Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q4 2021 Earnings Presentation
34 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Feb 24, 2022
Slide 1: Fourth Quarter 2021 Supplemental Operating and Financial Data
Royal Sonesta Chase Park Plaza St. Louis, MO FOURTH QUARTER 2021 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Royal Sonesta Kaua'i Resort Lihue Lihue, HI
Slide 2: Table of Contents
Supplemental Q4 2021 2 Table of Contents CORPORATE INFORMATION Company Profile ............................................................................................................................................................................................................ 3 Investor Infor
Slide 3: Company Profile
Supplemental Q4 2021 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 December 31, 2021): (dollars in 000s) Total prope
Slide 4: Investor Information
Supplemental Q4 2021 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
Slide 5: Research Coverage
Supplemental Q4 2021 5 Equity Research Coverage (1) B. Riley Securities, Inc. Janney Montgomery Scott Wells Fargo Securities Bryan Maher Tyler Batory Dori Kesten (646) 885-5423 (215) 665-4448 (617) 603-4233 bmaher@brileyfin.com tbatory@janney.com dori.kesten@wellsfargo.com Rating Agencies (1) Senior
Slide 6: Key Financial Data
Supplemental Q4 2021 6 As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Selected Balance Sheet Data: Total gross assets $ 12,434,974 $ 12,852,602 $ 12,845,383 $ 12,892,150 $ 11,967,429 Total assets $ 9,153,315 $ 9,334,831 $ 9,415,735 $ 9,514,515 $ 8,687,319 To
Slide 7: Consolidated Balance Sheets
Supplemental Q4 2021 7 December 31, 2021 2020 ASSETS Real estate properties: Land $ 1,918,385 $ 2,030,440 Buildings, improvements and equipment 8,307,248 9,131,832 Total real estate properties, gross 10,225,633 11,162,272 Accumulated depreciation (3,281,659) (3,280,110) Total real estate properties,
Slide 8: Consolidated Statements of Income (Loss)
Supplemental Q4 2021 8 Three Months Ended December 31, Year Ended December 31, 2021 2020 2021 2020 Revenues: Hotel operating revenues (1) $ 317,215 $ 174,520 $ 1,104,678 $ 875,098 Rental income (2) 104,160 95,523 390,902 390,156 Total revenues 421,375 270,043 1,495,580 1,265,254 Expenses: Hotel oper
Slide 9: Calculation of FFO and Normalized FFO
Supplemental Q4 2021 9 For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Net loss $ (198,793) $ (59,714) $ (91,110) $ (194,990) $ (137,740) $ (544,603) $ (311,382) Add (Less): Depreciation and amortization 115,757 124,163 121,677
Slide 10: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q4 2021 10 For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Net loss $ (198,793) $ (59,714) $ (91,110) $ (194,990) $ (137,740) $ (544,603) $ (311,382) Add (Less): Interest expense 92,494 92,458 91,378 89,391 82,811 3
Slide 11: Notes to Consolidated Statements of Income (Loss) and Calculations
Supplemental Q4 2021 11 Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA (dollar in thousands) RETURN TO TABLE OF CONTENTS (1) As of December 31, 2021, we owned 303 hotels. Our conso
Slide 12: Debt Summary
Supplemental Q4 2021 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
Slide 13: Debt Maturity Schedule
Supplemental Q4 2021 13 (1) Represents amounts outstanding under our $1.0 billion revolving credit facility at December 31, 2021. Subject to the payment of an extension fee and meeting certain other conditions, we may extend the maturity date of our credit facility by two additional six month period
Slide 14: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Supplemental Q4 2021 14 As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Leverage Ratios: Net debt / total gross assets 50.3 % 48.9 % 48.9 % 49.1 % 51.8 % Net debt / gross book value of real estate assets and cash and cash equivalents 51.9 % 50.8 % 50.7 % 51.0
Slide 15: Capital Expenditures and Restricted Cash
Supplemental Q4 2021 15 Capital Expenditures For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Hotel capital improvements & FF&E Reserve fundings (1) $ 30,010 $ 19,384 $ 24,167 $ 28,881 $ 32,153 Net lease capital improvements 402 403 227 156 265 Total capital improvement
Slide 16: Acquisitions and Dispositions
Supplemental Q4 2021 16 ACQUISITIONS: Square Footage Purchase Price (1) Average Purchase Price per Room or Suite / Square FootDate Acquired Properties Property Type Brand Location Operating Agreement 3/9/2021 — Land N/A Nashville, TN (2) N/A N/A $ 7,600 N/A DISPOSITIONS: Rooms or Suites/ Square Foot
