REIT Sector Performance - The REIT sector experienced a decline of -4.03% in October, resulting in a year-to-date return of -4.69% for the average REIT, significantly underperforming the broader market indices such as NASDAQ (+4.7%), Dow Jones (+2.6%), and S&P 500 (+2.3%) [1] - The Vanguard Real Estate ETF (VNQ) had a less severe decline of -2.45% in October but has outperformed year-to-date with a return of +2.98% [1] - The spread between the 2026 FFO multiples of large cap REITs (16x) and small cap REITs (12.7x) widened, indicating that investors are paying 26% more for each dollar of FFO from large cap REITs compared to small cap REITs [1] Property Type Performance - In October, micro cap REITs led the sector with the smallest average decline of -2.81%, followed by mid caps (-3.11%), large caps (-4.45%), and small caps (-5.05%) [3] - 14 out of 18 property types averaged negative returns in October, with only 22.22% of property types achieving a positive total return [5] - Office properties had the worst performance at -12.74%, while Hotels (+3.82%) and Data Centers (+2.53%) were the best performers [5][6] Year-to-Date Performance - Year-to-date through October 2025, Office properties (-16.87%), Single Family Housing (-14.94%), and Land (-14.91%) have underperformed, while Health Care (+19.74%) has significantly outperformed [7] - The average P/FFO for the REIT sector declined from 14.1x to 13.5x during October, with 22.2% of property types experiencing multiple expansion [8] Individual Securities - Sotherly Hotels (SOHO) saw a significant increase of +165.00% on October 27th due to an acquisition announcement, with shareholders set to receive $2.25/share, a 152.7% premium [10] - Office Properties Income Trust (OPI) faced a dramatic decline of -88.76% ahead of its delisting and subsequently filed for Chapter 11 bankruptcy, with a year-to-date return of -96.15% [11] Dividend Yield - High dividend yields are a key attraction for investors in the REIT sector, with many REITs trading below their NAV, leading to attractive yields despite potential risks [15]

Hotel Portfolio and Operations - The hotel portfolio consists of 10 full-service hotels with a total of 2,786 rooms, and interests in two condominium hotels, bringing the total to 2,906 rooms[200][201]. - The Company operates under well-known brands such as DoubleTree by Hilton and Hyatt Centric, focusing on upscale to upper-upscale hotels[199][200]. - The Company has a 99.9% interest in its Operating Partnership, which conducts substantially all business operations[202]. - The Company’s hotel properties are leased to MHI TRS Entities, which engage independent hotel management companies for operations[203]. Financial Performance - Total revenue for the three months ended September 30, 2025, decreased by approximately $2.7 million, or 6.6%, to approximately $38.0 million compared to $40.7 million for the same period in 2024[213]. - Rooms revenue decreased approximately $2.0 million, or 7.3%, to approximately $25.2 million for the three months ended September 30, 2025, compared to $27.2 million for the same period in 2024[214]. - RevPAR decreased 7.3% from $105.98 in 2024 to $98.23 in 2025, driven by a 5.9% decrease in occupancy and a 1.5% decrease in ADR[214]. - Total revenue for the nine months ended September 30, 2025, decreased by approximately $2.8 million, or 2.0%, to approximately $135.1 million compared to $137.9 million for the same period in 2024[226]. - Rooms revenue decreased approximately $2.5 million, or 2.7%, to approximately $89.0 million for the nine months ended September 30, 2025, compared to $91.5 million for the same period in 2024[227]. - Hotel operating expenses decreased approximately $0.3 million, or 0.3%, to approximately $101.5 million for the nine months ended September 30, 2025, compared to $101.8 million for the same period in 2024[232]. - Corporate general and administrative expenses for the nine months ended September 30, 2025, increased approximately $0.6 million, or 12.2%, to approximately $5.6 million compared to $5.0 million for the same period in 2024[237]. - Interest expense for the nine months ended September 30, 2025, increased approximately $1.3 million, or 8.4%, to approximately $16.5 million compared to $15.2 million for the same period in 2024[238]. - The company realized a net loss of approximately $5.6 million for the three months ended September 30, 2025, compared to a net loss of approximately $3.7 million for the same period in 2024[225]. - The company reported a net income of approximately $0.7 million for the nine months ended September 30, 2025, compared to a net income of approximately $2.3 million for the same period in 2024[241]. - For the three months ended September 30, 2025, the net loss was $5,558,390 compared to a net loss of $3,689,621 for the same period in 2024[246]. - FFO attributable to common stockholders and unitholders for the nine months ended September 30, 2025, was $5,628,195, down from $10,445,891 in 2024, representing a decrease of approximately 46%[246]. - Adjusted FFO attributable to common stockholders and unitholders for the nine months ended September 30, 2025, was $7,294,408, compared to $12,335,590 in 2024, indicating a decline of about 41%[246]. - Hotel EBITDA for the nine months ended September 30, 2025, was $33,601,663, down from $36,145,082 in 2024, reflecting a decrease of approximately 7%[249]. Cash Flow and Capital Expenditures - The company had approximately $9.4 million of unrestricted cash and $20.2 million of restricted cash as of September 30, 2025[250]. - Cash used in investing activities for the nine months ended September 30, 2025, was approximately $7.5 million, primarily for capital expenditures of $11.5 million related to hotel improvements[252]. - The company received gross proceeds of $42.0 million from refinancing the mortgage on The DeSoto in Savannah, Georgia during the nine months ended September 30, 2025[253]. - Total capital expenditures for 2025 are expected to be approximately $7.3 million, maintaining a target of 4.0% of gross revenue[255]. - The company expects total capital expenditures of approximately $11.5 million for renovations in Philadelphia, Pennsylvania, and $14.6 million for renovations in Jacksonville, Florida, as conditions for franchise license renewals[258][259]. - Net cash flow provided by operating activities for the nine months ended September 30, 2025, was approximately $9.8 million, primarily from hotel operations[251]. - As of September 30, 2025, total cash and cash equivalents were approximately $9.4 million, with restricted cash of approximately $20.2 million[260]. Debt and Financing - Mortgages maturing in 2025 total approximately $87.3 million, and those maturing in 2026 total approximately $68.4 million, which cannot be repaid from working capital[260]. - A $35.0 million mortgage was secured on Hotel Alba with an interest rate of 8.49%, maturing on March 6, 2029, used partially to repay the existing mortgage[261]. - A $26.25 million mortgage was secured on DoubleTree by Hilton Jacksonville Riverfront, maturing on July 8, 2029, with an additional $9.49 million available for product improvement[264]. - As of September 30, 2025, cumulative unpaid dividends on outstanding preferred shares amount to approximately $21.9 million[282]. - The company is in compliance with all debt covenants except for a payment default on the Georgian Terrace mortgage and a covenant default on the DoubleTree by Hilton Jacksonville Riverfront[268]. - A merger agreement was entered into on October 24, 2025, which is expected to extinguish several mortgages, enhancing liquidity[269]. - Approximately $247.5 million of fixed-rate debt was reported, with a weighted-average interest rate of 5.80%[292]. - A one percent increase in SOFR and the Prime Rate would impact annual interest incurred and cash flows by approximately $0.4 million[292]. - The company intends to continue investing in hotel properties as opportunities arise, although access to capital may be limited due to upcoming maturities[270]. Market Outlook and Risks - The outlook for the U.S. lodging market indicates potential near-term deceleration in demand for hotel rooms, which may affect profitability[204]. - The Company has faced risks related to the Merger, including uncertainties in securing stockholder approval and potential disruptions to current operations[194][197]. - The Company’s financial performance may be affected by national and local economic conditions, competition, and operational costs in the hotel industry[197]. - Key performance indicators in the hotel industry include RevPAR, which is influenced by occupancy and average daily rate (ADR) changes, impacting overall revenues and profitability[210].

