Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q3 2022 Earnings Presentation
34 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, 2022
Slide 1: Third Quarter 2022 Supplemental Operating and Financial Data
Exhibit 99.2 THIRD QUARTER 2022 Supplemental Operating and Financial Data Royal Sonesta ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Chase Park Plaza St. Louis, MO Royal Sonesta Cambridge, MA
Slide 2: Table of Contents
Table of Contents CORPORATE INFORMATION Company Profile ...................................................................................................................................................................................................................................... 3 Investor In
Slide 3: Company Profile
Company Profile The Company: Corporate Headquarters: Service Properties Trust, or SVC, we, our or us, is a real estate investment trust, or REIT, with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of September 30, 2022, SVC owns Two New
Slide 4: Investor Information
Investor Information Sonesta Resort Hilton Head, SC 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 Adam D
Slide 5: Research Coverage
Research Coverage Equity Research Coverage (1) B. Riley Securities, Inc. Oppenheimer & Co. Inc. Wells Fargo Securities Bryan Maher Tyler Batory Dori Kesten (646) 885-5423 (212) 667-7230 (617) 603-4233 bmaher@brileyfin.com tyler.batory@opco.com dori.kesten@wellsfargo.com Rating Agencies (1) Senior Un
Slide 6: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) Sonesta Simply Suites As of and For the Three Months Ended Renton, WA 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Selected Balance Sheet Data: Total gross assets $ 10,561,906 $ 11,222,613 $ 12,438,367 $ 12,434,974 $ 12,852,602 T
Slide 7: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except share data) TA 065 - Seymour September 30, 2022 December 31, 2021 Seymour, IN ASSETS Real estate properties: Land $ 1,903,619 $ 1,918,385 Buildings, improvements and equipment 7,669,058 8,307,248 Total real estate properties, gross
Slide 8: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: Hotel operating revenues (1) $ 400,453 $ 338,375 $ 1,116,843 $ 787,463 Rental income (2) 97,798 98,724 290,9
Slide 9: Calculation of FFO and Normalized FFO
Calculation of FFO and Normalized FFO (amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 9/30/2022 9/30/2021 Net income (loss) $ 7,500 $ 11,350 $ (119,822) $ (198,793) $ (59,714) $ (100,972) $ (345,814
Slide 10: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 9/30/2022 9/30/2021 Net income (loss) $ 7,500 $ 11,350 $ (119,822) $ (198,793) $ (59,714) $ (100,972) $ (345,81
Slide 11: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA (dollar in thousands) (1) As of September 30, 2022, we owned 242 hotels. Our condensed consolidated statements of income (loss) include hotel oper
Slide 12: Debt Summary
Debt Summary As of September 30, 2022 (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity (1) We are required to pay interest on borrowings under our revolving credit facility at a rate of LIBOR plus a premium of 250 basis points per Floating Rate D
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule As of September 30, 2022 Sonesta ES Suites Carmel Mountain San Diego, CA 1,250 1,000 750 $ (Millions) $1,175 $1,150 $95 500 $800 $850 250 $500 $400 $425 $400 (1) Represents amounts outstanding under our revolving 0 $0 credit facility at September 30, 2022. $— 2022 2023 2024 20
Slide 14: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants Royal Sonesta Harbor Court Baltimore Baltimore, MD As of and For the Three Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Leverage Ratios: Net debt / total gross assets 54.2 % 52.3 % 51.7 % 50.3 % 48.9 % Net debt / gross boo
Slide 15: Capital Expenditures and Restricted Cash Activity
Capital Expenditures and Restricted Cash Activity (dollars in thousands) Capital Expenditures For the Three Months Ended The Clift Royal Sonesta 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 San Francisco, CA Hotel capital improvements & FF&E Reserve fundings (1) $ 22,841 $ 17,517 $ 28,144 $ 30
Slide 16: Property Acquisitions and Dispositions Information Since January 1, 2022
Property Acquisitions and Dispositions Information Since January 1, 2022 (dollars in thousands, except per sq. ft. data) ACQUISITIONS: Average Purchase Price per Room or (2) Date Acquired Properties Property Type Brand Location Square Footage Purchase Price Suite / Square Foot (1) September 2022 N/A
Slide 17: Portfolio Summary
Portfolio Summary As of September 30, 2022 (dollars in thousands) Number of Properties Hotel Properties 242 Number of hotel rooms 40,563 Net Lease Properties 769 Square feet 13,412,371 Total Properties 1,011 Average hotel property size 168 rooms Average net lease property size 17,441 sq. feet Invest
