Thu, May 15, 4:18 PM (37 days ago)
**Moody National REIT II, Inc. (MNRT) - Q1 2025 Financial Summary** **Ticker:** MNRT **Q1 2025 Financial Health:** - **Revenue:** Total hotel revenue decreased to $14.7 million from $18.2 million in Q1 2024 due to property sales. - **Profit Margins:** Operating loss narrowed to $(831,000) from $(2,419,000) in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $(13.1) million, primarily due to changes in accounts payable and accrued expenses. - **Earnings Changes:** Net loss attributable to common stockholders was $(2,373,000), an improvement from $(6,771,000) in Q1 2024. - **Quarterly Performance:** Gain on sale of hotel properties was $3.2 million due to property sales. **Trends and Uncertainties:** - **COVID-19 Impact:** The pandemic continues to affect hotel properties, with reduced bookings and revenues. - **Debt and Liquidity:** Significant debt maturities in 2025 raise concerns about liquidity and the ability to continue as a going concern. - **Property Sales:** The company sold several properties in Q1 2025, using proceeds to repay mortgage loans. - **Plan of Liquidation:** The board approved a plan to sell all assets and dissolve the company, subject to stockholder approval. **Future Operations Impact:** - **Debt Repayment:** The company expects to use property sale proceeds to repay maturing debt obligations. - **Liquidity Management:** The company will focus on managing cash flows and preserving liquidity. - **Strategic Alternatives:** If the plan of liquidation is not approved, the company may explore other strategic alternatives. **Key Metrics:** - **Total Assets:** $254.8 million - **Total Liabilities:** $242.7 million - **Stockholders' Equity:** $12.1 million - **Cash and Cash Equivalents:** $23.5 million **Conclusion:** Moody National REIT II, Inc. faces significant challenges due to the COVID-19 pandemic and debt maturities. The company's plan to sell assets and dissolve may impact future operations and stockholder distributions. Investors should monitor the company's progress in implementing the plan of liquidation and its ability to manage debt obligations.