Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q2 2024 Earnings Presentation
40 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Financial Results and Supplemental Information
Service Properties Trust Second Quarter 2024 Financial Results and Supplemental Information August 6, 2024 Exhibit 99.2Sonesta Los Angeles Airport LAX Los Angeles, CA
Slide 2: Table of Contents
2 Table of Contents QUARTERLY RESULTS Service Properties Trust Announces Second Quarter 2024 Financial Results ............................................................................................................................................ 4 Second Quarter 2024 Highlights ...............
Slide 3: Quarterly Results
3RETURN TO TABLE OF CONTENTS Quarterly Results
Slide 4: Service Properties Trust Announces Second Quarter 2024 Financial Results
4RETURN TO TABLE OF CONTENTS Newton, MA (August 6, 2024): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended June 30, 2024. Distribution: SVC declared a quarterly distribution on its common shares of $0.20 per share to shareholders of record as of the
Slide 5: Second Quarter 2024 Highlights
5RETURN TO TABLE OF CONTENTS Second Quarter 2024 Highlights Financial Results • Net loss of $73.9 million, or $0.45 per common share. • Normalized FFO of $73.8 million, or $0.45 per common share. • Adjusted EBITDAre of $171.5 million. Portfolio Update • Hotel RevPAR of $97.50. • Hotel EBITDA of $82.
Slide 6: Financials
6RETURN TO TABLE OF CONTENTS Financials
Slide 7: Key Financial Data
7RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Selected Income Statement Data: Total revenues $ 512,948 $ 436,250 $ 444,050 $ 496,825 $ 503,779 Net loss $ (73,850) $ (78,383) $ (43,323) $ (4,128) $ (11,278) FFO $ 57,764 $ 21,204 $
Slide 8: Condensed Consolidated Statements of Income (Loss)
8RETURN TO TABLE OF CONTENTS Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Hotel operating revenues (1) $ 412,486 $ 404,327 $ 748,722 $ 739,123 Rental income (2) 100,462 99,452 200,476 193,865 Total revenues 512,948 503,779 949,198 932,988 Expenses: Hotel operat
Slide 9: Condensed Consolidated Balance Sheets
9RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets June 30, December 31, 2024 2023 ASSETS Real estate properties: Land $ 1,941,008 $ 1,972,145 Buildings, improvements and equipment 7,636,707 7,814,192 Total real estate properties, gross 9,577,715 9,786,337 Accumulated depreciation (3
Slide 10: Debt Summary
10RETURN TO TABLE OF CONTENTS (1) SVC is required to pay interest at a rate of SOFR plus a premium, which was 250 basis points per annum as of June 30, 2024. SVC also pays an unused commitment fee of 20 to 30 basis points per annum based on amounts outstanding under its revolving credit facility. Su
Slide 11: Debt Maturity Schedule
11RETURN TO TABLE OF CONTENTS $800,000 $850,000 $400,000 $1,125,000 $400,000 $500,000 $979 $1,958 $1,958 $1,958 $600,737 $1,000,000 Unsecured Fixed Rate Debt Secured Fixed Rate Debt Revolving Credit Facility 2024 2025 2026 2027 2028 2029 2030 2031 2032 $0 $250,000 $500,000 $750,000 $1,000,000 $1,250
Slide 12: Leverage Ratios, Coverage Ratios and Debt Covenants
12RETURN TO TABLE OF CONTENTS As of and For the Trailing Twelve Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Leverage Ratios: Net debt / total gross assets 55.1 % 53.1 % 51.8 % 50.2 % 50.2 % Net debt / gross book value of real estate assets and cash and cash equivalents 59.1 % 56.
Slide 13: Capital Expenditures Summary
13RETURN TO TABLE OF CONTENTS For the Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Hotel capital improvements $ 20,999 $ 10,011 $ 28,196 $ 27,538 $ 12,581 Lease related costs 1,001 510 596 1,128 1,584 Recurring capital expenditures 22,000 10,521 28,792 28,666 14,165 Hotel re
Slide 14: Property Acquisitions and Dispositions
14RETURN TO TABLE OF CONTENTS ACQUISITIONS: Quarter Acquired Properties Property Type Brand Location Rooms or Suites / Square Footage Purchase Price (1) Average Sales Price per Room or Suite / Square Foot SVC has not acquired any properties since January 1, 2024. DISPOSITIONS: Quarter Disposed Prope
Slide 15: Portfolio Information
15RETURN TO TABLE OF CONTENTS Portfolio Information
Slide 16: Portfolio Summary
16RETURN TO TABLE OF CONTENTS Portfolio Composition Net Lease Properties 44.2% Hotels 55.8% 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 pr
Slide 17: Investments by Industry
17RETURN TO TABLE OF CONTENTS Industry No. of Properties Rooms / Square Footage Investments Percent of Total Investment 1. Hotels 220 37,697 $ 6,402,211 55.8% 2. Travel Centers 178 5,099,794 3,311,787 29.0% 3. Restaurants - Quick Service 209 699,846 283,853 2.6% 4. Restaurants - Casual Dining 55 503
Slide 18: Investments by State
18RETURN TO TABLE OF CONTENTS Investments State Total Property Count Hotel Count Net Lease Count Total % of Total Hotel Hotel % of Total Net Lease Net Lease % of Total California 58 36 22 $ 1,438,815 12.6 % $ 1,165,750 18.2 % $ 273,065 5.4 % Texas 75 20 55 894,697 7.8 % 382,617 6.0 % 512,080 10.1 %
Slide 19: Hotel Brand Summary
19RETURN TO TABLE OF CONTENTS Brand Service Level Chain Scale Number of Hotels Percent of Total Number of Hotels Number of Rooms or Suites Percent of Total Number of Rooms or Suites Investment Percent of Total Hotel Investment Investment Per Room or Suite Royal Sonesta Hotels® Full Service Upper Ups
