Service Properties Trust Q2 2024 Update

TL;DR

SVC's assets dipped slightly to $7.7B in Q2 2024, with debt levels stable.

AI Summary

Service Properties Trust (SVC) filed its 10-Q for the period ending June 30, 2024. The company reported total assets of $7.7 billion as of June 30, 2024, a slight decrease from $7.8 billion at the end of 2023. Senior secured notes stood at $1.7 billion and senior unsecured notes at $1.1 billion as of June 30, 2024.

Why It Matters

This filing provides insight into Service Properties Trust's financial health and asset management, which can impact investors and the real estate investment trust sector.

Risk Assessment

Risk Level: medium — Real estate investment trusts can be sensitive to economic downturns and interest rate fluctuations.

Key Numbers

• $7.7B — Total Assets (As of June 30, 2024)
• $7.8B — Total Assets (As of December 31, 2023)
• $1.7B — Senior Secured Notes (As of June 30, 2024)
• $1.1B — Senior Unsecured Notes (As of June 30, 2024)

Key Players & Entities

• Service Properties Trust (company) — Filer
• The RMR Group (company) — Management Company
• $7.7 billion (dollar_amount) — Total Assets as of June 30, 2024
• $7.8 billion (dollar_amount) — Total Assets as of December 31, 2023
• $1.7 billion (dollar_amount) — Senior Secured Notes as of June 30, 2024
• $1.1 billion (dollar_amount) — Senior Unsecured Notes as of June 30, 2024

FAQ

Filing Documents

• svc-20240630.htm (10-Q) — 2044KB
• svc-q22024xex101schedulexs.htm (EX-10.1) — 496KB
• svc-q22024xex102schedulest.htm (EX-10.2) — 582KB
• svc-q22024xex221subsidiary.htm (EX-22.1) — 22KB
• svc_063024x10qex311.htm (EX-31.1) — 10KB
• svc_063024x10qex312.htm (EX-31.2) — 10KB
• svc_063024x10qex313.htm (EX-31.3) — 9KB
• svc_063024x10qex314.htm (EX-31.4) — 9KB
• svc_063024x10qex321.htm (EX-32.1) — 8KB
• 0000945394-24-000042.txt ( ) — 8991KB
• svc-20240630.xsd (EX-101.SCH) — 53KB
• svc-20240630_cal.xml (EX-101.CAL) — 49KB
• svc-20240630_def.xml (EX-101.DEF) — 322KB
• svc-20240630_lab.xml (EX-101.LAB) — 498KB
• svc-20240630_pre.xml (EX-101.PRE) — 432KB
• svc-20240630_htm.xml (XML) — 1049KB

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets — June 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Comprehensive Income (Loss) — Three and Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Shareholders' Equity — Three and Six Months Ended June 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows — Six Months Ended June 30, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 39 Item 4.

Controls and Procedures

Controls and Procedures 41 Warning Concerning Forward-Looking Statements 41 42 PART II. Other Information Item 1A.

Risk Factors

Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 6. Exhibits 44

Signatures

Signatures 47 References in this Quarterly Report on Form 10-Q to the Company, SVC, we, us or our include Service Properties Trust and its consolidated subsidiaries unless otherwise expressly stated or the context indicates otherwise. 2 Table of Contents

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements SERVICE PROPERTIES TRUST CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) (unaudited) June 30, 2024 December 31, 2023 ASSETS Real estate properties: Land $ 1,941,008 $ 1,972,145 Buildings, improvements and equipment 7,636,707 7,814,192 Total real estate properties, gross 9,577,715 9,786,337 Accumulated depreciation ( 3,164,885 ) ( 3,181,797 ) Total real estate properties, net 6,412,830 6,604,540 Acquired real estate leases and other intangibles, net 118,753 130,622 Assets held for sale 116,984 10,500 Cash and cash equivalents 14,626 180,119 Restricted cash 14,830 17,711 Equity method investment 108,106 113,304 Due from related persons 28,959 6,376 Other assets, net 306,573 292,944 Total assets $ 7,121,661 $ 7,356,116 LIABILITIES AND SHAREHOLDERS' EQUITY Revolving credit facility $ — $ — Senior secured notes, net 970,051 968,017 Senior unsecured notes, net 4,014,023 3,993,327 Mortgage notes payable, net 563,727 558,876 Accounts payable and other liabilities 552,649 587,005 Due to related persons 12,405 22,758 Total liabilities 6,112,855 6,129,983 Commitments and contingencies Shareholders' equity: Common shares of beneficial interest, $ .01 par value; 200,000,000 shares authorized; 165,903,837 and 165,769,595 shares issued and outstanding, respectively 1,659 1,658 Additional paid in capital 4,559,220 4,557,473 Cumulative other comprehensive income 1,782 2,318 Cumulative net income 2,318,267 2,470,500 Cumulative common distributions ( 5,872,122 ) ( 5,805,816 ) Total shareholders' equity 1,008,806 1,226,133 Total liabilities and shareholders' equity $ 7,121,661 $ 7,356,116 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents SERVICE PROPERTIES TRUST CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (amounts in thousands, except per share data) (unaudited) Three

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View this 10-Q filing on SEC EDGAR