Service Properties Trust Drops After Net-Lease Plan Pitch
Service Properties Trust dropped 3.5% to end at $1.66 on Wednesday, below its $1.70 open. Investors reacted to the REIT’s new update on reducing debt, selling hotels and shifting to retail net lease properties. Trading volume was 3.93 million on Nasdaq before the close. The timing is key. SVC took the stage at Nareit’s REITweek in New York to argue it’s more of a net lease REIT than just a hotel landlord. Net lease REITs hold properties with tenants who pay under long-term leases and pick up the bills for taxes, insurance and upkeep. President and CEO Chris Bilotto and CFO Brian Donley had a 9:30 a.m. Eastern slot.