Service Properties Trust (NASDAQ:SVC) Plans $0.01 Quarterly Dividend

Key Points

• Service Properties Trust declared a quarterly dividend of $0.01 per share (annualized $0.04) with an ex-dividend date of April 21 and payment on May 14, implying a yield of about 3.1%.
• The dividend is currently not covered by earnings (reported payout ratio -3.4%) and has edged down over the past three years, though analysts project $1.14 EPS next year which would imply a future payout ratio near 3.5% that could cover the $0.04 annual payout.
• The stock trades around $1.29 with a market cap of $216.8M, recently high trading volume (20M vs. avg 5.6M) and signs of balance-sheet stress (current ratio 0.14, debt-to-equity 5.0, negative P/E).

Service Properties Trust (NASDAQ:SVC - Get Free Report) declared a quarterly dividend on Thursday, April 9th. Stockholders of record on Tuesday, April 21st will be given a dividend of 0.01 per share by the real estate investment trust on Thursday, May 14th. This represents a c) annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Tuesday, April 21st.

Service Properties Trust has decreased its dividend by an average of 0.4%per year over the last three years. Service Properties Trust has a payout ratio of -3.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Service Properties Trust to earn $1.14 per share next year, which means the company should continue to be able to cover its $0.04 annual dividend with an expected future payout ratio of 3.5%.

Service Properties Trust Stock Performance

Shares of SVC stock remained flat at $1.29 during trading on Thursday. The stock had a trading volume of 20,037,165 shares, compared to its average volume of 5,569,926. Service Properties Trust has a 52 week low of $1.13 and a 52 week high of $3.08. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 5.00. The business's 50 day moving average is $1.99 and its two-hundred day moving average is $2.04. The company has a market cap of $216.80 million, a P/E ratio of -1.07 and a beta of 1.60.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The real estate investment trust reported $0.17 EPS for the quarter, beating the consensus estimate of $0.01 by $0.16. Service Properties Trust had a negative return on equity of 29.70% and a negative net margin of 11.15%.The business had revenue of $397.45 million for the quarter, compared to the consensus estimate of $394.32 million. Service Properties Trust has set its FY 2026 guidance at 0.650-0.770 EPS.

Service Properties Trust Company Profile

Service Properties Trust NASDAQ: SVC is a real estate investment trust (REIT) specializing in the acquisition, ownership and leasing of service-oriented properties, with a primary focus on the lodging sector. The company structures long-term, triple-net leases with established hotel operators under franchise agreements with leading global brands. By partnering with recognized hotel companies, Service Properties Trust seeks to generate a stable income stream through rent payments, while offering operators the capital and balance-sheet flexibility to grow their portfolios.

Since its formation in 2010, Service Properties Trust has grown its portfolio through strategic sale-leaseback transactions, targeted property acquisitions and selective dispositions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.