Service Properties Trust - Shares Of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares Of Beneficial Interest — Service Properties Trust — Investor Presentation (March 2023)
33 slides from Service Properties Trust - Shares Of Beneficial Interest's investor presentation, Mar 15, 2023
Slide 1: Service Properties Trust Investor Presentation March 2023
Service Properties Trust (Nasdaq: SVC) Investor Presentation March 2023
Slide 2: Warning Concerning Forward-Looking Statements
2SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Warning Concerning Forward-Looking Statements This presentation contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever we use wo
Slide 3: SVC: Company Overview
3SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 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 lon
Slide 4: SVC: Company Overview - Diversified Portfolio with National Scale
4SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 SVC: Company Overview 238 HOTELS 40,053 KEYS $6.2B INVESTMENT 765 RETAIL NET LEASE ASSETS 13.4M RENTABLE SQUARE FEET $5.1B INVESTMENT 1,003 PROPERTIES $11.3B INVESTMENT Diversified Portfolio with National Scale
Slide 5: SVC: Recent Events
5SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 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: Net Lease Portfolio: Recent Developments - BP to Acquire TA
6SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Net Lease Portfolio: Recent Developments BP to Acquire TA • On February 16, 2023, TA announced its agreement to merge with BP p.l.c. (NYSE: BP). • Transaction expected to provide SVC $379.3 million of cash for the value of the TA common shares it
Slide 7: Portfolio Highlights: Geographically Diverse Investments
7SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 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 Lea
Slide 8: Hotel Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Hotel Portfolio
Slide 9: Hotel Portfolio: Diversified by Location and Service Level
9SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 BY SERVICE LEVEL(1) BY CHAIN SCALE(1)BY LOCATION Full Service, 37.7% Select Service, 26.2% Extended Stay, 36.1% Upscale, 49.6% Upper Upscale, 14.1% Upper Midscale/ Midscale, 36.3% Location Keys % of Portfolio Suburban 20,197 50.4% Urban 9,193 23.0
Slide 10: Hotel Portfolio: Monthly Operating Metrics vs. 2019
10SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Hotel Portfolio: Monthly Operating Metrics vs. 2019 (238 Comparable Hotels) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $- $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 RevPAR vs 2019 RevPAR As a Percent of 2019 Full Service December 2022 As a Pct. of
Slide 11: Hotel Portfolio: Monthly Operating Metrics
11SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Hotel Portfolio: Monthly Operating Metrics (238 Comparable Hotels) Monthly Hotel EBITDA ($ in Millions) 60.3% 55.3% 50.5% 44.9% 53.0% 61.7% 65.5% 65.8% 69.7% 68.3% 63.3% 66.5% 67.2% 58.3% 50.4% $121 $115 $116 $110 $121 $129 $135 $137 $145 $145 $1
Slide 12: Hotel Portfolio: By Service Level
12SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Hotel Portfolio: By Service Level (238 Comparable Hotels) Top 5 Hotel EBITDA Generators # of Keys Hotel EBITDA ( (000’s) Royal Sonesta Hotel New Orleans 483 $ 3,576 Royal Sonesta Hotel Boston 400 2,814 Royal Sonesta San Juan 402 2,580 Royal Sones
Slide 13: Hotel Portfolio: Dispositions Improving Overall Quality
13SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Hotel Portfolio: Dispositions Improving Overall Quality of Hotel Portfolio(1) (238 Comparable Hotels) $88 $101 $111 $110 $113 $119 $113 $108 $106 $112 $93 $76 $52 $59 $72 $80 $88 $92 $84 $86 $81 $89 $69 $53 Jan '19 Feb '19 Mar '19 Apr '19 May '19
Slide 14: Hotel Portfolio: Sonesta at a Glance
14SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 120 45 45 7 824 56 US Extended Stay US Select Service US Full Service International Domestic Franchised International Franchised • Sonesta manages approximately 200 hotels for SVC. • SVC owns 34% of Sonesta. • Equity investment has a carrying val
Slide 15: Net Lease Portfolio
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Net Lease Portfolio
Slide 16: Net Lease Portfolio: High-Quality Service & Necessity Based Assets
16SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Net Lease Portfolio: High-Quality Service & Necessity Based Assets Net Lease Portfolio Statistics 765 $372mm Properties Annualized Minimum Rent 13.4mm 9.6 Rentable Square Feet Weighted Average Lease Term(1) 97.6% 3.00x Occupancy Rent Coverage Div
