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Service Properties Trust T.SVC


Primary Symbol: SVC

Service Properties Trust is a real estate investment trust. The Company operates through two segments: hotel investments and net lease investments. It owns a portfolio of hotels and net lease service and necessity-based retail properties. The Company owns over 221 hotels with approximately 37,000 rooms or suites located in over 36 states, in the District of Columbia, Ontario, Canada and San Juan, Puerto Rico. It owns approximately 752 service-oriented retail properties with over 13.3 million square feet located in approximately 42 states. The Company’s net lease portfolio is occupied by over 175 tenants, which is operating approximately 137 brands in over 21 industries. The Company's net lease portfolio is leased to tenants that include travel centers, quick service and casual dining restaurants, movie theaters, health and fitness centers, grocery stores, automotive parts and services and other businesses in service-oriented and necessity-based industries.


NDAQ:SVC - Post by User

Comment by TickerTwiton Jul 09, 2016 12:11pm
185 Views
Post# 25038133

RE:RE:RE:RE:2Qrt and Patent filing

RE:RE:RE:RE:2Qrt and Patent filing(1) Some sales can't easily be made smooth. If you're selling toilet paper to business, that's smooth because it is a high-frequency, non-seasonal sale. If you're selling network equipment, that will never be smooth because it is a low-frequency sale with a seasonal component (see #2). If you're selling network software, that has potential to be smoothed because licencing and support can purposefully be arranged to be paid quarterly.

(2) The businesses to which you're selling have their own fiscal years and their own patterns of seasonal lumpiness in how CapEx is distributed throughout the year. SVC can't easily change this.

I wouldn't count on lumpiness changing much. My view is that SVC investors should simply understand and accept the nature of a large portion of the sales: spiky, low-frequency, and tied to customers' fiscal seasonality.
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THRK wrote: If you recall, there were reports in the past that suggested lumpiness in their orders that made revenue less consistent and forecasting difficult leading to swings in revenue between qtrs. This drives analysts crazy. Hopefully this report is suggesting that may be coming to en end and there will be more consistency and predictability in their future revenue. Larger companies with multiple revenue streams report far fewer surprise qtrs making it much easier for analysts to make recommendations on their future results and one thing that institutional investors like, in the buy and hold component of their portfolios, is reliability.

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