Service Properties Trust Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Service Properties Trust filed its Q1 2024 10-Q report on May 7, 2024.</b>

AI Summary

Service Properties Trust (SVC) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Service Properties Trust (SVC) filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's business address is C/O The RMR Group, Two Newton Pl., 255 Wash. St., Ste. 300, Newton, MA 02458. The filing was submitted on May 7, 2024. The SIC code for Service Properties Trust is 6798 (REAL ESTATE INVESTMENT TRUSTS).

Why It Matters

For investors and stakeholders tracking Service Properties Trust, this filing contains several important signals. This 10-Q filing provides a detailed look into Service Properties Trust's financial performance and operational status for the first quarter of 2024, which is crucial for investors to assess the company's current health and future prospects. Understanding the specific financial data and disclosures within this report allows stakeholders to make informed investment decisions regarding Service Properties Trust.

Risk Assessment

Risk Level: medium — Service Properties Trust shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and disclosures. However, the specific financial health and operational details within the report will determine the ultimate risk level.

Analyst Insight

Review the detailed financial statements and disclosures in the 10-Q to understand Service Properties Trust's performance and identify any potential risks or opportunities.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-05-07 — Filing Date (Filed As Of Date)
• 2024-01-01 — Quarter Start Date (Reporting Quarter Start Date)
• 2023-12-31 — Previous Year End Date (Previous Fiscal Year End)

Key Players & Entities

• Service Properties Trust (company) — Filer name
• The RMR Group (company) — Business and Mail Address
• 0000945394 (company) — Central Index Key
• 6798 (company) — Standard Industrial Classification
• MD (company) — State of Incorporation
• 043262075 (company) — IRS Number
• 001-11527 (company) — SEC File Number
• 24922270 (company) — Film Number

FAQ

Industry Context

Service Properties Trust operates as a real estate investment trust (REIT), primarily investing in hotels and net lease properties.

Regulatory Implications

As a publicly traded REIT, Service Properties Trust is subject to regulations from the Securities and Exchange Commission (SEC) and must adhere to specific accounting and reporting standards.

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and net income for Q1 2024.
2. Examine any disclosed debt levels and equity structure.
3. Review management's discussion and analysis for operational highlights and challenges.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing for the first quarter of 2024, providing a baseline for comparison with subsequent reports.

Filing Documents

• svc-20240331.htm (10-Q) — 1582KB
• svc-q12024xex419x2024addit.htm (EX-4.19) — 18KB
• svc-q12024xex425x2024addit.htm (EX-4.25) — 18KB
• svc-q12024xex427x2024addit.htm (EX-4.27) — 17KB
• svc-q12024xex101xfirstamen.htm (EX-10.1) — 58KB
• svc-q12024xex102xschedulex.htm (EX-10.2) — 502KB
• svc-q12024xex103schedulexs.htm (EX-10.3) — 232KB
• svc-q12024xex221subsidiary.htm (EX-22.1) — 22KB
• svc_033124x10qex311.htm (EX-31.1) — 10KB
• svc_033124x10qex312.htm (EX-31.2) — 10KB
• svc_033124x10qex313.htm (EX-31.3) — 9KB
• svc_033124x10qex314.htm (EX-31.4) — 9KB
• svc_033124x10qex321.htm (EX-32.1) — 8KB
• 0000945394-24-000025.txt (&nbsp;) — 7618KB
• svc-20240331.xsd (EX-101.SCH) — 51KB
• svc-20240331_cal.xml (EX-101.CAL) — 49KB
• svc-20240331_def.xml (EX-101.DEF) — 316KB
• svc-20240331_lab.xml (EX-101.LAB) — 479KB
• svc-20240331_pre.xml (EX-101.PRE) — 426KB
• svc-20240331_htm.xml (XML) — 791KB

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets — March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Comprehensive Income (Loss) — Three Months Ended M arch 3 1 , 202 4 and 202 3 4 Condensed Consolidated Statements of Shareholders' Equity — Three Months Ended March 3 1 , 202 4 and 202 3 5 Condensed Consolidated Statements of Cash Flows — Three Months Ended March 31, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 37 Warning Concerning Forward-Looking Statements 37 38 PART II. Other Information Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 6. Exhibits 40

Signatures

Signatures 43 References in this Quarterly Report on Form 10-Q to the Company, SVC, we, us or our include Service Properties Trust and its consolidated subsidiaries unless otherwise expressly stated or the context indicates otherwise. 2 Table of Contents

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements SERVICE PROPERTIES TRUST CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share data) (unaudited) March 31, 2024 December 31, 2023 ASSETS Real estate properties: Land $ 1,968,963 $ 1,972,145 Buildings, improvements and equipment 7,846,174 7,814,192 Total real estate properties, gross 9,815,137 9,786,337 Accumulated depreciation ( 3,237,999 ) ( 3,181,797 ) Total real estate properties, net 6,577,138 6,604,540 Acquired real estate leases and other intangibles, net 124,573 130,622 Assets held for sale 8,700 10,500 Cash and cash equivalents 71,287 180,119 Restricted cash 16,039 17,711 Equity method investment 111,014 113,304 Due from related persons 21,400 6,376 Other assets, net 301,368 292,944 Total assets $ 7,231,519 $ 7,356,116 LIABILITIES AND SHAREHOLDERS' EQUITY Revolving credit facility $ — $ — Senior secured notes, net 969,039 968,017 Senior unsecured notes, net 3,995,757 3,993,327 Mortgage notes payable, net 561,349 558,876 Accounts payable and other liabilities 580,268 587,005 Due to related persons 10,437 22,758 Total liabilities 6,116,850 6,129,983 Commitments and contingencies Shareholders' equity: Common shares of beneficial interest, $ .01 par value; 200,000,000 shares authorized; 165,768,058 and 165,769,595 shares issued and outstanding, respectively 1,658 1,658 Additional paid in capital 4,557,890 4,557,473 Cumulative other comprehensive income 1,974 2,318 Cumulative net income 2,392,117 2,470,500 Cumulative common distributions ( 5,838,970 ) ( 5,805,816 ) Total shareholders' equity 1,114,669 1,226,133 Total liabilities and shareholders' equity $ 7,231,519 $ 7,356,116 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents SERVICE PROPERTIES TRUST CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (amounts in thousands, except per share data) (unaudited) Three M

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