Service Properties Trust (Nasdaq: SVC) today announced its financial results for the quarter and six months ended June 30, 2020:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
($ in thousands, except per share data) |
||||||||||||||
Net income (loss) |
$ |
(37,349 |
) |
|
$ |
8,782 |
|
|
$ |
(70,999 |
) |
|
$ |
234,569 |
|
Net income (loss) per common share |
$ |
(0.23 |
) |
|
$ |
0.05 |
|
|
$ |
(0.43 |
) |
|
$ |
1.43 |
|
Adjusted EBITDAre (1) |
$ |
152,166 |
|
|
$ |
218,972 |
|
|
$ |
347,303 |
|
|
$ |
414,873 |
|
Normalized FFO (1) |
$ |
78,158 |
|
|
$ |
168,766 |
|
|
$ |
201,242 |
|
|
$ |
313,406 |
|
Normalized FFO per common share (1) |
$ |
0.48 |
|
|
$ |
1.03 |
|
|
$ |
1.22 |
|
|
$ |
1.91 |
|
John Murray, President and Chief Executive Officer of SVC, made the following statement:
"While the travel industry and certain service retail businesses continue to experience unprecedented challenges due to the COVID-19 pandemic, we have continued to take proactive steps to increase our liquidity, manage our debt maturities and preserve capital.
"By completing an $800 million note offering and a tender offer for $350 million of our $400 million of 4.25% senior notes due 2021, we believe we have largely addressed our 2021 debt maturities and secured availability under our $1 billion revolving credit facility, which we amended in May 2020 to obtain waivers from compliance with certain financial covenants through March 2021. Along with reducing our quarterly dividend and deferring non-essential capital spending, we plan to further strengthen our financial position by moving forward with certain of our previously planned hotel sales by year end.
"Our earnings during the second quarter reflect the full impact of the COVID-19 pandemic in April, followed by signs of a slow and steady recovery in May and June. Almost all of our hotels are open and occupancies have steadily increased during the quarter to 26.8% in May and 35.5% in June from a low of 21.0% in April when the impact of the COVID-19 pandemic was most acute. Rent collections from our net lease tenants also are trending upward to 80.0% for the month of July from a low of 45.6% for the month of April, as businesses that were temporarily closed due to government mandates or guidelines continue to reopen. We have reached rent deferral agreements with 80 of our net lease retail tenants and, as of August 6, 2020, we had agreed to defer an aggregate of $11.3 million of rent for tenants representing approximately 6% of our annual minimum returns and rents. Our travel centers have been resilient as trucking activity has remained steady throughout the quarter.
"Although significant uncertainties remain as to the timeframe and trajectory of a recovery, we believe we are currently well positioned with a diverse portfolio of assets and ample liquidity."
Results for the Three and Six Months Ended June 30, 2020 and Recent Activities:
Adjusted EBITDAre for the six months ended June 30, 2020 compared to the same period in 2019 decreased 16.3% to $347.3 million.
Normalized FFO for the six months ended June 30, 2020 were $201.2 million, or $1.22 per diluted common share, compared to Normalized FFO of $313.4 million, or $1.91 per diluted common share, for the six months ended June 30, 2019.
Financing Activities:
As previously announced, on May 8, 2020, SVC amended the credit agreement governing its $1.0 billion revolving credit facility and $400.0 million term loan. The amendment provided for a waiver of certain of the financial covenants under its credit agreement through March 31, 2021, or the Waiver Period, during which, subject to certain conditions, SVC will continue to have access to undrawn amounts under the credit facility.
During the Waiver Period, and continuing thereafter until such time as SVC has demonstrated compliance with certain of its financial covenants as of June 30, 2021:
In June 2020, SVC repurchased $350.0 million principal amount of its $400.0 million of 4.25% senior notes due 2021 for $356.0 million, excluding accrued interest, pursuant to a cash tender offer. As a result, SVC recorded a loss of approximately $7.0 million, net of unamortized discount and deferred financing costs, on extinguishment of debt in the second quarter of 2020. SVC funded this purchase using borrowings under its revolving credit facility.
In June 2020, SVC issued $800.0 million aggregate principal amount of 7.50% senior notes due 2025 guaranteed by certain of SVC's subsidiaries in an underwritten public offering. The aggregate net proceeds from this offering of approximately $788.0 million after underwriters' discounts and other offering expenses were used to repay amounts outstanding under its revolving credit facility.
