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Service Properties Trust

Nasdaq:SVC
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SVC
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, that was founded through an initial public offering in 1995. The last earnings update was 6 days ago. More info.


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SVC Share Price and Events
7 Day Returns
-5.8%
NasdaqGS:SVC
-0.7%
US REITs
0.4%
US Market
1 Year Returns
-11.1%
NasdaqGS:SVC
13.5%
US REITs
13.1%
US Market
SVC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Service Properties Trust (SVC) -5.8% -6.2% -4.4% -11.1% -17.3% -21.7%
US REITs -0.7% -2.2% 0.9% 13.5% 21.6% 24.2%
US Market 0.4% 4% 7.4% 13.1% 38.6% 44.6%
1 Year Return vs Industry and Market
  • SVC underperformed the REITs industry which returned 13.5% over the past year.
  • SVC underperformed the Market in United States of America which returned 13.1% over the past year.
Price Volatility
SVC
Industry
5yr Volatility vs Market

SVC Value

 Is Service Properties Trust undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Service Properties Trust to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Service Properties Trust.

NasdaqGS:SVC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SVC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.466 (1 + (1- 21%) (171.02%))
1.064
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.064 * 5.96%)
9.07%

Discounted Cash Flow Calculation for NasdaqGS:SVC using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

NasdaqGS:SVC Discount to Share Price
Calculation Result
Value per share (USD) From above. $44.15
Current discount Discount to share price of $23.61
= -1 x ($23.61 - $44.15) / $44.15
46.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Service Properties Trust is available for.
Intrinsic value
47%
Share price is $23.61 vs Future cash flow value of $44.15
Current Discount Checks
For Service Properties Trust to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Service Properties Trust's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Service Properties Trust's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Service Properties Trust's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Service Properties Trust's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SVC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $1.01
NasdaqGS:SVC Share Price ** NasdaqGS (2019-11-14) in USD $23.61
United States of America REITs Industry PE Ratio Median Figure of 144 Publicly-Listed REITs Companies 37.81x
United States of America Market PE Ratio Median Figure of 2,917 Publicly-Listed Companies 18.19x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Service Properties Trust.

NasdaqGS:SVC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SVC Share Price ÷ EPS (both in USD)

= 23.61 ÷ 1.01

23.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Service Properties Trust is good value based on earnings compared to the US REITs industry average.
  • Service Properties Trust is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Service Properties Trust's expected growth come at a high price?
Raw Data
NasdaqGS:SVC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-7.9%per year
United States of America REITs Industry PEG Ratio Median Figure of 133 Publicly-Listed REITs Companies 2.44x
United States of America Market PEG Ratio Median Figure of 2,028 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqGS:SVC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.4x ÷ -7.9%

-2.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Service Properties Trust earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Service Properties Trust's assets?
Raw Data
NasdaqGS:SVC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $15.85
NasdaqGS:SVC Share Price * NasdaqGS (2019-11-14) in USD $23.61
United States of America REITs Industry PB Ratio Median Figure of 183 Publicly-Listed REITs Companies 1.95x
United States of America Market PB Ratio Median Figure of 5,070 Publicly-Listed Companies 1.73x
NasdaqGS:SVC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SVC Share Price ÷ Book Value per Share (both in USD)

= 23.61 ÷ 15.85

1.49x

* Primary Listing of Service Properties Trust.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Service Properties Trust is good value based on assets compared to the US REITs industry average.
X
Value checks
We assess Service Properties Trust's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Service Properties Trust has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SVC Future Performance

