Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Hospitality Properties Trust — Merger or Acquisition (June 2019)
14 slides from Service Properties Trust - Shares Of Beneficial Interest's merger presentation, Jun 3, 2019
Slide 1: Transaction Summary
TRANS A CTI O N S UMM A R Y (1) Excludes transaction costs. HPT expects transaction costs to be approximately $100 million, including an estimated $72 million to extinguish SMTA’s mortgage debt on the portfolio. (2) This transaction does not include approximately 100 assets owned by SMTA primarily l
Slide 2: Acquisition Portfolio Overview
A C QU I SI T I O N POR T F OL I O OVER VI EW 1% <1% <1% 4% 2% 3% <1% 1% 2% <1% 4% <1% 3% 1% <1% <1% 2% 7% <1% 1% 3% 9% 6% <1% 1% 2% 3% 1% 4% 1% 2% 3% 3% 2% 2% 2% 2% 7% 1% 9% <1% Weighted Average Occupancy 4% 0.1% % of Rent (1) 9.0% Other 23% Quick Service 14% Movie Theaters 13% Home Furnishings 4%
Slide 3: Acquisition Portfolio Overview (cont'd) - Top 10 Brands
A C QU I SI T I O N POR T F OL I O OVER VI EW ( cont ’ d) 119 4,055 $56.4 32.8% or Chain Names 22Industries |164 Brands 5 Top 10 Brands Tenant No. of Total SF or Chain Names Industry Locations (000s) Annualized Base Rent $ (mm)% of Total AMC Theatres Movie Theaters14696$10.46.0% The Great Escape Spe
Slide 4: Acquisition Portfolio Overview (cont'd) - Lease Structures and Expirations
A C QU I SI T I O N POR T F OL I O OVER VI EW ( c o n t ’d) 81% of Leases Have Contractual Increases 19% 46% $172mm CPI Fixed Flat 35% / Scheduled 28% 8% 6% 6% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ 6 Manageable Near-Term Expirations16% 10% 8% 7% 4% 2%3% 2% Well-Laddered Lease
Slide 5: Strategic Rationale
S TR ATE G I C R ATI O N A LE 7 (1) Before potential asset sales post-acquisition of net lease portfolio. LA Fitness Norms The Great Escape Limited capex requirements. Complementary service-oriented retail platform, which bolsters our existing portfolio. Diversification, with new tenants, new proper
Slide 6: Benefits of the Transaction
TRANS A CT I O N ( 1) BE NE FI TS O F THE 1 Gross Assets No. of Properties +774 Pro Forma (2) Pro Forma (2) Status Quo (1) Status Quo (1) 2 Diversifies Tenant Mix (13 Agreements / 23 Brands) 23 Industries | 185+ Brands 3 Unique Secure Hotel Portfolio 19 different hotel brands in multiple hospitality
Slide 7: Diversifies Portfolio and Tenant Concentration and Improves Rent Coverage
DI V E RS I FI E S P O RTFO LI O AND TE NANT CO NCE NT R ATI O N AND I MP RO V E S RE NT CO V E RA G E Complementary Travel Centers 24% Travel Centers 29% Hotels 59% Net Lease 17% (1) Based on HPT’s annualized minimum returns and rents as of and for the twelve months ended March 31, 2019 and net lea
Slide 8: Key Elements of the Transaction
KE Y E LE ME NT S O F THETRANS A C TI O N 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 under its existing revolving credit facility, proceeds from the sale of certain assets and /
Slide 9: Select Financial Metrics
S E LE CT FI NANCI A L ME TRI C S Acquisition HPT HPT intends to sell certain assets to enhance the overall portfolio quality and composition, and to maintain a conservative and flexible structure. (1) As of and for the twelve months ended March 31, 2019. Adjusted EBITD Are excludes $53.6 million of
Slide 10: The RMR Group Has a National Vertically Integrated Operating Platform
THE V E RTI CA L LY RMR G RO UP HAS A N ATI O N AL I NTE G R ATE D O P E R ATI N G P L ATFO 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 throughout the U.S. with ove
Slide 11: The RMR Group Has a National Vertically Integrated Operating Platform
THE RMR GROUP HAS A NATIONAL HPT VERTICALLY INTEGRATED OPERATING PLATFORM Nasdaq Listed 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 throughout the U.S. with over 600 co
Slide 12: Adjusted EBITDAre Reconciliation
ADJ US T E D E BI TDA re RE CO N CI LI ATI O N 6/30/2018 $97 9/30/2018 $117 12/31/2018 ($109) 3/31/2019 $226 HPT LTM 3/31/19 Net Income (Loss) $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 Gain on Sale
Slide 13: Non-GAAP Financial Measures Definitions
NO N - G A A P FI NANCI A L ME AS U RE S DE FI NI TI O N S Non-GAAP Financial Measures We present certain “non-GAAP financial measures” within the meaning of applicable SEC rules in this presentation, including Adjusted EBITD Are and Normalized FFO. These measures do not represent cash generated by
Slide 14: Acquisition of $2.4 Billion High Quality Net Lease Portfolio
H O S P I TA L I T Y P R O P E R T I E S T R U S T Acquisition of $2.4 Billion High Quality N et Lease Port f olio RADISSON BLU MINNEAPOLIS DOWNTOWN
Hospitality Properties Trust — Merger or Acquisition (June 2019) on 6ix