Thu, May 15, 7:28 PM (38 days ago)
**Cottonwood Communities, Inc. (CCI) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenues increased by $3.2 million to $40.7 million, driven by rental and other property revenues. - **Profit Margins:** Reportable segment net operating income (NOI) increased by $3.1 million to $28.4 million, primarily due to lease-up properties and sales. - **Cash Flow:** Net cash used in operating activities was $(5.5) million, while net cash provided by investing activities was $63.5 million. Net cash used in financing activities was $(69.6) million. - **Earnings:** Net loss attributable to common stockholders was $(7.6) million, or $(0.24) per diluted share, compared to a net income of $3.8 million, or $0.12 per diluted share in Q1 2024. **Key Metrics:** - **Funds from Operations (FFO):** $(0.07) per diluted share, compared to $(0.04) in Q1 2024. - **Core FFO:** $0.05 per diluted share, compared to $0.00 in Q1 2024. - **Net Asset Value (NAV):** $11.5429 per share/unit at March 31, 2025, compared to $12.0083 at December 31, 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by the consolidation of Cottonwood Lighthouse Point and Alpha Mill, lease-up of 805 Riverfront and Cottonwood Highland, offset by the sale of Cottonwood West Palm. - **Expenses:** Property operations expense decreased by $0.5 million, while general and administrative expenses increased by $0.8 million. - **Gains/Losses:** Gain on sale of real estate assets was $7.9 million from the sale of Cottonwood Broadway, compared to $26.6 million from the sale of Cottonwood West Palm in Q1 2024. **Trends and Uncertainties:** - **Sales and Acquisitions:** Sold Cottonwood Broadway for $41.0 million and entered into a contract to sell Parc Westborough for $96.2 million. - **Debt and Financing:** Raised $7.1 million from the sale of Series 2025 Preferred Stock and $7.1 million from the sale of common stock. Repurchased $0.5 million of Series A Convertible Preferred Stock and $11.9 million of common stock and OP Units. - **Future Operations Impact:** Plans to continue strategic asset sales and seek additional sources of capital to bolster liquidity. Expects to recognize a gain on the sale of Parc Westborough in Q2 2025. **Ticker:** CCI