On July 16, 2020, SVC announced a $0.01 per common share dividend to be paid to its shareholders of record on July 27, 2020 and distributed on or about August 20, 2020.
Recent Investment Activities:
During the quarter ended June 30, 2020, SVC sold four net lease properties with an aggregate of 809,720 square feet in four states for an aggregate sales price of $56.0 million, excluding closing costs.
SVC has entered agreements to sell one Wyndham Hotels & Resorts, Inc (NYSE: WH), or Wyndham, branded hotel and eight Marriott International, Inc. (Nasdaq: MAR), or Marriott branded hotels with 1,178 rooms in five states with a net carrying value of $38.3 million for an aggregate sales price of $48.8 million. SVC expects these sales to be completed in the fourth quarter of 2020. SVC expects to use the net sales proceeds from any hotels sold to repay outstanding indebtedness. The amount of annual minimum returns due from Marriott will be reduced by the amount allocated to the Marriott branded hotels sold, which was $7.9 million as of June 30, 2020.
In July 2020, SVC sold one net lease property with 2,935 square feet with a carrying value of $0.7 million requiring an annual minimum rent of $0.05 million for a sale price of $0.7 million. SVC has also entered agreements to sell seven net lease properties with 68,343 aggregate square feet in six states with a net carrying value of $6.3 million and leases requiring an aggregate of $0.3 million of annual minimum rents for an aggregate sales price of $6.9 million, excluding closing costs. SVC expects these sales to be completed by the third quarter of 2020.
The sales of these hotels and net lease properties are subject to various contingencies and may be delayed or may not occur.
During the quarter ended June 30, 2020, SVC funded $39.3 million of capital improvements to certain of its properties. Pursuant to the terms of its management and lease agreements with its managers and tenants, some of these capital improvements resulted in increases in SVC's contractual annual minimum returns and rents of $3.1 million.
Hotel Portfolio:
As of June 30, 2020, SVC had six operating agreements with six hotel operating companies for 329 hotels with 51,404 rooms, which represented 62% of SVC's total annual minimum returns and rents.
For the six months ended June 30, 2020 compared to the same period in 2019 for SVC's 304 comparable hotels: ADR decreased 14.1% to $103.85; occupancy decreased 27.8 percentage points to 44.4%; and RevPAR decreased 47.2% to $46.11.
For the six months ended June 30, 2020 compared to the same period in 2019 for all SVC's 329 hotels: ADR decreased 16.1% to $110.24; occupancy decreased 30.4 percentage points to 41.9%; and RevPAR decreased 51.4% to $46.19.
For the six months ended June 30, 2020, the aggregate coverage ratio of SVC's minimum returns or rents decreased to (0.06x) from 0.90x for the six months ended June 30, 2019.
SVC's hotel occupancies reached all-time lows during the second quarter of 2020 as a result of weak demand due to various forms of stay-at-home restrictions being enforced throughout the United States due to the COVID-19 pandemic. SVC hotel occupancy was 21.0% in April 2020, 26.8% in May 2020 and 35.5% in June 2020. Hotel performance has gradually improved since the lows seen in April 2020 as travel demand slowly recovers. For the 28 days ended July 25, 2020, occupancy for SVC's hotels was 42.4%.
As of August 6, 2020, SVC has reopened 9 of the 19 hotels that it had closed as a result of the COVID-19 pandemic. SVC's 183 extended stay hotels performed better than its 95 limited service and 51 full-service hotels during the quarter ended June 30, 2020, with occupancies of 45.7%, 16.4% and 12.0% respectively. With the economy generally continuing to slowly reopen, SVC expects its diverse portfolio of suburban extended stay and limited service hotels to recover faster than its urban full-service hotels.
Hotel Managers:
During the quarter ended June 30, 2020, SVC advanced an aggregate of $80.5 million of working capital to certain of its hotel operators to cover projected operating losses. SVC advanced $37.0 million to IHG, $30.0 million to Marriott, $7.4 million to Sonesta, $2.4 million to Wyndham and $3.7 million to Hyatt. These working capital advances are reimbursable to SVC from a share of future cash flow from the applicable hotel operations in excess of the minimum returns and rents due to SVC and certain fees to the manager, if any.
