Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q1 2024 Earnings Presentation
37 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, May 7, 2024
Slide 1: First Quarter 2024 Financial Results and Supplemental Information
The Royal Sonesta Boston Cambridge, MA Service Properties Trust First Quarter 2024 Financial Results and Supplemental Information May 7, 2024
Slide 2: Table of Contents
Table of Contents QUARTERLY RESULTS SVC Service Properties Trust Announces First Quarter 2024 Financial Results .................................................................................................................................................. 4 First Quarter 2024 Highlights .........
Slide 3: Quarterly Results
Quarterly Results RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces First Quarter 2024 Financial Results
Service Properties Trust Announces First Quarter 2024 Financial Results Newton, MA (May 7, 2024): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended March 31, 2024. "SVC’s first quarter performance reflected typical seasonality patterns Dividend: SVC d
Slide 5: First Quarter 2024 Highlights
First Quarter 2024 Highlights • Net loss of $78.4 million, or $0.48 per common share. Financial • Normalized FFO of $21.1 million, or $0.13 per common share. Results • Adjusted EBITDAre of $115.5 million. • Hotel RevPAR of $78.69. Portfolio • Hotel EBITDA of $28.9 million. Update • Net Lease occupan
Slide 6: Financials
Financials RETURN TO TABLE OF CONTENTS 6
Slide 7: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and For the Three Months Ended As of Sonesta ES Suites 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 3/31/2024 Fort Lauderdale, FL Capitalization: Selected Income Statement Data: Total common shares (at end of period) 165,76
Slide 8: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended March 31, 2024 2023 Revenues: Hotel operating revenues (1) $ 336,236 $ 334,796 Rental income (2) 100,014 94,413 Total revenues 436,250 429,209 Expenses: Hotel operating expenses (1)(3)
Slide 9: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) March 31, December 31, 2024 2023 ASSETS Real estate properties: Land $ 1,968,963 $ 1,972,145 Buildings, improvements and equipment 7,846,174 7,814,192 Total real estate properties, gross 9,815,137 9,786,337 Accumulat
Slide 10: Debt Summary
Debt Summary As of March 31, 2024 (dollars in thousands) Weighted Average Principal Maturity Due at Years to (1) SVC is required to pay interest at a rate of SOFR plus a premium, which was 250 basis points per Interest Rate Balance Date Maturity Maturity annum as of March 31, 2024. SVC also pays an
Slide 11: Debt Maturity Schedule
Debt Maturity Schedule As of March 31, 2024 (dollars in thousands) $1,250,000 $1,958 Secured vs. Unsecured Debt $1,000,000 $1,958 $1,958 $750,000 $600,737 Secured 28.5% $1,150,000 $500,000 $1,000,000 $850,000 $800,000 Unsecured 71.5% $250,000 $400,000 $425,000 $400,000 1093 Blowing Rock Road Boone,
Slide 12: Leverage Ratios, Coverage Ratios and Debt Covenants
Leverage Ratios, Coverage Ratios and Debt Covenants As of and For the Trailing Twelve Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Leverage Ratios: Net debt / total gross assets 53.1 % 51.8 % 50.2 % 50.2 % 53.6 % 622 Fair Road Net debt / gross book value of real estate assets and
Slide 13: Capital Expenditures Summary
Capital Expenditures Summary (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Capital Expenditures: Hotel capital improvements & FF&E Reserve fundings (1) $ 68,340 $ 105,289 $ 63,948 $ 41,043 $ 21,773 Net lease capital improvements 442 499 769 1,70
Slide 14: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2024 (dollars in thousands, except per room or suite data) ACQUISITIONS: Nautilus Sonesta Quarter Property Average Purchase Price per Miami Beach, FL Acquired Properties Type Brand Location Rooms or Suites Purchase Price (1) Room or Suite SVC h
Slide 15: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 15
Slide 16: Portfolio Summary
Portfolio Summary As of March 31, 2024 (dollars in thousands) Number of Properties Hotel Properties 220 Number of hotel rooms 37,697 Net Lease Properties 749 Net lease square feet 13,384,219 Total Properties 969 Average hotel property size 171 rooms Average net lease property size 17,869 sq. ft. Inv
Slide 17: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of March 31, 2024 (dollars in thousands) No. of Rooms / Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 220 37,697 $ 6,370,776 55.8% Royal Sonesta Kaua`i Resort 2. Travel Centers 178 5,099,794 3,311,787 29.1%
Slide 18: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of March 31, 2024 (dollars in thousands) Investments Royal Sonesta Harbor Court Net Baltimore, MD Total Property Hotel Lease Hotel % Net Lease State Count Count Count Total % of Total Hotel of Total Net Lease % of Total California 58 36 22 $ 1,
