Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Q2 2021 Earnings Presentation
34 slides from Service Properties Trust - Shares Of Beneficial Interest's earnings presentation, 2021
Slide 1: Supplemental Operating and Financial Data
SECOND QUARTER 2021 Supplemental Operating and Financial Data Royal Sonesta ALL AMOUNTS IN THIS REPORT ARE UNAUDITED. Chase Park Plaza St. Louis, MO
Slide 2: Table of Contents
Table of Contents CORPORATE INFORMATION Company Profile............................................................................................................................................................................................................ 3 Investor Information..................
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, which owns a diverse Two Newton Place portfolio of hotels and net lease service and necessity-based retail properties across the United States and in 255
Slide 4: Investor Information
Investor Information 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
Research Coverage 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 dori
Slide 6: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and For the Three Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Selected Balance Sheet Data: Total gross assets $ 12,845,383 $12,892,150 $11,967,429 $12,009,267 $ 12,026,904 Total assets $ 9,415,735 $ 9,514,515
Slide 7: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except share data) June 30, 2021 December 31, 2020 ASSETS Real estate properties: Land $ 2,036,297 $ 2,030,440 Buildings, improvements and equipment 9,111,774 9,131,832 Total real estate properties, gross 11,148,071 11,162,272 Accumulated
Slide 8: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenues: Hotel operating revenues (1) $ 280,135 $ 117,356 $ 449,088 $ 500,859 Rental income (2) 95,801 97,584 188,018 197,857 To
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 Six Months Ended (8) Gain on insurance settlement, net of tax 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020 Net loss $ (91,110) $ (194,990) $ (137,740) $ (1
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 Six Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020 Net loss $ (91,110) $ (194,990) $ (137,740) $ (102,642) $ (37,349) $ (286,100) $ (70,999) Add (Less)
Slide 11: Notes to Consolidated Statements of Income (Loss) and Calculations
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) (1) As of June 30, 2021, we owned 304 hotels. Our condensed consolidated statements of income (loss) include ho
Slide 12: Debt Summary
Debt Summary As of June 30, 2021 (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 Floating Rate Debt: LIBOR plus a premium of 235 basis points per
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule As of June 30, 2021 $1,000 (1) Represents amounts outstanding under our $1.0 billion revolving credit facility at June 30, 2021. (1) 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 a
Slide 14: Leverage Ratios, Coverage Ratios and Public Debt Covenants
Leverage Ratios, Coverage Ratios and Public Debt Covenants As of and For the Three Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Leverage Ratios: Net debt / total gross assets 48.9 % 49.1 % 51.8 % 51.9 % 51.7 % Net debt / gross book value of real estate assets 50.7 % 51.0 % 53.7 %
Slide 15: Capital Expenditures and Restricted Cash Activity
Capital Expenditures and Restricted Cash Activity (dollars in thousands) Capital Expenditures For the Three Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Hotel capital improvements & FF&E Reserve fundings (1) $ 24,167 $ 28,881 $ 32,153 $ 29,874 $ 39,085 Net lease capital improvemen
Slide 16: Property Acquisitions and Dispositions Information Since January 1, 2021
Property Acquisitions and Dispositions Information Since January 1, 2021 (dollars in thousands, except per sq. ft. data) ACQUISITIONS: Average Purchase Price per Room or Suite / (1) Date Acquired Properties Property Type Brand Location Square Footage Operating Agreement Purchase Price Square Foot 3/
Slide 17: Portfolio Summary
Portfolio Summary As of June 30, 2021 (dollars in thousands) Number of Properties Hotel Properties 304 Number of hotel rooms 48,439 Net Lease Properties 796 Square feet 13,440,784 Total Properties 1,100 Average hotel property size 159 rooms Average net lease property size 16,885 sq. feet Investments
Slide 18: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of June 30, 2021 (dollars in thousands) No. of Rooms/ Percent of Total Industry Properties Square Footage Investments (1) Investment 1. Hotels 304 48,439 $ 6,982,132 57.5% 2. Travel Centers 182 5,238,765 3,352,096 27.6% 3. Restaurants-Quick Servi
Slide 19: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of June 30, 2021 (dollars in thousands) Investments (1) 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 $ 1,338,253 11.0 %
Slide 20: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of June 30, 2021 (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 Suites Inv
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 June 30, Three Months Ended June 30, Three Months Ended June 30, No. of Rooms or Brand Service Level Hotels Suites 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Servic
Slide 22: Hotel Operating Statistics by Service Level - Comparable Hotels
Hotel Operating Statistics by Service Level - Comparable Hotels Occupancy ADR RevPAR No. of Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, No. of Rooms or Brand Service Level Hotels Suites 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Service 18 6
Slide 23: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels Occupancy ADR RevPAR No. of Three Months Ended June 30, Three Months Ended June 30, Three Months Ended June 30, No. of Rooms or Brand Service Level Hotels Suites 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Service 25 8,
Slide 24: Hotel Operating Statistics by Service Level - All Hotels
Hotel Operating Statistics by Service Level - All Hotels Occupancy ADR RevPAR No. of Six Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, No. of Rooms or Brand Service Level Hotels Suites 2021 2020 Change 2021 2020 Change 2021 2020 Change Sonesta (1) Full Service 25 8,040 41
Slide 25: Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - Comparable Hotels
Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - Comparable Hotels (dollars in thousands) Three Months Ended For the Six Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020 Number of hotels 283 283 283 283 283 282 282 Room revenues $ 206,667
Slide 26: Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels
Calculation and Reconciliation of Hotel EBITDA and Adjusted Hotel EBITDA - All Hotels (dollars in thousands) For the Three Months Ended For the Six Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 6/30/2021 6/30/2020 Number of hotels 304 310 310 329 329 304 329 Room revenues $ 248,618
Slide 27: Net Lease Portfolio by Brand
Net Lease Portfolio by Brand As of June 30, 2021 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Brand Buildings Square Feet Investment (1) Investment Minimum Rent (1) Minimum Rent Coverage 1. TravelCenters of America 134 3,720,693 $ 2,289,189 44.4 % $ 168,
Slide 28: Net Lease Portfolio by Industry
Net Lease Portfolio by Industry As of June 30, 2021 (dollars in thousands) Percent of Total Percent of Annualized No. of Total Annualized Minimum Rent (1) Industry Buildings Square Feet Investment Investment Minimum Rent (1) Rent Coverage 1. Travel Centers 182 5,238,765 $ 3,352,096 65.0% $ 249,293 6
Slide 29: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of June 30, 2021 (dollars in thousands) Percent of Total Percent of Annualized Annualized Weighted No. of Square Total Minimum Minimum Average Rent (1) Tenant Brand Affiliation Buildings Feet Investment Investment Rent (1) Rent Lease Term Coverage TravelCent
Slide 30: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of June 30, 2021 (dollars in thousands) Cumulative % of Total Annualized Minimum Rent Percent of Total Annualized Annualized Minimum Rent (1) Year Square Feet Expiring (2) Minimum Rent Expiring Expiring 2021 257,250 1,623 0.4% 0.4% 2022 309,867 4,426 1.2%
Slide 31: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of June 30, 2021 As of and For the Three Months Ended 6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020 Properties (end of period) 796 798 799 804 809 Total square feet 13,440,784 13,452,608 13,455,405 13,682,477 13,728,893 Square feet leased 13,234,174 13
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) Rent Coverage: We define rent coverage as earnings before interest, taxes, depreciation, amortization and rent, or EBITDAR, divided by the annual minimum rent due to us weighted by the minimum rent of the property to total minimum rents
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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