 How is Service Properties Trust expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-7.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Service Properties Trust expected to grow at an attractive rate?
  • Service Properties Trust's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Service Properties Trust's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Service Properties Trust's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SVC Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SVC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -7.9%
NasdaqGS:SVC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 2.7%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 7.6%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SVC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SVC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,446 196 1
2020-12-31 2,334 186 2
2019-12-31 2,313 302 1
2019-11-14
NasdaqGS:SVC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 2,286 626 166
2019-06-30 2,289 573 243
2019-03-31 2,291 591 331
2018-12-31 2,295 597 186
2018-09-30 2,279 590 326
2018-06-30 2,253 601 295
2018-03-31 2,212 620 258
2017-12-31 2,172 628 204
2017-09-30 2,116 615 230
2017-06-30 2,082 592 191
2017-03-31 2,062 552 181
2016-12-31 2,047 607 202

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Service Properties Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Service Properties Trust's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SVC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Service Properties Trust Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SVC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 1.06 1.06 1.06 1.00
2019-12-31 1.81 1.81 1.81 1.00
2019-11-14
NasdaqGS:SVC Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 1.01
2019-06-30 1.48
2019-03-31 2.02
2018-12-31 1.13
2018-09-30 1.99
2018-06-30 1.80
2018-03-31 1.57
2017-12-31 1.24
2017-09-30 1.40
2017-06-30 1.18
2017-03-31 1.14
2016-12-31 1.30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Service Properties Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Service Properties Trust's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Service Properties Trust has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SVC Past Performance

  How has Service Properties Trust performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Service Properties Trust's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Service Properties Trust's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Service Properties Trust's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Service Properties Trust's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.
Earnings and Revenue History
Service Properties Trust's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Service Properties Trust Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SVC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 2,286.04 165.78 103.49
2019-06-30 2,289.42 242.81 104.45
2019-03-31 2,290.81 331.32 105.36
2018-12-31 2,294.54 185.73 104.86
2018-09-30 2,278.88 326.14 87.59
2018-06-30 2,253.31 294.77 87.56
2018-03-31 2,211.97 258.18 104.79
2017-12-31 2,171.94 203.82 125.40
2017-09-30 2,116.07 230.29 84.08
2017-06-30 2,082.00 191.21 108.41
2017-03-31 2,061.70 181.40 115.43
2016-12-31 2,047.21 202.45 99.11
2016-09-30 2,035.37 119.77 147.14
2016-06-30 2,003.74 129.14 129.24
2016-03-31 1,960.51 156.22 104.56
2015-12-31 1,921.90 145.75 109.84
2015-09-30 1,885.00 221.77 58.29
2015-06-30 1,832.75 209.78 55.26
2015-03-31 1,777.58 180.55 55.74
2014-12-31 1,736.32 176.52 45.90
2014-09-30 1,690.58 152.75 54.36
2014-06-30 1,643.22 125.46 50.66
2014-03-31 1,603.64 113.97 49.41
2013-12-31 1,563.86 100.99 50.09
2013-09-30 1,501.14 91.94 48.86
2013-06-30 1,419.05 104.68 46.10
2013-03-31 1,349.98 94.39 45.65
2012-12-31 1,296.98 103.79 44.03

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Service Properties Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Service Properties Trust used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • Service Properties Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Service Properties Trust's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Service Properties Trust has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SVC Health

 How is Service Properties Trust's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Service Properties Trust's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Service Properties Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Service Properties Trust's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Service Properties Trust's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Service Properties Trust Company Filings, last reported 1 month ago.

