Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q2 2020 Earnings Presentation
36 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, 2020
Slide 1: Service Properties Trust Second Quarter 2020 Supplemental Operating and Financial Data
SVC Service Properties Trust Nasdaq Listed Second Quarter 2020 Supplemental Operating and Financial Data Bridgestone 201 Perimeter Center Parkway Atlanta, GA All amounts in this report are unaudited.
Slide 2: Table of Contents
Table of Contents (1) CORPORATE INFORMATION Company Profile 4 Investor Information 5 Research Coverage 6 FINANCIALS Key Financial Data 8 Condensed Consolidated Balance Sheets 9 Condensed Consolidated Statements of Income 10 Notes to Condensed Consolidated Statements of Income 11 Debt Summary 12 Debt
Slide 3: Corporate Information
Corporate Information Kaua'i Marriott Resort 8610 Rice Street Hawaii SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, June 30, 2020 3
Slide 4: Company Profile
Company Profile Corporate Headquarters: The Company: Service Properties Trust, or SVC, we, our or us, is a real estate investment trust, or REIT, which owns a diverse portfolio of Two Newton Place hotels and net lease service and necessity-based retail properties across the United States and in Puer
Slide 5: Investor Information
Investor Information 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 6: Research Coverage
Research Coverage Equity Research Coverage B. Riley | FBR Janney Montgomery Scott Wells Fargo Securities Bryan Maher Tyler Batory Dori Kesten (646) 885-5423 (215) 665-4448 (617) 603-4233 bmaher@fbr.com tbatory@janney.com dori.kesten@wellsfargo.com Debt Research Coverage Wells Fargo Securities Thierr
Slide 7: Financials
FINANCIALS Residence Inn 9845 Gateway Drive Reno, NV SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, June 30, 2020 7
Slide 8: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and For the Three Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Selected Balance Sheet Data: Total gross assets $ 12,026,904 $ 12,206,842 $ 12,154,728 $ 12,602,187 $ 10,204,219 Total assets $ 8,879,545 $ 8,996,6
Slide 9: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) As of June 30, 2020 As of December 31, 2019 ASSETS Real estate properties: Land $ 2,033,292 $ 2,066,602 Buildings, improvements and equipment 9,113,157 9,318,434 Total real estate properties, gross 11,146,449 11,385,
Slide 10: Condensed Consolidated Statements of Income
Condensed Consolidated Statements of Income (dollars in thousands, except per share data) For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Hotel operating revenues (1) $ 117,356 $ 541,215 $ 500,859 $ 996,078 Rental income (2) 97,584 68,217 197,656 1
Slide 11: Notes to Condensed Consolidated Statements of Income
Notes to Condensed Consolidated Statements of Income (dollar amounts in thousands, except share data) (1) As of June 30, 2020, we owned 329 hotels; 328 of these hotels were managed by hotel operating companies and one hotel was leased to a hotel operating company. Our condensed consolidated statemen
Slide 12: Debt Summary
Debt Summary As of June 30, 2020 (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Floating Rate Debt: $1,000,000 revolving credit facility (1) (2) (5) 1.850% $ 33,127 7/15/22 $ 33,127 2.0 $400,000 term loan (2) (3) (5) 2.931% 400,000 7/15/23 400,
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule As of June 30, 2020 1,400 1,200 1,000 $ (Millions) 800 $400 600 $33 $1,175 $1,150 400 $800 $500 $500 200 $400 $400 $425 $400 $50 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Fixed rate bonds Revolving Credit Facility (1) (2) Term loan (2) (3) (1) Represents amounts
Slide 14: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and For the Three Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Leverage Ratios: Net debt / total gross assets 51.7% 50.4% 50.2% 51.8% 40.4% Net debt / gross book value of real estate assets 54.1% 52.0% 52.0% 56.0% 42
Slide 15: Capital Expenditure and Restricted Cash Activity
Capital Expenditure and Restricted Cash Activity (dollars in thousands) Capital Expenditures For the Three Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 Hotel capital improvements & FF&E Reserve fundings (1) $ 39,085 $ 35,015 $ 119,380 $ 36,335 $ 42,612 Net lease capital improvemen
Slide 16: Property Acquisition and Disposition Information Since January 1, 2020
Property Acquisition and Disposition Information Since January 1, 2020 (dollars in thousands except per room and per sq. ft. data) ACQUISITIONS: Number of Rooms or Suite (Hotels) / Average Purchase Square Footage Purchase Price per Room or Date Acquired Properties Brand Location (Net Lease) Operatin
Slide 17: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (in thousands) For the Three Months Ended For the Six Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 6/30/2020 6/30/2019 Net income (loss) $ (37,349) $ (33,650) $ (14,893) $ 40,074 $ 8,782 $ (70,999) $ 234,569 Add (Less): Interes
Slide 18: Calculation of FFO and Normalized FFO
Calculation of FFO and Normalized FFO (amounts in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 6/30/2020 6/30/2019 Net income (loss) $ (37,349) $ (33,650) $ (14,893) $ 40,074 $ 8,782 $ (70,999) $ 234,569 Add
Slide 19: Portfolio Information
