Is Service Properties Trust (SVC) Halal?

NASDAQ Real Estate United States $299M
✗ NOT HALAL
Confidence: 90/100
Service Properties Trust (SVC) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 1436.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Service Properties Trust operates in the Real Estate sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1436.0%
/ 30%
93.4%
/ 30%
0.1%
/ 30%
0.5%
/ 5%
✗ NOT HALAL
DJIM 1436.0%
/ 33%
93.4%
/ 33%
0.1%
/ 33%
0.5%
/ 5%
✗ NOT HALAL
MSCI 82.2%
/ 33%
5.3%
/ 33%
0.0%
/ 33%
0.5%
/ 5%
✗ NOT HALAL
S&P 1436.0%
/ 33%
93.4%
/ 33%
0.1%
/ 33%
0.5%
/ 5%
✗ NOT HALAL
FTSE 82.2%
/ 33%
5.3%
/ 33%
0.0%
/ 50%
0.5%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-1.22
Dividend Yield
225.0%
Payout: 466.7%
P/B Ratio
0.5
EV/EBITDA
10.6
EV: $5.4B
Revenue
$1.8B
Growth: -12.9%
Beta
1.4
High volatility
Current Ratio
2.0

Profitability

Gross Margin 30.4%
Operating Margin 8.0%
Net Margin -11.1%
Return on Equity (ROE) -27.0%
Return on Assets (ROA) 1.8%

Cash Flow & Balance Sheet

Operating Cash Flow$118M
Free Cash Flow$118M
Total Debt$5.3B
Debt-to-Equity848.4
Current Ratio2.0
Total Assets$6.5B

Price & Trading

Last Close$1.79
50-Day MA$2.10
200-Day MA$2.29
Avg Volume1.6M
Beta1.4
52-Week Range
$1.55
$3.08

About Service Properties Trust (SVC)

CEO
Mr. Christopher J. Bilotto
Sector
Real Estate
Industry
REIT - Hotel & Motel
Country
United States
Exchange
NASDAQ
Market Cap
$299M
Currency
USD

Service Properties Trust is a real estate investment trust, or REIT, with over $10 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of September 30, 2025, SVC owned 160 hotels with over 29,000 guest rooms throughout the United States and in Puerto Rico and Canada. As of September 30, 2025, SVC also owned 752 service-focused retail net lease properties with over 13.1 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $39 billion in assets under management as of September 30, 2025, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. Service Properties Trust was incorporated in 1995 in Maryland, USA.

Related Halal Stocks in Real Estate

Frequently Asked Questions

Is Service Properties Trust (SVC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Service Properties Trust is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Service Properties Trust's debt ratio?

Service Properties Trust's debt ratio is 1436.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 82.2%.

What are Service Properties Trust's key financial metrics?

Service Properties Trust has a market capitalization of $299M, and revenue of $1.8B. The company maintains a gross margin of 30.4% and a net margin of -11.1%. Return on equity stands at -27.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.