Slide 17: Portfolio Summary
Supplemental Q4 2021 17 Number of Properties Hotel Properties 303 Number of hotel rooms 48,346 Net Lease Properties 788 Square feet 13,522,060 Total Properties 1,091 Average hotel property size 160 rooms Average net lease property size 17,160 sq. feet Investments Diversification Facts Hotels $ 6,930
Slide 18: Portfolio by Industry
Supplemental Q4 2021 18 Industry No. of Properties Rooms/ Square Footage Investments Percent of Total Investment 1. Hotels 303 48,346 $ 6,930,392 57.5% 2. Travel Centers 182 5,238,766 3,352,096 27.8% 3. Restaurants-Quick Service 227 739,749 301,528 2.5% 4. Restaurants-Casual Dining 53 415,547 192,17
Slide 19: Investments by State
Supplemental Q4 2021 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 $ 1,343,323 11.0 % $ 1,070,501 15.4 % $ 272,822 5.0 % Texas 93 34 59 1,055,278 9.0 % 517,370 7
Slide 20: Hotel Portfolio by Brand
Supplemental Q4 2021 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
Slide 21: Hotel Operating Statistics by Brand, Three Months
Supplemental Q4 2021 21 Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Service 24 7,821 53.6 % 27.1 % 26.
Slide 22: Hotel Operating Statistics by Brand, Year
Supplemental Q4 2021 22 All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Includes operating data for periods prior to when certain hotels
Slide 23: Hotel Operating Statistics by Brand, Three Months (Full Portfolio)
Supplemental Q4 2021 23 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (2) Full Service 25 8,040 53.6 % 27.1 % 26.
Slide 24: Hotel Operating Statistics by Brand, Year (Full Portfolio)
Supplemental Q4 2021 24 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Year Ended December 31, Year Ended December 31, Year Ended December 31, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (2) Full Service 25 8,040 47.3 % 33.3 % 14.0 pts $ 128.25 $ 122.18
Slide 25: Comparable Hotels Operating Results
Supplemental Q4 2021 25 (dollars in thousands) Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/21 12/31/20 Number of hotels 298 298 298 298 298 280 280 Room revenues $ 263,312 $ 288,188 $ 241,931 $ 147,915 $ 150,226 $ 812,506 $ 656,990 Food and beverag
Slide 26: Hotel Operating Results and Hotel EBITDA
Supplemental Q4 2021 26 (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 12/31/2021 12/31/2020 Number of hotels 303 304 310 310 329 303 285 Room revenues $ 272,458 $ 298,607 $ 248,618 $ 152,728 $ 159,022 $ 972,411 $ 773,572 Food
Slide 27: Net Lease Portfolio by Brand
Supplemental Q4 2021 27 Brand No. of Buildings Square Feet Investment (1) 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 44.6 % $ 168,012 45.4 % 2.26x 2. Petro Stopping Centers 45 1,470,
Slide 28: Net Lease Portfolio by Industry
Supplemental Q4 2021 28 Industry No. of Buildings Square Feet Investment (1) 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 65.3% $ 249,293 67.5% 2.20x 2. Restaurants-Quick Service 227 739,749 301
Slide 29: Net Lease Portfolio by Tenant
Supplemental Q4 2021 29 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
Slide 30: Net Lease Lease Expiration Schedule
Supplemental Q4 2021 30 Year (1) Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2022 384,823 2,939 0.8% 0.8% 2023 317,732 2,902 0.8% 1.6% 2024 779,371 11,639 3.1% 4.7% 2025 434,358 8,903 2.4% 7.1%
Slide 31: Net Lease Portfolio Occupancy Summary
Supplemental Q4 2021 31 As of and For the Three Months Ended 12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020 Properties (end of period) 788 794 796 798 799 Total square feet 13,522,060 13,574,656 13,587,068 13,598,892 13,601,689 Square feet leased 13,266,385 13,332,049 13,380,458 13,398,223 13,4
Slide 32: Non-GAAP Financial Measures
Supplemental Q4 2021 32 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
Slide 33: Definitions and Terms
Supplemental Q4 2021 33 Debt: Debt amounts reflect the principal balance as of the date reported. Net debt means total debt less unrestricted cash and cash equivalents as of the date reported. FF&E Reserve: Various percentages of total sales at certain of our hotels are escrowed as reserves for futu
Slide 34: Warning Concerning Forward-Looking Statements
Supplemental Q4 2021 34 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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