10-Q - Lodging Fund REIT III, Inc. (0001745032) (Filer)

Fri, Aug 23, 5:07 PM (150 days ago)

For the quarter ending March 31, 2023, Lodging Fund REIT III, Inc. reported revenues of $16,228,230, significantly up from $9,295,803 in Q1 2022, primarily driven by a 73% increase in room revenue. However, the company experienced a net loss of $3,926,174, slightly worsening from a loss of $3,500,435 in the prior year. Operating expenses rose to $16,725,263, reflecting increased property operations and management fees due to the acquisition of additional hotel properties. As of March 31, 2023, total assets amounted to $310,980,653, with liabilities at $227,491,940, resulting in a debt-to-equity ratio of approximately 2.84. Cash flow from operations turned positive at $255,083, contrasting with a cash outflow of $3,245,454 in Q1 2022. The company continues to face challenges, including high interest expenses of $3,512,934, and uncertainties related to economic conditions affecting travel demand. Looking ahead, the REIT aims to strengthen its portfolio through strategic acquisitions while managing its debt levels, as it positions itself for potential sale or merger opportunities by 2025.