Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Hospitality Properties Trust — Q4 2018 Earnings Presentation
32 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Feb 27, 2019
Slide 1: Fourth Quarter 2018 Supplemental Operating and Financial Data
Hospitality Properties Trust Exhibit 99.2 Fourth Quarter 2018 Supplemental Operating and Financial Data Marriott Courtyard Phoenix Camelback Phoenix, AZ Operator: Marriott International, Inc. Guest Rooms: 155 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 Consolidated Balance Sheets 13 TABLE OF CONTENTS TABLE Consolidated Statements of Income 14 Notes to Consolidated Statements of Income 15 Consolidated State
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)
• THE SECURITY DEPOSITS WHICH WE HOLD ARE NOT IN SEGREGATED CASH ACCOUNTS OR OTHERWISE SEPARATE FROM OUR OTHER ASSETS AND LIABILITIES. ACCORDINGLY, WHEN WE RECORD INCOME BY REDUCING OUR SECURITY DEPOSIT LIABILITIES, WE DO NOT RECEIVE ANY ADDITIONAL CASH PAYMENT. BECAUSE WE DO NOT RECEIVE ANY ADDITIO
Slide 5: Forward Looking Statements (continued)
• AT DECEMBER 31, 2018, WE HAD $26.0 MILLION OF CASH AND CASH EQUIVALENTS, $823.0 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 A
Slide 6: Corporate Information
CORPORATE INFORMATION Sonesta Resort Hilton Head Island Hilton Head, SC Operator:Hospitality Sonesta Properties International Trust Hotels Corp. Guest Rooms:Supplemental 340 Operating and Financial Data, December 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 December 31, Two Newton Place 2018, we owned 326 hotels and 199 travel centers located in 45 states, Puerto Rico and Canada. Our properties 255
Slide 8: Company Profile (continued)
COMPANY PROFILE Operating Statistics by Operating Agreement (as of 12/31/18) (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) R
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 Brian E. Donle
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 Denver South-Park Meadows Lone Tree, CO Hospitality Properties Trust Operator: InterContinental Hotels Group Supplemental Operating and Financial Data, December 31, 2018 Guest Rooms: 115
Slide 12: Key Financial Data
KEY FINANCIAL DATA (dollars in thousands, except per share data) As of and For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Selected Balance Sheet Data: Total gross assets (1) $ 10,150,463 $ 10,250,294 $ 10,134,850 $ 9,980,751 $ 9,934,863 Total assets $ 7,177,079 $ 7,25
Slide 13: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (dollar amounts in thousands, except share data) As of December 31, 2018 2017 ASSETS Real estate properties: Land $ 1,626,239 $ 1,668,797 Buildings, improvements and equipment 7,896,734 7,758,862 Total real estate properties, gross 9,522,973 9,427,659 Accumulated deprecia
Slide 14: Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF INCOME (amounts in thousands, except share data) For the Three Months Ended December 31, For the Year Ended December 31, 2018 2017 2018 2017 Revenues: Hotel operating revenues (1) $ 464,833 $ 450,506 $ 1,960,958 $ 1,843,501 Rental income (2) 84,745 83,490 328,446 323,764 F
Slide 15: Notes to Consolidated Statements of Income
NOTES TO CONSOLIDATED STATEMENTS OF INCOME (dollar amounts in thousands, except share data) (1) As of December 31, 2018, we owned 326 hotels; 324 of these hotels were managed by hotel operating companies and two hotels were leased to hotel operating companies. As of December 31, 2018, we also owned
Slide 16: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) For the Year Ended December 31, 2018 2017 Cash flows from operating activities: Net income $ 185,734 $ 215,143 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 403,077 386,659 Amortization
Slide 17: Debt Summary
DEBT SUMMARY As of December 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) 3.416% $ 177,000 7/15/22 $ 177,000 3.5 $400,000 unsecured term loan (2) (3)
Slide 18: Debt Maturity Schedule
DEBT MATURITY SCHEDULE As of December 31, 2018 (dollars in thousands) Unsecured Unsecured Floating Fixed Year Rate Debt Rate Debt Total (3) 2021 $ — $ 400,000 $ 400,000 2022 177,000 (1) 500,000 677,000 2023 400,000 (2) 500,000 900,000 2024 — 350,000 350,000 2025 — 350,000 350,000 2026 — 350,000 350,
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 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Leverage Ratios: Total debt (1) / total gross assets (2) 41.6% 40.9% 41.2% 41.4% 40.7% Total debt (1) / gross book value of real estate assets (3) 44.2%
Slide 20: FF&E Reserve Escrows
FF&E RESERVE ESCROWS (1) (dollars in thousands) As of and For the Three Months Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 FF&E reserves (beginning of period) $ 65,644 $ 73,279 $ 59,533 $ 73,357 $ 73,115 Manager deposits 20,213 18,353 40,290 14,921 19,050 HPT fundings (2): Marriott No.
