Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (May 2024)
30 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, May 22, 2024
Slide 1: Service Properties Trust Investor Presentation May 2024
Service Properties Trust (Nasdaq: SVC) Investor Presentation May 2024 Exhibit 99.1
Slide 2: Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures
2 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures The contents of this presentation are not to be construed as legal, regulatory, business, accounting or tax advice. You should consult your own attorney, bus
Slide 3: Company Overview
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Company Overview
Slide 4: SVC: Company Overview
4 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 SVC: Company Overview Necessity-based retail assets with strong rent coverage, low capex requirements and long lease terms produce stable cash flows that balance the cyclicality of the hotel portfolio. Hotel Portfolio consists of Full Service, Exte
Slide 5: Portfolio Summary
5 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Portfolio Summary Number of Properties Hotel Properties 220 Number of hotel rooms 37,697 Net Lease Properties 749 Net lease square feet 13,384,219 Total Properties 969 Average hotel property size 171 rooms Average net lease property size 17,869 sq.
Slide 6: Geographically Diverse Portfolio Across Net Lease and Hotels
6 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 SVC’s assets are located in 46 states, Washington, D.C., Puerto Rico and Canada (1). Geographically Diverse Portfolio Across Net Lease and Hotels • SVC has invested $11.4 billion in its real estate portfolio. • SVC’s investments are located in vari
Slide 7: SVC: Recent Company Highlights
7 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 SVC: Recent Company Highlights • In May 2023, TravelCenters of America Inc., or TA, was acquired by BP p.l.c. (NYSE: BP). o Transaction provided SVC with $379.3 million of cash for the value of the TA common shares it owned, the sale of the TA trad
Slide 8: Go-Forward Financial Strategy Key Credit Highlights
8 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Go-Forward Financial Strategy Key Credit Highlights 2 3 4 5 6 1 SVC owns necessity-base ret il asse s with stable cash flows, strong rent coverage, low capex requirements and long-term leases that balance the cyclicality of its hotel portfolio Dive
Slide 9: Hotel Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Hotel Portfolio
Slide 10: Hotel Portfolio: Diversified by Location and Service Level
10 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 BY SERVICE LEVEL(1) BY CHAIN SCALE(1)BY LOCATION Full Service, 39.9% Select Service, 22.7% Extended Stay, 37.4% Upscale, 46.6% Upper Upscale, 15.0% Upper Midscale/ Midscale, 38.4% Location Keys % of Portfolio Suburban 18,315 48.6% Urban 9,443 25.0
Slide 11: Hotel Portfolio: Monthly Operating Metrics (218 Comparable Hotels)
11 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Hotel Portfolio: Monthly Operating Metrics (218 Comparable Hotels) Monthly Hotel EBITDA ($ in millions) 50.0% 57.9% 65.4% 65.8% 66.4% 70.9% 69.9% 65.3% 66.7% 65.9% 57.1% 49.4% 50.0% 56.0% 62.6% $134 $139 $142 $141 $142 $147 $144 $136 $142 $145 $13
Slide 12: Hotel Portfolio: Sonesta at a Glance
12 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 • 8th largest hotel company according to Smith Travel Research. • More than 1,100 hotels totaling more than 95,000 rooms across 13 brands. • Manages over 200 hotels. • Franchises close to 1,000 hotels. • SVC owns 34% of Sonesta. • Equity investmen
Slide 13: Net Lease Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Net Lease Portfolio
Slide 14: Net Lease Portfolio: High-Quality Service & Necessity Based Assets
14 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Net Lease Portfolio: High-Quality Service & Necessity Based Assets Net Lease Portfolio Statistics 749 $375mm Properties Annualized Minimum Rent 13.4mm 8.7 Rentable Square Feet Weighted Average Lease Term(1) 97.3% 2.37x Occupancy Rent Coverage Dive
Slide 15: Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements
15 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 3% 81% 13% 3% Percentage Rent Fixed/Scheduled CPI Flat (1) By annualized minimum rent. Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements Well-Laddered Lease Expirations (1) 97% of Leases Have Contractual Increases or Percentag
Slide 16: Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk
16 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk (1) By annualized minimum rent. (2) Rent coverage information provided by tenant is for all 175 sites on a consolidated basis and is as of March 31, 2024. Top Ten Tenants by Brand
Slide 17: Net Lease Portfolio: TravelCenters of America and Retail Net Lease
17 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Net Lease Portfolio TravelCenters of America (TA) • Represents 67.7% of SVC’s net lease minimum rents. • 175 travel centers operate under two brands. • Difficult to replicate real estate located near exits along the U.S. Interstate Highway System.
Slide 18: Financial Information
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Financial Information
Slide 19: Balance Sheet Overview and Debt Maturities
19 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 $2 $800 $850 $400 $1,125 $400 $500 $1 $2 $2 $2 $601 $1,000 $0 $200 $400 $600 $800 $1,000 $1,200 2024 2025 2026 2027 2028 2029 2030 2031 2032 $ (M ill io n s) Unsecured Fixed Rate Debt Secured Fixed Rate Debt Revolving Credit Facility Balance Sheet
Slide 20: SVC is Managed by The RMR Group, an Alternative Asset Manager
20 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 RMR’s Operations Include: National Multi-Sector Investment Platform OFFICE INDUSTRIAL MULTIFAMILY MEDICAL OFFICE LIFE SCIENCE SENIOR LIVING HOTELS RETAIL RMR Managed Companies Approximately 2,100 Properties More than $5 Billion in Annual Revenues
Slide 21: Alignment of Interests: RMR Fee Structure
21 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 RMR base management fee tied to SVC share price performance. RMR incentive fees contingent on total shareholder return(1) outperformance. • Equal to 12% of value generated by SVC in excess of the benchmark index total returns (MSCI U.S. REIT/HOTEL
Slide 22: Appendix
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Appendix
Slide 23: Calculation of FFO and Normalized FFO
23 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Calculation of Funds From Operations (FFO) and Normalized FFO (amounts in thousands, except per share data) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net (loss) income $ (78,383) $ (43,323) $ (4,128) $ (11,278)
Slide 24: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
24 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) See accompanying notes on page 27. For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net (loss) income $ (78,383) $ (43,323) $ (4,128) $ (11,2
Slide 25: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
25 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels (dollars in thousands) See accompanying notes on page 27. For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Number of hotels 218 218 218 218 218 Room re
Slide 26: Calculation and Reconciliation of Hotel EBITDA - All Hotels
26 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Calculation and Reconciliation of Hotel EBITDA - All Hotels* (dollars in thousands) See accompanying notes on page 27. Results of all hotels owned during the periods presented, including the results of hotels sold by SVC for the periods owned by S
Slide 27: Notes to Calculations of FFO, EBITDA and Hotel EBITDA
27 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Notes to Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollars in thousands) 1. As of March 31, 2024, SVC owned 220 hotels. SVC's condensed consolidated statements of income (loss) include hotel operati
Slide 28: Non-GAAP Financial Measures
28 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 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 EBITD
Slide 29: Definitions: Debt, Investee Adjustments, FF&E Reserves
29 SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2024 Debt: Debt amounts reflect the principal balance as of the date reported. Net debt means total debt less unrestricted cash and cash equivalents as of the date reported. Earnings and Adjustments Attributable to an Investee: Represents SVC's proport
Slide 30: Service Properties Trust
Service Properties Trust (Nasdaq: SVC) Investor Presentation May 2024
Service Properties Trust — Investor Presentation (May 2024) on 6ix