40 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Aug 7, 2023
Slide 1: Service Properties Trust Second Quarter 2023 Financial Results and Supplemental Information
Sonesta Philadelphia Downtown Philadelphia, PA Exhibit 99.2 Service Properties Trust Second Quarter 2023 Financial Results and Supplemental Information August 7, 2023
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS SVC Service Properties Trust Announces Second Quarter 2023 Financial Results ............................................................................................................................................ 4 Second Quarter 2023 Highlights .............
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces Second Quarter 2023 Financial Results
Service Properties Trust Announces Second Quarter 2023 Financial Results Newton, MA (August 7, 2023): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended June 30, 2023. "Second quarter results continued solid year over year growth seen in Dividend: SVC
Slide 5: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights • Net loss of $11.3 million, or $(0.07) per common share. Financial • Normalized FFO of $95.1 million, or $0.58 per common share. Results • Adjusted EBITDAre of $185.3 million. • Comparable Hotel RevPAR of $97.07. Portfolio • Comparable Hotel EBITDA of $93.4 million. U
Slide 6: Second Quarter 2023 Results
Second Quarter 2023 Results Three Months Ended June 30, Consolidated Financial Results 2023 2022 Change Net (loss) income $ (11,278) $ 11,350 $ (22,628) Net (loss) income per common share (basic and diluted) $ (0.07) $ 0.07 $ (0.14) FFO $ 93,751 $ 87,031 $ 6,720 FFO per common share (basic and dilut
Slide 7: Financials
Financials RETURN TO TABLE OF CONTENTS 7
Slide 8: Key Financial Data
Key Financial Data (amounts in thousands, except per share data) As of and For the Three Months Ended As of Sonesta ES Suites 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 Fort Lauderdale, FL Capitalization: Selected Income Statement Data: Total common shares (at end of period) 165,48
Slide 9: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenues: Hotel operating revenues (1) $ 404,327 $ 418,984 $ 739,123 $ 716,390 Rental income (2) 99,452 96,793 193,865 193,151 To
Slide 10: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except share data) June 30, 2023 December 31, 2022 ASSETS Real estate properties: Land $ 1,975,339 $ 1,902,587 Buildings, improvements and equipment 7,705,657 7,658,282 Total real estate properties, gross 9,680,996 9,560,869 Accumulated de
Slide 11: Debt Summary
Debt Summary As of June 30, 2023 (dollars in thousands) Weighted Average Principal Maturity Due at Years to (1) SVC entered into a new $650 million secured revolving credit facility in June 2023. The Interest Rate Balance Date Maturity Maturity maturity date of the new facility is June 29, 2027, and
Slide 12: Debt Maturity Schedule
Debt Maturity Schedule As of June 30, 2023 1093 Blowing Rock Road 1,250 Boone, NC $2 $2 1,000 $601 $2 $2 750 $ (Millions) $1,175 $1,150 500 $800 $850 250 $400 $425 $400 $1 0 2023 2024 2025 2026 2027 2028 2029 2030 (1) SVC's net lease mortgage notes are partially amortizing and (1) (2) require balloo
Slide 13: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and For the Three Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Leverage Ratios: Net debt / total gross assets 50.2 % 53.6 % 54.1 % 54.2 % 52.3 % Net debt / gross book value of real estate assets and cash and cash equ
Slide 14: Capital Expenditures and Restricted Cash Activity
Capital Expenditures and Restricted Cash Activity (dollars in thousands) For the Three Months Ended TA 402 - Wilmington 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Wilmington, IL Capital Expenditures: Hotel capital improvements & FF&E Reserve fundings (1) $ 41,043 $ 21,773 $ 36,629 $ 22,841 $
Slide 15: Property Acquisitions and Dispositions Information Since January 1, 2023
Property Acquisitions and Dispositions Information Since January 1, 2023 (dollars in thousands, except per room/sq. ft. data) Royal Sonesta Houston Galleria Houston, TX ACQUISITIONS: Property Average Purchase Price per Quarter Acquired Properties Type Brand Location Rooms or Suites Purchase Price (1
Slide 16: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 16
Slide 17: Portfolio Summary
Portfolio Summary As of June 30, 2023 (dollars in thousands) Number of Properties Royal Sonesta Boston Hotel Properties 221 Number of hotel rooms 37,777 Cambridge, MA Net Lease Properties 763 Net lease square feet 13,469,478 Total Properties 984 Average hotel property size 171 rooms Average net leas
Slide 18: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of June 30, 2023 (dollars in thousands) No. of Rooms/ Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 221 37,777 $ 6,144,279 54.7% 2. Travel Centers 179 5,113,374 3,315,814 29.5% 3. Restaurants-Quick Service 2