Net Lease Portfolio:
As of June 30, 2020, SVC owned 809 net lease service-oriented retail properties with an aggregate of 13.7 million square feet requiring aggregate annual minimum rent of $369.4 million which represented 38% of SVC's total annual minimum returns and rents. The portfolio was 99% leased by 180 tenants operating under 129 brands in 22 distinct industries with a weighted (by annual minimum rent) average lease term of 11.11 years. As of the quarter ended June 30, 2020, the aggregate coverage of SVC's net lease portfolio's minimum rent was 2.16x. TravelCenters of America Inc. (Nasdaq: TA), or TA, is SVC's largest tenant. As of June 30, 2020, SVC leased to TA a total of 179 travel centers under five leases that expire between 2029 and 2035 and require aggregate annual minimum rents of $246.1 million, or 25.6% of SVC's minimum rents and returns. TA is current on all of its lease payments due to SVC.
During the quarter ended June 30, 2020, SVC collected 58.7% of rents from its other net lease tenants (45.6% in April, 2020, 57.6% in May, 2020 and 74.6% in June 2020). In July 2020, SVC collected 80.0% of rents from its other net lease tenants. As of August 6, 2020, SVC has entered into rent deferral agreements with 80 net lease retail tenants with leases requiring an aggregate of $59.3 million of annual minimum rents. Generally, these rent deferrals are for one to four months of rent and will be payable, in most cases, in 12 to 24 equal monthly installments beginning in September 2020. In aggregate, SVC has deferred $11.3 million of rents from its net lease tenants to date. During the quarter ended June 30, 2020, SVC recorded reserves for uncollectible revenues of $5.0 million for certain of its net lease tenants.
Leasing and Occupancy:
During the quarter ended June 30, 2020, SVC entered lease renewals for an aggregate of 506,780 rentable square feet at weighted (by rentable square feet) average rents that were 7.0% above prior rents for the same space. The weighted (by rentable square feet) average lease term for these leases was 13.7 years and leasing concessions and capital commitments were $7.5 million, or $14.80 per square foot. Also during the quarter ended June 30, 2020, SVC entered into new leases for an aggregate of 39,892 rentable square feet at weighted (by rentable square feet) average rents that were 25.9% below prior rents for the same space. The weighted (by rentable square feet) average lease term for these leases was six years and leasing concessions and capital commitments were $0.2 million, or $3.93 per square foot.
Conference Call:
At 10:00 a.m. Eastern Time this morning, John Murray, Chief Executive Officer, Brian Donley, Chief Financial Officer, and Todd Hargreaves, Vice President and Chief Investment Officer, will host a conference call to discuss SVC's second quarter 2020 financial results. The conference call telephone number is (877) 329-3720. Participants calling from outside the United States and Canada should dial (412) 317-5434. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through Friday, August 14, 2020. To access the replay, dial (412) 317-0088. The replay pass code is 10145356.
A live audio webcast of the conference call will also be available in a listen-only mode on SVC's website, www.svcreit.com. Participants wanting to access the webcast should visit SVC's website about five minutes before the call. The archived webcast will be available for replay on SVC's website for about one week after the call. The transcription, recording and retransmission in any way of SVC's second quarter conference call is strictly prohibited without the prior written consent of SVC.
Supplemental Data:
A copy of SVC's Second Quarter 2020 Supplemental Operating and Financial Data is available for download at SVC's website, www.svcreit.com. SVC's website is not incorporated as part of this press release.
Service Properties Trust is a REIT which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada with 149 distinct brands across 23 industries. SVC's properties are primarily operated under long-term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), or RMR Inc., an alternative asset management company that is headquartered in Newton, Massachusetts.
Non-GAAP Financial Measures and Certain Definitions:
SVC presents certain "non-GAAP financial measures" within the meaning of applicable Securities and Exchange Commission, or SEC, rules, including earnings before interest, taxes, depreciation and amortization, or EBITDA, EBITDA for real estate, or EBITDAre, Adjusted EBITDAre, funds from operations, or FFO, and Normalized FFO. These measures do not represent cash generated by operating activities in accordance with GAAP and should not be considered alternatives to net income as indicators of SVC's operating performance or as measures of SVC's liquidity. These measures should be considered in conjunction with net income as presented in SVC's condensed consolidated statements of income. SVC considers these non-GAAP measures to be appropriate supplemental measures of operating performance for a REIT, along with net income. SVC believes these measures provide useful information to investors because by excluding the effects of certain historical amounts, such as depreciation and amortization expense, they may facilitate a comparison of SVC's operating performance between periods and with other REITs.
Please see the pages attached hereto for a more detailed statement of SVC's operating results and financial condition and for an explanation of SVC's calculation of FFO and Normalized FFO, EBITDA, EBITDAre and Adjusted EBITDAre and a reconciliation of those amounts to amounts determined in accordance with GAAP.
