Leverage Ratios: Net debt / total gross assets 53.6 % 54.1 % 54.2 % 52.3 % 51.7 % Net debt / gross book value of real estate assets and cash and cash equ
Slide 14: Capital Expenditures and Restricted Cash Activity
Capital Expenditures and Restricted Cash Activity (dollars in thousands) For the Three Months Ended Royal Sonesta Minneapolis 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Minneapolis, MN Capital Expenditures Hotel capital improvements & FF&E Reserve fundings (1) $ 21,773 $ 36,629 $ 22,841 $ 17
Slide 15: Property Acquisitions and Dispositions Information Since January 1, 2023
Property Acquisitions and Dispositions Information Since January 1, 2023 (dollars in thousands, except per room/sq. ft. data) ACQUISITIONS: Royal Sonesta Houston Galleria Houston, TX Property Purchase Average Purchase Price per Quarter Acquired Properties Type Brand Location Square Footage Price (1)
Slide 16: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 16
Slide 17: Portfolio Summary
Portfolio Summary As of March 31, 2023 (dollars in thousands) Number of Properties Hotel Properties 220 Number of hotel rooms 37,527 Net Lease Properties 765 Net lease square feet 13,319,743 Total Properties 985 Average hotel property size 171 rooms Royal Sonesta Boston Average net lease property si
Slide 18: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of March 31, 2023 (dollars in thousands) No. of Rooms/ Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 220 37,527 $ 5,938,703 53.8% 2. Travel Centers 180 5,136,654 3,352,096 30.3% 3. Restaurants-Quick Service
Slide 19: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of March 31, 2023 (dollars in thousands) Investments Royal Sonesta Dupont Circle Net Washington, D.C. Total Property Hotel Lease Hotel % Net Lease Net Lease State Count Count Count Total ($000s) % of Total Hotel ($000s) of Total ($000s) % of To
Slide 20: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of March 31, 2023 (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 21: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels 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 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Res
Slide 22: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) 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 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Resorts
Slide 23: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of March 31, 2023 (dollars in thousands) Percent of Percent of Total Total Annualized Annualized Rent 401 Vincennes Avenue Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage New Albany, IN 1. TravelCenters of America 133 3,643,581 $
Slide 24: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of March 31, 2023 (dollars in thousands) Percent of Total Percent of Annualized No. of Total Annualized Minimum Rent Industry Properties Square Feet Investment Investment Minimum Rent Rent Coverage 1. Travel Centers 180 5,136,654 $ 3,352,096 65.6% $ 249,357 67.4% 2
Slide 25: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of March 31, 2023 (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 26: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of March 31, 2023 (dollars in thousands) Percent of Total Cumulative % of Total Annualized Minimum Annualized Minimum Rent Annualized Minimum Year (1) Square Feet Rent Expiring Expiring Rent Expiring 2023 209,044 $ 1,560 0.4% 0.4% 2024 769,082 9,902 2.7%
Slide 27: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of March 31, 2023 As of and For the Three Months Ended 8331 South Holland Road 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Chicago, IL Properties (end of period) 765 765 769 775 786 Total square feet 13,319,743 13,374,325 13,412,371 13,406,568 13,515
Slide 28: Appendix
Appendix RETURN TO TABLE OF CONTENTS 28
Slide 29: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage Service Properties Trust, or SVC, is a real estate investment trust, or REIT, that owns hotels and service-focused retail net lease B. Riley Securities, Inc. Oppenheimer & Co. Inc. properties throughout the United States and
Slide 30: 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 Adam D. Portnoy Royal Sonesta Kaua'
Slide 31: 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, EBITDA, Hotel EBITDA, EBITDAre and Adjusted EBITDA
Slide 32: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) FF&E Reserve: Various percentages of total sales at certain of SVC's hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. SVC owns all the FF&E reserve escrows for its hotels. FF&E Reserve D
Slide 33: Calculation of FFO and Normalized FFO
Calculation of FFO and Normalized FFO (amounts in thousands, except per share data) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net income (loss) $ 25,950 $ (31,409) $ 7,500 $ 11,350 $ (119,822) Add (Less): Depreciation and amortization 100,039 94,961 101,514 100,52
Slide 34: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net income (loss) $ 25,950 $ (31,409) $ 7,500 $ 11,350 $ (119,822) Add (Less): Interest expense 81,580 77,891 81,740 89,820 92,344 Income tax (be
Slide 35: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Number of hotels 219 219 219 219 219 Room revenues $ 268,045 $ 273,896 $ 320,563 $ 318,037 $ 217,276 Food and beverage revenues 41,9
Slide 36: Calculation and Reconciliation of Hotel EBITDA - All Hotels
Calculation and Reconciliation of Hotel EBITDA - All Hotels* (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Number of hotels 220 238 242 247 298 Room revenues $ 275,267 $ 288,082 $ 341,106 $ 357,117 $ 258,620 Food and beverage revenues 42,245 45,
Slide 37: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollar in thousands) (1) As of March 31, 2023, SVC owned 220 hotels. SVC's condensed consolidated statements of income (loss) include hotel opera
Slide 38: 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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