Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q2 2026 Earnings Presentation
39 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Aug 5, 2026
Slide 1: Financial Results and Supplemental Information Second Quarter 2026
Financial Results and Supplemental Information SECOND QUARTER 2026 August 5, 2026 Exhibit 99.2 24225 W. Lorenzo Road Wilmington, IL
Slide 2: Table of Contents
2 Table of Contents 3 Second Quarter Highlights and Full Year Guidance 8 Financial Information 17 Portfolio Information 30 Appendix 39 Warning Concerning Forward-Looking Statements SVC Nasdaq Listed Trading Symbol: Common Shares: SVC Investor Relations Contact: Kevin Barry, Senior Director (617) 796
Slide 3: Second Quarter Highlights and Full Year Guidance
3RETURN TO TABLE OF CONTENTS Second Quarter Highlights and Full Year Guidance
Slide 4: Second Quarter 2026 Results Announcement
4RETURN TO TABLE OF CONTENTS Newton, MA (August 5, 2026): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended June 30, 2026. Distribution: SVC declared a quarterly distribution on its common shares of $0.05 per share to shareholders of record as of the
Slide 5: Second Quarter 2026 Highlights
5RETURN TO TABLE OF CONTENTS Second Quarter 2026 Highlights Financial Results • Net loss of $223.8 million, or $1.75 per common share. ◦ Net loss for the quarter includes a $189.1 million, or $1.48 per common share, loss on asset impairment related to certain hotels being marketed for sale. • Normal
Slide 6: Second Quarter 2026 Highlights (Continued)
6RETURN TO TABLE OF CONTENTS Second Quarter 2026 Highlights (Continued) Financing & Liquidity Second Quarter Activity: • Raised $541.8 million of net proceeds in an underwritten public offering of common shares. • Redeemed all $450.0 million of 5.50% senior guaranteed unsecured notes due 2027 for a
Slide 7: Full Year 2026 Guidance
7RETURN TO TABLE OF CONTENTS Full Year 2026 Guidance (amounts in thousands, except RevPAR, share amounts and per share data) Current Full Year 2026 Guidance (1) Low End High End Total RevPAR $ 108.00 $ 113.00 Hotel EBITDA $ 124,000 $ 144,000 Net Lease NOI $ 380,000 $ 386,000 Adjusted EBITDAre $ 500,
Slide 8: Financial Information
8RETURN TO TABLE OF CONTENTS Financial Information
Slide 9: Selected Financial Data
9RETURN TO TABLE OF CONTENTS As of and for the Three Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Selected Income Statement Data: Total revenues $ 420,974 $ 364,451 $ 397,453 $ 478,770 $ 503,436 Net loss $ (223,838) $ (151,178) $ (782) $ (46,945) $ (38,159) FFO $ 43,942 $ (47,327)
Slide 10: Condensed Consolidated Statements of Income (Loss)
10RETURN TO TABLE OF CONTENTS Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues: Hotel operating revenues $ 320,071 $ 404,405 $ 584,646 $ 739,368 Rental income (1) 100,903 99,031 200,779 199,247 Total revenues 420,974 503,436 785,425 938,615 Expenses: Hotel operating
Slide 11: Condensed Consolidated Balance Sheets
11RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets June 30, December 31, 2026 2025 ASSETS Real estate properties: Land $ 1,730,113 $ 1,750,799 Buildings, improvements and equipment 5,861,871 6,198,233 Total real estate properties, gross 7,591,984 7,949,032 Accumulated depreciation (
Slide 12: Debt Summary Notes
12RETURN TO TABLE OF CONTENTS (1) The VFN is secured by the 471 net lease properties and certain cash proceeds that secure SVC's net lease mortgage notes (see Note 7). SVC is required to pay interest on drawings under the VFN at a rate of SOFR plus a premium of 175 basis points per annum and an unus
Slide 13: Debt Maturity Schedule
