SOTHERLY HOTELS INC 8% CUM RED PFD SER B | 10-Q: FY2025 Q1 Revenue: USD 48.31 M

Revenue: As of FY2025 Q1, the actual value is USD 48.31 M.

EPS: As of FY2025 Q1, the actual value is USD 0.13.

EBIT: As of FY2025 Q1, the actual value is USD 15.03 M.

Segment Revenue

• Rooms Department: Revenue increased by approximately $1.6 million, or 5.2%, to $31.3 million for the three months ended March 31, 2025, compared to $29.7 million for the same period in 2024.
• Food and Beverage Department: Revenue increased by approximately $0.4 million, or 4.1%, to $10.2 million for the three months ended March 31, 2025, compared to $9.8 million for the same period in 2024.
• Other Operating Departments: Revenue decreased by approximately $0.2 million, or 2.8%, to $6.9 million for the three months ended March 31, 2025, compared to $7.1 million for the same period in 2024.

Operational Metrics

• Net Income: Increased to $4.7 million for the three months ended March 31, 2025, compared to $1.3 million for the same period in 2024.
• Hotel Operating Expenses: Increased by approximately $1.2 million, or 3.5%, to $35.4 million for the three months ended March 31, 2025, compared to $34.2 million for the same period in 2024.
• Corporate General and Administrative Expenses: Decreased by approximately $0.03 million, or 1.4%, to $1.9 million for the three months ended March 31, 2025, compared to $1.9 million for the same period in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: Approximately $8.2 million for the three months ended March 31, 2025.
• Net Cash Used in Investing Activities: Approximately $0.4 million for the three months ended March 31, 2025.
• Net Cash Used in Financing Activities: Approximately $3.7 million for the three months ended March 31, 2025.

Unique Metrics

• Gain on Involuntary Conversion of Assets: Approximately $3.9 million for the three months ended March 31, 2025, primarily related to proceeds received for damage to the Hotel Alba in Tampa, Florida by Hurricane Helene in September 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue investing in hotel properties as suitable opportunities arise, with a focus on maintaining a flexible capital structure and prudent debt leverage.
• Non-Core Business: The company may choose to dispose of certain hotels as a means to provide liquidity.
• Priority: The company expects total capital expenditures for routine replacement and refurbishment of furniture, fixtures, and equipment to be approximately $7.2 million for 2025.