Wed, Aug 14, 6:29 PM (153 days ago)
Summit Healthcare REIT, Inc. reported a significant decline in financial performance for the second quarter of 2024 compared to the same period in 2023. Total rental revenues decreased to $1,995,000 from $5,380,000, primarily due to the derecognition of eight properties in March 2024. The company recorded a net income of $479,000, a turnaround from a loss of $1,662,000 in the prior year, largely driven by a gain of approximately $3.3 million associated with the derecognition of GA8 Properties. As of June 30, 2024, the company’s total assets increased to $204,123,000, mainly from contract assets related to the GA8 Properties. However, liabilities remained high at $190,249,000, with significant loans payable tied to these properties. Cash flow from operations was negative at $235,000, contrasting with $714,000 in the previous year. The current economic climate, characterized by rising interest rates and inflation, has heightened operational challenges, affecting cash flow and investment strategies. The company plans to address short-term loan maturities through potential refinancing or asset sales. Overall, while there are signs of recovery, uncertainties remain regarding future operations and market conditions.