Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (May 2023)
30 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, May 24, 2023
Slide 1: Service Properties Trust Investor Presentation May 2023
Service Properties Trust (Nasdaq: SVC) Investor Presentation May 2023 Exhibit 99.1
Slide 2: Warning Concerning Forward-Looking Statements, Disclaimers and Non-GAAP Financial Measures
2SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 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 tha
Slide 3: SVC: Company Overview
3SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 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 long
Slide 4: SVC: Company Overview
4SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 SVC: Company Overview 220 HOTELS 37,527 KEYS $5.9B INVESTMENT 765 RETAIL NET LEASE ASSETS 13.3M RENTABLE SQUARE FEET $5.1B INVESTMENT 985 PROPERTIES $11.0B INVESTMENT Diversified Portfolio with National Scale
Slide 5: SVC: Recent Events
5SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 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 20
Slide 6: Net Lease Portfolio: Recent Developments
6SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Net Lease Portfolio: Recent Developments BP Acquisition of TA • On May 15, 2023, BP p.l.c (NYSE: BP) acquired TA. • Transaction provided SVC $379.3 million of cash for the value of the TA common shares it owned, the sale of the TA trade name and ren
Slide 7: Portfolio Highlights: Geographically Diverse Investments
7SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 SVC’s assets are located in 46 states, Washington DC, Puerto Rico and Canada. Portfolio Highlights: Geographically Diverse Investments Total Property Count Hotel Count Net Lease Count Total ($000s) % of Total Hotel ($000s) Hotel % of Total Net Lease
Slide 8: Hotel Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Hotel Portfolio
Slide 9: Hotel Portfolio: Diversified by Location and Service Level
9SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 BY SERVICE LEVEL(1) BY CHAIN SCALE(1)BY LOCATION Full Service, 39.8% Select Service, 22.8% Extended Stay, 37.4% Upscale, 46.3% Upper Upscale, 15.1% Upper Midscale/ Midscale, 38.6% Location Keys % of Portfolio Suburban 18,297 48.9% Urban 9,193 24.6%
Slide 10: Hotel Portfolio: Monthly Operating Metrics vs. 2019
10SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Hotel Portfolio: Monthly Operating Metrics vs. 2019 (219 Comparable Hotels) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 RevPAR vs 2019 RevPAR As a Percent of 2019
Slide 11: Hotel Portfolio: Monthly Operating Metrics
11SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Hotel Portfolio: Monthly Operating Metrics (219 Comparable Hotels) Monthly Hotel EBITDA ($ in Millions) 45.5% 53.7% 62.5% 66.0% 66.3% 70.1% 68.8% 63.4% 67.0% 67.6% 58.7% 50.9% 50.0% 57.9% 65.4% $111 $122 $130 $136 $138 $147 $146 $135 $142 $144 $131
Slide 12: Hotel Portfolio: By Service Level
12SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Hotel Portfolio: By Service Level (219 Comparable Hotels) Top 5 Hotel EBITDA Generators # of Keys Hotel EBITDA ( (000’s) The Clift Royal Sonesta Hotel 372 $ 3,015 Royal Sonesta Hotel Kaua’i Resort 356 1,821 Royal Sonesta San Juan 402 1,418 The Step
Slide 13: Hotel Portfolio: Sonesta at a Glance
13SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 121 45 46 879 10 US Extended Stay US Select Service US Full Service Franchised Sonesta Owned • Sonesta manages approximately 194 hotels for SVC. • Sonesta franchises 879 locations to third party owners. • SVC owns 34% of Sonesta. • Equity investmen
Slide 14: Net Lease Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Net Lease Portfolio
Slide 15: Net Lease Portfolio: High-Quality Service & Necessity Based Assets
15SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Net Lease Portfolio: High-Quality Service & Necessity Based Assets Net Lease Portfolio Statistics 765 $370mm Properties Annualized Minimum Rent 13.3mm 9.4 Rentable Square Feet Weighted Average Lease Term(1) 97.4% 2.98x Occupancy Rent Coverage Diver
Slide 16: Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements
16SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 2% 81% 13% 4% Percentage Rent Fixed/Scheduled CPI Flat (1) By annualized minimum rent. * Data presented is proforma for SVC’s amended leases with TA effective May 15, 2023. Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements Well
Slide 17: Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk
17SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk (1) By annualized minimum rent. Tenants by Brand (1)Tenants by Industry (1) Travel Centers, 67.4% Restaurants-Quick Service, 5.3% Restaurants-Casual Dining, 3.2% Health and Fitness
Slide 18: Financial Information
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Financial Information
Slide 19: Balance Sheet Overview as of March 31, 2023
19SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Balance Sheet Overview as of March 31, 2023 Well Laddered Debt Maturities Book Capitalization Leverage/Coverage Ratios Net Debt / Total Gross Assets 53.6% Net Debt / Gross Book Value of Real Estate Assets 57.9% Adjusted EBITDAre / Interest Expense
Slide 20: Strong Management Platform and Affiliate Advantages
20SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 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/ Plan
Slide 21: Alignment of Interests with RMR
21SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 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/HOTEL
Slide 22: Appendix
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Appendix
Slide 23: Calculation of Funds From Operations (FFO) and Normalized FFO
23SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Calculation of Funds From Operations (FFO) and Normalized FFO For the Three Months Ended (amounts in thousands, except per share data) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net income (loss) $ 25,950 $ (31,409) $ 7,500 $ 11,350 $ (119,
Slide 24: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
24SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre See accompanying notes on page 27. For the Three Months Ended (dollars in thousands) 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Net income (loss) $ 25,950 $ (31,409) $ 7,500 $ 11,350 $ (
Slide 25: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
25SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels See accompanying notes on page 27. (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Number of hotels 219 219 219 219 219 Room rev
Slide 26: Calculation and Reconciliation of Hotel EBITDA - All Hotels
26SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Calculation and Reconciliation of Hotel EBITDA - All Hotels (dollars in thousands) For the Three Months Ended 3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022 Number of hotels 220 238 242 247 298 Room revenues $ 275,267 $ 288,082 $ 341,106 $ 357,
Slide 27: Notes to Calculations of FFO, EBITDA and Hotel EBITDA
27SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Notes to Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA 27 1. SVC recorded a loss on asset impairment of $1,269 to reduce the carrying value of one hotel and one net lease property to their estimated fair
Slide 28: Non-GAAP Financial Measures and Certain Definitions
28SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Non-GAAP Financial Measures and Certain Definitions 28 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
Slide 29: Non-GAAP Financial Measures and Certain Definitions
29SERVICE PROPERTIES TRUST (Nasdaq: SVC) | May 2023 Non-GAAP Financial Measures and Certain Definitions 29 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 pe
Slide 30: Service Properties Trust contact details
Service Properties Trust (Nasdaq: SVC) Investor Presentation May 2023 Two Newton Place 255 Washington Street Suite 300 Newton, MA 02458 SVCREIT.COM
Service Properties Trust — Investor Presentation (May 2023) on 6ix