Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (August 2023)
29 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, Aug 21, 2023
Slide 1: Service Properties Trust Investor Presentation August 2023
Service Properties Trust (Nasdaq: SVC) Investor Presentation August 2023 Exhibit 99.1
Slide 2: Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures
2SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws
Slide 3: SVC: Company Overview
3SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 SVC: Company Overview SVC invests in two asset categories: hotels and service-focused retail net lease properties to provide diversification to its cash flows. Necessity-based retail assets with strong rent coverage, low capex requirements and lo
Slide 4: SVC: Company Overview
4SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 SVC: Company Overview 221 HOTELS 37,777 KEYS $6.1B INVESTMENT 763 RETAIL NET LEASE ASSETS 13.5M RENTABLE SQUARE FEET $5.1B INVESTMENT 984 PROPERTIES $11.2B INVESTMENT Diversified Portfolio with National Scale
Slide 5: SVC: Recent Events
5SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 SVC: Recent Events Property Sales: Sold 86 properties for $560 million in 2022 Debt Financing: Issued $610 million of 5.6% secured debt Well Covered Dividend: Annualized dividend of $0.80 per share represents a 53% Normalized FFO payout ratio for
Slide 6: Portfolio Highlights: Geographically Diverse
6SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 SVC’s assets are located in 46 states, Washington DC, Puerto Rico and Canada. Portfolio Highlights: Geographically Diverse • SVC has invested $11.2 billion in its real estate portfolio. • SVC’s investments are located in various markets with dema
Slide 7: Hotel Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Hotel Portfolio
Slide 8: Hotel Portfolio: Diversified by Location and Service Level
8SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 BY SERVICE LEVEL(1) BY CHAIN SCALE(1)BY LOCATION Full Service, 40.1% Select Service, 22.6% Extended Stay, 37.3% Upscale, 46.5% Upper Upscale, 15.0% Upper Midscale/ Midscale, 38.5% Location Keys % of Portfolio Suburban 18,395 48.7% Urban 9,443 25.
Slide 9: Hotel Portfolio: Monthly Operating Metrics (219 Comparable Hotels)
9SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Hotel Portfolio: Monthly Operating Metrics (219 Comparable Hotels) Monthly Hotel EBITDA ($ in Millions) 66.0% 66.3% 70.1% 68.8% 63.4% 67.0% 67.6% 58.7% 50.9% 50.0% 57.9% 65.4% 65.8% 66.4% 70.9% $136 $138 $147 $146 $135 $142 $144 $131 $129 $134 $1
Slide 10: Hotel Portfolio: By Service Level (219 Comparable Hotels)
10SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Hotel Portfolio: By Service Level (219 Comparable Hotels) Top 5 Hotel EBITDA Generators # of Keys Hotel EBITDA ( (000’s) Royal Sonesta San Juan 402 $ 5,286 Sonesta Nashville Airport 392 2,889 Royal Sonesta Washington DC 335 2,210 Royal Sonesta H
Slide 11: Hotel Portfolio: Sonesta at a Glance
11SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 • 8th largest hotel company according to Smith Travel Research. • Approximately 1,200 properties totaling 100,000 rooms across 19 brands in eight countries. • Manages over 200 hotels. • Franchises close to 1,000 hotels. • SVC owns 34% of Sonesta
Slide 12: Net Lease Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Net Lease Portfolio
Slide 13: Net Lease Portfolio: High-Quality Service & Necessity Based Assets
13SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Net Lease Portfolio: High-Quality Service & Necessity Based Assets Net Lease Portfolio Statistics 763 $376mm Properties Annualized Minimum Rent 13.5mm 9.3 Rentable Square Feet Weighted Average Lease Term(1) 96.1% 2.94x Occupancy Rent Coverage Di
Slide 14: Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements
14SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 2% 81% 13% 4% Percentage Rent Fixed/Scheduled CPI Flat (1) By annualized minimum rent. Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements Well-Laddered Lease Expirations (1) 96% of Leases Have Contractual Increases or Percent
Slide 15: Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk
15SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk (1) By annualized minimum rent. Tenants by Brand (1)Tenants by Industry (1) Travel Centers, 68.5% Restaurants-Quick Service, 5.2% Restaurants-Casual Dining, 3.0% Health and Fitn
Slide 16: Net Lease Portfolio: TravelCenters of America, Inc.
16SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Net Lease Portfolio: TravelCenters of America, Inc. • Represents 29% of SVC’s portfolio based on investment. • 176 travel centers operate under two brands. • Difficult to replicate real estate located near exits along the U.S. Interstate Highway
Slide 17: Financial Information
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Financial Information
Slide 18: Balance Sheet Overview as of June 30, 2023
18SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Balance Sheet Overview as of June 30, 2023 Debt Maturities Book Capitalization Leverage/Coverage Ratios Net Debt / Total Gross Assets 50.2% Net Debt / Gross Book Value of Real Estate Assets and Cash Equivalents 53.1% LTM Adjusted EBITDAre / LTM
Slide 19: Strong Management Platform and Affiliate Advantages
19SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Financial Services: Real Estate Services: Business Services: Accounting Acquisitions/ Dispositions Administration Capital Markets Asset Management Human Resources Compliance/ Audit Construction/ Development Information Technology (IT) Finance/ P
Slide 20: Alignment of Interests: RMR Fee Structure
20SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 RMR base management fee tied to SVC share price performance. RMR incentive fees contingent on total shareholder return(1) outperformance. • Equal to 12% of value generated by SVC in excess of the benchmark index total returns (MSCI U.S. REIT/HOT
Slide 21: Appendix
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Appendix
Slide 22: Calculation of FFO and Normalized FFO
22SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Calculation of Funds From Operations (FFO) and Normalized FFO See accompanying notes on page 26. (amounts in thousands, except per share data) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022
Slide 23: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
23SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre See accompanying notes on page 26. (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/2022 Net (loss)
Slide 24: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
24SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels See accompanying notes on page 26. (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 6/30/2023 6/30/20
Slide 25: Calculation and Reconciliation of Hotel EBITDA - All Hotels
25SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Calculation and Reconciliation of Hotel EBITDA - All Hotels* * Results of all hotels as owned during the periods presented, including the results of hotels sold by SVC for the periods owned by SVC. See accompanying notes on page 26. (dollars in
Slide 26: Notes to Calculations of FFO, EBITDA and Hotel EBITDA
26SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Notes to Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA 26 1. SVC recorded a loss on asset impairment of $9,005 to reduce the carrying value of 16 net lease properties to their estimated fair value less
Slide 27: Non-GAAP Financial Measures and Certain Definitions
27SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Non-GAAP Financial Measures and Certain Definitions 27 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, Normali
Slide 28: Non-GAAP Financial Measures and Certain Definitions (continued)
28SERVICE PROPERTIES TRUST (Nasdaq: SVC) | August 2023 Non-GAAP Financial Measures and Certain Definitions (continued) 28 Consolidated Income Available for Debt Service: Consolidated income available for debt service, as defined in SVC's debt agreements, is earnings from operations excluding interes
Slide 29: Service Properties Trust contact details
Service Properties Trust (Nasdaq: SVC) Investor Presentation August 2023 Two Newton Place 255 Washington Street Suite 300 Newton, MA 02458 SVCREIT.COM
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