34 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Aug 4, 2022
Slide 1: Second Quarter 2022 Supplemental Operating and Financial Data
Royal Sonesta Chase Park Plaza St. Louis, MO SECOND QUARTER 2022 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Royal Sonesta Cambridge, MA
Slide 2: Table of Contents
Supplemental Q2 2022 2 Table of Contents CORPORATE INFORMATION Company Profile .............................................................................................................................................................................................................................
Slide 3: Company Profile
Supplemental Q2 2022 3 Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (t) (617) 964-8389 Stock Exchange Listing: Nasdaq Trading Symbol: Common Shares: SVC Key Data (as of and for the three months ended June 30, 2022): (dollars in 000s) Total propertie
Slide 4: Investor Information
Supplemental Q2 2022 4 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 Adam D. Portnoy Chair of the Board
Slide 5: Research Coverage
Supplemental Q2 2022 5 Equity Research Coverage (1) B. Riley Securities, Inc. Oppenheimer & Co. Inc. Wells Fargo Securities Bryan Maher Tyler Batory Dori Kesten (646) 885-5423 (212) 667-7230 (617) 603-4233 bmaher@brileyfin.com tyler.batory@opco.com dori.kesten@wellsfargo.com Rating Agencies (1) Seni
Slide 6: Key Financial Data
Supplemental Q2 2022 6 As of and For the Three Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Selected Balance Sheet Data: Total gross assets $ 11,222,613 $ 12,438,367 $ 12,434,974 $ 12,852,602 $ 12,845,383 Total assets $ 8,331,559 $ 9,017,072 $ 9,153,315 $ 9,334,831 $ 9,415,735 Tot
Slide 7: Condensed Consolidated Balance Sheets
Supplemental Q2 2022 7 June 30, 2022 December 31, 2021 ASSETS Real estate properties: Land $ 1,918,840 $ 1,918,385 Buildings, improvements and equipment 7,771,855 8,307,248 Total real estate properties, gross 9,690,695 10,225,633 Accumulated depreciation (2,891,054) (3,281,659) Total real estate pro
Slide 8: Condensed Consolidated Statements of Income (Loss)
Supplemental Q2 2022 8 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues: Hotel operating revenues (1) $ 418,984 $ 280,135 $ 716,390 $ 449,088 Rental income (2) 96,793 95,801 193,151 188,018 Total revenues 515,777 375,936 909,541 637,106 Expenses: Hotel operating exp
Slide 9: Calculation of FFO and Normalized FFO
Supplemental Q2 2022 9 For the Three Months Ended For the For the Six Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021 Net income (loss) $ 11,350 $ (119,822) $ (198,793) $ (59,714) $ (91,110) $ (108,472) $ (286,100) Add (Less): Depreciation and amortization 100,520
Slide 10: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q2 2022 10 For the Three Months Ended For the For the Six Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021 Net income (loss) $ 11,350 $ (119,822) $ (198,793) $ (59,714) $ (91,110) $ (108,472) $ (286,100) Add (Less): Interest expense 89,820 92,344 92,49
Slide 11: Notes to Condensed Consolidated Statements of Income (Loss)
Supplemental Q2 2022 11 Notes to Condensed 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 June 30, 2022, we owned 247 hotels. Our condensed consolidated
Slide 12: Debt Summary
Supplemental Q2 2022 12 (1) We are required to pay interest on borrowings under our revolving credit facility at a rate of LIBOR plus a premium of 250 basis points per annum, subject to an interest rate floor of 0.50%. We also pay a facility fee of 30 basis points per annum on the total amount of le
Slide 13: Debt Maturity Schedule
Supplemental Q2 2022 13 (1) Represents amounts outstanding under our revolving credit facility at June 30, 2022. Subject to the payment of an extension fee and meeting certain other conditions, we may extend the maturity date by an additional six month period. $ (M ill io ns ) $— $500 $1,175 $1,150
Slide 14: Leverage Ratios and Covenants
Supplemental Q2 2022 14 As of and For the Three Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Leverage Ratios: Net debt / total gross assets 52.3 % 51.7 % 50.3 % 48.9 % 48.9 % Net debt / gross book value of real estate assets and cash and cash equivalents 54.7 % 53.4 % 51.9 % 50.8
Slide 15: Capital Expenditures and Restricted Cash
