Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q1 2021 Earnings Presentation
32 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, May 10, 2021
Slide 1: First Quarter 2021 Supplemental Operating and Financial Data
Royal Sonesta Chase Park Plaza St. Louis, MO FIRST QUARTER 2021 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2
Slide 2: Table of Contents
Supplemental Q1 2021 2 Table of Contents CORPORATE INFORMATION Company Profile............................................................................................................................................................................................. 3 Investor Information..........
Slide 3: Company Profile
Supplemental Q1 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 March 31, 2021): (dollars in 000s) Total properti
Slide 4: Investor Information
Supplemental Q1 2021 4 Board of Trustees Laurie B. Burns Robert E. Cramer Donna D. Fraiche Independent Trustee Independent Trustee Independent Trustee John L. Harrington William A. Lamkin John G. Murray Lead Independent Trustee Independent Trustee Managing Trustee Adam D. Portnoy Chair of the Board
Slide 5: Research Coverage
Supplemental Q1 2021 5 Equity Research Coverage (1) B. Riley Securities, Inc. BTIG Janney Montgomery Scott Wells Fargo Securities Bryan Maher James Sullivan Tyler Batory Dori Kesten (646) 885-5423 (212) 738-6139 (215) 665-4448 (617) 603-4233 bmaher@brileyfin.com jsullivan@btig.com tbatory@janney.com
Slide 6: Key Financial Data
Supplemental Q1 2021 6 As of and For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Selected Balance Sheet Data: Total gross assets $ 12,892,150 $ 11,967,429 $ 12,009,267 $ 12,026,904 $ 12,206,842 Total assets $ 9,514,515 $ 8,687,319 $ 8,796,673 $ 8,879,545 $ 8,996,623 Tot
Slide 7: Condensed Consolidated Balance Sheets
Supplemental Q1 2021 7 March 31, 2021 December 31, 2020 ASSETS Real estate properties: Land $ 2,037,534 $ 2,030,440 Buildings, improvements and equipment 9,152,881 9,131,832 Total real estate properties, gross 11,190,415 11,162,272 Accumulated depreciation (3,377,635) (3,280,110) Total real estate p
Slide 8: Condensed Consolidated Statements of Income (Loss)
Supplemental Q1 2021 8 Three Months Ended March 31, 2021 2020 Revenues: Hotel operating revenues (1) $ 168,953 $ 383,503 Rental income (2) 92,217 100,273 Total revenues 261,170 483,776 Expenses: Hotel operating expenses (1)(3)(9)(11)(13) 214,987 271,148 Other operating expenses 3,417 3,759 Depreciat
Slide 9: Calculation of FFO and Normalized FFO
Supplemental Q1 2021 9 For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net loss $ (194,990) $ (137,740) $ (102,642) $ (37,349) $ (33,650) Add (Less): Depreciation and amortization 124,368 121,351 122,204 127,427 127,926 Loss on asset impairment (4) 1,211 254 10,248 28,5
Slide 10: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q1 2021 10 For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Net loss $ (194,990) $ (137,740) $ (102,642) $ (37,349) $ (33,650) Add (Less): Interest expense 89,391 82,811 80,532 72,072 71,075 Income tax expense (benefit) (10) 853 505 (296) 16,660 342 Deprecia
Slide 11: Notes to Condensed Consolidated Statements of Income (Loss)
Supplemental Q1 2021 11 (1) As of March 31, 2021, we owned 310 hotels; 305 of these hotels were managed by hotel operating companies. We have entered into an agreement to sell five hotels and we have entered into a short term lease of these properties with the buyer in anticipation of the sale. Our
Slide 12: Debt Summary
Supplemental Q1 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 Q1 2021 13 (1) Represents amounts outstanding under our $1.0 billion revolving credit facility at March 31, 2021. Debt Maturity Schedule As of March 31, 2021 RETURN TO TABLE OF CONTENTS (1) $1,000
Slide 14: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Supplemental Q1 2021 14 As of and For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Leverage Ratios: Net debt / total gross assets 49.1 % 51.8 % 51.9 % 51.7 % 50.4 % Net debt / gross book value of real estate assets 51.0 % 53.7 % 54.4 % 54.1 % 52.0 % Secured debt/ total a
Slide 15: Capital Expenditures and Restricted Cash
Supplemental Q1 2021 15 Capital Expenditures For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Hotel capital improvements & FF&E Reserve fundings (1) $ 28,881 $ 32,153 $ 29,874 $ 39,085 $ 35,015 Net lease capital improvements 156 265 18 221 4,179 Total capital improvement
Slide 16: Property Acquisitions and Dispositions Information
