Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q3 2021 Earnings Presentation
34 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Nov 4, 2021
Slide 1: Third Quarter 2021 Supplemental Operating and Financial Data
Royal Sonesta Chase Park Plaza St. Louis, MO THIRD QUARTER 2021 Supplemental Operating and Financial Data ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Exhibit 99.2 Royal Sonesta Chicago Downtown Chicago, IL
Slide 2: Table of Contents
Supplemental Q3 2021 2 Table of Contents CORPORATE INFORMATION Company Profile ............................................................................................................................................................................................................ 3 Investor Infor
Slide 3: Company Profile
Supplemental Q3 2021 3 Corporate Headquarters: Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458-1634 (t) (617) 964-8389 Stock Exchange Listing: Nasdaq Trading Symbol: Common Shares: SVC Key Data (as of and for the three months ended September 30, 2021): (dollars in 000s) Total prop
Slide 4: Investor Information
Supplemental Q3 2021 4 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. Portnoy Chair of the Board
Slide 5: Research Coverage
Supplemental Q3 2021 5 Equity Research Coverage (1) B. Riley Securities, Inc. BTIG Janney Montgomery Scott Wells Fargo Securities Bryan Maher James Sullivan Tyler Batory Dori Kesten (646) 885-5423 (212) 738-6139 (215) 665-4448 (617) 603-4233 bmaher@brileyfin.com jsullivan@btig.com tbatory@janney.com
Slide 6: Key Financial Data
Supplemental Q3 2021 6 As of and For the Three Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Selected Balance Sheet Data: Total gross assets $ 12,852,602 $ 12,845,383 $ 12,892,150 $ 11,967,429 $ 12,009,267 Total assets $ 9,334,831 $ 9,415,735 $ 9,514,515 $ 8,687,319 $ 8,796,673 Tot
Slide 7: Condensed Consolidated Balance Sheets
Supplemental Q3 2021 7 September 30, 2021 December 31, 2020 ASSETS Real estate properties: Land $ 2,036,297 $ 2,030,440 Buildings, improvements and equipment 9,109,518 9,131,832 Total real estate properties, gross 11,145,815 11,162,272 Accumulated depreciation (3,517,771) (3,280,110) Total real esta
Slide 8: Condensed Consolidated Statements of Income (Loss)
Supplemental Q3 2021 8 Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Revenues: Hotel operating revenues (1) $ 338,375 $ 199,719 $ 787,463 $ 700,578 Rental income (2) 98,724 96,776 286,742 294,633 Total revenues 437,099 296,495 1,074,205 995,211 Expenses: Hotel
Slide 9: Calculation of FFO and Normalized FFO
Supplemental Q3 2021 9 For the Three Months Ended For the Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 Net loss $ (59,714) $ (91,110) $ (194,990) $ (137,740) $ (102,642) $ (345,814) $ (173,641) Add (Less): Depreciation and amortization 124,163 121,677 124,
Slide 10: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Supplemental Q3 2021 10 For the Three Months Ended For the Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 Net loss $ (59,714) $ (91,110) $ (194,990) $ (137,740) $ (102,642) $ (345,814) $ (173,641) Add (Less): Interest expense 92,458 91,378 89,391 82,811 80,5
Slide 11: Notes to Consolidated Statements of Income (Loss) and Calculations
Supplemental Q3 2021 11 Notes to Consolidated Statements of Income (Loss) and Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA (dollar in thousands) RETURN TO TABLE OF CONTENTS (1) As of September 30, 2021, we owned 304 hotels. Our cond
Slide 12: Debt Summary
Supplemental Q3 2021 12 (1) We are required to pay interest on borrowings under our revolving credit facility at a rate of LIBOR plus a premium of 235 basis points per annum, subject to an interest rate floor of 0.50%. We also pay a facility fee of 30 basis points per annum on the total amount of le
Slide 13: Debt Maturity Schedule
Supplemental Q3 2021 13 (1) Represents amounts outstanding under our $1.0 billion revolving credit facility at September 30, 2021. Subject to the payment of an extension fee and meeting certain other conditions, we may extend the maturity date of our credit facility by two additional six month perio
Slide 14: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Supplemental Q3 2021 14 As of and For the Three Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Leverage Ratios: Net debt / total gross assets 48.9 % 48.9 % 49.1 % 51.8 % 51.9 % Net debt / gross book value of real estate assets and cash and cash equivalents 50.8 % 50.7 % 51.0 % 53.7
Slide 15: Capital Expenditures and Restricted Cash
Supplemental Q3 2021 15 Capital Expenditures For the Three Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Hotel capital improvements & FF&E Reserve fundings (1) $ 19,384 $ 24,167 $ 28,881 $ 32,153 $ 29,874 Net lease capital improvements 403 227 156 265 18 Total capital improvements
Slide 16: Acquisitions and Dispositions
Supplemental Q3 2021 16 ACQUISITIONS: Square Footage Purchase Price (1) Average Purchase Price per Room or Suite / Square FootDate Acquired Properties Property Type Brand Location Operating Agreement 3/9/2021 — Land N/A Nashville, TN (2) N/A N/A $ 7,600 N/A DISPOSITIONS: Rooms or Suites/ Square Foot
