Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Hospitality Properties Trust — Q1 2018 Earnings Presentation
32 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, May 9, 2018
Slide 1: First Quarter 2018 Supplemental Operating and Financial Data
Hospitality Properties Trust Exhibit 99.2 First Quarter 2018 Supplemental Operating and Financial Data InterContinental Toronto Yorkville Toronto, ON Operator: InterContinental Hotels Group Guest Rooms: 208 All amounts in this report are unaudited.
Slide 2: Table of Contents
TABLE OF CONTENTS PAGE CORPORATE INFORMATION 6 Company Profile 7,8 Investor Information 9 Research Coverage 10 FINANCIALS Key Financial Data 12 Condensed Consolidated Balance Sheets 13 Condensed Consolidated Statements of Income 14 TABLE OF CONTENTS TABLE Notes to Condensed Consolidated Statements o
Slide 3: Warning Concerning Forward Looking Statements
WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESENTATION OF SUPPLEMENTAL OPERATING AND FINANCIAL DATA 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 WE USE WORD
Slide 4: Forward Looking Statements (continued)
FOR EXAMPLE: • OUR ABILITY TO MAKE FUTURE DISTRIBUTIONS TO OUR SHAREHOLDERS AND TO MAKE PAYMENTS OF PRINCIPAL AND INTEREST ON OUR INDEBTEDNESS DEPENDS UPON A NUMBER OF FACTORS, INCLUDING OUR FUTURE EARNINGS, THE CAPITAL COSTS WE INCUR TO MAINTAIN OUR PROPERTIES AND OUR WORKING CAPITAL REQUIREMENTS.
Slide 5: Forward Looking Statements (continued)
• AT MARCH 31, 2018, WE HAD $16.8 MILLION OF CASH AND CASH EQUIVALENTS, $914.0 MILLION AVAILABLE UNDER OUR $1.0 BILLION REVOLVING CREDIT FACILITY AND SECURITY DEPOSITS AND GUARANTEES COVERING SOME OF OUR MINIMUM RETURNS AND RENTS. THESE STATEMENTS MAY IMPLY THAT WE HAVE ABUNDANT WORKING CAPITAL AND
Slide 6: Corporate Information
CORPORATE INFORMATION Radisson Hotel Salt Lake City Downtown Salt Lake City, UT Operator: Radisson Hotel Group Guest Rooms: 381 Hospitality Properties Trust Supplemental Operating and Financial Data, March 31, 2018
Slide 7: Company Profile
COMPANY PROFILE The Company: Corporate Headquarters: Hospitality Properties Trust, or HPT, we, our, or us, is a real estate investment trust, or REIT. As of March 31, 2018, Two Newton Place we owned 323 hotels and 199 travel centers located in 45 states, Puerto Rico and Canada. Our properties are 25
Slide 8: Company Profile (continued)
COMPANY PROFILE Operating Statistics by Operating Agreement (as of 3/31/18) (dollars in thousands): Number of Rooms or Percent of Total Suites (Hotels) / Annualized Annualized Number of Land Acreage Minimum Minimum Coverage (3) RevPAR Change (4) Operating Agreement (1) Properties (Travel Centers) Re
Slide 9: Investor Information
INVESTOR INFORMATION Board of Trustees Donna D. Fraiche John L. Harrington William A. Lamkin Independent Trustee Lead Independent Trustee Independent Trustee John G. Murray Adam D. Portnoy Managing Trustee Managing Trustee INVESTOR INFORMATION INVESTOR Senior Management John G. Murray Mark L. Kleifg
Slide 10: Research Coverage
