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SVC Service Properties Trust

Service Properties Trust is a real estate investment trust 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. SVC's properties are operated by third parties pursuant to management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc., an alternative asset management company that is headquartered in Newton, Massachusetts.

Company profile

Ticker
SVC
Exchange
Website
CEO
John Murray
Employees
Incorporated
Location
Fiscal year end
Former names
HOSPITALITY PROPERTIES TRUST
SEC CIK
IRS number
43262075

SVC stock data

(
)

Calendar

9 May 21
2 Aug 21
31 Dec 21
Quarter (USD)
Mar 21 Dec 20 Sep 20 Jun 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 879.55M 879.55M 879.55M 879.55M 879.55M 879.55M
Cash burn (monthly) (positive/no burn) (positive/no burn) 64.71M 37.92M 20.91M 10.18M
Cash used (since last report) n/a n/a 264.47M 154.96M 85.45M 41.6M
Cash remaining n/a n/a 615.08M 724.59M 794.1M 837.96M
Runway (months of cash) n/a n/a 9.5 19.1 38.0 82.3

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 Jun 21 Lamkin William A. Common Shares of Beneficial Interest Gift Aquire G Yes No 0 7,000 0 41,000
16 Jun 21 Lamkin William A. Common Shares of Beneficial Interest Gift Dispose G No No 0 7,000 0 0
16 Jun 21 Lamkin William A. Common Shares of Beneficial Interest Grant Aquire A No No 0 7,000 0 7,000
16 Jun 21 Fraiche Donna D. Common Shares of Beneficial Interest Grant Aquire A No No 0 7,000 0 26,000
16 Jun 21 Portnoy Adam Common Shares of Beneficial Interest Grant Aquire A No No 0 7,000 0 161,499
16 Jun 21 Harrington John L. Common Shares of Beneficial Interest Gift Aquire G Yes No 0 7,000 0 7,000
16 Jun 21 Harrington John L. Common Shares of Beneficial Interest Gift Dispose G No No 0 7,000 0 0
16 Jun 21 Harrington John L. Common Shares of Beneficial Interest Grant Aquire A No No 0 7,000 0 7,000
16 Jun 21 Laurie B. Burns Common Shares of Beneficial Interest Grant Aquire A No No 0 7,000 0 15,000

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

76.9% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 271 282 -3.9%
Opened positions 29 50 -42.0%
Closed positions 40 39 +2.6%
Increased positions 80 76 +5.3%
Reduced positions 107 110 -2.7%
13F shares
Current Prev Q Change
Total value 1.53B 1.47B +4.7%
Total shares 126.78M 127.52M -0.6%
Total puts 206.7K 120.3K +71.8%
Total calls 125K 102K +22.5%
Total put/call ratio 1.7 1.2 +40.2%
Largest owners
Shares Value Change
BLK Blackrock 28.22M $334.65M +7.4%
Vanguard 23.85M $282.84M +2.8%
STT State Street 8.48M $100.57M -3.1%
Redwood Capital Management 6.94M $82.25M -8.7%
LSV Asset Management 5.5M $65.27M -5.1%
Geode Capital Management 3.38M $40.03M -0.5%
NTRS Northern Trust 3.12M $37.02M +0.1%
Charles Schwab Investment Management 2.95M $34.97M +8.4%
Dimensional Fund Advisors 2.43M $28.82M -1.6%
Davidson Kempner Capital Management 2.04M $24.24M NEW
Largest transactions
Shares Bought/sold Change
Davidson Kempner Capital Management 2.04M +2.04M NEW
BLK Blackrock 28.22M +1.95M +7.4%
Norges Bank 0 -1.95M EXIT
Diameter Capital Partners 0 -1.48M EXIT
Aperio 0 -982.6K EXIT
Columbus Hill Capital Management 884.89K +884.89K NEW
Millennium Management 0 -707.43K EXIT
Redwood Capital Management 6.94M -664.48K -8.7%
140 Summer Partners 1.52M -663.59K -30.4%
Vanguard 23.85M +640.09K +2.8%

