Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC

Service Properties Trust - Shares Of Beneficial Interest — Hospitality Properties Trust — Q4 2014 Earnings Presentation

34 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Feb 27, 2015

  1. Slide 1: Hospitality Properties Trust Fourth Quarter 2014 Supplemental Operating and Financial Data

    Exhibit 99.2 Hospitality Properties Trust Fourth Quarter 2014 Supplemental Operating and Financial Data Courtyard, Camarillo, CA Operator: Marriott International, Inc. Guest Rooms: 130 All amounts in this report are unaudited.

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS TABLE OF CONTENTS PAGE/EXHIBIT CORPORATE INFORMATION 6 Company Profile 7,8 Investor Information 9 Research Coverage 10 FINANCIAL INFORMATION 11 Key Financial Data 12,13 Consolidated Balance Sheets 14 Consolidated Statements of Income 15 Notes to Consolidated Statements of Income 16

  3. Slide 3: Warning Concerning Forward Looking Statements

    WARNING CONCERNING FORWARD LOOKING STATEMENTS WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTH

  4. Slide 4: Forward Looking Statements (continued)

    FORWARD LOOKING STATEMENTS (continued) x THE SECURITY DEPOSITS WHICH WE HOLD ARE NOT IN SEGREGATED CASH ACCOUNTS OR OTHERWISE SEPARATE FROM OUR OTHER ASSETS AND LIABILITIES. ACCORDINGLY, WHEN WE RECORD INCOME BY REDUCING OUR SECURITY DEPOSIT LIABILITIES, WE DO NOT RECEIVE ANY ADDITIONAL CASH PAYMENT

  5. Slide 5: Forward Looking Statements (continued)

    FORWARD LOOKING STATEMENTS (continued) x CONTINGENCIES IN OUR PROPERTY ACQUISITION AND SALE AGREEMENTS MAY CAUSE OUR PENDING ACQUISITIONS OR SALES NOT TO OCCUR OR TO BE DELAYED OR THE TERMS OF SUCH TRANSACTIONS TO BE CHANGED, x WE MAY BE UNABLE TO SELL PROPERTIES WE MAY CONSIDER SELLING FOR NET PROC

  6. Slide 6: Corporate Information

    CORPORATE INFORMATION Sonesta ES Suites, Malvern, PA Operator: Sonesta International Hotels Corporation Guest Rooms: 120 Hospitality Properties Trust Supplemental Operating and Financial Data, December 31, 2014

  7. Slide 7: Company Profile

    COMPANY PROFILE COMPANY PROFILE The Company: Corporate Headquarters: Hospitality Properties Trust, or HPT, we, our, or us, is a real estate investment trust, or REIT. As of December 31, 2014, we Two Newton Place owned 291 hotels and 184 travel centers located in 44 states, Puerto Rico and Canada. Ou

  8. Slide 8: Company Profile (continued)

    COMPANY PROFILE (continued) COMPANY PROFILE Operating Statistics by Operating Agreement (as of 12/31/14) (dollars in thousands): Number Annualized Percent of Total (2) (3) Number of of Rooms/ Minimum Minimum Coverage RevPAR Change (1) Operating Agreement Properties Suites Return / Rent Return / Rent

  9. Slide 9: Investor Information

    INVESTOR INFORMATION INVESTOR INFORMATION Board of Trustees Bruce M. Gans, M.D. John L. Harrington William A. Lamkin Independent Trustee Independent Trustee Independent Trustee Adam D. Portnoy Barry M. Portnoy Managing Trustee Managing Trustee Senior Management John G. Murray Mark L. Kleifges Ethan

  10. Slide 10: Research Coverage

    RESEARCH COVERAGE RESEARCH COVERAGE Equity Research Coverage Baird JMP Securities MLV & Co. David Loeb Whitney Stevenson Ryan Meliker (414) 765-7063 (415) 835-8948 (212) 542-5872 dloeb@rwbaird.com wstevenson@jmpsecurities.com rmeliker@mlvco.com RBC Stifel Nicolaus Wells Fargo Securities Wes Golladay

