Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q1 2026 Earnings Presentation
38 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, May 6, 2026
Slide 1: Financial Results and Supplemental Information
24225 W. Lorenzo Road Wilmington, IL Financial Results and Supplemental Information FIRST QUARTER 2026 May 6, 2026
Slide 2: Table of Contents
Table of Contents SVC 3 First Quarter Highlights and Full Year Guidance Nasdaq Listed Trading Symbol: Common Shares: SVC 8 Financial Information Investor Relations Contact: Kevin Barry, Senior Director (617) 796-8232 ir@svcreit.com 17 Portfolio Information Corporate Headquarters: Two Newton Place 25
Slide 3: First Quarter Highlights and Full Year Guidance
First Quarter Highlights and Full Year Guidance RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces First Quarter 2026 Financial Results
Service Properties Trust Announces First Quarter 2026 Financial Results Newton, MA (May 6, 2026): Service Properties Trust (Nasdaq: SVC) today announced its financial results for “Since the beginning of the year, we have the quarter ended March 31, 2026. made measurable progress advancing SVC’s stra
Slide 5: First Quarter 2026 Highlights
First Quarter 2026 Highlights • Net loss of $151.2 million, or $0.91 per common share. Financial • Normalized FFO of $7.4 million, or $0.04 per common share. Results • Adjusted EBITDAre of $107.5 million. • Hotel RevPAR of $103.90. • Adjusted Hotel EBITDA of $17.9 million. Portfolio • Net lease NOI
Slide 6: First Quarter 2026 Highlights (Continued)
First Quarter 2026 Highlights (Continued) First Quarter Activity: • Redeemed $300.0 million of 4.95% senior unsecured notes due 2027 for a redemption price equal to the principal amount plus accrued interest and the make whole amount of $1.6 million, using cash on hand. • Issued $745.0 million in pr
Slide 7: Full Year 2026 Guidance
Full Year 2026 Guidance (amounts in thousands, except RevPAR, share amounts and per share data) Current Full Year 2026 Guidance (1) Previous Full Year 2026 Guidance Change at Midpoint Low End High End Low End High End Total RevPAR $ 108.00 $ 113.00 $ 108.00 $ 113.00 $ — Hotel EBITDA $ 124,000 $ 144,
Slide 8: Financial Information
Financial Information RETURN TO TABLE OF CONTENTS 8
Slide 9: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and for the Three Months Ended As of 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 3/31/2026 Selected Income Statement Data: Capitalization: Total revenues $ 364,451 $ 397,453 $ 478,770 $ 503,436 $ 435,179 Total common share
Slide 10: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended March 31, 2026 2025 Revenues: Hotel operating revenues $ 264,575 $ 334,963 Rental income (1) 99,876 100,216 Total revenues 364,451 435,179 Expenses: Hotel operating expenses (2) 242,64
Slide 11: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) March 31, December 31, 2026 2025 ASSETS Real estate properties: Land $ 1,747,312 $ 1,750,799 Buildings, improvements and equipment 6,184,443 6,198,233 Total real estate properties, gross 7,931,755 7,949,032 Accumulat
Slide 12: Debt Summary
Debt Summary As of March 31, 2026 (1) (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Secured Floating Rate Debt: (1) Adjusted for the redemptions of $450,000 of 5.50% senior guaranteed unsecured notes due 2027 in April 2026 and $100,000 of 4.95
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule As of March 31, 2026 (1) Secured vs. Unsecured (dollars in thousands) Debt $2,000,000 Unsecured 36.7% Secured 63.3% $1,500,000 $735,319 $1,000,000 (1) Adjusted for the redemptions of $450,000 of 5.50% senior $3,996 $602,775 guaranteed unsecured notes due 2027 in April 2026 and
Slide 14: Leverage Ratios, Coverage Ratios and Debt Covenants
Leverage Ratios, Coverage Ratios and Debt Covenants (dollars in thousands) As of and for the Trailing Twelve Months Ended 3/31/2026 (1) 12/31/2025 (2) 9/30/2025 (3) 6/30/2025 3/31/2025 Leverage Ratios: Net debt / total gross assets (4) 54.3 % 59.0 % 57.9 % 56.5 % 55.6 % Net debt / gross book value o
Slide 15: Capital Expenditures Summary
Capital Expenditures Summary (dollars in thousands) For the Three Months Ended 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Hotel capital improvements $ 15,403 $ 92,971 $ 41,632 $ 36,727 $ 41,430 Lease related costs 1,194 2,193 538 275 274 Recurring capital expenditures 16,597 95,164 42,170 37
Slide 16: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2026 (dollars in thousands, except per room or suite data) ACQUISITIONS: Purchase Price Weighted Weighted Number of Square Purchase per Square Weighted Average Average GAAP Average Lease Average Rent Quarter Acquired Properties Property Type Nu
Slide 17: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 17
Slide 18: Portfolio Summary
Portfolio Summary As of March 31, 2026 (dollars in thousands) Number of Properties Net Lease Properties 761 Net lease square feet 13,605,978 Hotel Properties 93 Average net lease property size 17,879 sq. ft. Total Properties 854 Number of hotel rooms 21,110 Average hotel property size 227 rooms Inve
