Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q3 2019 Earnings Presentation
36 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Nov 8, 2019
Slide 1: Third Quarter 2019 Supplemental Operating and Financial Data
Service Properties Trust SVC Nasdaq Listed Third Quarter 2019 Exhibit 99.2 Supplemental Operating and Financial Data Sonesta Suites Scottsdale Gainey Ranch Scottsdale, AZ Operator: Sonesta International Hotels Corporation Guest Rooms: 164 All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE CORPORATE INFORMATION 3 Company Profile 4,5 Investor Information 6 Research Coverage 7 FINANCIALS Key Financial Data 9 Condensed Consolidated Balance Sheets 10 Condensed Consolidated Statements of Income 11 Notes to Condensed Consolidated Statements of Income 12 TABLE OF CONTE
Slide 3: Corporate Information
CORPORATE INFORMATION Kimpton Hotel Palomar Washington, D.C. Operator: InterContinental Hotels Group Guest Rooms: 335Service Properties Trust Supplemental Operating and Financial Data, September 30, 2019
Slide 4: Company Profile
COMPANY PROFILE Corporate Headquarters: The Company: Service Properties Trust (formerly known as Hospitality Properties Trust), or SVC, we, our, or us, is a real estate Two Newton Place investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based reta
Slide 5: Company Profile: Portfolio Composition
COMPANY PROFILE As of September 30, 2019 (dollars in thousands) Portfolio composition (1) Number of Properties Hotel Properties 328 Net Lease Properties 946 Total Properties 1,274 COMPANY PROFILE COMPANY Diversification Facts Tenants/Operators 286 Brands 185 Net lease: 41.0% Industries 24 States (2)
Slide 6: Investor Information
INVESTOR INFORMATION Board of Trustees Donna D. Fraiche John L. Harrington William A. Lamkin Independent Trustee Lead Independent Trustee Independent Trustee John G. Murray Adam D. Portnoy Managing Trustee Chair of the Board & Managing Trustee INVESTOR INFORMATION INVESTOR Senior Management John G.
Slide 7: Research Coverage
RESEARCH COVERAGE Equity Research Coverage B. Riley | FBR Janney Montgomery Scott Stifel Nicolaus Bryan Maher Tyler Batory Simon Yarmak (646) 885-5423 (215) 665-4448 (443) 224-1345 bmaher@fbr.com tbatory@janney.com yarmaks@stifel.com Wells Fargo Securities Dori Kesten RESEARCH COVERAGE (617) 603-423
Slide 8: Financials
FINANCIALS InterContinental Atlanta Perimeter (Ravinia) Atlanta, GA Operator: InterContinentalService Properties Hotels Trust Group Guest Rooms: 495Supplemental Operating and Financial Data, September 30, 2019
Slide 9: Key Financial Data
KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Selected Balance Sheet Data: Total gross assets (1) $ 12,602,187 $ 10,204,219 $ 10,235,599 $ 10,150,463 $ 10,250,294 Total assets $ 9,515,503 $ 7,1
Slide 10: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) As of September 30, As of December 31, 2019 2018 ASSETS Real estate properties: Land $ 2,062,776 $ 1,626,239 Buildings, improvements and equipment 9,237,760 7,896,734 Total real estate properties, gross 11,300,536
Slide 11: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Revenues: Hotel operating revenues (1) $ 525,290 $ 520,618 $ 1,521,368 $ 1,494,283 Rental income (2) 73,619 81,32
Slide 12: Notes to Condensed Consolidated Statements of Income
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollar amounts in thousands, except share data) (1) As of September 30, 2019, we owned 328 hotels; 326 of these hotels were managed by hotel operating companies and two hotels were leased to hotel operating companies. As of September 30, 2019, we
Slide 13: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Nine Months Ended September 30, 2019 2018 Cash flows from operating activities: Net income $ 274,643 $ 294,594 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 301,721 30