  11. Slide 11: Financial Information

    FINANCIAL INFORMATION Staybridge Suites, Orlando, FL Operator: InterContinental Hotels Group Guest Rooms: 150 11

  12. Slide 12: Key Financial Data

    KEY FINANCIAL DATA KEY FINANCIAL DATA (amounts in thousands, except per share data) As of and For the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Shares Outstanding: Common shares outstanding (at end of period) 149,920 149,888 149,775 149,730 149,606 Weighted average commo

  13. Slide 13: Key Financial Data (continued)

    KEY FINANCIAL DATA (continued) KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Selected Income Statement Data: Total revenues $ 430,533 $ 459,639 $ 451,900 $ 394,250 $ 384,792 (1) Adjusted EBITD

  14. Slide 14: Consolidated Balance Sheets

    CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except per share data) As of December 31, 2014 2013 ASSETS Real estate properties, at cost Land $ 1,484,210 $ 1,470,513 Buildings, improvements and equipment 6,171,983 5,946,852 7,656,193 7,417,365 Accumulated depr

  15. Slide 15: Consolidated Statements of Income

    CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2014 2013 2014 2013 Revenues: (1) Hotel operating revenues $ 362,600 $ 320,533 $ 1,474,757 $ 1,310,969 Minimum ren

  16. Slide 16: Notes to Consolidated Statements of Income

    NOTES TO CONSOLIDATED STATEMENTS OF INCOME NOTES TO CONSOLIDATED STATEMENTS OF INCOME (dollar amounts in thousands, except per share data) (1) At December 31, 2014, we owned 291 hotels; 288 of these hotels are leased by us to our taxable REIT subsidiaries, or TRSs, and managed by hotel operating com

  17. Slide 17: Consolidated Statements of Cash Flows

    CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Year Ended December 31, 2014 2013 Cash flows from operating activities: Net income $ 197,185 $ 133,178 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amo

  18. Slide 18: Debt Summary

    DEBT SUMMARY DEBT SUMMARY As of December 31, 2014 (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Unsecured Floating Rate Debt: (1) $750,000 unsecured revolving credit facility 1.269% $ 18,000 07/15/18 $ 18,000 3.5 (2) $400,000 unsecured term lo

  19. Slide 19: Debt Maturity Schedule

    DEBT MATURITY SCHEDULE DEBT MATURITY SCHEDULE As of December 31, 2014 (dollars in thousands) Unsecured Unsecured Floating Fixed Year Rate Debt Rate Debt Total 2015 $ - $ - $ - 2016 - 275,000 275,000 2017 - 300,000 300,000 2018 18,000 (1) 350,000 368,000 2019 400,000 (2) - 400,000 2022 - 500,000 500,

  20. Slide 20: Leverage Ratios, Coverage Ratios and Public Debt Covenants

    LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Leverage Ratios: Total debt / total market capitalization 36.4% 39.6% 36.6% 37.5% 38.5% Total

  21. Slide 21: FF&E Reserve Escrows

    FF&E RESERVE ESCROWS (1) FF&E RESERVE ESCROWS (dollars in thousands) As of and For the Three Months Ended 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 FF&E reserves (beginning of period) $ 30,621 $ 29,239 $ 26,863 $ 30,873 $ 30,333 Manager deposits 14,434 14,720 13,863 9,745 7,639 (2) HPT fun

  22. Slide 22: Acquisition and Disposition Information Since January 1, 2014

    ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2014 ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2014 (dollars in thousands) As of December 31, 2014 ACQUISITIONS: Average Number Purchase Date of Rooms Operating Purchase Price per Acquired Properties Brand Location / Suites Agre

  23. Slide 23: Operating Agreements and Portfolio Information

    OPERATING AGREEMENTS AND PORTFOLIO INFORMATION TA, I-35, Exit 13, Laredo, TX Operator: TravelCenters of America 23

