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

Service Properties Trust (NASDAQ:SVC) announced a quarterly dividend on Wednesday, October 16th, Zacks reports. Shareholders of record on Monday, October 28th will be paid a dividend of 0.01 per share by the real estate investment trust on Thursday, November 14th. This represents a $0.04 dividend on an annualized basis and a yield of 1.01%. The ex-dividend date is Monday, October 28th.

Service Properties Trust has a payout ratio of -87.0% 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 $1.26 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 63.5%.

Service Properties Trust Price Performance

SVC stock opened at $3.98 on Thursday. The business’s fifty day moving average price is $4.63 and its 200 day moving average price is $5.29. Service Properties Trust has a 12-month low of $3.77 and a 12-month high of $8.72. The company has a current ratio of 0.01, a quick ratio of 0.01 and a debt-to-equity ratio of 3.98. The company has a market capitalization of $659.72 million, a PE ratio of -4.74 and a beta of 2.20.

Service Properties Trust (NASDAQ:SVC) last issued its quarterly earnings results on Tuesday, August 6th. The real estate investment trust reported ($0.45) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.94). The business had revenue of $512.95 million for the quarter, compared to analysts’ expectations of $509.33 million. Service Properties Trust had a negative return on equity of 17.17% and a negative net margin of 10.56%. During the same quarter last year, the company earned $0.58 earnings per share. On average, sell-side analysts anticipate that Service Properties Trust will post 1.21 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on SVC shares. Wells Fargo & Company dropped their price target on shares of Service Properties Trust from $5.00 to $4.00 and set an “underweight” rating for the company in a research note on Friday, September 13th. B. Riley lowered their target price on Service Properties Trust from $9.00 to $8.00 and set a “buy” rating for the company in a research note on Friday, August 9th.

Service Properties Trust Company Profile

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service.