Services Properties Trust slumps on dividend cut, hotel sales

Service Properties Trust

16/10/2024 17:41

** Shares of Service Properties Trust  SVC.O  fall 20% to $3.81,
hitting a record low
    ** Co slashes quarterly dividend to $0.01 per share from
$0.20 per share
    ** Dividend reduction to result in $127 mln of annual
savings
    ** SVC also intends to sell 114 Sonesta Managed Focused
Service Hotels in 2025, use net sales proceeds to repay debt
    ** Expects sales of hotels to result in savings of about
$725 mln in capital expenditures
    ** Upon completion of disposition plan in 2025, REIT will
continue to own 34% of Sonesta
    ** 1 of 4 brokerages rate the stock "buy", 2 "hold" and 1
"sell" or lower; their median PT is $5.83
    ** Including session's losses, stock down ~55.3% YTD 

(Reporting by Ankita Bora in Bengaluru)
((mailto:Ankita.Bora@thomsonreuters.com))