Service Properties Trust (SVC)
NASDAQ:SVC
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Earnings Data
Report Date
Aug 11, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
-0.04Last Year’s EPS
-0.23Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed meaningful progress on financial repositioning and long-term portfolio transformation, led by substantial capital markets activity (ABS, equity) that materially improved liquidity, reduced maturities and lowered interest expense. Operationally, the retained hotel portfolio showed healthy RevPAR and modest EBITDA growth, and the net lease portfolio maintained solid occupancy, coverage and long lease terms. Near-term results were weighed down by losses and capital needs tied to 15 marketed hotels, credit reserves for two franchisees, higher insurance costs and renovation-related displacement, which pressured Q1 normalized FFO and consolidated hotel EBITDA. Given the scale of balance sheet improvement, the upward revision to full-year normalized FFO guidance, and positive retained-portfolio trends that management expects to drive future margin flow-through, the positive strategic developments and financial repair outweigh the short-term operating headwinds.Company Guidance
Material Balance Sheet Strengthening via Capital Markets Activity
Executed roughly $1.5 billion of capital markets transactions (including a $745M ABS and a $575M underwritten equity offering), used proceeds and cash to retire about $1.6 billion of debt, resulting in annualized cash interest savings of approximately $59 million and reducing unsecured maturities until 2028.
Debt Profile and Rating Improvement
Post-transactions debt outstanding of $4.7 billion with a weighted average interest rate of 5.65%; debt-to-assets improved from 59% to 53% and Moody's upgraded the corporate family rating, signaling improved credit profile and refinancing flexibility.
Hotel Revenue Momentum (Retained Portfolio)
Across 93 hotels RevPAR increased 6.7% year-over-year; excluding 15 marketed-for-sale hotels, the 78-hotel retained portfolio achieved RevPAR growth of 7.5% and hotel EBITDA rose 2.1% to $26.2 million, demonstrating underlying operational improvement.
Net Lease Portfolio Resilience and Metrics
Net lease portfolio of 701 properties across 42 states with annual base rent of $392 million, ~97% leased, weighted average lease term of 7.3 years, and aggregate minimum rent coverage of 2.01x (trailing 12 months); executed 20 leases totaling ~219k sq ft and invested $9M in four new properties focused on necessity-based brands.
Progress on Capital Recycling and Dispositions
Advanced sales program: sold one 133-key focused service hotel for $7.1M; signed LOIs for eight focused service hotels with expected proceeds of ~$61.2M; six of seven full-service hotels awarded for expected proceeds of $55.3M, enabling redeployment of capital and debt reduction.
Guidance Raised for Normalized FFO
Revised full-year normalized FFO guidance upward to $124M–$144M (or $0.24–$0.27 per share, based on 526M weighted avg share count), reflecting interest savings from debt reductions despite near-term headwinds.
Targeted Net Lease Acquisitions with Attractive Yields
Acquisitions this quarter had an average going-in cash cap rate of 7.9%, GAAP cap rate of 8.8%, weighted average lease term over 15 years and average rent coverage of 3.8x, aligning with a disciplined capital recycling strategy.
SVC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SVC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 06, 2026 | $1.58 | $1.54 | -2.53% |
Feb 25, 2026 | $2.19 | $2.35 | +7.24% |
Nov 05, 2025 | $2.15 | $2.03 | -5.99% |
Aug 05, 2025 | $2.71 | $2.43 | -10.36% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Service Properties Trust (SVC) report earnings?
Service Properties Trust (SVC) is schdueled to report earning on Aug 11, 2026, Before Open (Confirmed).
What is Service Properties Trust (SVC) earnings time?
Service Properties Trust (SVC) earnings time is at Aug 11, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SVC EPS forecast?
SVC EPS forecast for the fiscal quarter 2026 (Q2) is -0.04.