checkAd

     841  0 Kommentare Service Properties Trust Announces Efforts to Mitigate COVID-19 Impact

    Service Properties Trust (Nasdaq: SVC) today announced that due to the uncertainty from the rapidly evolving COVID-19 (coronavirus) pandemic on the U.S. economy generally and the lodging industry in particular, SVC is undertaking significant efforts to address the operating and financial impact of the current crisis. The decline in hotel occupancy caused by this pandemic has been dramatic and the duration and severity of its impact on the U.S. economy is unknown. COVID-19 protocols implemented by state and local governments have also impacted certain industries where some of SVC’s net lease tenants operate, such as casual dining establishments and movie theaters.

    As a result of these conditions, in order to preserve cash and liquidity, SVC’s Board of Trustees has decided to reduce the Company’s regular quarterly cash distributions on its common shares for the first quarter to $0.01 per share. This distribution will be paid to SVC’s common shareholders of record as of the close of business on April 21, 2020 and distributed on or about May 21, 2020. SVC’s Board of Trustees will continue to monitor SVC’s financial performance and economic outlook as the year progresses to determine a prudent level for any subsequent regular quarterly distributions for 2020 or declare and pay any dividend required to be made for 2020 in accordance with tax law requirements for real estate investment trusts.

    Depending upon the ultimate distribution requirement in 2020, if any, the reduction of the dividend could preserve up to $262 million of capital this year. SVC had also previously expected to fund approximately $150 million of capital expenditures in 2020. SVC now expects to defer approximately $100 million in capital projects to conserve cash and liquidity. In addition, SVC and its hotel operators have been implementing cost savings plans, including the closure of certain hotels, reduction of staffing levels and other measures. Nevertheless, SVC currently expects that it may experience fewer hotel closures relative to some of its peers because it owns 278 primarily suburban extended stay and select service hotels, which appear to be less negatively impacted by the COVID-19 crisis, and only 25 primarily urban luxury or upper upscale hotels, which appear to be the more negatively impacted.

    Seite 1 von 4




    Business Wire (engl.)
    0 Follower
    Autor folgen

    Service Properties Trust Announces Efforts to Mitigate COVID-19 Impact Service Properties Trust (Nasdaq: SVC) today announced that due to the uncertainty from the rapidly evolving COVID-19 (coronavirus) pandemic on the U.S. economy generally and the lodging industry in particular, SVC is undertaking significant efforts …