Slide 19: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of March 31, 2026 (dollars in thousands) No. of Rooms / Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 93 21,110 $ 4,817,436 48.6% 2. Travel Centers 178 5,099,794 3,311,787 33.4% 3. Restaurants - Quick Servic
Slide 20: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of March 31, 2026 (dollars in thousands) Investments Total Net Property Lease Hotel Net Lease % Hotel % State Count Count Count Total % of Total Net Lease of Total Hotel of Total California 41 22 19 $ 1,157,259 11.7 % $ 273,065 5.4 % $ 884,194
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI for Net Lease Properties
Calculation and Reconciliation of NOI and Cash Basis NOI for Net Lease Properties (amounts in thousands) For the Three Months Ended 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Calculation of NOI: Rental income (GAAP) (1) $ 99,876 $ 100,994 $ 101,194 $ 99,031 $ 100,216 Net lease operating expe
Slide 22: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of March 31, 2026 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. TravelCenters of America Inc. 131 3,683,923 $ 2,254,950 44.3 % $ 180,3
Slide 23: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of March 31, 2026 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Industry Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. Travel Centers 178 5,099,794 $ 3,311,787 65.1% $ 267,607 68.3% 1
Slide 24: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of March 31, 2026 (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 25: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of March 31, 2026 (dollars in thousands) Number Percent of Total Cumulative Percent of of Annualized Minimum Annualized Minimum Rent Total Annualized Year (1) Properties Square Feet Rent Expiring Expiring Minimum Rent Expiring 2026 47 492,035 $ 6,668 1.7%
Slide 26: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of March 31, 2026 As of and For the Three Months Ended 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Properties (end of period) 761 760 752 742 739 Vacant properties beginning of period 26 20 20 16 18 Vacant properties sold (1) (1) (2) (2) (3) Vacant p
Slide 27: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of March 31, 2026 (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 28: Hotel Operating Statistics by Service Level - Retained & Exit Hotels
Hotel Operating Statistics by Service Level - Retained & Exit Hotels* (First Quarter) (dollars in thousands, except ADR and RevPAR) Occupancy ADR RevPAR Adjusted Hotel EBITDA Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, No. of No
Slide 29: Appendix
Appendix RETURN TO TABLE OF CONTENTS 29
Slide 30: Company Profile, Research Coverage and Governance Information
Company Profile, Research Coverage and Governance Information Equity Research Coverage The Company: B. Riley Securities, Inc. Oppenheimer & Co. Inc. Wells Fargo Securities SVC is a REIT that owns service-focused retail net lease John Massocca Tyler Batory Jack Armstrong properties and hotels through
Slide 31: Calculation of FFO, Normalized FFO and CAD
Calculation of FFO, Normalized FFO and CAD (amounts in thousands, except per share data) For the Three Months Ended 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Net loss $ (151,178) $ (782) $ (46,945) $ (38,159) $ (116,435) Add (Less): Depreciation and amortization 75,843 76,380 74,453 75,030
Slide 32: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Net loss $ (151,178) $ (782) $ (46,945) $ (38,159) $ (116,435) Add (Less): Interest expense 96,547 101,642 107,776 102,679 101,517 Income tax exp
Slide 33: Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels
Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels* (dollars in thousands) For the Three Months Ended 3/31/2026 12/31/2025 9/30/2025 6/30/2025 3/31/2025 Number of hotels 93 94 160 200 202 Room revenues $ 197,565 $ 224,880 $ 307,089 $ 323,884 $ 266,439 Food and beve
Slide 34: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre, NOI, Cash Basis NOI, Hotel EBITDA and Adjusted Hotel EBITDA (dollars in thousands) (1) SVC increased rental income by $1,431 and $3,878 for the three months
Slide 35: 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, CAD, EBITDA, EBITDAre and Adjusted EBITDAre, NOI,
Slide 36: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Other Definitions Adjusted Hotel EBITDA Margin: Adjusted Hotel EBITDA as a percentage of hotel operating revenues. Adjusted Total Assets and Total Unencumbered Assets: Adjusted total assets and total unencumbered assets include the orig
Slide 37: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Lease Related Costs: Generally include capital expenditures used to improve tenants' space or amounts paid directly to tenants to improve their space and leasing related costs, such as brokerage commissions and tenant inducements. Occup
Slide 38: 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”,
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