Financial report summary

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Risks
  • Our business, operations, financial results and liquidity have been, and we expect will continue to be, materially and adversely impacted by the COVID-19 pandemic.
  • We have taken several actions in an attempt to address the operating and financial impact from the COVID-19 pandemic, and we continue to assess and explore other actions, but those actions and plans may not be sufficient to avoid continued and potentially increased substantial harm to our business, operations and financial condition.
  • If the changes in business and consumer practices as a result of the COVID-19 pandemic continue and become long-term practices, our business would likely be materially and adversely impacted.
  • Adverse general economic conditions in the United States would likely negatively impact our business.
  • We have a high concentration of properties that are operated by Sonesta or TA.
  • Our investment activities have been significantly curtailed and we expect that to continue for an indefinite period.
  • We may not be able to sell properties, or our plan to sell may be delayed and could be changed or abandoned, and if we do not sell certain of those hotels by a certain agreed upon date, the manager of those hotels, or our management agreements with them, may change.
  • Some of our operators defaulted on their obligations to pay us minimum returns or requested relief from their obligations to pay us rent and returns in response to the economic conditions resulting from the COVID-19 pandemic and other operators may default on their obligations or we may receive additional similar requests for relief in the future.
  • We have a substantial amount of debt, we may incur additional debt and our debt leverage may remain at or above current levels for an indefinite period.
  • We may need additional waivers from our lenders or waivers from our noteholders in order to avoid defaulting under our credit agreement or public debt agreements and the terms of our current waivers under our credit agreement impose restrictions on our ability to pay distributions, make investments and certain capital improvements and any future waiver may impose similar or additional restrictions.
  • We may fail to comply with the terms of our credit agreement and our unsecured senior notes indentures and their supplements, which could adversely affect our business, would limit our ability to incur indebtedness and may prevent our making distributions to our shareholders.
  • Secured indebtedness exposes us to the possibility of foreclosure, which could result in the loss of our investment in certain of our subsidiaries or in a property or group of properties or other assets that secure that indebtedness.
  • Inherent risks in the hotel industry could impact Sonesta and our other operators and affect our business.
  • TA’s business is subject to substantial risks, which could adversely affect us.
  • We may be unable to grow our business by acquisitions of additional properties, and we might encounter unanticipated difficulties and expenditures relating to our acquired properties.
  • We are limited in our ability to operate our properties and are thus dependent on our operators.
  • Changes in market interest rates, including changes that may result from the expected phase out of LIBOR, may adversely affect us.
  • REIT distribution requirements and limitations on our ability to access reasonably priced capital may adversely impact our ability to carry out our business plan.
  • We face significant competition.
  • Substantially all of our net lease properties are leased to single tenants, which may subject us to greater risks of loss than if each of those properties had multiple tenants.
  • Our tenants may fail to successfully operate their businesses, which could adversely affect us.
  • Many of our tenants do not have credit ratings.
  • We may be unable to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all.
  • Vacancies in a property could result in significant capital expenditures and illiquidity and reduce the value of the property.
  • Bankruptcy law may adversely impact us.
  • Ownership of real estate is subject to environmental risks and liabilities.
  • Ownership of real estate is subject to risks from adverse weather, natural disasters and climate events.
  • Insurance may not adequately cover our losses, and insurance costs may continue to increase.
  • We are subject to risks associated with our hotel managers’ employment of personnel.
  • We are a party to arbitration proceedings, which could adversely affect our financial results and/or distract our management.
  • Real estate construction and redevelopment creates risks.
  • RMR LLC and our hotel managers rely on information technology and systems in their respective operations, and any material failure, inadequacy, interruption or security failure of that technology or those systems could materially and adversely affect us.
  • We are dependent upon RMR LLC to manage our business and implement our growth strategy.
  • RMR LLC has broad discretion in operating our day to day business.