RESEARCH COVERAGE Equity Research Coverage Baird D.A. Davidson & Co. B. Riley | FBR Michael Bellisario James O. Lykins Bryan Maher (414) 298-6130 (503) 603-3041 (646) 885-5423 mbellisario@rwbaird.com jlykins@dadco.com bmaher@fbr.com Janney Montgomery Scott Stifel Nicolaus Wells Fargo Securities Tyle
Slide 11: Financials
FINANCIALS Staybridge Suites San Antonio NW Medical Center San Antonio, TX Operator: InterContinental Hotels Group Guest Rooms: 118 Hospitality Properties Trust Supplemental Operating and Financial Data, March 31, 2018
Slide 12: Key Financial Data
KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Selected Balance Sheet Data: Total gross assets (1) $ 9,980,751 $ 9,934,863 $ 9,864,205 $ 9,621,016 $ 9,380,278 Total assets $ 7,120,874 $ 7,150,38
Slide 13: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) As of March 31, As of December 31, 2018 2017 ASSETS Real estate properties: Land $ 1,668,664 $ 1,668,797 Buildings, improvements and equipment 7,794,387 7,758,862 Total real estate properties, gross 9,463,051 9,42
Slide 14: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except share data) For the Three Months Ended March 31, 2018 2017 Revenues: Hotel operating revenues (1) $ 445,276 $ 408,236 Rental income (2) 81,993 79,139 FF&E reserve income (3) 1,364 1,227 Total revenues 528,633 488,602 Expenses:
Slide 15: Notes to Condensed Consolidated Statements of Income
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME (dollar amounts in thousands, except share data) (1) At March 31, 2018, we owned 323 hotels; 320 of these hotels were managed by hotel operating companies and three hotels were leased to hotel operating companies. At March 31, 2018, we also owned
Slide 16: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended March 31, 2018 2017 Cash flows from operating activities: Net income $ 80,206 $ 37,171 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 99,617 93,451 Amortizat
Slide 17: Debt Summary
DEBT SUMMARY As of March 31, 2018 (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Unsecured Floating Rate Debt: $1,000,000 unsecured revolving credit facility (1) (2) 2.977% $ 86,000 7/15/18 $ 86,000 0.3 $400,000 unsecured term loan (2) (3) 2.86
Slide 18: Debt Maturity Schedule
DEBT MATURITY SCHEDULE As of March 31, 2018 (dollars in thousands) Unsecured Unsecured Floating Fixed Year Rate Debt Rate Debt Total (3) 2018 $ 86,000 (1) $ — $ 86,000 2019 400,000 (2) — 400,000 2021 — 400,000 400,000 2022 — 500,000 500,000 2023 — 500,000 500,000 2024 — 350,000 350,000 2025 — 350,00
Slide 19: Leverage Ratios, Coverage Ratios and Public Debt Covenants
LEVERAGE RATIOS, COVERAGE RATIOS AND PUBLIC DEBT COVENANTS As of and For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Leverage Ratios: Total debt (1) / total gross assets (2) 41.4% 40.7% 41.1% 40.3% 39.8% Total debt (1) / gross book value of real estate assets (3) 43.6%
Slide 20: FF&E Reserve Escrows
FF&E RESERVE ESCROWS (1) (dollars in thousands) As of and For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 FF&E reserves (beginning of period) $ 73,357 $ 73,115 $ 58,911 $ 56,713 $ 60,456 Manager deposits 14,921 19,050 20,047 19,573 15,602 HPT fundings (2): Marriott No.