NasdaqGS:SVC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 2,608.99 6,472.67 16.99
2019-06-30 2,657.44 4,089.92 15.69
2019-03-31 2,736.57 4,138.76 23.68
2018-12-31 2,597.43 4,172.59 25.97
2018-09-30 2,792.57 4,136.42 19.85
2018-06-30 2,760.67 4,113.25 16.55
2018-03-31 2,749.97 4,077.54 16.83
2017-12-31 2,755.42 4,001.05 24.14
2017-09-30 2,789.46 4,020.79 14.49
2017-06-30 2,780.20 3,839.03 49.67
2017-03-31 2,813.09 3,689.39 23.77
2016-12-31 3,129.39 3,163.81 10.90
2016-09-30 3,151.50 3,121.21 9.53
2016-06-30 2,794.51 3,501.37 20.35
2016-03-31 2,800.86 3,497.69 15.82
2015-12-31 2,812.08 3,274.67 13.68
2015-09-30 2,975.83 3,276.01 7.38
2015-06-30 3,009.64 3,140.54 18.40
2015-03-31 2,970.90 2,910.08 15.57
2014-12-31 2,990.15 2,838.61 11.83
2014-09-30 3,001.98 2,835.15 19.08
2014-06-30 3,024.78 2,794.01 15.52
2014-03-31 3,045.48 2,753.63 33.83
2013-12-31 3,086.86 2,704.01 22.50
2013-09-30 2,859.40 2,896.51 17.12
2013-06-30 3,076.29 2,793.00 200.74
2013-03-31 3,100.98 2,412.85 18.04
2012-12-31 2,733.80 2,722.36 20.05
  • Service Properties Trust's level of debt (248.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (94.4% vs 248.1% today).
  • Debt is not well covered by operating cash flow (9.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Service Properties Trust's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Service Properties Trust has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SVC Dividends

 What is Service Properties Trust's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
9.15%
Current annual income from Service Properties Trust dividends. Estimated to be 9.17% next year.
If you bought $2,000 of Service Properties Trust shares you are expected to receive $183 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Service Properties Trust's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Service Properties Trust's dividend is above the markets top 25% of dividend payers in United States of America (3.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SVC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 176 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1949 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SVC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.14 2.00
2020-12-31 2.21 3.00
2019-12-31 2.14 3.00
2019-11-14
NasdaqGS:SVC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-17 2.160 8.627
2019-07-18 2.160 8.724
2019-04-18 2.160 8.530
2019-01-18 2.120 7.961
2018-10-18 2.120 8.268
2018-07-19 2.120 7.477
2018-04-19 2.120 7.656
2018-01-19 2.080 8.012
2017-10-12 2.080 7.069
2017-07-12 2.080 7.390
2017-04-11 2.080 6.893
2017-01-13 2.040 6.495
2016-10-11 2.040 6.977
2016-07-12 2.040 6.718
2016-04-13 2.040 7.635
2016-01-11 2.000 8.218
2015-10-13 2.000 7.453
2015-07-13 2.000 7.402
2015-04-13 2.000 6.634
2015-01-12 1.960 6.074
2014-10-13 1.960 6.486
2014-07-10 1.960 6.835
2014-04-08 1.960 6.629
2014-01-03 1.920 7.128
2013-10-10 1.920 6.872
2013-07-10 1.880 6.715
2013-04-10 1.880 6.683
2013-01-10 1.880 7.165
2012-10-09 1.880 8.160
2012-07-09 1.800 7.456
2012-04-09 1.800 7.220
2012-01-11 1.800 7.143
2011-10-12 1.800 8.009
2011-07-01 1.800 7.867
2011-05-09 1.800 7.608
2011-01-14 1.800 7.574
2010-10-13 1.800 7.884
2010-07-15 1.800 8.594
2010-04-15 1.800 7.819
2009-12-07 1.800 7.789
2009-11-09 0.000 0.000
2009-08-06 0.000 0.000
2009-04-08 0.000 0.000
2009-01-09 3.080 24.978

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Service Properties Trust's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (290.7x coverage).
X
Income/ dividend checks
We assess Service Properties Trust's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Service Properties Trust afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Service Properties Trust has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SVC Management

 What is the CEO of Service Properties Trust's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Murray
COMPENSATION $599,379
AGE 58
TENURE AS CEO 1.8 years
CEO Bio