  24. Slide 24: Portfolio by Operating Agreement and Manager

    PORTFOLIO BY OPERATING AGREEMENT AND MANAGER PORTFOLIO BY OPERATING AGREEMENT AND MANAGER As of December 31, 2014 (dollars in thousands) Percent of Percent of Percent of Total Total Total Percent of Investment Annual Annual Number of Number of Number of Number of Total Per Minimum Minimum (1) (2) (3

  25. Slide 25: Portfolio by Brand

    PORTFOLIO BY BRAND PORTFOLIO BY BRAND As of December 31, 2014 (dollars in thousands) Percent of Percent of Total Total Percent of Investment Number of Number of Number of Number of Total Per (1) Brand Manager Properties Properties Rooms / Suites Rooms / Suites Investment Investment Room / Suite ® Co

  26. Slide 26: Operating Agreement Information

    OPERATING AGREEMENT INFORMATION OPERATING AGREEMENT INFORMATION As of December 31, 2014 (dollars in thousands) Marriott No. 1- We lease 53 Courtyard by Marriott® branded hotels in 24 states to one of our TRSs. The hotels are managed by a subsidiary of Marriott under a combination management agreemen

  27. Slide 27: Operating Agreement Information

    OPERATING AGREEMENT INFORMATION OPERATING AGREEMENT INFORMATION As of December 31, 2014 (dollars in thousands) Sonesta- We lease our 22 Sonesta branded hotels (four Royal Sonesta®, four Sonesta® and 14 Sonesta ES Suites® hotels) in 13 states to one of our TRSs. The hotels are managed by Sonesta unde

  28. Slide 28: Operating Agreement Information

    OPERATING AGREEMENT INFORMATION OPERATING AGREEMENT INFORMATION As of December 31, 2014 (dollars in thousands) Morgans- We lease the Clift Hotel, a full service hotel in San Francisco, CA, to a subsidiary of Morgans under a lease agreement that expires in 2103. On October 14, 2014, the annual rent d

  29. Slide 29: Operating Statistics by Hotel Operating Agreement and Manager

    OPERATING STATISTICS BY HOTEL OPERATING AGREEMENT AND MANAGER OPERATING STATISTICS BY HOTEL OPERATING AGREEMENT AND MANAGER No. of For the Three Months Ended For the Year Ended No. of Rooms / December 31, December 31, Hotels Suites 2014 2013 Change 2014 2013 Change ADR Marriott (no. 1) 53 7,610 $ 11

  30. Slide 30: Coverage by Operating Agreement and Manager

    COVERAGE BY OPERATING AGREEMENT AND MANAGER (1) COVERAGE BY OPERATING AGREEMENT AND MANAGER Number of For the Twelve Months Ended Operating Agreement Properties 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Marriott (no. 1) 53 1.16x 1.15x 1.09x 1.07x 1.06x Marriott (no. 234) 68 0.97x 0.95x 0.9

  31. Slide 31: Exhibits

    EXHIBITS Residence Inn, Reno, NV Operator: Marriott International, Inc. Guest Rooms: 120 31

  32. Slide 32: Calculation of EBITDA and Adjusted EBITDA

    CALCULATION OF EBITDA AND ADJUSTED EBITDA CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (in thousands) For the Three Months Ended December 31, For the Year Ended December 31, 2014 2013 2014 2013 Net income $ 56,523 $ 32,752 $ 197,185 $ 133,178 Add (Less): Interest expense 35,385 37,766 139,486 145,9

  33. Slide 33: Calculation of Funds from Operations (FFO) and Normalized FFO

    (1) CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO (dollar amounts in thousands, except per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2014 2013 2014 2013 Net income available for co

  34. Slide 34: Non-GAAP Financial Measures Definitions

    NON-GAAP FINANCIAL MEASURES DEFINITIONS Non-GAAP Financial Measures Definitions Definition of EBITDA We calculate EBITDA and Adjusted EBITDA as shown in Exhibit A. We consider EBITDA and Adjusted EBITDA to be appropriate measures of our operating performance, along with net income, net income availa

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