Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q4 2023 Earnings Presentation
39 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Feb 28, 2024
Slide 1: Fourth Quarter 2023 Financial Results and Supplemental Information
The Royal Sonesta Chicago Downtown Chicago, IL Service Properties Trust Fourth Quarter 2023 Financial Results and Supplemental Information February 28, 2024
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS SVC Service Properties Trust Announces Fourth Quarter 2023 Financial Results .............................................................................................................................................. 4 Fourth Quarter 2023 Highlights ...........
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces Fourth Quarter 2023 Financial Results
Service Properties Trust Announces Fourth Quarter 2023 Financial Results Newton, MA (February 28, 2024): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended December 31, 2023. "SVC’s RevPAR performance this quarter met our expectations and was impacted
Slide 5: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights Financial • • Net loss of $43.3 million, or $(0.26) per common share. Normalized FFO of $50.0 million, or $0.30 per common share. Results • Adjusted EBITDAre of $141.2 million. • Comparable Hotel RevPAR of $78.30. Portfolio • Comparable Hotel EBITDA of $42.3 million. U
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS 6
Slide 7: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and For the Three Months Ended As of Sonesta ES Suites 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 Fort Lauderdale, FL Capitalization: Selected Income Statement Data: Total common shares (at end of period) 165,
Slide 8: Consolidated Statements of Income (Loss)
Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Revenues: Hotel operating revenues (1) $ 343,385 $ 350,501 $ 1,478,034 $ 1,467,344 Rental income (2) 100,665 104,718 395,829 395,667 Tota
Slide 9: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands, except per share data) December 31, 2023 2022 ASSETS Real estate properties: Land $ 1,972,145 $ 1,902,587 Buildings, improvements and equipment 7,814,192 7,658,282 Total real estate properties, gross 9,786,337 9,560,869 Accumulated depreciation (3,1
Slide 10: Debt Summary
Debt Summary As of December 31, 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 points per Interest Rate Balance Date Maturity Maturity annum as of December 31, 2023. SVC also pa
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of December 31, 2023 (dollars in thousands) $1,250,000 $1,958 Secured vs. Unsecured Debt $1,000,000 $1,958 $1,958 $750,000 $600,737 Secured 28.6% $1,150,000 $500,000 $1,000,000 $850,000 $800,000 Unsecured 71.4% $250,000 $400,000 $425,000 $400,000 1093 Blowing Rock Road Boon
Slide 12: Leverage Ratios, Coverage Ratios and Debt Covenants
Leverage Ratios, Coverage Ratios and Debt Covenants As of and For the Trailing Twelve Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Leverage Ratios: Net debt / total gross assets 51.8 % 50.2 % 50.2 % 53.6 % 54.1 % Net debt / gross book value of real estate assets and cash and cash
Slide 13: Capital Expenditures and Restricted Cash Activity
Capital Expenditures and Restricted Cash Activity (dollars in thousands) Royal Sonesta Kaua'i Resort For the Three Months Ended Lihue, HI 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Capital Expenditures: Hotel capital improvements & FF&E Reserve fundings (1) $ 105,289 $ 63,948 $ 41,043 $ 21,
Slide 14: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2023 (dollars in thousands) Nautilus Sonesta Miami Beach, FL ACQUISITIONS: Property Average Purchase Price per Quarter Acquired Properties Type Brand Location Rooms or Suites Purchase Price (1) Room or Suite Q2 2023 1 Hotel Sonesta FL 250 $ 165
Slide 15: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 15
Slide 16: Portfolio Summary
Portfolio Summary As of December 31, 2023 (dollars in thousands) Number of Properties Hotel Properties 221 Number of hotel rooms 37,777 Net Lease Properties 752 Net lease square feet 13,341,172 Total Properties 973 Average hotel property size 171 rooms Average net lease property size 17,741 sq. feet
Slide 17: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of December 31, 2023 (dollars in thousands) No. of Rooms / Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 221 37,777 $ 6,311,013 55.5% TA Express Statesboro, GA 2. Travel Centers 179 5,113,374 3,315,815 29.2%
Slide 18: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of December 31, 2023 (dollars in thousands) Investments Radisson Hotel Phoenix Airport Net Phoenix, AZ Total Property Hotel Lease Hotel % Net Lease State Count Count Count Total % of Total Hotel of Total Net Lease % of Total California 58 36 22
Slide 19: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of December 31, 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 Investm
Slide 20: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hot
Slide 21: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR Year Ended December 31, Year Ended December 31, Year Ended December 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Resorts® Full Serv
Slide 22: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR Three Months Ended December 31, Three Months Ended December 31, Three Months Ended December 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels
Slide 23: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR Year Ended December 31, Year Ended December 31, Year Ended December 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2023 2022 Change 2023 2022 Change 2023 2022 Change Sonesta Hotels & Resorts® Full Service
Slide 24: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of December 31, 2023 (dollars in thousands) Percent of Percent of Total 457 W. Broadway Road No. of Total Annualized Annualized Rent Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage Tempe, AZ 1. TravelCenters of America Inc. 132 3,
Slide 25: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of December 31, 2023 (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 179 5,113,374 $ 3,315,815 65.4% $ 257,248 69.1
Slide 26: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of December 31, 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. TravelCent
Slide 27: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of December 31, 2023 (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 2024 37 586,223 $ 7,966 2
Slide 28: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of December 31, 2023 As of and For the Three Months Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 Properties (end of period) 752 761 763 765 765 Vacant properties beginning of period 32 30 27 23 21 Vacant property sales / leased (12) (2) (2) (1)
Slide 29: Appendix
Appendix RETURN TO TABLE OF CONTENTS 29
Slide 30: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage SVC is a REIT that owns hotels and service-focused retail net lease properties throughout the United States and in Puerto Rico and B. Riley Securities, Inc. HSBC Canada. SVC is included in 154 market indices and comprises Br
Slide 31: 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 Ind
Slide 32: 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 Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Net (loss) income $ (43,323) $ (4,128) $ (11,278) $ 25,950 $ (31,409) $ (32,779) $ (132,381) Add
Slide 33: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Net (loss) income $ (43,323) $ (4,128) $ (11,278) $ 25,950 $ (31,409) $ (32,779) $ (132,381) Add (Less)
Slide 34: 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 Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Number of hotels 219 219 219 219 219 219 219 Room revenues $ 269,493 $ 324,923 $ 328,538 $
Slide 35: 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 Year Ended 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022 Number of hotels 221 221 221 220 238 221 238 Room revenues $ 273,869 $ 327,688 $ 329,484 $ 275,2
Slide 36: Notes to Consolidated Statements of Income (Loss) and Calculations of FFO and EBITDA
Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollars in thousands) (1) As of December 31, 2023, SVC owned 221 hotels. SVC's consolidated statements of income (loss) include hotel operating revenues an
Slide 37: 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 38: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) 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 SV
Slide 39: 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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