Service Properties Trust Announces Quarterly Dividend on Common Shares

Rhea-AI Summary

Service Properties Trust (Nasdaq: SVC) announced a quarterly cash distribution of $0.01 per common share, totaling $0.04 annually. Shareholders of record as of April 26, 2021, will receive the payment on or about May 20, 2021. SVC operates a diverse portfolio of hotels and retail properties across the U.S., Puerto Rico, and Canada, with operations managed by third parties under lease agreements. The company emphasizes that future dividend rates may vary based on several factors, including income projections and cash availability.

Positive

• Quarterly dividend of $0.01 per share indicates ongoing revenue generation for shareholders.
• Establishes a clear schedule for dividend payments, enhancing predictability for investors.

Negative

• Future dividend rates are not guaranteed and may be subject to decrease, raising concerns about financial stability.
• Dependence on third-party management may pose risks if operational performance falters.

Service Properties Trust (Nasdaq: SVC) today announced a regular quarterly cash distribution on its common shares of $0.01 per common share ($0.04 per share per year). This distribution will be paid to SVC’s common shareholders of record as of the close of business on April 26, 2021 and distributed on or about May 20, 2021.

Service Properties Trust is a real estate investment trust which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada. SVC’s properties are operated by third parties pursuant to management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

WARNING REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon SVC’s present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond SVC’s control. For example, this press release states that SVC’s dividend rate will be $0.01/share per quarter or $0.04/share per year. A possible implication of this statement is that SVC will continuously pay quarterly dividends of $0.01/share per quarter or $0.04/share per year in the future. SVC’s dividend rates are set and reset from time to time by SVC’s Board of Trustees. The SVC Board considers many factors when setting dividend rates including SVC’s historical and projected income, normalized funds from operations, cash available for distribution, the then current and expected needs and availability of cash to pay SVC’s obligations and fund SVC’s investments, distributions which may be required to be paid to maintain SVC’s tax status as a real estate investment trust and other factors deemed relevant by SVC’s Board of Trustees in its discretion. Accordingly, future dividend rates may be increased or decreased and there is no assurance as to the rate at which future dividends will be paid. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

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FAQ

What is the dividend payout for SVC in 2021?

SVC announced a quarterly cash distribution of $0.01 per common share, totaling $0.04 for the year.

When will SVC distribute dividends to shareholders?

Dividends will be paid on or about May 20, 2021, to shareholders of record as of April 26, 2021.

How often does SVC pay dividends?

SVC pays dividends quarterly, with the current rate set at $0.01 per share.

Are SVC's dividends sustainable in the future?

There is no assurance regarding future dividend rates, as they may be adjusted based on various financial factors.