NASDAQ$SVC
Service Properties Trust · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Reported a net loss and a decrease in normalized FFO due to the impact of the COVID-19 pandemic.
Service Properties Trust announced its financial results for the quarter ended March 31, 2020, reporting a net loss of $33.7 million, or $0.20 per diluted common share, and Normalized FFO of $123.1 million, or $0.75 per diluted common share. The company has taken steps to preserve capital and amended its credit agreement to obtain waivers from compliance with certain financial covenants.
- Net loss for the quarter ended March 31, 2020 was $33.7 million, or $0.20 per diluted common share.
- Normalized FFO for the quarter ended March 31, 2020 were $123.1 million, or $0.75 per diluted common share.
- SVC amended its credit agreement to obtain waivers from compliance with certain financial covenants through March 2021.
- As of May 7, 2020, SVC has agreed to defer an aggregate of $8.6 million of second quarter 2020 rent for tenants representing approximately 6.4% of our annual minimum returns and rents.
Headline financials
Revenue & EPS history
Service Properties Trust · Revenue · Quarterly
$484M
Revenue by segment
Service Properties Trust · $484M total across 2 segments · Q1 2020
- Hotel Operating Revenues$384M—79.3%
- Rental Income$100M—20.7%
Forward guidance
SVC's forward-looking statements involve risks and uncertainties, and actual results may differ materially from those projected.
Tailwinds
- SVC believes it has the ability to withstand the current economic downturn because of its strong balance sheet, liquidity and agreements with its hotel operators and net lease tenants.
- SVC has taken steps to preserve capital until economic activity improves.
- SVC is working closely with its hotel operators to identify ways to optimally reduce operating costs and working with its net lease tenants whose businesses are temporarily closed due to government mandates or guidelines, on alternative rent arrangements in order to help them withstand the crisis.
- SVC's current expectation is that it may experience fewer hotel closures relative to some of its peers because of the larger mix of suburban extended stay and select service hotels that comprise SVC’s hotel portfolio.
- SVC obtained a limited waiver of certain financial covenants through March 2021.
Headwinds
- If the COVID-19 pandemic or the current economic conditions continue for an extended period or worsen, SVC’s operators’ and tenants’ businesses, operations and cash positions may be materially and adversely impacted and result in some of them being unable to pay rents and returns to us or in continuing as going concerns.
- If the COVID-19 pandemic or the current economic conditions continue for an extended period or worsen, SVC's actions to preserve capital may not be adequate to ensure that SVC maintains sufficient liquidity.
- Rent deferrals SVC agrees to may be insufficient and those tenants may continue to be unable or unwilling to pay amounts owed to SVC, including the deferred rent, and they may fail to continue as going concerns.
- SVC may fail to satisfy additional covenants contained in its credit agreement or fail to satisfy its public debt covenants.
- Based on SVC’s current estimates, SVC projects that it will exhaust all of the security deposits and most of the guarantees its hotel operators have provided by as early as the second quarter of 2020.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2020
+0.2%
Avg return
Earnings day
-1.0%
Avg return
5 days after
-0.5%
Avg return
30 days after
46%
31 / 68 earnings
Positive
+43.3%
Q3 2020
Best reaction
-19.2%
Q1 2020
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +2.6% | +3.9% | +1.3% | |
| Q4 2025 | +6.8% | +2.3% | -19.5% | |
| Q3 2025 | -6.5% | -17.4% | -17.0% | |
| Q1 2025 | -2.9% | +8.2% | +13.5% | |
| Q4 2024 | +9.0% | +9.8% | -1.1% | |
| Q3 2024 | +6.8% | +5.1% | -6.1% | |
| Q2 2024 | -4.7% | -8.1% | -9.3% | |
| Q1 2024 | -6.4% | -5.6% | -15.0% | |
| Q4 2023 | -9.0% | -12.9% | -9.2% | |
| Q3 2023 | -3.5% | -9.4% | -1.7% | |
| Q2 2023 | +5.7% | +4.4% | -2.9% | |
| Q1 2023 | -6.7% | -9.3% | +0.2% | |
| Q4 2022 | -1.9% | +2.5% | -12.4% | |
| Q3 2022 | -3.0% | -3.6% | +1.0% | |
| Q2 2022 | +9.5% | +11.4% | +0.6% | |
| Q1 2022 | -12.5% | -22.9% | -16.3% | |
| Q4 2021 | -1.3% | -5.8% | +0.2% | |
| Q3 2021 | +5.6% | +3.4% | -24.8% | |
| Q2 2021 | +11.3% | +7.9% | +5.5% | |
| Q1 2021 | -4.4% | -9.8% | +5.7% | |
| Q4 2020 | -3.2% | -5.0% | -4.3% | |
| Q3 2020 | +43.3% | +33.9% | +63.6% | |
| Q2 2020 | +15.1% | +15.6% | +20.8% | |
| Q1 2020 | -19.2% | -26.2% | +65.6% | |
| Q4 2019 | -2.5% | -6.1% | -62.5% | |
| Q3 2019 | -4.5% | -7.2% | -6.0% | |
| Q2 2019 | +2.0% | +1.9% | +2.7% | |
| Q1 2019 | -0.0% | +1.8% | -6.0% | |
| Q4 2018 | -1.1% | -1.1% | -3.9% | |
| Q3 2018 | +2.7% | +1.8% | +2.5% | |
| Q2 2018 | -0.2% | +1.2% | +2.3% | |
| Q1 2018 | +6.3% | +6.0% | +9.4% | |
| Q4 2017 | -4.2% | -4.2% | -0.4% | |
| Q3 2017 | +2.2% | +1.8% | +3.8% | |
| Q2 2017 | -5.0% | -3.8% | -4.4% | |
| Q1 2017 | -5.4% | -6.9% | -4.4% | |
| Q4 2016 | -1.4% | -2.5% | -0.8% | |
| Q3 2016 | -2.4% | +5.3% | +12.2% | |
| Q2 2016 | -0.8% | -0.7% | -4.3% | |
| Q1 2016 | +0.6% | — | — | |
| Q4 2015 | +2.5% | — | — | |
| Q3 2015 | +0.8% | — | — | |
| Q2 2015 | +5.0% | — | — | |
| Q1 2015 | +2.9% | — | — | |
| Q4 2014 | +1.0% | — | — | |
| Q3 2014 | +1.3% | — | — | |
| Q2 2014 | +0.7% | — | — | |
| Q1 2014 | +3.3% | — | — | |
| Q4 2013 | -0.1% | — | — | |
| Q3 2013 | -2.2% | — | — | |
| Q2 2013 | -0.5% | — | — | |
| Q1 2013 | +2.3% | — | — | |
| Q4 2012 | -0.8% | — | — | |
| Q3 2012 | -3.3% | — | — | |
| Q2 2012 | -5.3% | — | — | |
| Q1 2012 | +0.8% | — | — | |
| Q4 2010 | -1.7% | — | — | |
| Q4 2011 | -1.7% | — | — | |
| Q3 2011 | -6.2% | — | — | |
| Q2 2011 | +8.2% | — | — | |
| Q1 2010 | +4.8% | — | — | |
| Q1 2011 | +1.3% | — | — | |
| Q4 2008 | -6.1% | — | — | |
| Q3 2009 | -7.9% | — | — | |
| Q3 2010 | -7.9% | — | — | |
| Q4 2009 | +2.5% | — | — | |
| Q2 2010 | +2.5% | — | — | |
| Q2 2009 | +2.5% | — | — |
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