Slide 17: Net Lease Portfolio: Reliable Income Stream and Low Capex Requirements
17SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 70% 14% 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 18: Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk
18SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Net Lease Portfolio: Diversified Tenants & Industries Mitigate Risk (1) By annualized minimum rent. Tenants by Brand (1)Tenants by Industry (1) Travel Centers, 66.9% Restaurants-Quick Service, 5.3% Restaurants-Casual Dining, 3.2% Health and Fitne
Slide 19: Net Lease Portfolio: Portfolio Updates - TravelCenters of America
19SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 • Represents 29.3% of SVC’s portfolio based on investment. • Rent comprised of annual minimum cash payments of $246 million, plus a percentage rent based on increases in certain sales. • LTM rent coverage of 2.74x through December 31, 2022, impro
Slide 20: Financial Information
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Financial Information
Slide 21: Balance Sheet Overview as of December 31, 2022
21SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Balance Sheet Overview as of December 31, 2022: Proforma For Recent Activities(1) Well Laddered Debt Maturities Book Capitalization Leverage/Coverage Ratios Net Debt / Total Gross Assets 54.4% Net Debt / Gross Book Value of Real Estate Assets 56.
Slide 22: Public Debt Covenants
22SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Public Debt Covenants Metric Covenant December 31, 2022 Proforma(1) Total Debt / Adjusted Total Assets Allowable Maximum: 60.0% 53.6% 54.3% Secured Debt / Adjusted Total Assets Allowable Maximum: 40.0% 0.0% 5.7% Consolidated Income Available for
Slide 23: SVC Is Managed by The RMR Group
23SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 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/ Pl
Slide 24: Alignment of Interests
24SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 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/HOTE
Slide 25: Appendix
SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Appendix
Slide 26: Calculation of FFO and Normalized FFO
26SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Calculation of Funds From Operations (FFO) and Normalized FFO See accompanying notes on page 30. For the Three Months Ended For the Year Ended (amounts in thousands, except per share data) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31
Slide 27: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
27SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Calculation of EBITDA, EBITDAre and Adjusted EBITDAre See accompanying notes on page 30. For the Three Months Ended For the Year Ended (dollars in thousands) 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 Net (loss) inc
Slide 28: Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels
28SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Calculation and Reconciliation of Hotel EBITDA - Comparable Hotels See accompanying notes on page 30. (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2022 12/31/2021 N
Slide 29: Calculation and Reconciliation of Hotel EBITDA - All Hotels
29SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Calculation and Reconciliation of Hotel EBITDA - All Hotels See accompanying notes on page 30. (dollars in thousands) For the Three Months Ended For the Year Ended 12/31/2022 9/30/2022 6/30/2022 3/31/2022 12/31/2021 12/31/2021 12/31/2021 Number o
Slide 30: Notes to Calculations of FFO, EBITDA and Hotel EBITDA
30SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Notes to Calculations of FFO, Normalized FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA 30 1. We 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 31: Non-GAAP Financial Measures and Certain Definitions
31SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Non-GAAP Financial Measures and Certain Definitions 31 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
Slide 32: Non-GAAP Financial Measures and Certain Definitions
32SERVICE PROPERTIES TRUST (Nasdaq: SVC) | March 2023 Non-GAAP Financial Measures and Certain Definitions 32 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
Slide 33: Service Properties Trust contact
Service Properties Trust (Nasdaq: SVC) Investor Presentation March 2023 Two Newton Place 255 Washington Street, Suite 300 Newton, MA 02458 SVCREIT.COM
Service Properties Trust — Investor Presentation (March 2023) on 6ix