13RETURN TO TABLE OF CONTENTS $400,000 $425,000 $400,000 $500,000 $70,000 $580,155 $1,000,000 $2,000 $3,996 $602,775 $2,038 $2,038 $735,319 Unsecured Fixed Rate Debt Secured Floating Rate Debt Senior Secured Fixed Rate Debt Net Lease Mortgage Notes 2026 2027 2028 2029 2030 2031 2032 $0 $500,000 $1,0
Slide 14: Leverage Ratios, Coverage Ratios and Debt Covenants
14RETURN TO TABLE OF CONTENTS Leverage Ratios, Coverage Ratios and Debt Covenants Centennial, CO (1) Proforma for the redemptions of $450,000 of 5.50% senior guaranteed unsecured notes due 2027 redeemed in April 2026 and $100,000 of 4.95% senior unsecured notes due 2027 redeemed in May 2026. (2) Pro
Slide 15: Capital Expenditures Summary
15RETURN TO TABLE OF CONTENTS For the Three Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Hotel capital improvements $ 16,253 $ 15,403 $ 92,971 $ 41,632 $ 36,727 Lease related costs 1,839 1,194 2,193 538 275 Recurring capital expenditures 18,092 16,597 95,164 42,170 37,002 Redevelo
Slide 16: Property Acquisitions and Dispositions Since January 1, 2026
16RETURN TO TABLE OF CONTENTS ACQUISITIONS: Quarter Acquired Number of Properties Property Type Number of Brands Square Footage Purchase Price (1) Purchase Price per Square Foot Weighted Average Cash Cap Rate Weighted Average GAAP Cap Rate Weighted Average Lease Term (2) Average Rent Coverage Q1 202
Slide 17: Portfolio Information
17RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 18: Portfolio Summary
18RETURN TO TABLE OF CONTENTS Portfolio Composition Net Lease Properties 52.1% Hotels 47.9% Number of Properties Net Lease Properties 745 Net lease square feet 13,553,509 Hotel Properties 93 Average net lease property size 18,193 sq. ft. Total Properties 838 Number of hotel rooms 21,110 Average hote
Slide 19: Portfolio by Industry
19RETURN TO TABLE OF CONTENTS Industry No. of Properties Rooms / Square Footage Investments Percent of Total Investment 1. Hotels 93 21,110 $ 4,654,831 47.9 % 2. Travel Centers 178 5,099,794 3,311,787 34.1 % 3. Restaurants - Quick Service 211 653,991 297,129 3.1 % 4. Restaurants - Casual Dining 58 4
Slide 20: Investments by State
20RETURN TO TABLE OF CONTENTS Investments State Total Property Count Net Lease Count Hotel Count Total % of Total Net Lease Net Lease % of Total Hotel Hotel % of Total California 41 22 19 $ 1,160,385 11.9 % $ 273,065 5.4 % $ 887,320 19.1 % Texas 61 56 5 717,744 7.4 % 516,496 10.2 % 201,248 4.3 % Flo
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI for Net Lease Properties
21RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Calculation of NOI: Rental income (GAAP) (1) $ 100,903 $ 99,876 $ 100,994 $ 101,194 $ 99,031 $ 200,779 $ 199,247 Net lease operating expenses (GAAP
Slide 22: Net Lease Portfolio by Tenant Brand
22RETURN TO TABLE OF CONTENTS Brand No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America Inc. 131 3,683,923 $ 2,254,950 44.5 % $ 183,936 46.4 % 1.34x (1) 2. Petro Stopping Cente
Slide 23: Net Lease Portfolio by Industry
23RETURN TO TABLE OF CONTENTS Industry No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 178 5,099,794 $ 3,311,787 65.3 % $ 272,892 68.9 % 1.36x (1) 2. Restaurants - Quick Service 211
Slide 24: Net Lease Portfolio Notes
24RETURN TO TABLE OF CONTENTS (1) TA is SVC's largest tenant. As of June 30, 2026, SVC leased 175 travel centers (131 under the TravelCenters of America brand and 44 under the Petro Stopping Centers brand) to a subsidiary of TA under five master leases that expire in 2033. TA has five renewal option
Slide 25: Net Lease Lease Expiration Schedule
