Wed, Nov 13, 6:50 PM (30 days ago)
For the quarter ended September 30, 2024, Portsmouth Square, Inc. (ticker: PSQ) reported a net loss of $1,872,000, an increase from the $1,560,000 loss in the same quarter of 2023. Revenue from hotel operations rose to $11,820,000, up from $11,093,000, driven by increased room and food and beverage sales. Operating expenses decreased, but higher mortgage interest expenses due to a 4% default rate contributed to the net loss. Total assets increased to $42,838,000, primarily from cash and cash equivalents, which rose to $4,839,000. Liabilities totaled $159,720,000, with significant related party notes payable and mortgage obligations. The company entered forbearance agreements to extend the maturity of its loans to January 1, 2025, amid ongoing refinancing efforts. The hotel achieved a RevPAR index of 145%, marking a 5.7% year-over-year increase, benefitting from recent renovations. However, uncertainties remain regarding the economic recovery in San Francisco, impacting future operations and cash flows. The company’s accumulated deficit reached $118,974,000, raising concerns about its ability to continue as a going concern.