Comparable Hotels Data:
SVC presents RevPAR, ADR and occupancy for the periods presented on a comparable basis to facilitate comparisons between periods. SVC generally defines comparable hotels as those that were owned by it and were open and operating for the entire periods being compared. For the three months ended June 30, 2020 and 2019, SVC excluded 23 hotels from its comparable results. Two of these hotels were not owned for the entire periods, two were closed for major renovations and 19 suspended operations during part of the periods presented. For the six months ended June 30, 2020 and 2019, SVC excluded 25 hotels from its comparable results. Three of these hotels were not owned for the entire periods, three were closed for major renovations and 19 suspended operations during part of the periods presented.
Minimum Rent and Return Coverage:
Hotel coverage is calculated as total hotel revenues minus all hotel expenses and FF&E reserve escrows that are not subordinated to minimum returns due to SVC divided by the minimum returns or rents due to SVC.
SVC defines net lease coverage as earnings before interest, taxes, depreciation, amortization and rent, or EBITDAR, divided by the annual minimum rent due to SVC weighted by the minimum rent of the property to total minimum rents of the net lease portfolio. EBITDAR amounts used to determine rent coverage are generally for the latest twelve-month period reported based on the most recent operating information, if any, furnished by the tenant. Operating statements furnished by the tenant often are unaudited and, in certain cases, may not have been prepared in accordance with GAAP and are not independently verified by SVC. Tenants that do not report operating information are excluded from the coverage calculations. Coverage amounts include data for certain properties for periods prior to when SVC acquired them. In instances where we do not have financial information for the most recent quarter from our tenants, we have calculated an implied EBITDAR for the second quarter using industry benchmark data to more accurately reflect the impact of COVID-19 on our tenants' operations. We believe using only financial information from the earlier periods could be misleading as it would not reflect the negative impact those tenants experienced as a result of the COVID-19 pandemic. As a result, we believe using this industry benchmark data provides a more accurate estimated representation of recent operating results and coverage for those tenants.
SERVICE PROPERTIES TRUST
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Revenues: |
|
|
|
|
|
|
|
|
||||||||
Hotel operating revenues (1) |
|
$ |
117,356 |
|
|
$ |
541,215 |
|
|
$ |
500,859 |
|
|
$ |
996,078 |
|
Rental income (2) |
|
97,584 |
|
|
68,217 |
|
|
197,656 |
|
|
136,890 |
|
||||
FF&E reserve income (3) |
|
? |
|
|
1,130 |
|
|
201 |
|
|
2,502 |
|
||||
Total revenues |
|
214,940 |
|
|
610,562 |
|
|
698,716 |
|
|
1,135,470 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
|
||||||||
Hotel operating expenses (1) |
|
46,957 |
|
|
380,431 |
|
|
318,105 |
|
|
698,116 |
|
||||
Other operating expenses |
|
3,565 |
|
|
1,272 |
|
|
7,324 |
|
|
2,712 |
|
||||
Depreciation and amortization |
|
127,427 |
|
|
99,196 |
|
|
255,353 |
|
|
198,561 |
|
||||
General and administrative (4) |
|
11,302 |
|
|
12,207 |
|
|
25,326 |
|
|
24,442 |
|
||||
Loss on asset impairment (5) |
|
28,514 |
|
|
? |
|
|
45,254 |
|
|
? |
|
||||
Total expenses |
|
217,765 |
|
|
493,106 |
|
|
651,362 |
|
|
923,831 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Gain (loss) on sale of real estate (6) |
|
(2,853 |
) |
|
? |
|
|
(9,764 |
) |
|
159,535 |
|
||||
Dividend income |
