Service Properties Trust - Shares of Beneficial Interest · NASDAQ:SVC
Service Properties Trust - Shares of Beneficial Interest — Service Properties Trust — Q3 2026 Earnings Presentation
39 slides from Service Properties Trust - Shares of Beneficial Interest's earnings presentation, Nov 4, 2026
Slide 1: Financial Results and Supplemental Information
24225 W. Lorenzo Road Wilmington, IL Financial Results and Supplemental Information THIRD QUARTER 2026 November 4, 2026
Slide 2: Table of Contents
Table of Contents SVC 3 Third Quarter Highlights and Full Year Guidance Nasdaq Listed Trading Symbol: Common Shares: SVC 8 Financial Information Investor Relations Contact: Kevin Barry, Senior Director (617) 796-8232 [email protected] 17 Portfolio Information Corporate Headquarters: Two Newton Place 25
Slide 3: Third Quarter Highlights and Full Year Guidance
Third Quarter Highlights and Full Year Guidance RETURN TO TABLE OF CONTENTS 3
Slide 4: Service Properties Trust Announces Third Quarter 2026 Financial Results
Service Properties Trust Announces Third Quarter 2026 Financial Results Newton, MA (November 4, 2026): Service Properties Trust (Nasdaq: SVC) today announced its “SVC’s third quarter results reflect continued progress in financial results for the quarter ended September 30, 2026. strengthening the c
Slide 5: Third Quarter 2026 Highlights
Third Quarter 2026 Highlights • Net loss of $87.9 million, or $0.68 per common share. Financial • Normalized FFO of $43.8 million, or $0.34 per common share. Results • Adjusted EBITDAre of $133.5 million. • In October 2026, SVC received an unsolicited, non-binding proposal from TKO LLC, or TKO, to a
Slide 6: Third Quarter 2026 Highlights (continued)
Third Quarter 2026 Highlights (continued) • Net lease NOI of $94.8 million, flat sequentially. Net Lease Portfolio • Occupancy of 97.6%, reflecting reclassification of land assets held for potential future uses. Update • Rent coverage of 2.17x. • Sold six net lease properties with a total of 18,804
Slide 7: Full Year 2026 Guidance
Full Year 2026 Guidance (amounts in thousands, except RevPAR, share amounts and per share data) Current Full Year 2026 Guidance (1) (2) Previous Full Year 2026 Guidance Change at Midpoint Low End High End Low End High End Total RevPAR: Retained Hotels $ 117.00 $ 122.00 $ 116.00 $ 121.00 $ 1.00 Exit
Slide 8: Financial Information
Financial Information RETURN TO TABLE OF CONTENTS 8
Slide 9: Key Financial Data
Key Financial Data (dollars in thousands, except per share data) As of and for the Three Months Ended As of 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 Selected Income Statement Data: Capitalization: Total revenues $ 399,520 $ 420,974 $ 364,451 $ 397,453 $ 478,770 Total common share
Slide 10: Condensed Consolidated Statements of Income (Loss)
Condensed Consolidated Statements of Income (Loss) (amounts in thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenues: Hotel operating revenues $ 298,379 $ 377,576 $ 883,025 $ 1,116,944 Rental income (1) 101,141 101,194 301,920
Slide 11: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (dollars in thousands, except per share data) September 30, December 31, 2026 2025 ASSETS Real estate properties: Land $ 1,722,642 $ 1,750,799 Buildings, improvements and equipment 5,809,983 6,198,233 Total real estate properties, gross 7,532,625 7,949,032 Accum
Slide 12: Debt Summary
Debt Summary As of September 30, 2026 (dollars in thousands) Interest Principal Maturity Due at Years to Rate Balance Date Maturity Maturity Secured Floating Rate Debt: (1) SVC is required to pay interest on drawn amounts at a rate of SOFR $650,000 revolving credit facility (1) (2) 6.500 % $ — 6/29/
Slide 13: Debt Maturity Schedule
Debt Maturity Schedule As of September 30, 2026 (dollars in thousands) Secured vs. Unsecured Debt $2,000,000 Unsecured 37.1% $1,500,000 Secured $735,322 62.9% $1,000,000 $602,775 $3,995 (1) SVC's net lease mortgage notes due 2028 and 2031 are $500,000 $2,038 $2,038 $1,000,000 partially amortizing an
