Tue, Jun 3, 10:01 AM (36 days ago)
**Lodging Fund REIT III, Inc. (LF REIT III) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $15.4 million (Q1 2025) vs. $16.0 million (Q1 2024) - **Profit Margins:** Negative, with a net loss of $6.8 million (Q1 2025) vs. $6.4 million (Q1 2024) - **Cash Flow:** Positive operating cash flow of $0.4 million (Q1 2025) vs. negative $0.8 million (Q1 2024) - **Earnings Changes:** Net loss increased by $0.4 million year-over-year **Quarterly Performance Discussion:** - **Revenue:** Decline in room revenue and other revenue due to the sale of the Pineville Property. - **Expenses:** Decrease in property operations and general and administrative expenses due to cost reduction efforts. - **Cash Flow:** Improvement in operating cash flow driven by better management of working capital. **Trends and Uncertainties:** - **Market Outlook:** Cautiously optimistic, driven by strong leisure demand and steady recovery in business travel. - **Challenges:** Inflation, interest rates, insurance premiums, supply chain disruptions, labor costs, and labor shortages. - **Future Operations Impact:** Potential impact on expenses and variable interest rates due to inflation. **Key Metrics:** - **Occupancy:** 60.96% (Q1 2025) vs. 61.14% (Q1 2024) - **ADR (Average Daily Rate):** $120.15 (Q1 2025) vs. $118.39 (Q1 2024) - **RevPAR (Revenue per Available Room):** $73.24 (Q1 2025) vs. $72.39 (Q1 2024) **Debt and Liquidity:** - **Debt:** $174.9 million (Q1 2025) with significant maturities in 2025. - **Liquidity:** Dependent on capital markets, investor sentiment, and intended use of proceeds. **Future Outlook:** - **Revenue and Expenses:** Expected to increase due to full annual operating cycles and future acquisitions. - **Interest Expenses:** Expected to increase due to higher interest rates on refinanced and extended loans. - **Distributions:** Determined by the board based on financial condition and other relevant factors. **Ticker:** Not provided in the text. **Note:** Amounts are usually in thousands, 000s.