|
? |
|
|
876 |
|
|
? |
|
|
1,752 |
|
||||
Unrealized gains (losses) on equity securities, net (7) |
|
3,848 |
|
|
(60,788 |
) |
|
(1,197 |
) |
|
(39,811 |
) |
||||
Gain on insurance settlement (8) |
|
62,386 |
|
|
? |
|
|
62,386 |
|
|
? |
|
||||
Interest income |
|
15 |
|
|
449 |
|
|
277 |
|
|
1,086 |
|
||||
Interest expense (including amortization of debt
|
|
(72,072 |
) |
|
(49,601 |
) |
|
(143,147 |
) |
|
(99,367 |
) |
||||
Loss on early extinguishment of debt (9) |
|
(6,970 |
) |
|
? |
|
|
(6,970 |
) |
|
? |
|
||||
Income (loss) before income taxes and equity in earnings
|
|
(18,471 |
) |
|
8,392 |
|
|
(51,061 |
) |
|
234,834 |
|
||||
Income tax benefit (expense) (7) |
|
(16,660 |
) |
|
260 |
|
|
(17,002 |
) |
|
(799 |
) |
||||
Equity in earnings (losses) of an investee (10) |
|
(2,218 |
) |
|
130 |
|
|
(2,936 |
) |
|
534 |
|
||||
Net income (loss) |
|
$ |
(37,349 |
) |
|
$ |
8,782 |
|
|
$ |
(70,999 |
) |
|
$ |
234,569 |
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding (basic) |
|
164,382 |
|
|
164,284 |
|
|
164,376 |
|
|
164,281 |
|
||||
Weighted average common shares outstanding (diluted) |
|
164,382 |
|
|
164,326 |
|
|
164,376 |
|
|
164,324 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share (basic and diluted) |
|
$ |
(0.23 |
) |
|
$ |
0.05 |
|
|
$ |
(0.43 |
) |
|
$ |
1.43 |
|
See Notes on pages 11 and 12
SERVICE PROPERTIES TRUST
RECONCILIATIONS OF FUNDS FROM OPERATIONS,
NORMALIZED FUNDS FROM OPERATIONS, EBITDA, EBITDAre AND ADJUSTED EBITDAre
(amounts in thousands, except per share data)
(Unaudited)
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Calculation of FFO and Normalized FFO: (11) |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(37,349 |
) |
|
$ |
8,782 |
|
|
$ |
(70,999 |
) |
|
$ |
234,569 |
|
Add (Less): Depreciation and amortization |
127,427 |
|
|
99,196 |
|
|
255,353 |
|
|
198,561 |
|
||||
(Gain) loss on sale of real estate (6) |
2,853 |
|
|
? |
|
|
9,764 |
|
|
(159,535 |
) |
||||
Loss on asset impairment (5) |
28,514 |
|
|
? |
|
|
45,254 |
|
|
? |
|
||||
Unrealized (gains) losses on equity securities, net (8) |
(3,848 |
) |
|
60,788 |
|
|
1,197 |
|
|
39,811 |
|
||||
Adjustments to reflect the entity's share of FFO
|
327 |
|
|
? |
|
|
439 |
|
|
? |
|
||||
FFO |
117,924 |
|
|
168,766 |
|
|
241,008 |
|
|
313,406 |
|
||||
Add: Loss on early extinguishment of debt (9) |
6,970 |
|
|
? |
|
|
6,970 |
|
|
? |
|
||||
Gain on insurance settlement, net of tax (7) |
(46,736 |
) |
|
? |
|
|
(46,736 |
) |
|
? |
|
||||
Normalized FFO |
$ |
78,158 |
|
|
$ |
168,766 |
|
|
$ |
201,242 |
|
|
$ |
313,406 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding (basic) |
164,382 |
|
|
164,284 |
|
|
164,376 |
|
|
164,281 |
|
||||
Weighted average common shares outstanding (diluted) |
164,382 |
|
|
164,326 |
|
|
164,376 |
|
|
164,324 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic and diluted per common share amounts: |
|
|
|
|
|
|
|
||||||||
FFO |
$ |
0.72 |
|
|
$ |
1.03 |
|
|
$ |
1.47 |
|
|
$ |
1.91 |
|
Normalized FFO |
$ |
0.48 |
|
|
$ |
1.03 |
|
|
$ |
1.22 |
|
|
$ |
1.91 |
|
Distributions declared per share |
$ |
0.01 |
|
|
$ |
0.54 |
|
|
$ |
0.55 |
|
|
$ |
1.07 |
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Calculation of EBITDA, EBITDAre and Adjusted EBITDAre:(12) |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(37,349 |
) |
|
$ |
8,782 |
|
|
$ |
(70,999 |
) |
|
$ |
234,569 |
|
Add (Less): Interest expense |
72,072 |
|
|
49,601 |
|
|
143,147 |
|
|
99,367 |
|
||||
Income tax expense (7) |
16,660 |
|
|
(260 |
) |
|
17,002 |
|
|
799 |
|
||||
Depreciation and amortization |
127,427 |
|
|
99,196 |
|
|
255,353 |
|
|
198,561 |
|
||||
EBITDA |
178,810 |
|
|
157,319 |
|
|
344,503 |
