Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (November 2023)
29 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, Nov 14, 2023
Slide 1: Service Properties Trust Investor Presentation November 2023
Service Properties Trust (Nasdaq: SVC) Investor Presentation November 2023
Slide 2: Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures
2SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities law
Slide 3: SVC: Company Overview
3SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 SVC: Company Overview SVC invests in two asset categories: hotels and service-focused retail net lease properties to provide diversification to its cash flows. Necessity-based retail assets with strong rent coverage, low capex requirements and
Slide 4: SVC: Company Overview - Diversified Portfolio with National Scale
4SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 SVC: Company Overview 221 HOTELS 37,777 KEYS $6.2B INVESTMENT 761 RETAIL NET LEASE ASSETS 13.4M RENTABLE SQUARE FEET $5.1B INVESTMENT 982 PROPERTIES $11.3B INVESTMENT Diversified Portfolio with National Scale
Slide 5: SVC: Recent Company Highlights
5SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 SVC: Recent Company Highlights • In February, SVC executed a $610.2 million secured financing with a 5.6% coupon and used proceeds to redeem $500 million of 4.5% senior notes that matured in June 2023. • In May, TravelCenters of America Inc., o
Slide 6: Portfolio Highlights: Geographically Diverse
6SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 SVC’s assets are located in 46 states, Washington D.C., Puerto Rico and Canada. Portfolio Highlights: Geographically Diverse • SVC has invested $11.3 billion in its real estate portfolio. • SVC’s investments are located in various markets with
Slide 7: Hotel Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Hotel Portfolio
Slide 8: Hotel Portfolio: Diversified by Location and Service Level
8SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 BY SERVICE LEVEL(1) BY CHAIN SCALE(1)BY LOCATION Location Keys % of Portfolio Suburban 18,395 48.7% Urban 9,443 25.0% Airport 6,904 18.3% Resort 2,701 7.1% Small Metro 121 0.3% Interstate 213 0.6% Total 37,777 100.0% Hotel Portfolio: Diversifie
Slide 9: Hotel Portfolio: Monthly Operating Metrics (219 Comparable Hotels)
9SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Hotel Portfolio: Monthly Operating Metrics (219 Comparable Hotels) Monthly Hotel EBITDA ($ in Millions) 68.8% 63.4% 67.0% 67.6% 58.7% 50.9% 50.0% 57.9% 65.4% 65.8% 66.4% 70.9% 69.9% 65.3% 66.7% $146 $135 $142 $144 $131 $129 $134 $139 $142 $141
Slide 10: Hotel Portfolio: By Service Level (219 Comparable Hotels)
10SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 $39 $12 $27 $42 $11 $24 18.7% 18.9% 25.1% 18.9% 17.3% 22.8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Full Service Select Service Extended Stay Q3 '22 EBITDA Q3 '23 EBITDA Q3 '22 EBITDA Margin Q3 '23 EBITD
Slide 11: Hotel Portfolio: Sonesta at a Glance
11SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 • 8th largest hotel company according to Smith Travel Research. • Approximately 1,200 properties totaling 100,000 rooms across 19 brands in eight countries. • Manages over 200 hotels. • Franchises close to 1,000 hotels. • SVC owns 34% of Sones
Slide 12: Net Lease Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Net Lease Portfolio
Slide 13: Net Lease Portfolio: High-Quality Service & Necessity Based Assets
13SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Net Lease Portfolio: High-Quality Service & Necessity Based Assets Net Lease Portfolio Statistics 761 $374mm Properties Annualized Minimum Rent 13.4mm 9.1 Rentable Square Feet Weighted Average Lease Term(1) 95.8% 2.72x Occupancy Rent Coverage
Slide 14: Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements
14SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 3% 81% 13% 3% Percentage Rent Fixed/Scheduled CPI Flat (1) By annualized minimum rent. Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements Well-Laddered Lease Expirations (1) 97% of Leases Have Contractual Increases or Perce
Slide 15: Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk
15SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk (1) By annualized minimum rent. (2) Rent coverage information provided by tenant is for all 176 sites on a consolidated basis and is as of September 30, 2023. Tenants by Brand
Slide 16: Net Lease Portfolio: TravelCenters of America, Inc.
16SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Net Lease Portfolio: TravelCenters of America, Inc. • Represents 29% of SVC’s portfolio based on investment. • 176 travel centers operate under two brands. • Difficult to replicate real estate located near exits along the U.S. Interstate Highw
Slide 17: Financial Information
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Financial Information
Slide 18: Strong Balance Sheet
18SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 $1,150 $800 $850 $400 $425 $400 $0.5 $2 $2 $2 $2 $601 $1,000 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2023 2024 2025 2026 2027 2028 2029 2030 2031 $ (M ill io n s) Unsecured Fixed Rate Debt Secured Fixed Rate Debt Revolving Credit Facility
Slide 19: Strong Management Platform and Affiliate Advantages
19SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Financial Services: Real Estate Services: Business Services: Accounting Acquisitions/ Dispositions Administration Capital Markets Asset Management Human Resources Compliance/ Audit Construction/ Development Information Technology (IT) Finance/
Slide 20: Alignment of Interests
20SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 RMR base management fee tied to SVC share price performance. RMR incentive fees contingent on total shareholder return(1) outperformance. • Equal to 12% of value generated by SVC in excess of the benchmark index total returns (MSCI U.S. REIT/H
Slide 21: Appendix
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Appendix
Slide 22: Calculation of Funds From Operations (FFO) and Normalized FFO
22SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Calculation of Funds From Operations (FFO) and Normalized FFO See accompanying notes on page 26. (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 9/30/2
Slide 23: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
23SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre See accompanying notes on page 26. (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 (lo
Slide 24: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
24SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels See accompanying notes on page 26. (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
Slide 25: 25SERVICE For the Three Months Ended For the Nine Months Ended 9/30/2023 6/30/2023 3/31/2023
25SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 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 $ 288,082 $ 341,106 $ 932,439
Slide 26: Notes to Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA
26SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Notes to Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA 26 1. SVC recorded a loss on asset impairment of $512 to reduce the carrying value of three net lease properties to their estimated fair value l
Slide 27: Non-GAAP Financial Measures and Certain Definitions
27SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Non-GAAP Financial Measures and Certain Definitions 27 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, Norma
Slide 28: Non-GAAP Financial Measures and Certain Definitions (continued)
28SERVICE PROPERTIES TRUST (Nasdaq: SVC) | November 2023 Non-GAAP Financial Measures and Certain Definitions (continued) 28 Comparable Hotels Data: SVC presents RevPAR, ADR and occupancy for the periods presented on a comparable basis to facilitate comparisons between periods. SVC generally defines
Slide 29: Service Properties Trust
Service Properties Trust (Nasdaq: SVC) Investor Presentation November 2023 Two Newton Place 255 Washington Street Suite 300 Newton, MA 02458 SVCREIT.COM
Service Properties Trust — Investor Presentation (November 2023) on 6ix