PORTFOLIO INFORMATION Mister Car Wash 3101 Coors Blvd., NW Albuquerque, NM SERVICE PROPERTIES TRUST | Supplemental Operating and Financial Data, June 30, 2020 19
Slide 20: Portfolio Summary
Portfolio Summary As of June 30, 2020 (1) (dollars in thousands) Portfolio composition Number of Properties Hotel Properties 329 Net Lease Properties 809 Total Properties 1,138 Diversification Facts Net lease: 38.4% Tenants/Operators 186 Brands 149 Hotel: 61.6% Industries 23 States (2) 47 Investment
Slide 21: Consolidated Portfolio by Brand Affiliation
Consolidated Portfolio by Brand Affiliation As of June 30, 2020 (dollars in thousands) Percent of Total Number of Percent of Number of Rooms or Rooms or Suites Percent of Total Suites (Hotels) / (Hotels) / Square Percent of Investment Total Annual Number of Number of Square Footage Footage Total Per
Slide 22: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of June 30, 2020 (dollars in thousands) Percent of Total Annualized No. of Rooms/ Percent of Total Annual Minimum Minimum Industry Properties Square Footage Investments (1) Investment Return/ Rent (1) Return/Rent 1. Hotels 329 51,404 $ 7,061,740
Slide 23: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of June 30, 2020 (dollars in thousands) Percent of Percent of Number of Total Number Percent of Investment Number of Total Number Rooms or of Rooms or Total Hotel Per Room or Brand Manager Hotels of Hotels Suites Suites Investment Investment Suite Courtyard by Marriott® M
Slide 24: Hotel Operating Agreement Information
Hotel Operating Agreement Information IHG - We lease 102 IHG branded hotels (20 Staybridge Suites®, 61 Candlewood Suites®, two InterContinental®, 11 Crowne Plaza®, three Holiday Inn® and five Kimpton® Hotels & Restaurants) in 30 states in the U.S., the District of Columbia and Ontario, Canada to one
Slide 25: Hotel Operating Agreement Information
Hotel Operating Agreement Information Sonesta - We lease our 53 Sonesta branded hotels (seven Royal Sonesta® Hotels, seven Sonesta Hotels & Resorts® and 39 Sonesta ES Suites® hotels) in 26 states to certain of our TRSs. The hotels are managed by a subsidiary of Sonesta under management agreements wh
Slide 26: Hotel Operating Statistics by Operating Agreement (Comparable Hotels)
Hotel Operating Statistics by Operating Agreement (Comparable Hotels(1)) For the Three Months Ended June 30, For the Six Months Ended June 30, No. of No. of Rooms or No. of No. of Rooms Hotels (1) Suites 2020 2019 Change Hotels (1) or Suites 2020 2019 Change ADR IHG 95 15,013 $ 76.18 $ 118.83 (35.9%
Slide 27: Hotel Operating Statistics by Operating Agreement
Hotel Operating Statistics by Operating Agreement No. of Rooms or For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 No. of Hotels Suites 2020 2019 Change 2020 2019 Change ADR IHG (1) (2) 103 17,154 $ 76.44 $ 125.17 (38.9%) $ 99.80 $ 124.01 (19.5%) Marriott (1) 122 17,085 103
Slide 28: Hotel Coverage by Operating Agreement
Hotel Coverage by Operating Agreement (1) Number of For the Twelve Months Ended Operating Agreement Properties 6/30/2020 3/31/2020 12/31/2019 9/30/2019 6/30/2019 IHG (1) 103 0.50x 0.80x 0.91x 0.89x 0.97x Marriott (1) 122 0.52x 0.92x 1.06x 1.08x 1.10x Sonesta (1) 53 0.04x 0.38x 0.54x 0.59x 0.64x Hyat
Slide 29: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of June 30, 2020 (dollars in thousands) Percent of Percent of Total Total Annualized Annualized Brand No. of Buildings Investment (1) Investment Minimum Rent (1) Minimum Rent Coverage 1. TravelCenters of America 134 $ 2,281,589 43.8% $ 168,012 45.5% 1.95x 2. Petro Sto
Slide 30: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of June 30, 2020 (dollars in thousands) Percent of Total Percent of Total Annualized Annualized Industry No. of Buildings Investment (1) Investment Minimum Rent (1) Minimum Rent Coverage 1. Travel Centers 182 $ 3,344,496 64.2% $ 249,261 67.5% 1.85x 2. Restaurants-Q
Slide 31: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of June 30, 2020 (dollars in thousands) Percent of Total Percent of Total Annualized Annualized Tenant Brand Affiliation No. of Buildings Investment (1) Investment Minimum Rent (1) Minimum Rent Coverage TravelCenters of America / 1. TravelCenters of America
Slide 32: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of June 30, 2020 (dollars in thousands) Cumulative % of Total Annualized Minimum Rent Percent of Total Annualized Annualized Minimum Rent Year (1) Square Feet Expiring (2) Minimum Rent Expiring Expiring 2020 166,158 $ 2,555 0.7% 0.7% 2021 555,447 5,852 1.
Slide 33: Net Lease Portfolio - Occupancy and Leasing Summary
Net Lease Portfolio - Occupancy and Leasing Summary (dollars in thousands) As of and For the Three Months Ended 6/30/2020 3/31/2020 12/31/2019 9/30/2019 Properties (end of period) 809 813 816 946 Total square feet 13,728,893 14,511,567 14,886,967 17,563,459 Square feet leased 13,548,122 14,262,947 1
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 (continued)
Non-GAAP Financial Measures and Certain Definitions (continued) Coverage: We define hotel coverage as total hotel revenues minus all hotel expenses and FF&E reserve escrows that are not subordinated to minimum returns due to us divided by the minimum returns or rents due to us. Coverage amounts incl
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,” “
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