Slide 19: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of June 30, 2023 (dollars in thousands) Investments Net Total Property Hotel Lease Hotel % Net Lease Net Lease State Count Count Count Total ($000s) % of Total Hotel ($000s) of Total ($000s) % of Total California 58 36 22 $ 1,381,216 12.3 % $ 1
Slide 20: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of June 30, 2023 (dollars in thousands, except per room or suite data) Percent of Percent of Number of Total Number Percent of Number of Total Number Rooms or of Rooms or Total Hotel Investment Per Brand Service Level Chain Scale Hotels of Hotels Suites Suites Investment
Slide 21: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Resort
Slide 22: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Resorts Full
Slide 23: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Resorts Fu
Slide 24: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Resorts Full Ser
Slide 25: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of June 30, 2023 (dollars in thousands) Percent of 401 Vincennes Avenue Percent of Total New Albany, IN Total Annualized Annualized Rent Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. TravelCenters of America Inc. 132 3,620,30
Slide 26: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of June 30, 2023 (dollars in thousands) Percent of Total Percent of Annualized No. of Total Annualized Minimum Rent Industry Properties Square Feet Investment Investment Minimum Rent Rent Coverage 1. Travel Centers 179 5,113,374 $ 3,315,814 65.4% $ 257,248 68.5% 2.
Slide 27: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of June 30, 2023 (dollars in thousands) Percent of Total Percent of Annualized Annualized Weighted No. of Total Minimum Minimum Average Rent Tenant Brand Affiliation Properties Square Feet Investment Investment Rent Rent Lease Term Coverage 1. TravelCenters
Slide 28: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of June 30, 2023 (dollars in thousands) Percent of Total Cumulative Percent of Annualized Minimum Annualized Minimum Rent Total Annualized Year (1) Square Feet Rent Expiring Expiring Minimum Rent Expiring 2023 93,458 $ 838 0.2% 0.2% 2024 762,282 9,768 2.6
Slide 29: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of June 30, 2023 10642 S. Memorial Drive As of and For the Three Months Ended Bixby, OK 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Properties (end of period) 763 765 765 769 775 Vacant properties beginning of period 27 23 21 17 29 Vacant property sa
Slide 30: Appendix
Appendix RETURN TO TABLE OF CONTENTS 30
Slide 31: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage Service Properties Trust, or SVC, is a real estate investment trust, or REIT, that owns hotels and service-focused retail net lease B. Riley Securities, Inc. Oppenheimer & Co. Inc. properties throughout the United States and
Slide 32: Governance Information
Governance Information 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 Rajan C. Penkar Adam D. Portnoy Roy
Slide 33: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions Non-GAAP Financial Measures SVC presents 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, EBITDAre and Adjusted EBITDA
Slide 34: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Equity Research Coverage / Ratings Agencies: SVC is followed by the analysts and its publicly held debt is rated by the rating agencies listed on page 31. Please note that any opinions, estimates or forecasts regarding SVC's performance
Slide 35: 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 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Net (loss) income $ (11,278) $ 25,950 $ (31,409) $ 7,500 $ 11,350 $ 14,672 $ (108,472) Add (L
Slide 36: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Net (loss) income $ (11,278) $ 25,950 $ (31,409) $ 7,500 $ 11,350 $ 14,672 $ (108,472) Add (Less): I
Slide 37: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Number of hotels 219 219 219 219 219 235 235 Room revenues $ 328,538 $ 268,045 $ 273,89
Slide 38: Calculation and Reconciliation of Hotel EBITDA - All Hotels
Calculation and Reconciliation of Hotel EBITDA - All Hotels* (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Number of hotels 221 220 238 242 247 221 247 Room revenues $ 329,484 $ 275,267 $ 288,082 $ 34
Slide 39: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO and EBITDA
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollars in thousands) (1) As of June 30, 2023, SVC owned 221 hotels. SVC's condensed consolidated statements of income (loss) include hotel opera
Slide 40: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws that are subject to risks and uncertainties. These statements may include words such as “believe”,