10-Q - Nuveen Global Cities REIT, Inc. (0001711799) (Filer)

Fri, May 9, 4:44 PM (38 days ago)

### Nuveen Global Cities REIT, Inc. (N/A) - Q1 2025 Financial Summary **Quarterly Financial Health:** - **Revenue:** Total revenues for Q1 2025 were $51.8 million, a slight decrease from $52.2 million in Q1 2024. - **Profit Margins:** Net loss for Q1 2025 was $2.9 million, an improvement from a net loss of $3.8 million in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $15.5 million, down from $19.6 million in Q1 2024. - **Earnings Changes:** Net loss attributable to common stockholders improved to $2.9 million from $3.8 million. **Quarterly Performance Discussion:** - **Revenue Sources:** Primary revenue sources include rental income and income from commercial mortgage loans. - **Expenses:** Key expenses include rental property operating costs, general and administrative expenses, and advisory fees. - **Other Income/Expense:** Notable items include gains/losses from real estate-related securities and real estate debt, as well as interest income and expense. **Trends and Uncertainties:** - **Market Conditions:** Global markets experienced volatility due to inflation, interest rates, and geopolitical uncertainty. - **Real Estate Market:** U.S. commercial real estate is expected to benefit from higher yields compared to fixed-income assets. - **Competitive Environment:** Competition from other real estate investors may affect rental rates and property acquisitions. **Future Operations Impact:** - **Liquidity:** The company has $356.4 million in liquidity, including undrawn credit facilities and investments. - **Capital Uses:** Funds are used for acquisitions, distributions, share repurchases, and debt service. - **Distribution Policy:** The company aims to distribute substantially all taxable income to stockholders. **Segment Performance:** - **Industrial:** Strong performance with high occupancy rates. - **Healthcare:** Mixed results due to occupancy and tenant reimbursement income. - **Multifamily:** Stable performance with high occupancy. - **Retail and Office:** Moderate performance with some occupancy challenges. **Financial Metrics:** - **FFO and AFFO:** Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) are used to evaluate operating performance. - **NAV:** Net Asset Value (NAV) is calculated to determine the fair value of investments and liabilities. **Risks and Contingencies:** - **Credit Risk:** Managed through high-quality counterparties. - **Foreign Currency Risk:** Managed through derivative financial instruments. **Conclusion:** Nuveen Global Cities REIT, Inc. showed improved financial performance in Q1 2025 compared to Q1 2024, with better net loss figures and stable revenue. The company remains well-positioned with sufficient liquidity and a strategic focus on real estate investments. However, market uncertainties and competitive pressures continue to pose challenges.