NASDAQ$SVC

Service Properties Trust · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported net income of $0.05 per common share and a 100.0% increase in normalized FFO to $0.54 per common share, alongside a 26.3% increase in adjusted EBITDAre to $173.5 million.

Service Properties Trust announced its Q3 2022 financial results, featuring a net income of $0.05 per common share and a significant increase in normalized FFO and adjusted EBITDAre. The company also increased its quarterly dividend to $0.20 per common share, reflecting confidence in the business.

  • Net income for the quarter ended September 30, 2022 was $7.5 million, or $0.05 per diluted common share.
  • Normalized FFO for the quarter ended September 30, 2022 were $88.5 million, or $0.54 per diluted common share.
  • Adjusted EBITDAre for the quarter ended September 30, 2022 increased 26.3% to $173.5 million.
  • Comparable RevPAR increased by 29.6% over the prior year quarter.

Headline financials

Total Revenue

$498M

Previous: $437M+14.0%
EPS (adj)

$0.54

Previous: $0.27+100.0%
Hotel RevPAR

$92.15

No prior period
Capital Expenditures

-$68.8M

Previous: -$64.3M-6.9%
Free Cash Flow

-$61.3M

Previous: -$124M+50.6%
Net Income

$7.5M

Previous: -$59.7M+112.6%
Operating Income

$164M

Previous: $130M+26.1%
Gross Profit

$180M

Previous: $152M+18.5%
Cash & Equivalents

$67.2M

Previous: $913M-92.6%
Total Assets

$7.63B

Previous: $9.33B-18.2%

Revenue & EPS history

Service Properties Trust · Revenue · Quarterly

$498M

Q3 2022+14%vs Q3 2021
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Service Properties Trust · $97.8M total across 1 segment · Q3 2022

  • Rental Income
    $97.8M-0.9%

Forward guidance

SVC anticipates benefiting from the ongoing recovery in business travel, especially at its full-service and select-service hotels. The company expects the majority of the sales to be completed by the end of the first quarter of 2023.

Tailwinds

  • Continued business travel recovery, particularly at full service and select service hotels
  • Available liquidity of over $750 million
  • Steady cash flows from net lease portfolio
  • Increased quarterly dividend to $0.20 per common share
  • Expected completion of property sales by the end of the first quarter of 2023

Headwinds

  • Impact of the COVID-19 pandemic
  • Economic and market conditions, including current inflationary conditions
  • Geopolitical risks
  • Possible recession
  • Borrowings under SVC’s credit agreement are subject to conditions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.2%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.5%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+43.3%

Q3 2020

Best reaction

-19.2%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%+3.9%+1.3%
Q4 2025+6.8%+2.3%-19.5%
Q3 2025-6.5%-17.4%-17.0%
Q1 2025-2.9%+8.2%+13.5%
Q4 2024+9.0%+9.8%-1.1%
Q3 2024+6.8%+5.1%-6.1%
Q2 2024-4.7%-8.1%-9.3%
Q1 2024-6.4%-5.6%-15.0%
Q4 2023-9.0%-12.9%-9.2%
Q3 2023-3.5%-9.4%-1.7%
Q2 2023+5.7%+4.4%-2.9%
Q1 2023-6.7%-9.3%+0.2%
Q4 2022-1.9%+2.5%-12.4%
Q3 2022-3.0%-3.6%+1.0%
Q2 2022+9.5%+11.4%+0.6%
Q1 2022-12.5%-22.9%-16.3%
Q4 2021-1.3%-5.8%+0.2%
Q3 2021+5.6%+3.4%-24.8%
Q2 2021+11.3%+7.9%+5.5%
Q1 2021-4.4%-9.8%+5.7%
Q4 2020-3.2%-5.0%-4.3%
Q3 2020+43.3%+33.9%+63.6%
Q2 2020+15.1%+15.6%+20.8%
Q1 2020-19.2%-26.2%+65.6%
Q4 2019-2.5%-6.1%-62.5%
Q3 2019-4.5%-7.2%-6.0%
Q2 2019+2.0%+1.9%+2.7%
Q1 2019-0.0%+1.8%-6.0%
Q4 2018-1.1%-1.1%-3.9%
Q3 2018+2.7%+1.8%+2.5%
Q2 2018-0.2%+1.2%+2.3%
Q1 2018+6.3%+6.0%+9.4%
Q4 2017-4.2%-4.2%-0.4%
Q3 2017+2.2%+1.8%+3.8%
Q2 2017-5.0%-3.8%-4.4%
Q1 2017-5.4%-6.9%-4.4%
Q4 2016-1.4%-2.5%-0.8%
Q3 2016-2.4%+5.3%+12.2%
Q2 2016-0.8%-0.7%-4.3%
Q1 2016+0.6%
Q4 2015+2.5%
Q3 2015+0.8%
Q2 2015+5.0%
Q1 2015+2.9%
Q4 2014+1.0%
Q3 2014+1.3%
Q2 2014+0.7%
Q1 2014+3.3%
Q4 2013-0.1%
Q3 2013-2.2%
Q2 2013-0.5%
Q1 2013+2.3%
Q4 2012-0.8%
Q3 2012-3.3%
Q2 2012-5.3%
Q1 2012+0.8%
Q4 2010-1.7%
Q4 2011-1.7%
Q3 2011-6.2%
Q2 2011+8.2%
Q1 2010+4.8%
Q1 2011+1.3%
Q4 2008-6.1%
Q3 2009-7.9%
Q3 2010-7.9%
Q4 2009+2.5%
Q2 2010+2.5%
Q2 2009+2.5%

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