Service Properties Trust Files Q3 2024 10-Q

TL;DR

**SVC Q3 10-Q filed. Financials and operations detailed. REIT status updated.**

AI Summary

Service Properties Trust (SVC) filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operational updates. Key financial figures and strategic decisions are outlined within this report, providing insight into the REIT's current standing and future outlook.

Why It Matters

This filing provides investors with a detailed look at Service Properties Trust's financial health and operational performance for the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a real estate investment trust, Service Properties Trust is subject to market fluctuations, interest rate changes, and tenant-specific risks.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 2024-11-06 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Service Properties Trust (company) — Filer of the 10-Q
• The RMR Group (company) — Manager of Service Properties Trust
• 2024-09-30 (date) — End of the reporting period
• 2024-11-06 (date) — Filing date

FAQ

Filing Documents

• svc-20240930.htm (10-Q) — 2143KB
• svc-q32024xform10xqxex101s.htm (EX-10.1) — 488KB
• svc-q32024xform10xqxex102s.htm (EX-10.2) — 567KB
• svc-q32024xscheduletoex102.htm (EX-10.2) — 213KB
• svc-3q2024xex103xsecondame.htm (EX-10.3) — 73KB
• svc_093024x10qex311.htm (EX-31.1) — 10KB
• svc_093024x10qex312.htm (EX-31.2) — 10KB
• svc_093024x10qex313.htm (EX-31.3) — 10KB
• svc_093024x10qex314.htm (EX-31.4) — 10KB
• svc_093024x10qex321.htm (EX-32.1) — 8KB
• 0000945394-24-000054.txt ( ) — 9530KB
• svc-20240930.xsd (EX-101.SCH) — 53KB
• svc-20240930_cal.xml (EX-101.CAL) — 49KB
• svc-20240930_def.xml (EX-101.DEF) — 326KB
• svc-20240930_lab.xml (EX-101.LAB) — 510KB
• svc-20240930_pre.xml (EX-101.PRE) — 436KB
• svc-20240930_htm.xml (XML) — 1090KB

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets — September 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Comprehensive Income (Loss) — Three and Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Shareholders' Equity — Three and Nine Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows — Nine Months Ended September 30, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 9 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 24 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 4.

Controls and Procedures

Controls and Procedures 44 Warning Concerning Forward-Looking Statements 44 45 PART II. Other Information Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 Item 6. Exhibits 47

Signatures

Signatures 50 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) September 30, 2024 December 31, 2023 ASSETS Real estate properties: Land $ 1,931,353 $ 1,972,145 Buildings, improvements and equipment 7,644,949 7,814,192 Total real estate properties, gross 9,576,302 9,786,337 Accumulated depreciation ( 3,191,704 ) ( 3,181,797 ) Total real estate properties, net 6,384,598 6,604,540 Acquired real estate leases and other intangibles, net 113,292 130,622 Assets held for sale 87,111 10,500 Cash and cash equivalents 48,588 180,119 Restricted cash 14,258 17,711 Equity method investment 110,783 113,304 Due from related persons 20,139 6,376 Other assets, net 308,023 292,944 Total assets $ 7,086,792 $ 7,356,116 LIABILITIES AND SHAREHOLDERS' EQUITY Revolving credit facility $ — $ — Senior secured notes, net 971,066 968,017 Senior unsecured notes, net 4,017,135 3,993,327 Mortgage notes payable, net 566,046 558,876 Accounts payable and other liabilities 585,143 587,005 Due to related persons 18,383 22,758 Total liabilities 6,157,773 6,129,983 Commitments and contingencies Shareholders' equity: Common shares of beneficial interest, $ .01 par value; 200,000,000 shares authorized; 166,648,452 and 165,769,595 shares issued and outstanding, respectively 1,666 1,658 Additional paid in capital 4,559,791 4,557,473 Cumulative other comprehensive income 1,496 2,318 Cumulative net income 2,271,366 2,470,500 Cumulative common distributions ( 5,905,300 ) ( 5,805,816 ) Total shareholders' equity 929,019 1,226,133 Total liabilities and shareholders' equity $ 7,086,792 $ 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) Thre

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View this 10-Q filing on SEC EDGAR