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Dec 31, 2022
Service Properties Trust Q4 2022 Earnings Report
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.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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