Service Properties shares collapse on $500 mln equity raise

Service Properties Trust

01/04/2026 12:04

** Service Properties Trust's SVC.O shares down 11.1% premarket to $1.21 after $500 mln follow-on priced

** Newton, Massachusetts-based net lease retail and hotel REIT late Tues sold 416.7 mln shares at $1.20

** SVC shares plunged to record low of $1.13 before ending down 24.3% at $1.36 on Tues after co launched offering to redeem all or a portion of its outstanding notes due 2027

** Helix Partners and SVC's manager, the RMR Group, had indicated to buy up to $100 mln and $50 mln of the offering, respectively. Members of SVC's management also indicated interest in buying shares

** Yorkville Secs lead bookrunner joined by Jones Trading for offering

** Through Tues, SVC stock down ~26% YTD.  Stock fell ~28% in 2025 and plummeted 70% in 2024

** All 3 analysts covering the stock rate it "hold" with 2 PTs of $2 and $2.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))