Fri, Sep 20, 9:15 PM (91 days ago)
Belpointe PREP, LLC's Q1 2024 results indicate significant challenges, with a net loss of $3.981 million, worsening from a $2.810 million loss in Q1 2023. Revenue fell 32% to $337,000, primarily due to decreased rental income. Total expenses rose 34% to $4.433 million, driven by increased property and interest expenses, including a new $721,000 interest charge. Cash flow analysis revealed a net cash outflow of $6.628 million from operations and $37.865 million from investing activities, offset by $63.084 million from financing, largely from new loans. The company's total assets increased to $450.9 million, supported by real estate under construction worth $337.7 million. However, high leverage remains a concern, with total liabilities rising to $129.1 million. The company faces uncertainties from market conditions, interest rate fluctuations, and construction delays, impacting future operations and profitability. Overall, while cash reserves increased to $42.2 million, the financial outlook remains cautious amid ongoing operational and market challenges.