25RETURN TO TABLE OF CONTENTS Year (1) Number of Properties Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative Percent of Total Annualized Minimum Rent Expiring 2026 30 339,921 $ 3,951 1.0 % 1.0 % 2027 32 881,425 11,159 2.8 % 3.8 % 2028 21 589,5
Slide 26: Net Lease Portfolio - Occupancy Summary
26RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Properties (end of period) 745 761 760 752 742 Vacant properties beginning of period 26 26 20 20 16 Vacant properties sold (3) (1) (1) (2) (2) Vacant properties leased (2) (1) — (2)
Slide 27: Hotel Portfolio by Brand
27RETURN TO TABLE OF CONTENTS Brand Service Level Chain Scale Number of Hotels Percent of Total Number of Hotels Number of Rooms or Suites Percent of Total Number of Rooms or Suites Investment Percent of Total Hotel Investment Investment Per Room or Suite Royal Sonesta Hotels® Full Service Upper Ups
Slide 28: Hotel Operating Statistics by Service Level (Second Quarter)
28RETURN TO TABLE OF CONTENTS Hotel Operating Statistics by Service Level - Retained & Exit Hotels* (Second Quarter) Occupancy ADR RevPAR Adjusted Hotel EBITDA Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Brand No. of Hotels No. of R
Slide 29: Hotel Operating Statistics by Service Level (Year to Date)
29RETURN TO TABLE OF CONTENTS Hotel Operating Statistics by Service Level - Retained & Exit Hotels* (Year to Date) Occupancy ADR RevPAR Adjusted Hotel EBITDA Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Brand No. of Hotels No. of Rooms or Su
Slide 30: Appendix
30RETURN TO TABLE OF CONTENTS Appendix
Slide 31: Company Profile, Research Coverage and Governance Information
31RETURN TO TABLE OF CONTENTS Company Profile, Research Coverage and Governance Information The Company: SVC is a REIT that owns service-focused retail net lease properties and hotels throughout the United States, including Puerto Rico, and Canada. Management: SVC is managed by The RMR Group (Nasdaq
Slide 32: Calculation of FFO, Normalized FFO and CAD
32RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Net loss $ (223,838) $ (151,178) $ (782) $ (46,945) $ (38,159) $ (375,016) $ (154,594) Add (Less): Depreciation and amortization 77,083 75,843 76,3
Slide 33: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
33RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Net loss $ (223,838) $ (151,178) $ (782) $ (46,945) $ (38,159) $ (375,016) $ (154,594) Add (Less): Interest expense 87,655 96,547 101,642 107,776 1
Slide 34: Hotel EBITDA and Adjusted Hotel EBITDA Calculation
34RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 6/30/2026 6/30/2025 Number of hotels 93 93 94 160 200 93 200 Room revenues $ 243,574 $ 197,565 $ 224,880 $ 307,089 $ 323,884 $ 441,139 $ 590,323
Slide 35: Notes to Condensed Consolidated Statements of Income (Loss)
35RETURN TO TABLE OF CONTENTS 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 $1,878 an
Slide 36: Non-GAAP Financial Measures
36RETURN TO TABLE OF CONTENTS 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, Cash Basis NOI, Hotel
Slide 37: Non-GAAP Financial Measures and Certain Definitions (Continued)
37RETURN TO TABLE OF CONTENTS 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 unencu
Slide 38: Non-GAAP Financial Measures and Certain Definitions (Continued)
38RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Continued) Investment: SVC defines hotel investment as historical cost of its properties plus capital improvements funded by it less impairment write-downs, if any, and excludes capital improvements made from FF&E Res
Slide 39: Warning Concerning Forward-Looking Statements
39RETURN TO TABLE OF CONTENTS 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”, “expect”, “antic
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