SOTHERLY HOTELS INC 7.875% CUM RED PERPTUAL PFD SHS SER C | 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 to $31,300,501 for the three months ended March 31, 2025, from $29,739,657 for the same period in 2024, reflecting a 5.2% increase.
• Food and Beverage Department: Revenue increased to $10,151,860 from $9,752,449, marking a 4.1% increase.
• Other Operating Departments: Revenue decreased to $6,859,983 from $7,056,326, a 2.8% decrease.

Operational Metrics

• Net Income: Increased to $4,733,526 for the three months ended March 31, 2025, from $1,322,821 for the same period in 2024.
• Total Operating Expenses: Increased to $42,199,620 from $40,874,320, a 3.2% increase.
• Hotel Operating Expenses: Increased to $35,391,543 from $34,188,077, a 3.5% increase.

Cash Flow

• Net Cash Provided by Operating Activities: Increased to $8,188,740 for the three months ended March 31, 2025, from $8,074,737 for the same period in 2024.
• Net Cash Used in Investing Activities: Decreased to -$387,450 from -$2,275,786.
• Net Cash Used in Financing Activities: Decreased to -$3,700,835 from $7,591,518.

Unique Metrics

• Gain on Involuntary Conversion of Assets: Recognized a gain of $3,873,881 primarily related to insurance proceeds for damage to Hotel Alba in Tampa, Florida.

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 dispose of certain hotels to provide liquidity and intends to refinance upcoming loan maturities, potentially reducing indebtedness by up to $28.1 million based on property performance and market conditions.