Slide 14: Debt Summary
DEBT SUMMARY As of September 30, 2019 (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Unsecured Floating Rate Debt: $1,000,000 unsecured revolving credit facility (1) (2) 2.916% $ 790,000 7/15/22 $ 790,000 2.8 $400,000 unsecured term loan (2) (3
Slide 15: Debt Maturity Schedule
DEBT MATURITY SCHEDULE As of September 30, 2019 (dollars in thousands) Unsecured Unsecured Floating Fixed Year Rate Debt Rate Debt Total (3) 2019 $ — — $ — 2020 — — — 2021 — 400,000 400,000 2022 790,000 (1) 500,000 1,290,000 2023 400,000 (2) 500,000 900,000 2024 — 1,175,000 1,175,000 2025 — 350,000
Slide 16: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Leverage Ratios: Net debt (1) / total gross assets (2) 51.8% 40.4% 40.7% 41.4% 40.7% Net debt (1) / gross book value of real estate assets (3) 56.0% 42.4
Slide 17: Restricted Cash Activity
RESTRICTED CASH ACTIVITY (1) (dollars in thousands) As of and For the Three Months Ended 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Total restricted cash (beginning of period) $ 37,792 $ 75,129 $ 50,037 $ 65,644 $ 73,279 Manager deposits 46,618 21,484 11,335 20,213 18,353 SVC fundings (2): M
Slide 18: Property Acquisition and Disposition Information Since January 1, 2019
PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2019 (dollars in thousands except per room and per sq. ft. data) ACQUISITIONS: Number of Average Rooms or Purchase Suites (Hotels) / Price per Date Square Footage Operating Purchase Room or Suite / Acquired Properties Brand Location (
Slide 19: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
re CALCULATION OF EBITDA, EBITDAre AND ADJUSTED EBITDAre (1) (in thousands) For the Nine Months Ended For the Three Months Ended September 30, 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 2019 2018 Net income (loss) $ 40,074 $ 8,782 $ 225,787 $ (108,860) $ 117,099 $ 274,643 $ 294,594 Add (Less
Slide 20: Calculation of FFO and Normalized FFO
CALCULATION OF FFO AND NORMALIZED FFO (1) (amounts in thousands, except share data) For the Nine Months Ended For the Three Months Ended September 30, 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 2019 2018 Net income (loss) $ 40,074 $ 8,782 $ 225,787 $ (108,860) $ 117,099 $ 274,643 $ 294,594 A
Slide 21: Portfolio Information
PORTFOLIO INFORMATION Petro Travel Center, 2154 S. Beltline Boulevard I-77, Exit 5 Columbia, SC Operator: TravelCenters of America Service Properties Trust Supplemental Operating and Financial Data, September 30, 2019
Slide 22: Consolidated Portfolio by Brand Affiliation
CONSOLIDATED PORTFOLIO BY BRAND AFFILIATION As of September 30, 2019 (dollars in thousands except per room and sq. ft. data) Percent of Total Number of Percent of Percent of Number of Rooms Rooms or Suites Total HOTEL PORTFOLIO BY OPERATING AGREEMENT AND MANAGER Total or Suites (Hotels) / (Hotels) /
Slide 23: Consolidated Portfolio Diversification by Industry
CONSOLIDATED PORTFOLIO DIVERSIFICATION BY INDUSTRY As of September 30, 2019 (dollars in thousands) Percent of Total Annualized No. of Rooms/ Percent of Total Annual Minimum Minimum Industry Properties Square Footage Investments (1) (2) Investment Return/ Rent (1) (2) Return/Rent 1. Hotels 328 51,086
Slide 24: Hotel Portfolio by Operating Agreement and Manager
HOTEL PORTFOLIO BY OPERATING AGREEMENT AND MANAGER As of September 30, 2019 (dollars in thousands) Percent of Percent of Total Total Hotel Number of Number of Percent of Percent of Investment Annual Annual Hotel Hotel Number of Rooms Total Number of Total Hotel Per Minimum Minimum By Operating Agree
Slide 25: Hotel Portfolio by Brand
HOTEL PORTFOLIO BY BRAND As of September 30, 2019 (dollars in thousands) Percent of Total Number of Percent of Percent of Investment Number of Number of Rooms or Total Number of Total Hotel Per Brand Manager Hotels Hotels Suites Rooms or Suites Investment (1) Investment Room or Suite Courtyard by Ma