Slide 21: Property Acquisition and Disposition Information Since January 1, 2018
PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JANUARY 1, 2018 (dollars in thousands) ACQUISITIONS We have not acquired any properties since January 1, 2018. DISPOSITIONS: We have not disposed of any properties since January 1, 2018. PROPERTY ACQUISITION AND DISPOSITION INFORMATION SINCE JAN
Slide 22: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (in thousands) For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Net income $ 80,206 $ 31,545 $ 85,728 $ 60,699 $ 37,171 Add (Less): Interest expense 47,540 46,250 46,574 45,189 43,566 Income tax expense (benefit) (2) 471 (5,0
Slide 23: Calculation of FFO and Normalized FFO
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO AVAILABLE FOR COMMON SHAREHOLDERS (1) (dollar amounts in thousands, except share data) For the Three Months Ended 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Net income available for common shareholders $ 80,206 $ 31,545 $ 85,728 $
Slide 24: Non-GAAP Financial Measures Definitions
Non-GAAP Financial Measures Definitions Definition of EBITDA and Adjusted EBITDA We calculate EBITDA and Adjusted EBITDA as shown on page 22. We consider EBITDA and Adjusted EBITDA to be appropriate supplemental measures of our operating performance, along with net income, net income available for c
Slide 25: Operating Agreements and Portfolio Information
OPERATING AGREEMENTS AND PORTFOLIO INFORMATION TA Travel Center, 10679 Lancaster Road SE I-70 at OH 37, Exit 12 Hebron, OH Operator: TravelCenters of America Hospitality Properties Trust Supplemental Operating and Financial Data, March 31, 2018
Slide 26: Portfolio by Operating Agreement and Manager
PORTFOLIO BY OPERATING AGREEMENT AND MANAGER As of March 31, 2018 (dollars in thousands) Percent of Percent of Percent of Number of Rooms Total Number of Total Total or Suites (Hotels) / Rooms or Suites Percent of Investment Annual Annual Number of Number of Land Acreage (Hotels) / Acres Total Per M
Slide 27: Portfolio by Brand
PORTFOLIO BY BRAND As of March 31, 2018 (dollars in thousands) Number of Percent of Percent of Rooms or Total Number of Total Suites (Hotels) / Rooms or Suites Percent of Investment Number of Number of Land Acreage (Hotels) / Acres Total Per Brand Manager Properties Properties (Travel Centers) (Trav
Slide 28: Operating Agreement Information
OPERATING AGREEMENT INFORMATION As of March 31, 2018 (dollars in thousands) Marriott No. 1- We lease 53 Courtyard by Marriott® branded hotels in 24 states to one of our taxable REIT subsidiaries, or TRSs. The hotels are managed by a subsidiary of Marriott under a combination management agreement whi
Slide 29: Operating Agreement Information
OPERATING AGREEMENT INFORMATION As of March 31, 2018 (dollars in thousands) Sonesta- As of March 31, 2018, we leased our 49 Sonesta branded hotels (five Royal Sonesta Hotels®, five Sonesta Hotels & Resorts® and 39 Sonesta ES Suites® hotels) in 26 states to one of our TRSs. The hotels are managed by
Slide 30: Operating Agreement Information
OPERATING AGREEMENT INFORMATION As of March 31, 2018 (dollars in thousands) Morgans- As of March 31, 2018, we leased The Clift Hotel® in San Francisco, CA to a subsidiary of Morgans. This lease was scheduled to expire in 2103 and required annual rent to us of $7,595, subject to future increases. Dur
Slide 31: Operating Statistics by Hotel Operating Agreement and Manager
OPERATING STATISTICS BY HOTEL OPERATING AGREEMENT AND MANAGER No. of For the Three Months Ended No. of Rooms or March 31, Hotels Suites 2018 2017 Change ADR Marriott (no. 1) 53 7,609 $ 130.81 $ 131.32 (0.4%) Marriott (no. 234) 68 9,120 131.91 130.97 0.7% Marriott (no. 5) 1 356 280.56 269.92 3.9% Sub
Slide 32: Coverage by Operating Agreement and Manager
COVERAGE BY OPERATING AGREEMENT AND MANAGER (1) Number of For the Twelve Months Ended Operating Agreement Properties 3/31/2018 12/31/2017 9/30/2017 6/30/2017 3/31/2017 Marriott (no. 1) 53 1.23x 1.25x 1.26x 1.28x 1.33x Marriott (no. 234) 68 1.11x 1.13x 1.12x 1.12x 1.13x Marriott (no. 5) 1 0.96x 0.91x
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