Mr. John G. Murray serves as President, CEO & Managing Trustee at Industrial Logistics Properties Trust since December 01, 2018. He has been Executive Vice President at RMR Group LLC since 2001. Mr. Murray has been Chief Executive Officer of Service Properties Trust since June 2018 and has been its President since 1996. He was Chief Operating Officer of Hospitality Properties Trust (HPT) since 1996 until June 2018 and was its Assistant Secretary since 2008. Mr. Murray serves as an Executive Vice President of Reit Management & Research LLC at Hospitality Properties Trust. He was Senior Vice President of RMR LLC from 1993 to 2001. Mr. Murray served as the President, Principal Executive Officer, Chief Operating Officer and Assistant Secretary of HPT SN Holding, Inc. He served as Secretary of Hospitality Properties Trust. Mr. Murray was Treasurer and Chief Financial Officer from the time completed initial public offering in 1995 until he became President in 1996. He served in various capacities for RMR and its affiliates for over five years. Mr. Murray has also served as a director of Sonesta International Hotels Corporation since 2019. He has been Managing Trustee of Hospitality Properties Trust since April 12, 2018. Mr. Murray was the Chief Financial Officer and Treasurer of HPT from 1995 to 1996. He has served in various capacities with RMR LLC and its affiliates since 1993. From 2014 to 2017, he served as member of the board of directors of the American Hotel & Lodging Association. Prior to joining RMR in 1993, Mr. Murray was employed at Fidelity Brokerage Services Inc. and Ernst & Young LLP. Mr. Murray is also a member of Marriott International's Owner Advisory Council and the Urban Land Institute’s (ULI) Hotel Development Council.

CEO Compensation
  • John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • John's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Service Properties Trust management team in years:

1.3
Average Tenure
49
Average Age
  • The average tenure for the Service Properties Trust management team is less than 2 years, this suggests a new team.
Management Team

John Murray

TITLE
President
COMPENSATION
$599K
AGE
58
TENURE
1.8 yrs

Ethan Bornstein

TITLE
Senior Vice President
COMPENSATION
$249K
AGE
45
TENURE
20.8 yrs

Adam Portnoy

TITLE
Managing Trustee
COMPENSATION
$85K
AGE
49

Brian Donley

TITLE
CFO & Treasurer
AGE
44
TENURE
0.8 yrs

Kristin Brown

TITLE
Director of Investor Relations
TENURE
0.3 yrs

Thomas O'Brien

TITLE

Jennifer Clark

TITLE
Secretary
AGE
57
TENURE
11.8 yrs

Todd Hargreaves

TITLE
Vice President
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Service Properties Trust board of directors in years:

4.2
Average Tenure
60
Average Age
  • The tenure for the Service Properties Trust board of directors is about average.
Board of Directors

John Murray

TITLE
President
COMPENSATION
$599K
AGE
58
TENURE
1.6 yrs

Adam Portnoy

TITLE
Managing Trustee
COMPENSATION
$85K
AGE
49
TENURE
12.8 yrs

John Harrington

TITLE
Lead Independent Trustee
COMPENSATION
$174K
AGE
83
TENURE
4.2 yrs

Bill Lamkin

TITLE
Independent Trustee
COMPENSATION
$167K
AGE
60
TENURE
12.8 yrs

Donna Fraiche

TITLE
Independent Trustee
COMPENSATION
$163K
AGE
67
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Service Properties Trust's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Service Properties Trust has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SVC News

Simply Wall St News

SVC Company Info

Description

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, that was founded through an initial public offering in 1995. As of September 20, 2019, SVC owns 328 hotels and owns or leases 945 retail focused net lease properties located throughout the United States, Canada and Puerto Rico. Our properties are operated by other companies under long term management or lease agreements.

Details
Name: Service Properties Trust
SVC
Exchange: NasdaqGS
Founded: 1995
$3,829,416,450
164,564,523
Website: http://www.svcreit.com
Address: Service Properties Trust
Two Newton Place,
Suite 300,
Newton,
Massachusetts, 02458,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SVC Common Shares Nasdaq Global Select US USD 17. Aug 1995
DB HPO Common Shares Deutsche Boerse AG DE EUR 17. Aug 1995
Number of employees
Current staff
Staff numbers
0
Service Properties Trust employees.
Industry
Hotel and Resort REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 23:39
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/13
Last earnings filing: 2019/11/08
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.