Financial Data and Key Metrics Changes - The company reported normalized funds from operations (FFO) of $28.6 million or $0.17 per share, down from $0.30 per share in the prior year quarter [28] - Adjusted EBITDAre declined 7.4% year over year to $130.6 million [28] - Gross operating profit (GOP) margin percentage declined by 160 basis points to 25.3%, with GOP flat compared to the prior year period [29] Business Line Data and Key Metrics Changes - Comparable hotel RevPAR grew 4.2% year over year, with a 6.8% increase when excluding 14 hotels under renovation [9] - Full-service hotels reported a RevPAR increase of 4.3%, while select service portfolio RevPAR increased by 9.6% year over year [10][12] - The extended stay portfolio saw a RevPAR growth of 1.2%, with increased occupancy offsetting a decline in average daily rate (ADR) [13] Market Data and Key Metrics Changes - The company is marketing the sale of 114 Sonesta hotels, expecting to net sales proceeds of at least $1 billion [15][16] - The retained portfolio of 83 hotels experienced a RevPAR increase of 6.3% to approximately $101, with adjusted hotel EBITDA increasing by 10% year over year to $30.6 million [18] Company Strategy and Development Direction - The company aims to strengthen its balance sheet through asset sales and reinvest in hotels with the highest potential for upside [19] - The focus is on acquiring net leased assets and evolving the strategy to grow this portfolio through well-vetted acquisitions [25][80] - The company plans to address 2026 debt maturities with proceeds from hotel sales, followed by capital expenditures to enhance the hotel portfolio [75][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the current renovation program and portfolio rationalization efforts will lead to meaningful occupancy and rate gains in the upcoming year [20] - The company anticipates continued disruption in 2025 at hotels under renovation and expects softer seasonal results through the winter months [33] Other Important Information - The company completed renovations at 28 hotels in 2024, with a total capital expenditure of $303 million for the year [34] - Full-year 2025 capital expenditures are expected to be approximately $250 million, with a focus on maintenance capital and renovation initiatives [35] Q&A Session Summary Question: How would return expectations change for the remaining assets after not spending CapEx for the 115 assets to be sold? - Management indicated that return expectations remain the same, with high single-digit returns expected, but specific projects may yield higher returns [40][41] Question: Can you provide context around the acquisition volume for net leased assets? - Management stated that initial acquisition volumes would be small, with a focus on building out the pipeline in the first half of the year [44] Question: How much of the $150 million borrowed on the line in Q4 has been paid back in Q1? - Management confirmed that $50 million is currently outstanding from the draw made for liquidity management purposes [46] Question: What are the expectations for the debt service coverage ratio throughout this year? - Management expects to maintain a ratio close to 1.5%, indicating a precautionary measure to ensure stability [51] Question: Can you elaborate on the performance of the retained hotels in Q1? - Management noted that the retained hotels are expected to see a year-over-year decline in margins due to seasonal patterns and ongoing renovations [57][58] Question: How is the asset sale process going compared to expectations? - Management reported that the process has gone well, with strong interest from buyers and competitive bidding [64][65] Question: Will any of the $250 million capital expenditures be spent on hotels that are going to be sold this year? - Management indicated that a small percentage, approximately $20 to $25 million, may be spent on exiting properties for necessary maintenance [71] Question: What are the capital priorities for 2025? - Management outlined priorities as addressing 2026 debt maturities, capital expenditures for hotel enhancements, and potentially acquiring more net lease assets [75][80]

Service Properties Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 26, 2025 Sonesta Fort Lauderdale Beach Fort Lauderdale, FL | Service Properties Trust Announces Fourth Quarter 2024 Financial Results | 4 | | --- | --- | | Fourth Quarter 2024 Highlights | 5 | | Key Financial Data 7 | | --- | | Consolidated Statements of Income (Loss) 8 | | Consolidated Balance Sheets 9 | | Debt Summary 10 | | Debt Maturity Schedule 11 | | Leverage Ratios, Coverage Ratios and Debt Covenants ...