Slide 21: Property Acquisition and Disposition Information Since January 1, 2018
PROPERTY ACQUISITION INFORMATION SINCE JANUARY 1, 2018 (dollars in thousands) ACQUISITIONS: Average Number of Purchase Date Rooms or Operating Purchase Price per Acquired Properties Brand Location Suites Agreement Price (1) Room or Suite 6/15/2018 1 Radisson Blu Minneapolis, MN 360 Radisson $ 75,000
Slide 22: Calculation of EBITDA and Adjusted EBITDA
CALCULATION OF EBITDA AND ADJUSTED EBITDA (1) (in thousands) For the Three Months Ended For the Year Ended December 31, 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 2018 2017 Net income (loss) $ (108,860) $ 117,099 $ 97,289 $ 80,206 $ 31,545 $ 185,734 $ 215,143 Add (Less): Interest expense 49
Slide 23: Calculation of FFO and Normalized FFO
CALCULATION OF FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FFO AVAILABLE FOR COMMON SHAREHOLDERS (1) (amounts in thousands, except share data) For the Three Months Ended For the Year Ended December 31, 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 2018 2017 Net income (loss) available for commo
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 (loss) and net income (loss
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 126 Hebron, OH Operator: TravelCenters of America Hospitality Properties Trust Supplemental Operating and Financial Data, December 31, 2018
Slide 26: Portfolio by Operating Agreement and Manager
PORTFOLIO BY OPERATING AGREEMENT AND MANAGER As of December 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 Pe
Slide 27: Portfolio by Brand
PORTFOLIO BY BRAND As of December 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) (T
Slide 28: Operating Agreement Information
OPERATING AGREEMENT INFORMATION As of December 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
Slide 29: Operating Agreement Information
OPERATING AGREEMENT INFORMATION As of December 31, 2018 (dollars in thousands) Sonesta - We lease our 51 Sonesta branded hotels (six Royal Sonesta® Hotels, six Sonesta Hotels & Resorts® and 39 Sonesta ES Suites® hotels) in 26 states to one of our TRSs. The hotels are managed by Sonesta under a combi
Slide 30: Operating Agreement Information
OPERATING AGREEMENT INFORMATION As of December 31, 2018 (dollars in thousands) As of December 31, 2018, we leased to TA a total of 199 travel centers under five leases that expired between 2026 and 2032 and required aggregate annual minimum rents of $289,231. Pursuant to a rent deferral agreement wi
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 For the Year Ended No. of Rooms or December 31, December 31, Hotels Suites 2018 2017 Change 2018 2017 Change ADR Marriott (no. 1) 53 7,609 $ 128.62 $ 125.93 2.1% $ 131.36 $ 130.44 0.7% Marriott (no. 234)
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 12/31/2018 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Marriott (no. 1) 53 1.20x 1.20x 1.23x 1.23x 1.25x Marriott (no. 234) 68 1.09x 1.10x 1.11x 1.11x 1.13x Marriott (no. 5) 1 1.05x 1.07
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