Service Properties Trust Receives Statement of Support from Shareholder Flat Footed LLC

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEWTON, Mass.--(BUSINESS WIRE)-- Service Properties Trust (Nasdaq: SVC) (“SVC” or the “Company”) today announced that Flat Footed LLC (“Flat Footed”), an SVC institutional shareholder, has expressed support for the plan announced earlier today by SVC’s Board of Trustees to transition SVC into a pure-play triple net lease REIT.

Marc Andersen, Co-Founder and Managing Member of Flat Footed LLC, made the following statement:

“Given the capital recently deployed into the retained hotel portfolio and the commitment of SVC’s Board to convert the Company into a triple net lease REIT over the next two years, Flat Footed supports SVC’s decision to monetize the hotel portfolio at a pace that allows for maximum value realization. Our firm also believes that many RMR-related entities remain misunderstood and materially undervalued. RMR client REITs have sold $3.6 billion in assets since the beginning of 2021, and SVC alone has sold in excess of $1.9 billion. In large part due to viewing this capital allocation favorably, Flat Footed remains, or has become, a meaningful shareholder in multiple entities across the RMR complex.”

As previously outlined in the Board’s letter, SVC plans to begin selling its 77 retained hotels in 2027 with the goal of selling substantially all of them by the end of 2028. These sales are intended to maximize value for shareholders as EBITDA at the retained hotels grows, while reducing SVC’s leverage to no more than five times net debt to Adjusted EBITDA as SVC completes its transition to a pure-play triple net lease REIT.

About Service Properties Trust

SVC is a real estate investment trust with $9.6 billion invested in two asset categories: service-focused retail net lease properties and hotels. As of September 30, 2026, SVC owned 740 service-focused retail net lease properties with over 13.5 million square feet throughout the United States and 87 hotels with approximately 20,000 guest rooms throughout the United States, including Puerto Rico, and Canada. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $37 billion in assets under management as of September 30, 2026, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit www.svcreit.com.

WARNING CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever SVC uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, SVC is making forward-looking statements. These forward-looking statements are based upon SVC’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by SVC’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond SVC’s control. Forward-looking statements in this press release, including those referencing the Board’s plan announced earlier today, include statements regarding: SVC’s plan to transition into a pure-play triple net lease REIT; the expected timing, pace, execution and proceeds of sales of the 77 retained hotels across 2027 and 2028; the potential value realization of the retained hotels and the intended benefits of the hotel sales for SVC’s shareholders; expected growth in EBITDA at the retained hotels; and SVC’s targeted reduction of leverage to no more than five times net debt to Adjusted EBITDA. For example: SVC’s ability to sell the retained hotels when, and on the terms, it expects depends on, among other things, market conditions, hotel industry trends, buyer demand and the availability and cost of debt financing to prospective buyers; SVC may not receive offers for the retained hotels at prices it considers acceptable, and the prices it realizes may be less than estimates of their value, including estimates SVC has previously disclosed; EBITDA at the retained hotels may not grow as SVC expects, or at all, and may decline; SVC may not realize the value or pace of monetization it expects for the retained hotels; SVC may not reduce its leverage to the level it expects, when expected or at all, including if the proceeds SVC uses to repay debt are low relative to the EBITDA of the hotels it sells; and SVC may not successfully complete its transition to a pure-play triple net lease REIT when expected or at all. The statement by Flat Footed quoted in this press release reflects only the views and opinions of Flat Footed and SVC is not adopting that statement as its own.

The information contained in SVC’s filings with the Securities and Exchange Commission (the “SEC”), including under “Risk Factors” in SVC’s periodic reports, or incorporated therein, identifies other important factors that could cause SVC’s actual results to differ materially from those stated in or implied by SVC’s forward-looking statements. SVC’s filings with the SEC are available on the SEC's website at www.sec.gov.

You should not place undue reliance upon forward-looking statements.

Except as required by law, SVC does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261113661228/en/

Kevin Barry, Senior Director, Investor Relations
(617) 796-8232

Source: Service Properties Trust

Key Terms

reit financial

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

triple net lease financial

A triple net lease is a rental agreement where the tenant pays the base rent plus three main ongoing costs: property taxes, building insurance, and routine maintenance. For investors, this shifts much of the expense and risk onto the tenant, creating a steadier, more predictable income stream for the property owner—similar to renting a furnished home where the renter also pays the bills—making valuation and cash-flow forecasting simpler.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

forward-looking statements regulatory

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.