Service Properties Trust

SVC: Is Service Properties Trust Halal?

Service Properties Trust

NASDAQReal EstateUS

$8.60

-1.15%

Market Cap: 285.8M

Compliance Status

Not Halal

Screened on Sep 3, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Service Properties Trust (SVC) halal? Not Halal. Based on AAOIFI screening, Service Properties Trust passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Service Properties Trust (SVC) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Sep 3, 2026. Source: https://halalscreener.app/en/stock/SVC

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

2162.7% of 30.0% limit

What this means for you

Most scholars advise not holding SVC

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Service Properties Trust

Service Properties Trust (SVC) operates as a Real Estate Investment Trust (REIT), maintaining a broad and varied collection of hotels alongside retail properties that provide essential services and necessities under net lease agreements. These holdings are geographically spread throughout the United States, Puerto Rico, and Canada, featuring assets tied to 149 unique brands across 23 different sectors. Most of these properties are run via long-term management or lease contracts. The oversight and management of SVC are handled by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company situated in Newton, Massachusetts.

Sector: Real Estate · Industry: REIT - Hotel & Motel

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 3, 2026

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)
4.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

  • REIT - Hotel & Motel: estimated 4.0% peripheral exposure (AAOIFI industry average)

Use the Purification Calculator to compute exactly how much of your dividend income to donate.

Compliance History

  1. Not Halalnow

    since Aug 2026

  2. Under Review

    until the change above

  3. Not Halal

    until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR
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Frequently Asked Questions

Is Service Properties Trust (SVC) halal to invest in?
Service Properties Trust (SVC) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Service Properties Trust get a F compliance rating?
Service Properties Trust (SVC) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 2162.7% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Service Properties Trust's Shariah verdict?
Service Properties Trust's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Service Properties Trust re-screened for Shariah compliance?
Service Properties Trust (SVC) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Sep 3, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.