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Jun 30, 2020
Service Properties Trust Q2 2020 Earnings Report
Announced second quarter 2020 results, including a net loss of $0.23 per common share and normalized FFO of $0.48 per common share.
Key Takeaways
Service Properties Trust reported a net loss of $37.3 million, or $0.23 per diluted common share, for the second quarter of 2020, compared to a net income of $8.8 million, or $0.05 per diluted common share, for the same quarter in 2019. Normalized FFO for the quarter was $78.2 million, or $0.48 per diluted common share, compared to $168.8 million, or $1.03 per diluted common share, in the prior year.
Net loss for the quarter ended June 30, 2020 was $37.3 million, or $0.23 per diluted common share.
Normalized FFO for the quarter ended June 30, 2020 were $78.2 million, or $0.48 per diluted common share.
Completed an $800 million note offering and a tender offer for $350 million of the company's $400 million of 4.25% senior notes due 2021.
Rent collections from net lease tenants are trending upward, reaching 80.0% for July.
Forward Guidance
SVC believes it is currently well positioned with a diverse portfolio of assets and ample liquidity, despite significant uncertainties remaining as to the timeframe and trajectory of a recovery.
Positive Outlook
- Proactive steps to increase liquidity.
- Managing debt maturities effectively.
- Preserving capital through various measures.
- Addressed 2021 debt maturities.
- Secured availability under the revolving credit facility.
Challenges Ahead
- COVID-19 pandemic continues to negatively impact the economy.
- Economic downturn could continue for an extended period or worsen.
- Operators' and tenants' businesses may be materially and adversely impacted.
- Additional operators and tenants may be unable to pay rents and returns.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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