Slide 20: Hotel Operating Statistics - Three Months, Hotels Owned Since Period Start
20RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Brand Service Level No. of Hotels No. of Rooms or Suites 2024 2023 Change 2024 2023 Change 2024 2023 Change Sonesta Hotels & Resorts® Full Service 22 7,153 64.1 % 68
Slide 21: Hotel Operating Statistics - Six Months
21RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Brand Service Level No. of Hotels No. of Rooms or Suites 2024 2023 Change 2024 2023 Change 2024 2023 Change Sonesta Hotels & Resorts® Full Service 22 7,153 59.3 % 62.6 % (
Slide 22: Hotel Operating Statistics - Three Months
22RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, Brand Service Level No. of Hotels No. of Rooms or Suites 2024 2023 Change 2024 2023 Change 2024 2023 Change Sonesta Hotels & Resorts® Full Service 23 7,403 64.5 % 68
Slide 23: Hotel Operating Statistics - Six Months
23RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, Brand Service Level No. of Hotels No. of Rooms or Suites 2024 2023 Change 2024 2023 Change 2024 2023 Change Sonesta Hotels & Resorts® Full Service 23 7,403 59.9 % 62.7 % (
Slide 24: Net Lease Portfolio by Brand
24RETURN TO TABLE OF CONTENTS Brand No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America Inc. 131 3,683,923 $ 2,254,950 44.6 % $ 176,793 46.5 % 1.59x (1) 2. Petro Stopping Cente
Slide 25: Net Lease Portfolio by Industry
25RETURN TO TABLE OF CONTENTS Industry No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 178 5,099,794 $ 3,311,787 65.4% $ 262,359 69.0% 1.63x (1) 2. Restaurants - Quick Service 209 69
Slide 26: Net Lease Portfolio by Tenant
26RETURN TO TABLE OF CONTENTS Tenant Brand Affiliation No. of Properties Square Feet Investment Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Weighted Average Lease Term Rent Coverage 1. TravelCenters of America Inc.(1) TravelCenters of America / Petro
Slide 27: Net Lease Lease Expiration Schedule
27RETURN TO TABLE OF CONTENTS Year (1) Number of Properties Square Feet Annualized Minimum Rent Expiring Percent of Total Annualized Minimum Rent Expiring Cumulative Percent of Total Annualized Minimum Rent Expiring 2024 27 368,559 $ 4,449 1.2% 1.2% 2025 25 491,212 8,505 2.2% 3.4% 2026 103 1,020,706
Slide 28: Net Lease Portfolio - Occupancy Summary
28RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Properties (end of period) 749 749 752 761 763 Vacant properties beginning of period 20 22 32 30 27 Vacant property sales / leased (1) (3) (12) (2) (2) Lease terminations 1 1 2 4 5 V
Slide 29: Appendix
29RETURN TO TABLE OF CONTENTS Appendix
Slide 30: Company Profile and Research Coverage
30RETURN TO TABLE OF CONTENTS Company Profile and Research Coverage The Company: SVC is a REIT that owns hotels and service-focused retail net lease properties throughout the United States and in Puerto Rico and Canada. SVC is included in 155 market indices and comprises more than 1% of the followin
Slide 31: Board of Trustees and Executive Officers
31RETURN TO TABLE OF CONTENTS 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 Rajan C. Penkar Adam D. Port
Slide 32: Calculation of FFO, Normalized FFO and CAD
32RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net (loss) income $ (73,850) $ (78,383) $ (43,323) $ (4,128) $ (11,278) $ (152,233) $ 14,672 Add (Less): Depreciation and amortization 95,674 93,10
Slide 33: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
33RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net (loss) income $ (73,850) $ (78,383) $ (43,323) $ (4,128) $ (11,278) $ (152,233) $ 14,672 Add (Less): Interest expense 93,850 91,414 89,979 82,2
Slide 34: Comparable Hotels Results and Hotel EBITDA
34RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Number of hotels 218 218 218 218 218 218 218 Room revenues $ 329,331 $ 262,854 $ 269,113 $ 324,338 $ 328,006 $ 592,185 $ 595
Slide 35: Hotel Results and Hotel EBITDA
35RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Number of hotels 220 220 221 221 221 220 221 Room revenues $ 334,118 $ 269,926 $ 273,869 $ 327,688 $ 329,484 $ 604,044 $ 604
Slide 36: Notes to Condensed Consolidated Statements of Income (Loss)
36RETURN TO TABLE OF CONTENTS Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollars in thousands) (1) As of June 30, 2024, SVC owned 220 hotels. SVC's condensed consolidated statements o
Slide 37: Non-GAAP Financial Measures
37RETURN TO TABLE OF CONTENTS 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, CAD, EBITDA, Hotel EBITDA, EBITDAre and Adjusted EBITDAre. These measure
Slide 38: Non-GAAP Financial Measures and Certain Definitions (Continued)
38RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Continued) Other Definitions Adjusted Total Assets and Total Unencumbered Assets: Adjusted total assets and total unencumbered assets include the original cost of real estate assets calculated in accordance with GAAP,
Slide 39: Non-GAAP Financial Measures and Certain Definitions (Continued)
39RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Continued) Investment: SVC defines hotel investment as historical cost of its properties plus capital improvements funded by it less impairment write-downs, if any, and excludes capital improvements made from FF&E Res
Slide 40: Forward-Looking Statements
40RETURN TO TABLE OF CONTENTS 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”, “expect”, “antic
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