SOTHERLY HOTELS INC 8% CUM RED PFD SER B | 10-Q: FY2025 Q3 Revenue: USD 38.01 M

Revenue: As of FY2025 Q3, the actual value is USD 38.01 M.

EPS: As of FY2025 Q3, the actual value is USD -0.37.

EBIT: As of FY2025 Q3, the actual value is USD 6.02 M.

Segment Revenue

• Rooms Department Revenue: $25,177,734 for the three months ended September 30, 2025, compared to $27,164,369 for the same period in 2024. For the nine months ended September 30, 2025, revenue was $89,015,733 compared to $91,479,915 in 2024.
• Food and Beverage Department Revenue: $7,243,262 for the three months ended September 30, 2025, compared to $7,759,489 for the same period in 2024. For the nine months ended September 30, 2025, revenue was $26,992,332 compared to $27,413,491 in 2024.
• Other Operating Departments Revenue: $5,592,126 for the three months ended September 30, 2025, compared to $5,776,123 for the same period in 2024. For the nine months ended September 30, 2025, revenue was $19,111,545 compared to $19,049,373 in 2024.

Operational Metrics

• Net Operating Income: $514,758 for the three months ended September 30, 2025, compared to $1,754,934 for the same period in 2024. For the nine months ended September 30, 2025, net operating income was $13,202,235 compared to $16,733,228 in 2024.
• Net Loss: - $5,558,390 for the three months ended September 30, 2025, compared to - $3,689,621 for the same period in 2024. For the nine months ended September 30, 2025, net income was $731,560 compared to $2,297,431 in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: $9,760,267 for the nine months ended September 30, 2025, compared to $21,417,328 in 2024.
• Net Cash Used in Investing Activities: - $7,510,041 for the nine months ended September 30, 2025, compared to - $9,834,153 in 2024.
• Net Cash Used in Financing Activities: - $1,338,680 for the nine months ended September 30, 2025, compared to - $5,313,761 in 2024.

Future Outlook and Strategy

• Merger Agreement: The company has entered into a merger agreement with KW Kingfisher LLC and Sparrows Nest LLC, with the merger expected to be completed in the first quarter of 2026. The merger consideration is $2.25 per share for common stock, and preferred stockholders may convert their shares to receive the same consideration.
• Capital Restrictions: Until the merger closes, the company is restricted from paying dividends, issuing additional securities, incurring new debt, and making capital expenditures outside of those specified in the merger agreement.