Fri, May 9, 6:26 PM (14 days ago)
**GTJ REIT, Inc. (Ticker: GTJ) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenues increased by 4% to $20.8 million for Q1 2025, driven by higher rental income and the acquisition of a property in Fort Myers, Florida. - **Profit Margins:** Operating income rose by 2% to $9.996 million. Net income slightly decreased by 1% to $3.508 million due to increased operating expenses and interest costs. - **Cash Flow:** Net cash provided by operating activities was $6.75 million, down from $9.116 million in Q1 2024. Investing activities used $4.972 million, primarily for property acquisitions and improvements. - **Earnings:** Earnings per share (EPS) remained stable at $0.22 for both basic and diluted shares. **Key Metrics and Trends:** - **Occupancy:** Properties were 95% leased to 61 tenants as of Q1 2025. - **Liquidity:** Available liquidity was approximately $49.1 million, including cash and borrowing capacity. - **Debt:** Outstanding borrowings under the revolving credit facility were $18.4 million. The company is in compliance with all debt covenants. - **Acquisitions:** Acquired a 5.36-acre lot in Charlotte, North Carolina, and a property in Fort Myers, Florida. **Uncertainties and Future Operations:** - **Interest Rates:** Higher interest rates may increase borrowing costs and affect tenant affordability. - **Inflation:** Rising costs could impact property operating expenses and tenant businesses. - **Market Risks:** Changes in U.S. tariff and import/export regulations could adversely affect the company's operations. **Management's Outlook:** - GTJ REIT aims to maintain stable cash flow, preserve capital, and enhance shareholder value. - The company will continue to seek attractive investment opportunities and may divest certain properties to redeploy capital. - Management will monitor market conditions and adjust strategies as needed to navigate uncertainties.