Slide 18: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of September 30, 2022 (dollars in thousands) No. of Rooms/ Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 242 40,563 $ 6,197,151 54.8% 2. Travel Centers 182 5,238,766 3,352,096 29.6% 3. Restaurants-Quick Serv
Slide 19: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of September 30, 2022 (dollars in thousands) Investments Total Property Net Lease Hotel % of Net Lease State Count Hotel Count Count Total ($000s) % of Total Hotel ($000s) Total Net Lease ($000s) % of Total California 58 36 22 $ 1,363,488 12.1
Slide 20: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of September 30, 2022 (dollars in thousands, except per room or suite data) Percent of Percent of Total Total Number of Number of Percent of Investment Number of Number of Rooms or Rooms or Total Hotel Per Room or Brand Service Level Chain Scale Hotels Hotels Suites Suite
Slide 21: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR No. of Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, No. of Rooms or Brand Service Level Hotels Suites 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta
Slide 22: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR No. of Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, No. of Rooms or Brand Service Level Hotels Suites 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (1)
Slide 23: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR No. of Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, No. of Rooms or Brand Service Level Hotels Suites 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta Full
Slide 24: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels(1) Occupancy ADR RevPAR No. of Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, No. of Rooms or Brand Service Level Hotels Suites 2022 2021 Change 2022 2021 Change 2022 2021 Change Sonesta (2) Ful
Slide 25: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 9/30/2022 9/30/2021 Number of hotels 240 240 240 240 240 239 239 Room revenues $ 339,106 $ 336,263 $ 228,4
Slide 26: Calculation and Reconciliation of Hotel EBITDA - All Hotels
Calculation and Reconciliation of Hotel EBITDA - All Hotels (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 9/30/2022 9/30/2021 Number of hotels 242 247 298 303 304 242 304 Room revenues $ 341,106 $ 357,117 $ 258,620 $ 27
Slide 27: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of September 30, 2022 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Brand Buildings Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. TravelCenters of America 134 3,720,693 $ 2,289,189 44.8 % $ 168,012
Slide 28: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of September 30, 2022 (dollars in thousands) Percent of Total Percent of Annualized No. of Total Annualized Minimum Rent Industry Buildings Square Feet Investment Investment Minimum Rent Rent Coverage 1. Travel Centers 182 5,238,766 $ 3,352,096 65.6% $ 249,326 66.9
Slide 29: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of September 30, 2022 (dollars in thousands) Percent of Percent of Total Weighted No. of Total Annualized Annualized Average Lease Tenant Brand Affiliation Buildings Square Feet Investment Investment Minimum Rent Minimum Rent Term Rent Coverage 1. TravelCent
Slide 30: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of September 30, 2022 (dollars in thousands) Cumulative % of Total Annualized Minimum Rent Percent of Total Annualized Annualized Minimum Rent (1) Year Square Feet Expiring Minimum Rent Expiring Expiring 2022 205,007 1,721 0.5% 0.5% 2023 168,710 1,904 0.5
Slide 31: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of September 30, 2022 10642 South Memorial Drive Bixby, OK As of and For the Three Months Ended 9/30/2022 6/30/2022 3/31/2022 12/31/2021 9/30/2021 Properties (end of period) 769 775 786 788 794 Total square feet 13,412,371 13,406,568 13,515,100 13,522,060 1
Slide 32: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions Non-GAAP Financial Measures We present 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, Adjusted Hotel EBITDA, EBITDAr
Slide 33: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) FF&E Reserve: Various percentages of total sales at certain of our hotels are escrowed as reserves for future renovations or refurbishments, or FF&E reserve escrows. We own all the FF&E reserve escrows for our hotels. FF&E Reserve Depos
Slide 34: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements This supplemental operating and financial data may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use words such as “believe,” “expect,” “anticipate,” “
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