Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC

Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q3 2024 Earnings Presentation

42 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, Nov 6, 2024

  1. Slide 1: Third Quarter 2024 Financial Results and Supplemental Information

    Service Properties Trust Third Quarter 2024 Financial Results and Supplemental Information November 6, 2024 Exhibit 99.224225 W. Lorenzo Road Wilmington, IL

  2. Slide 2: Table of Contents

    2 Table of Contents QUARTERLY RESULTS Service Properties Trust Announces Third Quarter 2024 Financial Results ................................................................................................................................................ 4 Third Quarter 2024 Highlights .............

  3. Slide 3: Quarterly Results

    3RETURN TO TABLE OF CONTENTS Quarterly Results

  4. Slide 4: Service Properties Trust Announces Third Quarter 2024 Financial Results

    4RETURN TO TABLE OF CONTENTS Newton, MA (November 6, 2024): Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter ended September 30, 2024. Distribution: SVC declared a quarterly distribution on its common shares of $0.01 per share to shareholders of record as

  5. Slide 5: Third Quarter 2024 Highlights

    5RETURN TO TABLE OF CONTENTS Third Quarter 2024 Highlights Financial Results • Net loss of $46.9 million, or $0.28 per common share. • Normalized FFO of $52.9 million, or $0.32 per common share. • Adjusted EBITDAre of $155.0 million. Portfolio Update • Hotel RevPAR of $94.58. • Hotel EBITDA of $60.1

  6. Slide 6: Financials

    6RETURN TO TABLE OF CONTENTS Financials

  7. Slide 7: Key Financial Data

    7RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Selected Income Statement Data: Total revenues $ 491,171 $ 512,948 $ 436,250 $ 444,050 $ 496,825 Net loss $ (46,901) $ (73,850) $ (78,383) $ (43,323) $ (4,128) FFO $ 52,736 $ 57,764 $

  8. Slide 8: Condensed Consolidated Statements of Income (Loss)

    8RETURN TO TABLE OF CONTENTS Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues: Hotel operating revenues (1) $ 390,935 $ 395,526 $ 1,139,657 $ 1,134,649 Rental income (2) 100,236 101,299 300,712 295,164 Total revenues 491,171 496,825 1,440,369 1,429,813 Ex

  9. Slide 9: Condensed Consolidated Balance Sheets

    9RETURN TO TABLE OF CONTENTS Condensed Consolidated Balance Sheets September 30, December 31, 2024 2023 ASSETS Real estate properties: Land $ 1,931,353 $ 1,972,145 Buildings, improvements and equipment 7,644,949 7,814,192 Total real estate properties, gross 9,576,302 9,786,337 Accumulated depreciati

  10. 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 September 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 facilit

  11. Slide 11: Debt Maturity Schedule

    11RETURN TO TABLE OF CONTENTS $800,000 $850,000 $400,000 $1,125,000 $400,000 $500,000 $490 $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

  12. Slide 12: Leverage Ratios, Coverage Ratios and Debt Covenants

    12RETURN TO TABLE OF CONTENTS As of and For the Trailing Twelve Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Leverage Ratios: Net debt / total gross assets 54.8 % 55.1 % 53.1 % 51.8 % 50.2 % Net debt / gross book value of real estate assets and cash and cash equivalents 58.5 % 59.

  13. Slide 13: Capital Expenditures Summary

    13RETURN TO TABLE OF CONTENTS For the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Hotel capital improvements $ 28,823 $ 20,999 $ 10,011 $ 28,196 $ 27,538 Lease related costs 1,611 1,001 510 596 1,128 Recurring capital expenditures 30,434 22,000 10,521 28,792 28,666 Hotel re

  14. 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

  15. Slide 15: Portfolio Information

    15RETURN TO TABLE OF CONTENTS Portfolio Information

  16. Slide 16: Portfolio Summary

    16RETURN TO TABLE OF CONTENTS Portfolio Composition Net Lease Properties 44.1% Hotels 55.9% Number of Properties Hotel Properties 214 Number of hotel rooms 36,875 Net Lease Properties 745 Net lease square feet 13,332,131 Total Properties 959 Average hotel property size 172 rooms Average net lease pr

  17. Slide 17: Investments by Industry

    17RETURN TO TABLE OF CONTENTS Industry No. of Properties Rooms / Square Footage Investments Percent of Total Investment 1. Hotels 214 36,875 $ 6,394,812 55.9% 2. Travel Centers 178 5,099,794 3,311,787 29.0% 3. Restaurants - Quick Service 208 697,793 283,292 2.6% 4. Restaurants - Casual Dining 55 503