Slide 14: Leverage Ratios, Coverage Ratios and Debt Covenants
Leverage Ratios, Coverage Ratios and Debt Covenants (dollars in thousands) As of and for the Trailing Twelve Months Ended 9/30/2026 6/30/2026 3/31/2026 (1) 12/31/2025 (2) 9/30/2025 (3) Leverage Ratios: Net debt / total gross assets (4) 55.7 % 56.1 % 54.3 % 59.0 % 57.9 % Net debt / gross book value o
Slide 15: Capital Expenditures Summary
Capital Expenditures Summary (dollars in thousands) For the Three Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Hotel capital improvements $ 16,858 $ 16,253 $ 15,403 $ 92,971 $ 41,632 Lease related costs 602 1,839 1,194 2,193 538 Recurring capital expenditures 17,460 18,092 16,597
Slide 16: Property Acquisitions and Dispositions
Property Acquisitions and Dispositions Since January 1, 2026 (dollars in thousands, except per room or suite data) ACQUISITIONS: Purchase Price Weighted Weighted Quarter Number of Property Square Purchase per Square Weighted Average Average GAAP Average Lease Average Rent Acquired Properties Type Nu
Slide 17: Portfolio Information
Portfolio Information RETURN TO TABLE OF CONTENTS 17
Slide 18: Portfolio Summary
Portfolio Summary As of September 30, 2026 (dollars in thousands) Square Footage/ % of Portfolio Composition No. of Properties Rooms or Suites Average Property Size Investments Investments Tenants/Operators Brands Industries States Net Lease Properties 740 13,542,332 18,300 Sq Ft $ 5,071,105 53.0 %
Slide 19: Consolidated Portfolio Diversification by Industry
Consolidated Portfolio Diversification by Industry As of September 30, 2026 (dollars in thousands) No. of Rooms / Percent of Total Industry Properties Square Footage Investments Investment 1. Hotels 87 19,897 $ 4,489,644 47.0% 2. Travel Centers 178 5,099,794 3,311,787 34.6% 3. Restaurants - Quick Se
Slide 20: Consolidated Portfolio by Geographic Diversification
Consolidated Portfolio by Geographic Diversification As of September 30, 2026 (dollars in thousands) Investments Total Net Property Lease Hotel Net Lease % Hotel % State Count Count Count Total % of Total Net Lease of Total Hotel of Total California 41 22 19 $ 1,164,282 12.2 % $ 273,065 5.4 % $ 891,
Slide 21: Calculation and Reconciliation of NOI and Cash Basis NOI for Net Lease Properties
Calculation and Reconciliation of NOI and Cash Basis NOI for Net Lease Properties (amounts in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Calculation of NOI: Rental income (GAAP) (1) $ 101,141 $ 100,903 $ 99,8
Slide 22: Net Lease Portfolio by Brand (Top 10)
Net Lease Portfolio by Brand (Top 10) As of September 30, 2026 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Brand Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. TravelCenters of America / Petro Stopping Centers 175 5,0
Slide 23: Net Lease Portfolio by Industry (Top 10)
Net Lease Portfolio by Industry (Top 10) As of September 30, 2026 (dollars in thousands) Percent of Percent of Total No. of Total Annualized Annualized Rent Industry Properties Square Feet Investment Investment Minimum Rent Minimum Rent Coverage 1. Travel Centers 178 5,099,794 $ 3,311,787 65.3% $ 27
Slide 24: Net Lease Portfolio by Tenant (Top 10)
Net Lease Portfolio by Tenant (Top 10) As of September 30, 2026 (dollars in thousands) Percent of Total Percent of Annualized Annualized Weighted No. of Total Minimum Minimum Average Rent Tenant Brand Affiliation Properties Square Feet Investment Investment Rent Rent Lease Term Coverage 1. TravelCen
Slide 25: Net Lease Portfolio - Expiration Schedule
Net Lease Portfolio - Expiration Schedule As of September 30, 2026 (dollars in thousands) Number Percent of Total Cumulative Percent of of Annualized Minimum Annualized Minimum Rent Total Annualized Year (1) Properties Square Feet Rent Expiring Expiring Minimum Rent Expiring 2026 14 76,170 $ 1,575 0
Slide 26: Net Lease Portfolio - Occupancy Summary
