Wed, May 14, 8:54 PM (60 days ago)
### Lightstone Value Plus REIT II, Inc. (LVPR) Q1 2025 Financial Summary **Ticker:** LVPR **Financial Health and Performance:** - **Revenue:** $10.7 million, a slight increase from $10.6 million in Q1 2024. - **Profit Margins:** Negative, with a net loss of $3.7 million, compared to a net loss of $2.6 million in Q1 2024. - **Cash Flow:** Negative cash flow from operations at $1.2 million, primarily due to a net loss and changes in operating assets and liabilities. - **Earnings Changes:** Increased losses due to higher property operating expenses and a net casualty loss of $1.0 million from a fire and flooding incident. **Quarterly Performance Discussion:** - **Revenue Trends:** Slight increase in revenue driven by higher Average Daily Rate (ADR) and Revenue per Available Room (RevPAR), partially offset by a lower occupancy rate. - **Expenses:** Property operating expenses increased by $0.3 million, while real estate taxes decreased slightly. General and administrative costs remained unchanged. - **Interest Expense:** Decreased by $0.3 million due to lower market interest rates on variable rate mortgage indebtedness. **Trends and Uncertainties:** - **Economic Conditions:** The company's performance is influenced by local, national, and global economic conditions, including inflation, tariffs, and interest rates. - **Insurance Claims:** The company is still settling an insurance claim related to a fire and flooding incident, with potential additional recoveries uncertain. - **Future Operations Impact:** The company plans to maintain its investments until a sale or disposition appears advantageous, with potential future distributions dependent on performance and debt refinancing. **Future Outlook:** - **Liquidity:** The company has $23.9 million in cash, $5.0 million in restricted cash, and $10.2 million in marketable securities, which it believes will be sufficient for at least 12 months. - **Debt:** The company has mortgage indebtedness totaling $101.8 million, with a revolving credit facility maturing in September 2026. - **Distributions:** The company declared a common share distribution of $0.075 per share for Q1 2025, equivalent to an annual distribution of $0.30 per share. **Key Metrics:** - **Occupancy Rate:** 57% for Q1 2025, down from 60% in Q1 2024. - **ADR:** $144.11 for Q1 2025, up from $135.28 in Q1 2024. - **RevPAR:** $82.07 for Q1 2025, up from $80.84 in Q1 2024. **Conclusion:** Lightstone Value Plus REIT II, Inc. faced challenges in Q1 2025, including increased operating expenses and a significant casualty loss. However, the company remains focused on maintaining liquidity and managing its debt obligations while evaluating future investment opportunities. The economic environment and potential insurance recoveries will play crucial roles in the company's financial performance in the coming quarters.