Slide 19: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of March 31, 2024 (dollars in thousands, except per room or suite data) Percent of Percent of Number of Total Number Percent of Number of Total Number Rooms or of Rooms or Total Hotel Investment Per Brand Service Level Chain Scale Hotels of Hotels Suites Suites Investment
Slide 20: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2024 2023 Change 2024 2023 Change 2024 2023 Change Sonesta Hotels & Res
Slide 21: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR Three Months Ended March 31, Three Months Ended March 31, Three Months Ended March 31, No. of No. of Rooms Brand Service Level Hotels or Suites 2024 2023 Change 2024 2023 Change 2024 2023 Change Sonesta Hotels & Resorts
Slide 22: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of March 31, 2024 (dollars in thousands) Percent of Percent of Total 2215 D & B Drive No. of Total Annualized Annualized Rent Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage Marietta, GA 1. TravelCenters of America Inc. 131 3,683,
Slide 23: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of March 31, 2024 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Industry Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. Travel Centers 178 5,099,794 $ 3,311,787 65.5% $ 257,281 68.5% 1
Slide 24: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of March 31, 2024 (dollars in thousands) Percent of Total Percent of Annualized Annualized Weighted No. of Total Minimum Minimum Average Rent Tenant Brand Affiliation Properties Square Feet Investment Investment Rent Rent Lease Term Coverage 1. TravelCenters
Slide 25: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of March 31, 2024 (dollars in thousands) Number Percent of Total Cumulative Percent of of Annualized Minimum Annualized Minimum Rent Total Annualized Year (1) Properties Square Feet Rent Expiring Expiring Minimum Rent Expiring 2024 33 450,219 $ 4,823 1.3%
Slide 26: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of March 31, 2024 As of and For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Properties (end of period) 749 752 761 763 765 Vacant properties beginning of period 22 32 30 27 23 Vacant property sales / leased (3) (12) (2) (2) (1)
Slide 27: Appendix
Appendix RETURN TO TABLE OF CONTENTS 27
Slide 28: Company Profile and Research Coverage
Company Profile and Research Coverage The Company: Equity Research Coverage SVC is a REIT that owns hotels and service-focused retail net lease properties throughout the United States and in Puerto Rico and B. Riley Securities, Inc. HSBC Canada. SVC is included in 155 market indices and comprises Br
Slide 29: Governance Information
Governance Information Board of Trustees Laurie B. Burns Robert E. Cramer Donna D. Fraiche Independent Trustee Independent Trustee Lead Independent Trustee John L. Harrington William A. Lamkin John G. Murray Independent Trustee Independent Trustee Managing Trustee Sonesta Irvine Orange County Airpor
Slide 30: Calculation of FFO and Normalized FFO
Calculation of FFO and Normalized FFO (amounts in thousands, except per share data) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net (loss) income $ (78,383) $ (43,323) $ (4,128) $ (11,278) $ 25,950 Add (Less): Depreciation and amortization 93,107 94,952 94,498 94,57
Slide 31: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Net (loss) income $ (78,383) $ (43,323) $ (4,128) $ (11,278) $ 25,950 Add (Less): Interest expense 91,414 89,979 82,280 82,503 81,580 Income tax
Slide 32: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Number of hotels 218 218 218 218 218 Room revenues $ 262,854 $ 269,113 $ 324,338 $ 328,006 $ 267,746 Food and beverage revenues 44,5
Slide 33: Calculation and Reconciliation of Hotel EBITDA - All Hotels
Calculation and Reconciliation of Hotel EBITDA - All Hotels* (dollars in thousands) For the Three Months Ended 3/31/2024 12/31/2023 9/30/2023 6/30/2023 3/31/2023 Number of hotels 220 221 221 221 220 Room revenues $ 269,926 $ 273,869 $ 327,688 $ 329,484 $ 275,267 Food and beverage revenues 46,563 49,
Slide 34: Notes to Condensed Consolidated Statements of Income (Loss)
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollars in thousands) (1) As of March 31, 2024, SVC owned 220 hotels. SVC's condensed consolidated statements of income (loss) include hotel oper
Slide 35: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions 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, EBITDA, Hotel EBITDA, EBITDAre and Adjusted EBITDA
Slide 36: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Debt: Debt amounts reflect the principal balance as of the date reported. Net debt means total debt less unrestricted cash and cash equivalents as of the date reported. Earnings and Adjustments Attributable to an Investee: Represents SV
Slide 37: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements 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”,
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