Net Lease Portfolio - Occupancy Summary As of September 30, 2026 As of and For the Three Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Properties (end of period) 740 745 761 760 752 Vacant properties beginning of period 25 26 26 20 20 Vacant properties sold (1) (3) (1) (1) (2) Vaca
Slide 27: Hotel Portfolio by Brand
Hotel Portfolio by Brand As of September 30, 2026 (dollars in thousands, except per room or suite data) Percent of Percent of Number of Total Number Percent of Number of Total Number Rooms or of Rooms or Total Hotel Investment Per Brand Service Level Chain Scale Hotels of Hotels Suites Suites Invest
Slide 28: Hotel Operating Statistics by Service Level (Third Quarter)
Hotel Operating Statistics by Service Level - Retained & Exit Hotels* (Third Quarter) (dollars in thousands, except ADR and RevPAR) Occupancy ADR RevPAR Adjusted Hotel EBITDA Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, Three Months Ended Septemb
Slide 29: Hotel Operating Statistics by Service Level (Year to Date)
Hotel Operating Statistics by Service Level - Retained & Exit Hotels* (Year to Date) (dollars in thousands, except ADR and RevPAR) Occupancy ADR RevPAR Adjusted Hotel EBITDA Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30
Slide 30: Appendix
Appendix RETURN TO TABLE OF CONTENTS 30
Slide 31: Company Profile, Research Coverage and Governance Information
Company Profile, Research Coverage and Governance Information Equity Research Coverage The Company: B. Riley Securities, Inc. Ladenburg Thalmann & Co. Lucid Capital Markets SVC is a REIT that owns service-focused retail net lease John Massocca Floris van Dijkum Craig Kucera properties and hotels thr
Slide 32: Calculation of FFO, Normalized FFO and CAD
Calculation of FFO, Normalized FFO and CAD (amounts in thousands, except per share data) For the Three Months Ended For the Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Net loss $ (87,940) $ (223,838) $ (151,178) $ (782) $ (46,945) $ (462,956) $ (201,539)
Slide 33: Calculation of EBITDA, EBITDAre and Adjusted EBITDAre
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre (dollars in thousands) For the Three Months Ended For the Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Net loss $ (87,940) $ (223,838) $ (151,178) $ (782) $ (46,945) $ (462,956) $ (201,539) Add (Less):
Slide 34: 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 Nine Months Ended 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 9/30/2026 9/30/2025 Number of hotels 87 93 93 94 160 87 160 Room revenues $ 232,419 $
Slide 35: Notes to Condensed Consolidated Statements of Income (Loss) and Calculations
Notes to Condensed Consolidated Statements of Income (Loss) and Calculations of NOI, Cash Basis NOI, FFO, Normalized FFO, CAD, EBITDA, EBITDAre, Adjusted EBITDAre, Hotel EBITDA and Adjusted Hotel EBITDA (dollars in thousands) (1) SVC increased rental income by $1,009 and $2,257 for the three months
Slide 36: Non-GAAP Financial Measures and Certain Definitions
Non-GAAP Financial Measures and Certain Definitions 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, EBITDAre, Adjusted EBITDAre, NOI, Cas
Slide 37: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Other Definitions Adjusted Hotel EBITDA Margin: Adjusted Hotel EBITDA as a percentage of hotel operating revenues. Adjusted Total Assets and Total Unencumbered Assets: Adjusted total assets and total unencumbered assets include the orig
Slide 38: Non-GAAP Financial Measures and Certain Definitions (Continued)
Non-GAAP Financial Measures and Certain Definitions (Continued) Investment: SVC defines hotel investment as historical cost of its properties plus capital improvements funded by it less impairment write-downs, if any, and excludes capital improvements made from FF&E Reserves funded from hotel operat
Slide 39: Warning Concerning Forward-Looking Statements
Warning Concerning Forward-Looking Statements 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”,
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