Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Hospitality Properties Trust — Merger or Acquisition (2019)
16 slides from Service Properties Trust - Shares Of Beneficial Interest's merger presentation, 2019
Slide 1: Acquisition of $2.4 Billion High Quality Net Lease Portfolio
H O S P I TA L I T Y PROPERTIES TRUST Acquisition of $2.4 Billion High Quality Net Lease Portfolio RADISSON BLU MINNEAPOLIS DOWNTOWN
Slide 2: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements. This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever HPT uses words such as "believe", "expect", "anticipate
Slide 3: Transaction Summary
T R A N S A C T I O N S U M M A RY HPT has agreed to acquire a net lease portfolio with annual cash base rent of $172 million from Spirit MTA REIT for $2.4 billion in cash.⁽¹⁾ – 774 service retail focused net lease properties covering 12 million RSF across the U.S. in 22 different industries with
Slide 4: Acquisition Portfolio Overview
A C Q U I S I T I O N P O R T F O L I O O V E RV I E W Geographical Footprint (% of Annual Contractual Rent)(1) Quick Facts 774 ~12mm 1% <1% <1% Properties Square Feet 2% 4% <1% 1% 2% 3% <1% 4% <1% $172mm 8.6 Years 2% <1% <1% 1% 9% 6% 7% 3% <1% <1% 2% 1% Annual Contractual Rent Weighted Average 3% 1
Slide 5: Acquisition Portfolio Overview (cont'd)
A C Q U I S I T I O N P O R T F O L I O O V E RV I E W ( c o n t ’ d ) Top 10 Brands Tenant No. of Total SF Annualized Base Rent or Chain Names Industry Locations (000s) $ (mm) % of Total AMC Theatres Movie Theaters 14 696 $10.4 6.0% The Great Escape Specialty Retail (Furniture) 14 543 7.1 4.1% Crèm
Slide 6: Acquisition Portfolio Overview (cont'd)
A C Q U I S I T I O N P O R T F O L I O O V E RV I E W ( c o n t ’ d ) Lease Structures (% of Contractual Rent) 19% 81% of Leases Have 46% Contractual $172mm Increases 35% CPI Fixed / Scheduled Flat KFC & Taco Bell Well-Laddered Lease Expirations (% of Contractual Rent) 28% Manageable Near-Term Expi
Slide 7: Strategic Rationale
S T R AT E G I C R AT I O N A L E Accretive acquisition with potential for future value creation expected. Stronger cash flows, more resilient portfolio and higher rent coverage. Increased scale, with gross assets exceeding $12.6 billion post transaction.(1) Diversification, with new tenants, new pr
Slide 8: Pro Forma Benefits Of The Transaction
B E N E F I T S O F T H E T R A N S A C T I O N (1) 1 No. of Properties Gross Assets 1,280 $12.6bn +774 +$2.4bn $10.2bn 506 Provides Greater Scale Status Quo (1) Pro Forma (2) Status Quo (1) Pro Forma (2) 2 Pro Forma Hotels & Travel Centers Diversifies Tenant Mix (13 Agreements / 23 Brands) 23 Indus
Slide 9: Diversifies Portfolio and Tenant Concentration and Improves Rent Coverage
DIVERSIFIES PORTFOLIO AND TENANT C O N C E N T R AT I O N A N D I M P R O V E S R E N T C O V E R A G E HPT Portfolio Composition Estimated Post-Acquisition HPT Portfolio Composition(1) (Pre-Acquisition)(1) (Pre-Dispositions) Complementary Travel Travel Centers Centers 24% 29% Hotels Hotels 71% 59%
Slide 10: Key Elements Of The Transaction
KEY ELEMENTS OF THE TRANSACTION HPT has secured commitments from lenders for an up to $2.0 billion unsecured term loan facility. – HPT may use the proceeds from this term loan facility, borrowings Structure & under its existing revolving credit facility, proceeds from the sale of Financing certain
Slide 11: Select Financial Metrics
SELECT FINANCIAL METRICS Estimated Post- Estimated Post- Current HPT(1) Acquisition HPT(2) Acquisition HPT (Before Potential Asset Sales) (After Potential Asset Sales) Total Gross Assets $10.2bn $12.6bn $11.8bn Total Debt $4.2bn $6.6bn $5.8bn Total Revenues $2.3bn $2.5bn $2.3bn Net Income(3) $331mm
Slide 12: The RMR Group Has a Vertically Integrated Operating Platform
T H E R M R G R O U P H A S A N AT I O N A L V E R T I C A L LY I N T E G R AT E D O P E R AT I N G P L AT F O R M HPT Will Benefit from the RMR Group’s Integration and Management Capabilities • The RMR Group currently manages $30 billion of assets. • Operating platform includes 30 offices throughou
Slide 13: Appendix
APPENDIX 13
Slide 14: Adjusted EBITDAre Reconciliation
A D J U S T E D E B I T D A r e R E C O N C I L I AT I O N 6/30/2018 9/30/2018 12/31/2018 3/31/2019 HPT LTM 3/31/19 Net Income (Loss) $97 $117 ($109) $226 $331 (+) Interest Expense 49 49 50 50 197 (+ / −) Income Tax Expense (Benefit) 1 1 (1) 1 2 (+) Depreciation and Amortization 100 101 103 99 403 E
Slide 15: Non-GAAP Financial Measures Definitions
NON-GAAP FINANCIAL MEASURES DEFINITIONS Non-GAAP Financial Measures We present certain “non-GAAP financial measures” within the meaning of applicable SEC rules in this presentation, including Adjusted EBITDAre and Normalized FFO. These measures do not represent cash generated by operating activities
Slide 16: Hospitality Properties Trust
H O S P I TA L I T Y PROPERTIES TRUST Acquisition of $2.4 Billion High Quality Net Lease Portfolio RADISSON BLU MINNEAPOLIS DOWNTOWN
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