Wed, May 14, 9:24 PM (40 days ago)
**Sculptor Diversified Real Estate Income Trust, Inc. (SDREIT) (Ticker: SDRT) Q1 2025 Financial Health and Performance Summary:** **Revenue and Profit Margins:** - **Revenue:** Q1 2025 revenue was $12.2 million, up 981,000 from Q1 2024's $11.2 million. - **Profit Margins:** Operating income increased by $2.0 million to $3.0 million in Q1 2025 from $981,000 in Q1 2024. Net income improved by $2.0 million to a loss of $261,000 in Q1 2025 from a loss of $2.3 million in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** Increased by $611,000 to $5.2 million in Q1 2025 from $4.6 million in Q1 2024. - **Investing Cash Flow:** Increased usage by $44.4 million to $48.6 million in Q1 2025 from $4.2 million in Q1 2024, primarily due to acquisitions. - **Financing Cash Flow:** Increased by $26.1 million to $31.7 million in Q1 2025 from $5.6 million in Q1 2024, driven by stock issuances and debt repayments. **Earnings Changes:** - **Rental Revenue:** Increased by $866,000 to $11.8 million in Q1 2025 from $11.0 million in Q1 2024. - **Other Revenue:** Increased by $115,000 to $399,000 in Q1 2025 from $284,000 in Q1 2024. - **Property Operating Expenses:** Increased by $125,000 to $1.1 million in Q1 2025 from $982,000 in Q1 2024. - **Management Fees:** Increased by $131,000 to $433,000 in Q1 2025 from $302,000 in Q1 2024. - **General and Administrative Expenses:** Increased by $362,000 to $2.5 million in Q1 2025 from $2.1 million in Q1 2024. - **Depreciation and Amortization:** Decreased by $1.4 million to $5.2 million in Q1 2025 from $6.6 million in Q1 2024. - **Impairment of Investments in Real Estate:** Increased by $311,000 to $753,000 in Q1 2025 from $442,000 in Q1 2024. - **Income from Investments in Real Estate Debt:** New income of $816,000 in Q1 2025. **Quarterly Performance Discussion:** - **Acquisitions:** Acquired 19 vacant homes and two parking garages, and sold five homes. - **Financing:** Raised $45.6 million from stock issuances and repurchased $13.0 million in stock. - **Distributions:** Declared $5.7 million in monthly distributions for Q1 2025. **Trends and Uncertainties:** - **Market Conditions:** High interest rates and reduced financing availability may affect asset values and tenant financial performance. - **Concentration Risk:** Significant rental income concentration with a few tenants, primarily Sevita. - **Liquidity:** Maintains $18.0 million in immediate liquidity and raises capital through stock issuances and debt. **Future Operations Impact:** - **Growth:** Continues to seek acquisition opportunities and manage existing portfolio. - **Risk Management:** Monitors market conditions and tenant financial health to mitigate risks.