Feb. 12 at 3:31 PM
$SVC Proceeds from asset sales have enabled significant debt reduction, including the full redemption of
$800 million in 2026 senior notes and plans for partial redemption of 2027 notes. Total debt stands at around
$4.5 billion, with a weighted average interest rate of about 5.9% and no major maturities until 2027 (post-redemptions). Leverage metrics, while elevated at 10.0x net debt to Adjusted EBITDAre, are improving as dispositions close and EBITDA grows. Liquidity exceeds
$1 billion, including a fully available
$650 million revolving credit facility and unencumbered assets valued at
$6.6 billion, providing ample flexibility for opportunistic net lease acquisitions (e.g., 28 properties bought in 2025 for
$85.1 million at an 8.3% cap rate). Reduced capital expenditures—projected at
$125-150 million in 2026, down from
$200 million in 2025—further supports free cash flow generation as the renovation cycle concludes.
https://s2.q4cdn.com/208827006/files/doc_presentations/2025/12/SVC-Investor-Presentation-December-2025-FINAL.pdf
