Service Properties Trust saw its shares fall in after-hours trading following an announcement that its Board of Trustees has approved a five-for-one reverse stock split.
The stock declined 5.9% in after-hours trading on Thursday after the company disclosed that each block of five issued and outstanding common shares will be reclassified into one common share. The split is expected to become effective after the close of trading on or about July 6, 2026, subject to regulatory approvals.
Once the reverse split is implemented, the company expects the number of outstanding common shares to fall from approximately 647.7 million to approximately 129.5 million. Service Properties Trust said its shares will continue to trade on Nasdaq under the symbol "SVC," though the CUSIP number associated with the shares will change.
The company stressed that the reverse split will be applied proportionally to all shareholders and will not alter any shareholder’s percentage ownership, except for relatively small adjustments that may occur when the company makes cash payments in lieu of fractional shares.
Service Properties Trust also confirmed that its regular quarterly cash distribution will remain unchanged at $0.05 per share, which amounts to $0.20 per share on an annual basis. The company noted this distribution level represents no change from previous distributions after accounting for the reverse split.
Company profile and holdings
Service Properties Trust is a real estate investment trust with more than $10 billion invested in service-focused retail net lease properties and hotels. As of March 31, 2026, the company owned 761 service-focused retail net lease properties encompassing more than 13.6 million square feet, together with 93 hotels totaling in excess of 21,000 guest rooms. The company’s portfolio spans the United States, Puerto Rico, and Canada.
What shareholders should note
- The reverse split requires regulatory approvals and is expected to take effect on or about July 6, 2026.
- Shareholders should expect their proportional ownership to remain the same aside from any cash payments to cover fractional shares.
- The company’s stated quarterly distribution remains $0.05 per share, unchanged on a post-split basis.
Investors and observers watching the REIT and sectors tied to service-focused retail net leases and hospitality may monitor the company for additional regulatory filings or confirmations as the effective date approaches.