Supplemental Q2 2022 15 Capital Expenditures For the Three Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Hotel capital improvements & FF&E Reserve fundings (1) $ 17,517 $ 28,144 $ 30,010 $ 19,384 $ 24,167 Net lease capital improvements 3,190 740 402 403 227 Total capital improvemen
Slide 16: Acquisitions and Dispositions
Supplemental Q2 2022 16 ACQUISITIONS: We have not acquired any properties since January 1, 2022. DISPOSITIONS: Rooms or Suites/ Square Footage Average Sales Price per Room or Suite / Square FootMonth Disposed Properties Property Type Brand Location Sales Price (1) January 2022 1 Hotel Sonesta ES Sui
Slide 17: Portfolio Summary
Supplemental Q2 2022 17 Portfolio Composition Net lease 45.0% Hotel 55.0% Number of Properties Hotel Properties 247 Number of hotel rooms 41,166 Net Lease Properties 775 Square feet 13,406,568 Total Properties 1,022 Average hotel property size 167 rooms Average net lease property size 17,299 sq. fee
Slide 18: Investments by Industry
Supplemental Q2 2022 18 Industry No. of Properties Rooms/ Square Footage Investments Percent of Total Investment 1. Hotels 247 41,166 $ 6,228,900 55.0% 2. Travel Centers 182 5,238,765 3,352,096 29.6% 3. Restaurants-Quick Service 226 681,495 301,088 2.7% 4. Restaurants-Casual Dining 53 415,547 192,17
Slide 19: Investments by State
Supplemental Q2 2022 19 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 $ 1,352,723 11.9 % $ 1,079,901 17.3 % $ 272,822 5.3 % Texas 77 21 56 878,076 7.8 % 365,321 5.9
Slide 20: Hotel Portfolio by Brand
Supplemental Q2 2022 20 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 21: Comparable Hotels Operating Statistics, Three Months
Supplemental Q2 2022 21 Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta Full Service 22 7,145 67.7 % 51.2 % 16.5 Pts $ 157.45 $
Slide 22: Comparable Hotels Operating Statistics, Six Months
Supplemental Q2 2022 22 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 23: Hotel Operating Statistics by Brand, Three Months
Supplemental Q2 2022 23 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta Full Service 23 7,364 67.7 % 51.8 % 15.9 Pts $ 157.45 $
Slide 24: Hotel Operating Statistics by Brand, Six Months
Supplemental Q2 2022 24 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Brand Service Level 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (2) Full Service 23 7,364 59.9 % 41.3 % 18.6 Pts $ 151.74 $ 1
Slide 25: Comparable Hotels Operating Results
Supplemental Q2 2022 25 (dollars in thousands) Three Months Ended For the Six Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021 Number of hotels 244 244 244 244 244 244 244 Room revenues $ 334,569 $ 228,809 $ 238,092 $ 260,082 $ 215,180 $ 563,378 $ 344,762 Food and
Slide 26: Hotel Operating Results
Supplemental Q2 2022 26 (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 6/30/2022 6/30/2021 Number of hotels 247 298 303 304 310 247 310 Room revenues $ 357,117 $ 258,620 $ 272,458 $ 298,607 $ 248,618 $ 615,737 $ 401,346 F
Slide 27: Net Lease Portfolio by Brand
Supplemental Q2 2022 27 Brand No. of Buildings Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America 134 3,720,693 $ 2,289,189 44.9 % $ 168,012 45.1 % 2.55x 2. Petro Stopping Centers 45 1,470,004
Slide 28: Net Lease Portfolio by Industry
Supplemental Q2 2022 28 Industry No. of Buildings Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 182 5,238,766 $ 3,352,096 65.7% $ 249,303 67.0% 2.49x 2. Restaurants-Quick Service 226 681,495 301,088
Slide 29: Net Lease Portfolio by Tenant
Supplemental Q2 2022 29 Tenant Brand Affiliation No. of Buildings 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 Stoppin
Slide 30: Net Lease Lease Expiration Schedule
Supplemental Q2 2022 30 Year (1) Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2022 168,131 1,903 0.5% 0.5% 2023 309,471 2,669 0.7% 1.2% 2024 769,082 11,152 3.0% 4.2% 2025 436,043 8,911 2.4% 6.6%
Slide 31: Net Lease Portfolio Occupancy Summary
Supplemental Q2 2022 31 As of and For the Three Months Ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Properties (end of period) 775 786 788 794 796 Total square feet 13,406,568 13,515,100 13,522,060 13,574,656 13,587,068 Square feet leased 13,251,701 13,185,809 13,266,385 13,332,049 13,38
Slide 32: Non-GAAP Financial Measures
Supplemental Q2 2022 32 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 33: Definitions of Terms
Supplemental Q2 2022 33 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 34: Forward-Looking Statements
Supplemental Q2 2022 34 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