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Sep 30, 2022
Service Properties Trust Q3 2022 Earnings Report
Reported net income of $0.05 per common share and a 100.0% increase in normalized FFO to $0.54 per common share, alongside a 26.3% increase in adjusted EBITDAre to $173.5 million.
Key Takeaways
Service Properties Trust announced its Q3 2022 financial results, featuring a net income of $0.05 per common share and a significant increase in normalized FFO and adjusted EBITDAre. The company also increased its quarterly dividend to $0.20 per common share, reflecting confidence in the business.
Net income for the quarter ended September 30, 2022 was $7.5 million, or $0.05 per diluted common share.
Normalized FFO for the quarter ended September 30, 2022 were $88.5 million, or $0.54 per diluted common share.
Adjusted EBITDAre for the quarter ended September 30, 2022 increased 26.3% to $173.5 million.
Comparable RevPAR increased by 29.6% over the prior year quarter.
Forward Guidance
SVC anticipates benefiting from the ongoing recovery in business travel, especially at its full-service and select-service hotels. The company expects the majority of the sales to be completed by the end of the first quarter of 2023.
Positive Outlook
- Continued business travel recovery, particularly at full service and select service hotels
- Available liquidity of over $750 million
- Steady cash flows from net lease portfolio
- Increased quarterly dividend to $0.20 per common share
- Expected completion of property sales by the end of the first quarter of 2023
Challenges Ahead
- Impact of the COVID-19 pandemic
- Economic and market conditions, including current inflationary conditions
- Geopolitical risks
- Possible recession
Historical Earnings Impact
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Avg. Return Before/After Earnings
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