分组1 - Service Properties (SVC) reported quarterly funds from operations (FFO) of $0.17 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, but down from $0.30 per share a year ago, representing an FFO surprise of 13.33% [1] - The company posted revenues of $456.56 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.21% and up from $444.05 million year-over-year, having topped consensus revenue estimates three times over the last four quarters [2] - The stock has gained approximately 4.3% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] 分组2 - The future performance of Service Properties' stock will largely depend on management's commentary during the earnings call and the company's FFO outlook, which includes current consensus FFO expectations for upcoming quarters [4] - The estimate revisions trend for Service Properties is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - The current consensus FFO estimate for the upcoming quarter is $0.11 on revenues of $429.9 million, and for the current fiscal year, it is $1.14 on revenues of $1.89 billion [7] 分组3 - The REIT and Equity Trust - Other industry, to which Service Properties belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-11527 SERVICE PROPERTIES TRUST (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) Maryland 04-3262075 (I.R.S. Emp ...

ES TRUST Service Properties Trust Fourth Quarter 2024 Financial Results and Supplemental Information February 26, 2025 Table of Contents | QUARTERLY RESULTS | | | | | --- | --- | --- | --- | | | Service Properties Trust Announces Fourth Quarter 2024 Financial Results . | 4 | | | | Fourth Quarter 2024 Highlights | 5 | | | FINANCIALS | | | | | | Key Financial Data | Z | | | | Consolidated Statements of Income (Loss) . | 8 | | | | Consolidated Balance Sheets. | ol | | | | Debt Summary. | 10 | Tr | | | Debt Mat ...

Service Properties Trust (NASDAQ: SVC ), a REIT that specializes in the ownership of hotels and triple net lease retail properties has seen its shares take a nosedive in recent weeks. Back in October, the companyAbout My Writing: I am currently focused on income investing through either common shares, preferred shares, or bonds. I will occasionally break away and write about the economy at large or a special situation involving a company I've been researching in. I target two articles per week for publicati ...

Time to venture back to a seldom discussed corner of the REIT equation, REIT management. There are a wide variety of strategies for REITs giving investors an opportunity to target asset classes, strategies, geographies, and more with over 100REITer's Digest is a discussion forum for my thoughts on investments. I spent more than ten years working in the real estate industry, including an S&P500 REIT and a Big Four consulting group. I am light-hearted, open-minded, and a student of the game. Investing is not ...

Financial Performance - Revenue for the quarter ended September 2024 was $491.17 million, a decrease of 1.1% compared to the same period last year [1] - EPS for the quarter was $0.32, compared to -$0.03 in the year-ago quarter [1] - The reported revenue missed the Zacks Consensus Estimate of $497.97 million by -1.36% [1] - The EPS surprise was -13.51%, with the consensus EPS estimate being $0.37 [1] Key Metrics - Hotel operating revenues were $390.94 million, missing the two-analyst average estimate of $397.33 million and representing a -1.2% year-over-year change [3] - Rental income was $100.24 million, slightly below the two-analyst average estimate of $100.69 million and showing a -1.1% year-over-year change [3] - Net Earnings Per Share (Diluted) was -$0.28, compared to the two-analyst average estimate of -$0.21 [3] Stock Performance - Shares of Service Properties have returned -37.3% over the past month, underperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently has a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

Core Viewpoint - Service Properties (SVC) reported quarterly funds from operations (FFO) of $0.32 per share, missing the Zacks Consensus Estimate of $0.37 per share, and down from $0.56 per share a year ago, indicating a negative trend in performance [1][2] Financial Performance - The company posted revenues of $491.17 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.36%, compared to $496.83 million in the same quarter last year [2] - Over the last four quarters, Service Properties has not surpassed consensus FFO estimates, with a quarterly FFO surprise of -13.51% [1][2] Stock Performance - Service Properties shares have declined approximately 65.3% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The current consensus FFO estimate for the upcoming quarter is $0.25 on revenues of $448.55 million, and for the current fiscal year, it is $1.21 on revenues of $1.9 billion [7] Industry Outlook - The REIT and Equity Trust - Other industry is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Service Properties may be influenced by the overall industry outlook, as empirical research indicates a strong correlation between stock movements and industry trends [5][8]

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------|--------------------------------------|-------|-------| | | 24225 W. Lorenzo Road /ilmington, IL | | | | IES TRUST | | | | | Service Properties Trust Third Quarter 2024 Financial Results and Supplemental Information | | | | | November 6, 2024 | | | | Table of Contents | --- | --- | --- | --- | --- | |------------|----------------------------------------------------------------------------- ...