Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q4 2022 Earnings Presentation
33 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Feb 28, 2023
Slide 1: Fourth Quarter 2022 Supplemental Operating and Financial Data
Royal Sonesta Chase Park Plaza St. Louis, MO FOURTH QUARTER 2022 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2The Stephen F Austin Royal Sonesta Hotel Austin, TX
Slide 2: Table of Contents
Supplemental Q4 2022 2 Table of Contents CORPORATE INFORMATION Company Profile .............................................................................................................................................................................................................................
Slide 3: Company Profile
Supplemental Q4 2022 3 The Company: Service Properties Trust, or SVC, we, our or us, is a real estate investment trust, or REIT, that owns hotels and service-focused retail net lease properties throughout the United States and in Puerto Rico and Canada. SVC is included in 166 market indices and comp
Slide 4: Board of Trustees, Senior Management and Investor Information
Supplemental Q4 2022 4 Board of Trustees Senior Management Laurie B. Burns Robert E. Cramer Donna D. Fraiche Todd W. Hargreaves Independent Trustee Independent Trustee Lead Independent Trustee President and Chief Investment Officer John L. Harrington William A. Lamkin John G. Murray Brian E. Donley
Slide 5: Key Financial Data
Supplemental Q4 2022 5 As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Selected Balance Sheet Data: Total gross assets $ 10,458,324 $ 10,561,906 $ 11,222,613 $ 12,438,367 $ 12,434,974 Total assets $ 7,488,191 $ 7,632,713 $ 8,331,559 $ 9,017,072 $ 9,153,315 To
Slide 6: Consolidated Balance Sheets
Supplemental Q4 2022 6 As of December 31, 2022 2021 ASSETS Real estate properties: Land $ 1,902,587 $ 1,918,385 Buildings, improvements and equipment 7,658,282 8,307,248 Total real estate properties, gross 9,560,869 10,225,633 Accumulated depreciation (2,970,133) (3,281,659) Total real estate proper
Slide 7: Consolidated Statements of Income (Loss)
Supplemental Q4 2022 7 Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Revenues: Hotel operating revenues (1) $ 350,501 $ 317,215 $ 1,467,344 $ 1,104,678 Rental income (2) 104,718 104,160 395,667 390,902 Total revenues 455,219 421,375 1,863,011 1,495,580 Expenses: Hotel o
Slide 8: Calculation of FFO and Normalized FFO
Supplemental Q4 2022 8 For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Net (loss) income $ (31,409) $ 7,500 $ 11,350 $ (119,822) $ (198,793) $ (132,381) $ (544,603) Add (Less): Depreciation and amortization 94,961 101,514 100,52
Slide 9: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q4 2022 9 For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Net (loss) income $ (31,409) $ 7,500 $ 11,350 $ (119,822) $ (198,793) $ (132,381) $ (544,603) Add (Less): Interest expense 77,891 81,740 89,820 92,344 92,494
Slide 10: Notes to Consolidated Statements of Income (Loss) and Calculations
Supplemental Q4 2022 10 Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollar in thousands) RETURN TO TABLE OF CONTENTS (1) As of December 31, 2022, we owned 238 hotels. Our consolidated statements of i
Slide 11: Debt Summary
Supplemental Q4 2022 11 (1) In February 2023, one of our subsidiaries issued $610,200 in aggregate principal amount of net lease mortgage notes. The weighted average coupon of the notes is 5.60% and are expected to mature in February 2028. (2) We are required to pay interest on borrowings under our
Slide 12: Debt Maturity Schedule
Supplemental Q4 2022 12 $ (M ill io ns ) $500 $1,175 $1,150 $800 $850 $400 $425 $400 Fixed Rate Debt Revolving Credit Facility 2023 2024 2025 2026 2027 2028 2029 2030 0 250 500 750 1,000 1,250 Debt Maturity Schedule As of December 31, 2022 RETURN TO TABLE OF CONTENTS Buffalo Wild Wings Hammond, IN (
Slide 13: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Supplemental Q4 2022 13 As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Leverage Ratios: Net debt / total gross assets 54.1 % 54.2 % 52.3 % 51.7 % 50.3 % Net debt / gross book value of real estate assets and cash and cash equivalents 56.4 % 56.5 % 54.7 % 53.4
Slide 14: Capital Expenditures and Restricted Cash
Supplemental Q4 2022 14 Capital Expenditures For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Hotel capital improvements & FF&E Reserve fundings (1) $ 36,629 $ 22,841 $ 17,517 $ 28,144 $ 30,010 Net lease capital improvements 170 1,520 3,190 740 402 Total capital improve
