Service Properties Trust

AI-generated fair value estimate for this company.

Method: FFO-multiple (NAV-proxy) method: company FY2026 guidance normalized FFO per share midpoint of $0.71 x a conservative 7x P/FFO multiple (below REIT-sector-average, reflecting elevated leverage of $5.2B debt at a 5.95% weighted average rate and ongoing hotel-disposition execution risk) x 129.51M shares outstanding

Reasoning: Service Properties Trust is mid-transition from a hotel-heavy portfolio to a net-lease-focused one ($858.8M across 112 hotels sold in FY2025; remaining net-lease portfolio at 96.6% occupancy, 1.98x rent coverage). DCF/FFO-multiple value of ~$644M is below the ~$828M market cap; the 5-analyst consensus (Buy, average PT $12.19, implying a richer ~10x FY2026 FFO estimate of $1.24/share -- a figure that appears inconsistent with the company's own $0.65-0.77 normalized-FFO guidance and should be reconciled directly against the Q4 2025 earnings supplement before relying on it)