Slide 26: Hotel Operating Agreement Information
HOTEL OPERATING AGREEMENT INFORMATION As of September 30, 2019 (dollars in thousands) Marriott No. 1 - We lease 53 Courtyard by Marriott® branded hotels in 24 states to one of our taxable REIT subsidiaries, or TRSs. The hotels are managed by a subsidiary of Marriott under a combination management ag
Slide 27: Hotel Operating Agreement Information
HOTEL OPERATING AGREEMENT INFORMATION As of September 30, 2019 (dollars in thousands) Sonesta - We lease our 51 Sonesta branded hotels (six Royal Sonesta® Hotels, six Sonesta Hotels & Resorts® and 39 Sonesta ES Suites® hotels) in 26 states to one of our TRSs. The hotels are managed by Sonesta under
Slide 28: Hotel Operating Statistics by Operating Agreement
HOTEL OPERATING STATISTICS BY OPERATING AGREEMENT No. of For the Three Months Ended For the Nine Months Ended No. of Rooms or September 30, September 30, Hotels Suites 2019 2018 Change 2019 2018 Change ADR Marriott (no. 1) 53 7,609 $ 132.70 $ 132.67 —% $ 134.27 $ 132.19 1.6% Marriott (no. 234) 68 9,
Slide 29: Hotel Coverage by Operating Agreement
HOTEL COVERAGE BY OPERATING AGREEMENT (1) Number of For the Twelve Months Ended Operating Agreement Properties 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Marriott (no. 1) 53 1.16x 1.18x 1.19x 1.20x 1.20x Marriott (no. 234) 68 1.04x 1.06x 1.08x 1.09x 1.10x Marriott (no. 5) 1 1.01x 0.97x 1.03x
Slide 30: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of September 30, 2019 (dollars in thousands) Percent of Total Percent of Total Annualized Minimum Annualized Brand No. of Buildings Investment (1) (2) Investment Rent (1) (2) Minimum Rent Coverage (1) (4) 1. TravelCenters of America 134 $ 2,281,589 39.3% $ 167,990 40.
Slide 31: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of September 30, 2019 PORTFOLIO BY BRAND - NET LEASE (dollars in thousands) As of September 30, 2019 (dollars in thousands) Percent of Total Number of Percent of Percent of Total Annualized Annualized Industry No. of Buildings Investment (1) (2) Investment Minimum
Slide 32: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of September 30, 2019 (dollars in thousands) PORTFOLIO BY BRAND - NET LEASE As of September 30, 2019 Percent of Total (dollars in thousands) Percent of Total Annualized Annualized Tenant Brand Affiliation No. of Buildings Investment (1) (2) Investment Minimu
Slide 33: Net Lease Portfolio Expiration Schedule
NET LEASE PORTFOLIO - EXPIRATION SCHEDULE As of 9/30/2019 (dollars in thousands) Percent of Total Cumulative % of Square Annualized Minimum Annualized Minimum Total Minimum Year(1) Feet Rent Expiring (2) Rent Expiring Rent Expiring 2019 215,102 $ 1,313 0.3% 0.3% 2020 482,492 6,799 1.6% 1.9% 2021 708
Slide 34: Non-GAAP Financial Measures and Certain Definitions
NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Non-GAAP Financial Measures We present certain “non-GAAP financial measures” within the meaning of applicable Securities and Exchange Commission, or SEC, rules, including EBITDA, EBITDAre, Adjusted EBITDAre, FFO and Normalized FFO. These measures d
Slide 35: Non-GAAP Financial Measures and Certain Definitions
NON-GAAP FINANCIAL MEASURES AND CERTAIN DEFINITIONS Minimum Return/Rent Each of our management agreements or leases with hotel operators provides for payment to us of an annual minimum return or minimum rent, respectively. Certain of these minimum payment amounts are secured by full or limited guara
Slide 36: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements 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”, “
Service Properties Trust — Q3 2019 Earnings Presentation on 6ix