|
|
533,296 |
|
||||
Add (Less): (Gain) loss on sale of real estate (6) |
2,853 |
|
|
? |
|
|
9,764 |
|
|
(159,535 |
) |
||||
Loss on asset impairment (5) |
28,514 |
|
|
? |
|
|
45,254 |
|
|
? |
|
||||
EBITDAre |
210,177 |
|
|
157,319 |
|
|
399,521 |
|
|
373,761 |
|
||||
Add (Less): |
|
|
|
|
|
|
|
||||||||
General and administrative expense paid in common
|
832 |
|
|
865 |
|
|
1,422 |
|
|
1,301 |
|
||||
Adjustments to reflect the entity's share of EBITDA
|
421 |
|
|
? |
|
|
579 |
|
|
? |
|
||||
Loss on early extinguishment of debt (9) |
6,970 |
|
|
? |
|
|
6,970 |
|
|
? |
|
||||
Gain on insurance settlement (7) |
(62,386 |
) |
|
? |
|
|
(62,386 |
) |
|
? |
|
||||
Unrealized (gains) losses on equity securities, net (8) |
(3,848 |
) |
|
60,788 |
|
|
1,197 |
|
|
39,811 |
|
||||
Adjusted EBITDAre |
$ |
152,166 |
|
|
$ |
218,972 |
|
|
$ |
347,303 |
|
|
$ |
414,873 |
|
See Notes on pages 11 and 12
SERVICE PROPERTIES TRUST
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
(Unaudited)
|
|
June 30, 2020 |
|
December 31, 2019 |
||||
ASSETS |
|
|
|
|
||||
Real estate properties: |
|
|
|
|
||||
Land |
|
$ |
2,033,292 |
|
|
$ |
2,066,602 |
|
Buildings, improvements and equipment |
|
9,113,157 |
|
|
9,318,434 |
|
||
Total real estate properties, gross |
|
11,146,449 |
|
|
11,385,036 |
|
||
Accumulated depreciation |
|
(3,147,359 |
) |
|
(3,120,761 |
) |
||
Total real estate properties, net |
|
7,999,090 |
|
|
8,264,275 |
|
||
Acquired real estate leases and other intangibles, net |
|
350,546 |
|
|
378,218 |
|
||
Assets held for sale |
|
152,367 |
|
|
87,493 |
|
||
Cash and cash equivalents |
|
20,206 |
|
|
27,633 |
|
||
Restricted cash |
|
29,652 |
|
|
53,626 |
|
||
Due from related persons |
|
60,999 |
|
|
68,653 |
|
||
Other assets, net |
|
266,685 |
|
|
154,069 |
|
||
Total assets |
|
$ |
8,879,545 |
|
|
$ |
9,033,967 |
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
||||
Unsecured revolving credit facility |
|
$ |
33,127 |
|
|
$ |
377,000 |
|
Unsecured term loan, net |
|
397,358 |
|
|
397,889 |
|
||
Senior unsecured notes, net |
|
5,732,018 |
|
|
5,287,658 |
|
||
Security deposits |
|
9,276 |
|
|
109,403 |
|
||
Accounts payable and other liabilities |
|
352,473 |
|
|
335,696 |
|
||
Due to related persons |
|
9,572 |
|
|
20,443 |
|
||
Total liabilities |
|
6,533,824 |
|
|
6,528,089 |
|
||
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
||||
|
|
|
|
|
||||
Shareholders' equity: |
|
|
|
|
||||
Common shares of beneficial interest, $.01 par value; 200,000,000 shares
|
|
1,646 |
|
|
1,646 |
|
||
Additional paid in capital |
|
4,548,880 |
|
|
4,547,529 |
|
||
Cumulative net income available for common shareholders |
|
3,420,646 |
|
|
3,491,645 |
|
||
Cumulative common distributions |
|
(5,625,451 |
) |
|
(5,534,942 |
) |
||
Total shareholders' equity |
|
2,345,721 |
|
|
2,505,878 |
|
||
Total liabilities and shareholders' equity |
|
$ |
8,879,545 |
|
|
$ |
9,033,967 |
|
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Whenever SVC uses words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "will," "may" and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SVC's forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC's control. For example:
The information contained in SVC's filings with the SEC, including under the caption "Risk Factors" in SVC's periodic reports, or incorporated therein, identifies other important factors that could cause differences from SVC's forward-looking statements. SVC's filings with the SEC are available on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
Except as required by law, SVC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
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