  • Our management structure and agreements and relationships with RMR LLC and RMR LLC’s and its controlling shareholder’s relationships with others may create conflicts of interest, or the perception of such conflicts, and may restrict our investment activities.
  • Our management agreements with RMR LLC were not negotiated on an arm’s length basis and their fee and expense structure may not create proper incentives for RMR LLC, which may increase the risk of an investment in our common shares.
  • The termination of our management agreements with RMR LLC may require us to pay a substantial termination fee, including in the case of a termination for unsatisfactory performance, which may limit our ability to end our relationship with RMR LLC.
  • Our management arrangements with RMR LLC may discourage a change of control of us.
  • Our business dealings with Sonesta and TA comprise a significant part of our business and operations and they may create conflicts of interest or the perception of such conflicts of interest.
  • We may not realize the benefits we expect from our ownership interest in Sonesta.
  • We are party to transactions with related parties that may increase the risk of allegations of conflicts of interest, and such allegations may impair our ability to realize the benefits we expect from these transactions.
  • We may be at an increased risk for dissident shareholder activities due to perceived conflicts of interest arising from our management structure and relationships.
  • Ownership limitations and certain provisions in our declaration of trust, bylaws and agreements, as well as certain provisions of Maryland law, may deter, delay or prevent a change in our control or unsolicited acquisition proposals.
  • Our rights and the rights of our shareholders to take action against our Trustees and officers are limited.
  • Shareholder litigation against us or our Trustees, officers, manager, other agents or employees may be referred to mandatory arbitration proceedings, which follow different procedures than in-court litigation and may be more restrictive to shareholders asserting claims than in-court litigation.
  • Our bylaws designate the Circuit Court for Baltimore City, Maryland as the sole and exclusive forum for certain actions and proceedings that may be initiated by our shareholders, which could limit our shareholders’ ability to obtain a judicial forum they deem favorable for disputes with us or our Trustees, officers, manager, agents or employees.
  • We may change our operational, financing and investment policies without shareholder approval and we may become more highly leveraged, which may increase our risk of default under our debt obligations.
  • Our failure to remain qualified for taxation as a REIT under the IRC or the loss of our other special tax statuses could have significant adverse consequences.
  • Distributions to shareholders generally will not qualify for reduced tax rates applicable to “qualified dividends.”
  • REIT distribution requirements could adversely affect us and our shareholders.
  • Even if we remain qualified for taxation as a REIT under the IRC, we may face other tax liabilities that reduce our cash flow.
  • If arrangements involving our TRSs fail to comply as intended with the REIT qualification and taxation rules, we may fail to qualify for taxation as a REIT under the IRC or be subject to significant penalty taxes.
  • Legislative or other actions affecting REITs could materially and adversely affect us and our shareholders.
  • We reduced our quarterly rate of distribution on our common shares to $0.01 per share and future distributions may remain at this level for an indefinite period or be eliminated and the form of payment could change.
  • Further issuances of debt or equity securities may adversely affect our shareholders.
  • We may use future debt leverage to pay distributions to our shareholders.
  • The Notes and the Guarantees are structurally subordinated to the payment of all indebtedness and other liabilities and any preferred equity of our subsidiaries that do not guarantee the 2025 Notes and 2027 Notes.
  • The Notes and the Guarantees are unsecured and effectively subordinated to all of our and the subsidiary guarantors’ existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness.
  • Federal and state statutes allow courts, under specific circumstances, to void guarantees and require holders of notes to return payments received from guarantors.
  • There is no public market for the Notes, and one may not develop, be maintained or be liquid.
  • A downgrade in credit ratings could materially adversely affect the market price of the Notes and may increase our cost of capital.
  • Some or all of the Guarantees may be released automatically.
  • Redemption may adversely affect noteholders’ return on the Notes.
  • Changes in market conditions could adversely affect the value of our securities.
Content analysis
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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior V good
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