Thu, May 16, 10:04 AM (71 days ago)
Sculptor Diversified Real Estate Income Trust, Inc. (SDREIT) reported its financial results for the three months ended March 31, 2024. The company’s total assets increased slightly to $582.5 million from $579.0 million as of December 31, 2023. Key performance highlights include a rental revenue increase to $11.0 million from $8.6 million year-over-year, primarily driven by the acquisition of University Courtyard and increased rental rates. Operating income decreased to $0.98 million from $1.5 million due to higher property operating expenses and general administrative costs. Net loss was $2.3 million, showing an improvement from a $2.6 million loss in the prior year. Cash flow from operations was $4.6 million, with significant cash used in investing activities due to new acquisitions and capital expenditures. Financing activities provided $5.6 million, driven by new equity issuances and credit facility drawdowns. The company’s net asset value (NAV) per share was $10.74, reflecting the fair value adjustments of its real estate investments and debt. The company declared $4.1 million in distributions for the quarter, funded entirely by operating cash flows. Future liquidity is supported by $18.0 million in cash and equivalents, and ongoing capital raising efforts. The company’s debt primarily consists of fixed-rate mortgages with a weighted average interest rate of 4.76%. The report highlights potential risks from rising interest rates and inflation but notes protective measures like fixed-rate debt and interest rate caps.