- Service Properties Trust (NASDAQ:SVC) is executing a 1-for-5 reverse stock split on July 7, 2026, aimed at increasing its share price and improving stock market performance.
- This corporate action will significantly reduce the company’s outstanding common shares from approximately 647.7 million to about 129.5 million.
- Shareholders will maintain their ownership percentage, with fractional shares converted to cash, and the company anticipates a new quarterly cash distribution of $0.05 per share post-split.
Service Properties Trust (NASDAQ:SVC) is a real estate investment trust, or REIT, that owns a large, diversified portfolio of hotels and service-focused retail properties across the United States. The company’s stock is currently trading at $1.68 per share, with a market capitalization of approximately $279.14 million.
On July 7, 2026, Service Properties Trust will execute a 1-for-5 reverse stock split. This strategic corporate action, a reverse stock split, reduces the number of a company’s outstanding shares to increase the price per share. For shareholders, this means they will receive one new share for every five shares they currently own, impacting their investment strategy.
As highlighted by Business Wire, this action will reduce Service Properties Trust’s outstanding common shares from approximately 647.7 million to about 129.5 million. The stock is expected to begin trading on a split-adjusted basis at the market open on July 7, 2026, which should lift the price from its recent 52-week low of $1.13, potentially improving stock market performance.
The stock will continue to trade on the Nasdaq under its “SVC” ticker symbol, but it will be assigned a new CUSIP number for identification. The company states the split will not change any shareholder’s ownership percentage, with cash being paid for any fractional shares that cannot be converted, ensuring fair treatment for all investors.
Following the reverse split, the company expects its regular quarterly cash distribution to be $0.05 per share. This adjustment reflects the new, lower number of shares that will be outstanding after the corporate action is completed, impacting the company’s dividend policy.
