NASDAQ$SVC

Service Properties Trust · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced results with a net loss of $(0.19) per common share and a 159% increase in normalized FFO to $0.44 per common share.

Service Properties Trust announced its Q4 2022 financial results, featuring a net loss of $(0.19) per common share but a 159% increase in Normalized FFO to $0.44 per common share. Adjusted EBITDAre also increased by 27% to $150.5 million. The company completed a $610.2 million secured financing and agreed to amend lease terms upon completion of BP’s Acquisition of TravelCenters of America Inc.

  • Net loss of $(0.19) per common share.
  • Normalized FFO increased by 159% to $0.44 per common share.
  • Adjusted EBITDAre increased by 27% to $150.5 million.
  • Completed $610.2 million secured financing.

Headline financials

Total Revenue

$455M

Previous: $421M+8.0%
EPS (adj)

$0.44

Previous: $0.17+158.8%
Hotel RevPAR

$79.03

No prior period
Net Income

-$31.4M

Previous: -$199M+84.2%
Operating Income

-$31.7M

Previous: -$200M+84.1%
Gross Profit

$162M

Previous: $134M+20.3%
Cash & Equivalents

$38.4M

Previous: $944M-95.9%
Total Assets

$7.49B

Previous: $9.15B-18.2%

Revenue & EPS history

Service Properties Trust · Revenue · Quarterly

$455M

Q4 2022+8%vs Q4 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 the BP Acquisition to be completed by mid-year 2023, expecting approximately $379.3 million in total cash upon completion. SVC expects the majority of these sales to be completed by the end of the first quarter of 2023.

Tailwinds

  • Improved hotel fundamentals are expected to continue in 2023.
  • Agreement with BP on amended lease terms is expected to enhance value for SVC shareholders.
  • Execution of ABS facility demonstrates options to address upcoming debt maturities at attractive rates.
  • Comparable hotel RevPAR for the fourth quarter increased by 21.4% over the same period last year.
  • Net lease assets continue to deliver steady and reliable cash flows.

Headwinds

  • Hotel industry and SVC’s business are subject to various risks, including the impact of the market practices that arose or increased in response to the COVID-19 pandemic.
  • Economic and market conditions, including the current inflationary conditions, rising or sustained high interest rates, geopolitical risks and possible recession.
  • SVC’s net lease tenants may become unable or unwilling to pay rents due to SVC, which could adversely impact SVC and the value of its net lease properties.
  • BP Acquisition is subject to various customary conditions and contingencies to closing and may not be completed.
  • Pending sales of SVC’s properties are subject to conditions and may be delayed, may not occur or their terms may change.

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 Q4 2022

Historical avgQ4 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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