Supplemental Q1 2021 16 ACQUISITIONS: Square Footage Purchase Price (1) Average Purchase Price per Room or Suite / Square FootDate Acquired Properties Brand Location Operating Agreement 3/9/2021 — N/A Nashville, TN (2) N/A N/A $ 7,600 N/A DISPOSITIONS: Rooms or Suites/ Square Footage Former Operatin
Slide 17: Portfolio Summary
Supplemental Q1 2021 17 Number of Properties Hotel Properties 310 Number of hotel rooms 49,015 Net Lease Properties 798 Square feet 13,452,608 Total Properties 1,108 Average hotel property size 158 rooms Average net lease property size 16,858 sq. feet Investments Diversification Facts Hotels $ 6,990
Slide 18: Portfolio by Brand Affiliation and Segment
Supplemental Q1 2021 18 Brand Affiliation Segment Number of Properties Percent of Total Number of Properties Number of Rooms or Suites (Hotels) / Square Footage (Net Lease) Percent of Total Number of Rooms or Suites (Hotels) / Square Footage (Net Lease) Investment (1) Percent of Total Investment Inv
Slide 19: Portfolio by Industry
Supplemental Q1 2021 19 Industry No. of Properties Rooms/ Square Footage Investments (1) Percent of Total Investment 1. Hotels 310 49,015 $ 6,990,630 57.5% 2. Travel Centers 182 5,238,765 3,352,096 27.6% 3. Restaurants-Quick Service 230 636,087 305,949 2.5% 4. Restaurants-Casual Dining 59 412,762 21
Slide 20: Hotel Portfolio by Brand
Supplemental Q1 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: Comparable Hotels
Supplemental Q1 2021 21 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 22: Hotel Operating Statistics by Brand
Supplemental Q1 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 EBITDA: Comparable Hotels
Supplemental Q1 2021 23 (dollars in thousands) For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Number of hotels 304 304 304 304 304 Room revenues $ 149,850 $ 152,602 $ 173,594 $ 104,018 $ 305,920 Food and beverage revenues 7,383 7,566 6,552 2,352 45,250 Other revenues 7
Slide 24: Hotel EBITDA
Supplemental Q1 2021 24 (dollars in thousands) For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Number of hotels 310 310 329 329 329 Room revenues $ 152,728 $ 159,022 $ 182,366 $ 109,516 $ 322,668 Food and beverage revenues 8,172 7,911 6,786 2,411 49,722 Other revenues 8
Slide 25: Net Lease Portfolio by Brand
Supplemental Q1 2021 25 Brand No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent (1) Percent of Total Annualized Minimum Rent Coverage 1. TravelCenters of America 134 3,720,693 $ 2,289,189 44.3 % $ 168,012 44.7 % 2.01x 2. Petro Stopping Centers 45 1,470,0
Slide 26: Net Lease Portfolio by Industry
Supplemental Q1 2021 26 Industry No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent (1) Percent of Total Annualized Minimum Rent Coverage 1. Travel Centers 182 5,238,765 $ 3,352,096 64.9% $ 249,293 66.3% 1.93x 2. Restaurants-Quick Service 230 636,087 305,
Slide 27: Net Lease Portfolio by Tenant
Supplemental Q1 2021 27 Tenant Brand Affiliation No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent (1) Percent of Total Annualized Minimum Rent Weighted Average Lease Term Coverage 1. TravelCenters of America Inc. TravelCenters of America / Petro Stoppin
Slide 28: Net Lease Lease Expiration Schedule
Supplemental Q1 2021 28 Year (1) Square Feet Annualized Minimum Rent Expiring (2) Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2021 319,951 3,305 0.9% 0.9% 2022 317,105 4,428 1.2% 2.1% 2023 320,423 3,978 1.1% 3.2% 2024 787,547 11,602 3.1% 6
Slide 29: Net Lease Portfolio - Occupancy Summary
Supplemental Q1 2021 29 As of and For the Three Months Ended 3/31/2021 12/31/2020 9/30/2020 6/30/2020 3/31/2020 Properties (end of period) 798 799 804 809 813 Total square feet 13,452,608 13,455,405 13,682,477 13,728,893 14,511,567 Square feet leased 13,251,939 13,284,343 13,424,005 13,548,122 14,26
Slide 30: Non-GAAP Financial Measures
Supplemental Q1 2021 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 FFO, EBITDA, Hotel EBITDA, Adjusted Hotel EBITDA, EBITDAre and Adjusted EBITDAre. The
Slide 31: Coverage Definitions
Supplemental Q1 2021 31 Coverage: We define net lease coverage as earnings before interest, taxes, depreciation, amortization and rent, or EBITDAR, divided by the annual minimum rent due to us weighted by the minimum rent of the property to total minimum rents of the net lease portfolio. EBITDAR amo
Slide 32: Forward-Looking Statements
Supplemental Q1 2021 32 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
Service Properties Trust — Q1 2021 Earnings Presentation on 6ix