Service Properties Trust to Issue Quarterly Dividend of $0.01 (NASDAQ:SVC)

Service Properties Trust (NASDAQ:SVC) declared a quarterly dividend on Wednesday, October 16th, Zacks reports. Investors of record on Monday, October 28th will be given 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 of this dividend is Monday, October 28th.

Service Properties Trust has a payout ratio of -87.0% indicating that 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

NASDAQ:SVC opened at $3.98 on Thursday. Service Properties Trust has a 12-month low of $3.77 and a 12-month high of $8.72. The firm has a market capitalization of $659.72 million, a price-to-earnings ratio of -4.74 and a beta of 2.20. The stock’s 50 day moving average price is $4.63 and its two-hundred day moving average price is $5.29. The company has a quick ratio of 0.01, a current ratio of 0.01 and a debt-to-equity ratio of 3.98.

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

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. B. Riley decreased their price target on shares of Service Properties Trust from $9.00 to $8.00 and set a “buy” rating on the stock in a research note on Friday, August 9th. Wells Fargo & Company decreased their target price on Service Properties Trust from $5.00 to $4.00 and set an “underweight” rating on the stock in a research report on Friday, September 13th.

About Service Properties Trust

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.