  18. 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 $ 1,460,016 12.8 % $ 1,186,951 18.6 % $ 273,065 5.4 % Texas 73 18 55 873,906 7.6 % 361,765 5.7 % 512,141 10.1 %

  19. Slide 19: Hotel Portfolio by Brand

    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

  20. Slide 20: Hotel Operating Statistics by Brand, Three Months

    20RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 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

  21. Slide 21: Hotel Operating Statistics by Brand, Nine Months

    21RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 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 21 6,9

  22. Slide 22: Hotel Operating Statistics by Brand, Three Months

    22RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 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

  23. Slide 23: Hotel Operating Statistics by Brand, Nine Months

    23RETURN TO TABLE OF CONTENTS Occupancy ADR RevPAR Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 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 7,2

  24. Slide 24: Sonesta Hotel Operating Statistics by Retained and Exit Hotels, Three Months

    24RETURN TO TABLE OF CONTENTS Sonesta Hotel Operating Statistics by Retained and Exit Hotels Occupancy ADR RevPAR Hotel EBITDA Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Brand No. of Hotels No. of Rooms or Suite

  25. Slide 25: Sonesta Hotel Operating Statistics by Retained and Exit Hotels, Nine Months

    25RETURN TO TABLE OF CONTENTS Sonesta Hotel Operating Statistics by Retained and Exit Hotels Occupancy ADR RevPAR Hotel EBITDA Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Brand No. of Hotels No. of Rooms or Suites 20

  26. Slide 26: Net Lease Portfolio by Brand

    26RETURN 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 % 1.46x (1) 2. Petro Stopping Cente

  27. Slide 27: Net Lease Portfolio by Industry

    27RETURN 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 65.6% $ 262,359 69.0% 1.49x (1) 2. Restaurants - Quick Service 208 69

  28. Slide 28: Net Lease Portfolio by Tenant

    28RETURN 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

  29. Slide 29: Net Lease Lease Expiration Schedule

    29RETURN 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 13 141,679 $ 1,041 0.3% 0.3% 2025 25 491,717 8,871 2.3% 2.6% 2026 103 1,020,706

  30. Slide 30: Net Lease Portfolio - Occupancy Summary

    30RETURN TO TABLE OF CONTENTS As of and For the Three Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Properties (end of period) 745 749 749 752 761 Vacant properties beginning of period 20 20 22 32 30 Vacant properties sold (4) — (3) (9) (1) Vacant properties leased — (1) — (3) (1)

  31. Slide 31: Appendix

    31RETURN TO TABLE OF CONTENTS Appendix

  32. Slide 32: Company Profile and Research Coverage

    32RETURN 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 139 market indices and comprises more than 1% of the followin

  33. Slide 33: Board of Trustees and Executive Officers

    33RETURN 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

  34. Slide 34: FFO and Normalized FFO Reconciliation

    34RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net (loss) income $ (46,901) $ (73,850) $ (78,383) $ (43,323) $ (4,128) $ (199,134) $ 10,544 Add (Less): Depreciation and amortization 89,005 95,6

  35. Slide 35: EBITDA and Adjusted EBITDAre Reconciliation

    35RETURN TO TABLE OF CONTENTS For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net (loss) income $ (46,901) $ (73,850) $ (78,383) $ (43,323) $ (4,128) $ (199,134) $ 10,544 Add (Less): Interest expense 99,126 93,850 91,414 89,

  36. Slide 36: Comparable Hotels Results and Hotel EBITDA

    36RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Number of hotels 213 213 213 213 213 212 212 Room revenues $ 320,502 $ 329,679 $ 266,656 $ 270,299 $ 322,368 $ 916,837 $ 90

  37. Slide 37: Hotel Results and Hotel EBITDA

    37RETURN TO TABLE OF CONTENTS (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Number of hotels 214 220 220 221 221 214 221 Room revenues $ 322,803 $ 334,118 $ 269,926 $ 273,869 $ 327,688 $ 926,847 $ 93

  38. Slide 38: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations

    38RETURN 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 September 30, 2024, SVC owned 214 hotels. SVC's condensed consolidated stateme

  39. Slide 39: Non-GAAP Financial Measures

    39RETURN 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

  40. Slide 40: Non-GAAP Financial Measures and Certain Definitions (Continued)

    40RETURN 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,

  41. Slide 41: Non-GAAP Financial Measures and Certain Definitions (Continued)

    41RETURN TO TABLE OF CONTENTS Non-GAAP Financial Measures and Certain Definitions (Continued) Hotel Renovations, Redevelopment and Other Activities: Hotel Renovations, Redevelopment and Other Activities generally include comprehensive hotel renovation projects, brand standard updates, projects that

  42. Slide 42: Forward-Looking Statements

    42RETURN 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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