Slide 17: Portfolio Summary
Supplemental Q3 2021 17 Number of Properties Hotel Properties 304 Number of hotel rooms 48,439 Net Lease Properties 794 Square feet 13,574,656 Total Properties 1,098 Average hotel property size 159 rooms Average net lease property size 17,097 sq. feet Investments Diversification Facts Hotels $ 7,001
Slide 18: Portfolio Diversification by Industry
Supplemental Q3 2021 18 Industry No. of Properties Rooms/ Square Footage Investments (1) Percent of Total Investment 1. Hotels 304 48,439 $ 7,001,786 57.6% 2. Travel Centers 182 5,238,766 3,352,096 27.6% 3. Restaurants-Quick Service 229 745,256 304,704 2.5% 4. Restaurants-Casual Dining 56 441,431 20
Slide 19: Investments by State
Supplemental Q3 2021 19 Investments (1) State Total Property Count Hotel Count Net Lease Count Total ($000s) % of Total Hotel ($000s) Hotel % of Total Net Lease ($000s) Net Lease % of Total California 58 36 22 $ 1,341,915 11.0 % $ 1,069,093 15.3 % $ 272,822 5.0 % Texas 94 35 59 1,075,684 9.0 % 535,3
Slide 20: Hotel Portfolio by Brand
Supplemental Q3 2021 20 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 Upscale 1
Slide 21: Comparable Hotels Operating Statistics, Three Months
Supplemental Q3 2021 21 Occupancy ADR RevPAR No. of Hotels No. of Rooms or Suites Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Service 21 6,880 54.2 % 35.6 %
Slide 22: Comparable Hotels Operating Statistics, Nine Months
Supplemental Q3 2021 22 All operating data presented are based upon the operating results provided by our managers and tenants for the indicated periods. We have not independently verified our managers' or tenants' operating data. (1) Includes operating data for periods prior to when certain hotels
Slide 23: All Hotels Operating Statistics, Three Months
Supplemental Q3 2021 23 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (2) Full Service 25 8,040 52.8 % 30.8 %
Slide 24: All Hotels Operating Statistics, Nine Months
Supplemental Q3 2021 24 No. of Hotels No. of Rooms or Suites Occupancy ADR RevPAR Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Brand Service Level 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (2) Full Service 25 8,040 45.2 % 35.3 % 9.9
Slide 25: Comparable Hotels Operating Results
Supplemental Q3 2021 25 (dollars in thousands) Three Months Ended For the Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 Number of hotels 292 292 292 292 292 282 282 Room revenues $ 276,288 $ 234,404 $ 144,604 $ 147,365 $ 171,017 $ 586,755 $ 520,527 Food and
Slide 26: All Hotels Operating Results
Supplemental Q3 2021 26 (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 9/30/2021 9/30/2020 Number of hotels 304 304 310 310 329 304 329 Room revenues $ 298,607 $ 248,618 $ 152,728 $ 159,022 $ 182,366 $ 699,953 $ 614,550
Slide 27: Net Lease Portfolio by Brand
Supplemental Q3 2021 27 Brand No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent (1) Percent of Total Annualized Minimum Rent Rent Coverage 1. TravelCenters of America 134 3,720,693 $ 2,289,189 44.4 % $ 168,012 45.3 % 2.19x 2. Petro Stopping Centers 45 1,
Slide 28: Net Lease Portfolio by Industry
Supplemental Q3 2021 28 Industry No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent (1) Percent of Total Annualized Minimum Rent Rent Coverage 1. Travel Centers 182 5,238,766 $ 3,352,096 65.0% $ 249,293 67.2% 2.12x 2. Restaurants-Quick Service 229 745,256
Slide 29: Net Lease Portfolio by Tenant
Supplemental Q3 2021 29 Tenant Brand Affiliation No. of Buildings Square Feet Investment (1) Percent of Total Investment Annualized Minimum Rent Percent of Total Annualized Minimum Rent Weighted Average Lease Term Rent Coverage 1. TravelCenters of America Inc. TravelCenters of America / Petro Stoppi
Slide 30: Net Lease Lease Expiration Schedule
Supplemental Q3 2021 30 Year (1) Square Feet Annualized Minimum Rent Expiring (2) Percent of Total Annualized Minimum Rent Expiring Cumulative % of Total Annualized Minimum Rent Expiring 2021 257,155 1,564 0.4% 0.4% 2022 346,255 3,191 0.9% 1.3% 2023 317,732 3,375 0.9% 2.2% 2024 788,158 11,787 3.2% 5
Slide 31: Net Lease Portfolio Occupancy Summary
Supplemental Q3 2021 31 As of and For the Three Months Ended 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020 Properties (end of period) 794 796 798 799 804 Total square feet 13,574,656 13,587,068 13,598,892 13,601,689 13,828,761 Square feet leased 13,332,049 13,380,458 13,398,223 13,430,627 13,57
Slide 32: Non-GAAP Financial Measures
Supplemental Q3 2021 32 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, EBITDAre and Adjusted EBITDAre. The
Slide 33: Definitions of Terms
Supplemental Q3 2021 33 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. FF&E Reserve: Various percentages of total sales at certain of our hotels are escrowed as reserves for futu
Slide 34: Forward-Looking Statements
Supplemental Q3 2021 34 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,” “intend,” “plan,” “esti
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