Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q3 2023 Earnings Presentation
40 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Nov 6, 2023
Slide 1: Third Quarter 2023 Financial Results and Supplemental Information
TA - 065 Seymour Seymour, IN Exhibit 99.2 Service Properties Trust Third Quarter 2023 Financial Results and Supplemental Information November 6, 2023
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS SVC Service Properties Trust Announces Third Quarter 2023 Financial Results ................................................................................................................................................ 4 Third Quarter 2023 Highlights ...........
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces Third Quarter 2023 Financial Results
Service Properties Trust Announces Third Quarter 2023 Financial Results Newton, MA (November 6, 2023): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended September 30, 2023. "SVC’s third quarter hotel portfolio performance was in line with our expectat
Slide 5: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights • Net loss of $4.1 million, or $(0.03) per common share. Financial • Normalized FFO of $92.1 million, or $0.56 per common share. Results • Adjusted EBITDAre of $175.3 million. • Comparable Hotel RevPAR of $94.54. Portfolio • Comparable Hotel EBITDA of $77.0 million. Upd
Slide 6: Third Quarter 2023 Results
Third Quarter 2023 Results Three Months Ended September 30, Consolidated Financial Results 2023 2022 Change Net (loss) income $ (4,128) $ 7,500 $ (11,628) Net (loss) income per common share (basic and diluted) $ (0.03) $ 0.05 $ (0.08) FFO $ 91,731 $ 88,397 $ 3,334 FFO per common share (basic and dil
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 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 Fort Lauderdale, FL Capitalization: Selected Income Statement Data: Total common shares (at end of period) 165,77
Slide 9: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues: Hotel operating revenues (1) $ 395,526 $ 400,453 $ 1,134,649 $ 1,116,843 Rental income (2) 101,299 97,798 29
Slide 10: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except share data) September 30, 2023 December 31, 2022 ASSETS Real estate properties: Land $ 1,972,945 $ 1,902,587 Buildings, improvements and equipment 7,745,858 7,658,282 Total real estate properties, gross 9,718,803 9,560,869 Accumulat
Slide 11: Debt Summary
Debt Summary As of September 30, 2023 (dollars in thousands) Weighted Average Principal Maturity Due at Years to (1) SVC is required to pay interest at a rate of SOFR plus a premium, which was 250 basis Interest Rate Balance Date Maturity Maturity points per annum as of September 30, 2023. SVC also
Slide 12: Debt Maturity Schedule
Debt Maturity Schedule As of September 30, 2023 2215 D & B Drive 1,250 Marietta, GA $1,958 $1,958 1,000 $600,739 $1,958 $1,958 $ (Thousands) 750 $1,175,000 $1,150,000 500 $850,000 $800,000 250 $400,000 $425,000 $400,000 $489 0 2023 2024 2025 2026 2027 2028 2029 2030 (1) SVC's net lease mortgage note
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 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Leverage Ratios: Net debt / total gross assets 50.2 % 50.2 % 53.6 % 54.1 % 54.2 % Royal Sonesta Boston Cambridge, MA Net debt / gross book value of real
Slide 14: Capital Expenditures and Restricted Cash Activity
Capital Expenditures and Restricted Cash Activity (dollars in thousands) For the Three Months Ended The Pelham Royal Sonesta Hotel 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Washington, D.C. Capital Expenditures: Hotel capital improvements & FF&E Reserve fundings (1) $ 63,948 $ 41,043 $ 21,7
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) ACQUISITIONS: Nautilus Sonesta Miami Beach Property Average Purchase Price per Miami Beach, FL Quarter Acquired Properties Type Brand Location Rooms or Suites Purchase Price
Slide 16: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 16
Slide 17: Portfolio Summary
Portfolio Summary As of September 30, 2023 (dollars in thousands) Number of Properties Royal Sonesta Kaua`i Resort Hotel Properties 221 Number of hotel rooms 37,777 Lihue, HI Net Lease Properties 761 Net lease square feet 13,430,345 Total Properties 982 Average hotel property size 171 rooms Average
Slide 18: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of September 30, 2023 (dollars in thousands) No. of Rooms/ Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 221 37,777 $ 6,207,414 55.0% 2. Travel Centers 179 5,113,374 3,315,814 29.4% 3. Restaurants - Quick Se
Slide 19: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of September 30, 2023 (dollars in thousands) Investments Net Sonesta Simply Suites Orange County Airport Total Property Hotel Lease Hotel % Net Lease Net Lease Orange County, CA State Count Count Count Total ($000s) % of Total Hotel ($000s) of
Slide 20: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of September 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 Invest
Slide 21: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta
Slide 22: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hot
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 September 30, Three Months Ended September 30, Three Months Ended September 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hote
Slide 24: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels
Slide 25: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of September 30, 2023 (dollars in thousands) Percent of Percent of Total Total Annualized Annualized Rent 2421 S. Randall Road Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage Algonquin, IL 1. TravelCenters of America Inc. 132 3,69
Slide 26: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of September 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 65.3% $ 257,247 68.
Slide 27: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of September 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. TravelCen
Slide 28: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of September 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 113,612 $ 397 0.1% 0.1% 9520 Metcalf Ave
Slide 29: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of September 30, 2023 As of and For the Three Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 Properties (end of period) 761 763 765 765 769 Vacant properties beginning of period 30 27 23 21 17 Vacant property sales / leased (2) (2) (1) (1)
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. HSBC properties throughout the United States and in Puerto Rico an
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 233
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 Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Net (loss) income $ (4,128) $ (11,278) $ 25,950 $ (31,409) $ 7,500 $ 10,544 $ (100,972) Add
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 Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Net (loss) income $ (4,128) $ (11,278) $ 25,950 $ (31,409) $ 7,500 $ 10,544 $ (100,972) Add (Less):
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 Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Number of hotels 219 219 219 219 219 219 219 Room revenues $ 324,923 $ 328,538 $ 268,0
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 Nine Months Ended 9/30/2023 6/30/2023 3/31/2023 12/31/2022 9/30/2022 9/30/2023 9/30/2022 Number of hotels 221 221 220 238 242 221 242 Room revenues $ 327,688 $ 329,484 $ 275,267 $ 2
Slide 39: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO
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 September 30, 2023, SVC owned 221 hotels. SVC's condensed consolidated statements of income (loss) include hotel
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”,
Service Properties Trust — Q3 2023 Earnings Presentation on 6ix