Slide 15: Acquisitions and Dispositions
Supplemental Q4 2022 15 ACQUISITIONS: Date Acquired Properties Property Type Brand Location Square Footage Purchase Price(2) Average Purchase Price per Square Foot September 2022 (1) N/A Land N/A MA N/A $ 2,715 N/A DISPOSITIONS: Quarter Disposed Properties Property Type Brand Location Rooms or Suite
Slide 16: Portfolio Summary
Supplemental Q4 2022 16 Portfolio Composition Net lease 45.3% Hotel 54.7% Number of Properties Hotel Properties 238 Number of hotel rooms 40,053 Net Lease Properties 765 Square feet 13,374,325 Total Properties 1,003 Average hotel property size 168 rooms Average net lease property size 17,570 sq. fee
Slide 17: Portfolio by Industry
Supplemental Q4 2022 17 Industry No. of Properties Rooms/ Square Footage Investments Percent of Total Investment 1. Hotels 238 40,053 $ 6,179,444 54.7% 2. Travel Centers 180 5,136,653 3,352,096 29.7% 3. Restaurants-Quick Service 216 690,042 294,153 2.5% 4. Restaurants-Casual Dining 53 415,547 192,19
Slide 18: Investments by State
Supplemental Q4 2022 18 Investments State Total Property Count Hotel Count Net Lease Count Total ($000s) % of Total Hotel ($000s) Hotel % of Total Net Lease ($000s) Net Lease % of Total California 58 36 22 $ 1,372,111 12.2 % $ 1,099,046 17.8 % $ 273,065 5.3 % Texas 77 21 56 882,781 7.8 % 366,762 5.9
Slide 19: Hotel Brand Summary
Supplemental Q4 2022 19 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 20: Hotel Operating Statistics by Brand, Three Months
Supplemental Q4 2022 20 Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta Full Service 22 7,149 58.6 % 54.4 % 4.2 pts
Slide 21: Hotel Operating Statistics by Brand, Year
Supplemental Q4 2022 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, All Hotels, Three Months
Supplemental Q4 2022 22 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta Full Service 23 7,368 58.6 % 54.4 % 4.2 pts
Slide 23: Hotel Operating Statistics, All Hotels, Year
Supplemental Q4 2022 23 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Year Ended December 31, Year Ended December 31, Year Ended December 31, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (2) Full Service 23 7,368 60.4 % 47.4 % 13.0 pts $ 150.40 $ 132.07
Slide 24: Comparable Hotels Results
Supplemental Q4 2022 24 (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Number of hotels 236 236 236 236 236 235 235 Room revenues $ 287,337 $ 336,616 $ 333,893 $ 227,034 $ 234,829 $ 1,168,811 $ 824,395 Fo
Slide 25: Hotel Operating Results
Supplemental Q4 2022 25 (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Number of hotels 238 242 247 298 303 238 303 Room revenues $ 288,082 $ 341,106 $ 357,117 $ 258,620 $ 272,458 $ 1,244,925 $ 972,411 Fo
Slide 26: Net Lease Portfolio by Brand
Supplemental Q4 2022 26 Brand Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America 133 3,643,581 $ 2,289,189 44.8 % $ 168,012 45.1 % 2.86x 2. Petro Stopping Centers 44 1,445,004 1,021,
Slide 27: Net Lease Portfolio by Industry
Supplemental Q4 2022 27 Industry No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 180 5,136,653 $ 3,352,096 65.6% $ 249,325 66.9% 2.78x 2. Restaurants-Quick Service 216 690,042 294,15
Slide 28: Net Lease Tenant Summary
Supplemental Q4 2022 28 Tenant Brand Affiliation No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Weighted Average Lease Term Rent Coverage 1. TravelCenters of America Inc.(1) TravelCenters of America / Petro Stoppi
Slide 29: Net Lease Lease Expiration Schedule
Supplemental Q4 2022 29 Year (1) Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2023 271,062 $ 2,207 0.6% 0.6% 2024 769,082 11,200 3.0% 3.6% 2025 436,524 8,974 2.4% 6.0% 2026 1,080,336 12,215 3.3%
Slide 30: Net Lease Portfolio Occupancy Summary
Supplemental Q4 2022 30 As of and For the Three Months Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 Properties (end of period)(1) 765 769 775 786 788 Total square feet 13,374,325 13,412,371 13,406,568 13,515,100 13,522,060 Square feet leased 13,050,456 13,160,403 13,251,701 13,185,809 1
Slide 31: Non-GAAP Financial Measures
Supplemental Q4 2022 31 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 32: Definitions of Terms
Supplemental Q4 2022 32 FF&E Reserve: Various percentages of total sales at certain of our hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. We own all the FF&E reserve escrows for our hotels. FF&E Reserve Deposits Not Funded by Hotel Operations: The
Slide 33: Forward-Looking Statements
Supplemental Q4 2022 33 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 — Q4 2022 Earnings Presentation on 6ix