Core Viewpoint - Class Action Attorney Juan Monteverde and his firm, Monteverde & Associates PC, are investigating Sotherly Hotels Inc. regarding its proposed sale to KW Kingfisher LLC, where shareholders would receive $2.25 per share in cash, raising questions about the fairness of the deal [1]. Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has a successful track record in recovering millions for shareholders [1]. - The firm is headquartered in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Group 2: Investigation Details - The investigation focuses on the sale of Sotherly Hotels Inc. (NASDAQ: SOHO) to KW Kingfisher LLC, specifically evaluating whether the cash offer of $2.25 per share is fair for shareholders [1]. - The firm encourages shareholders with concerns to reach out for additional information at no cost [2].

Oct 27, 2025 5:02 PM Eastern Daylight TimeSOHO Stock Alert: Halper Sadeh LLC Is Investigating Whether the Sale of Sotherly Hotels Inc. Is Fair to ShareholdersShareShareholders should contact the firm immediately as there may be limited time to enforce your rights.NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of Sotherly Hotels Inc. (NASDAQ: SOHO) to KW Kingfisher LLC for $2.25 per share in cash is fair to Sotherly shareholders.Halper Sadeh encour ...

Core Points - Sotherly Hotels Inc. has announced the deferral of dividend payments for its Series B, C, and D Cumulative Redeemable Perpetual Preferred Stock, originally scheduled for November 20, 2025, affecting shareholders of record as of October 31, 2025 [1] - The company is also suspending future preferred stock dividends, and the record date for the affected series has been cancelled [1] Company Overview - Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on acquiring, renovating, and repositioning upscale to upper-upscale full-service hotels primarily in the Southern United States, with opportunistic acquisitions throughout the country [2] - The company's portfolio includes ten hotel properties with a total of 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs [2] - Sotherly Hotels operates hotels under brands such as Hilton Worldwide and Hyatt Hotels Corporation, in addition to independent hotels [2] - The company was established in 2004 and is headquartered in Williamsburg, Virginia [2]

NEW YORK, Oct. 27, 2025 (GLOBE NEWSWIRE) -- Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of Sotherly Hotels Inc. (NASDAQ: SOHO) to KW Kingfisher LLC for $2.25 per share in cash is fair to Sotherly shareholders. Halper Sadeh encourages Sotherly shareholders to click here to learn more about their legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or sadeh@halpersadeh.com or zhalper@halpersadeh.com. The investigation concerns whether Sother ...

Core Viewpoint - Sotherly Hotels Inc. has entered into a definitive merger agreement with a joint venture led by Kemmons Wilson Hospitality Partners, which will acquire all outstanding shares of Sotherly common stock for $2.25 per share in cash, representing a significant premium to the current share price [1][2]. Summary by Sections Merger Agreement - The merger consideration of $2.25 per share represents a premium of 152.7% over Sotherly's closing share price on October 24, 2025, and a 126.4% premium to the volume-weighted average share price over the previous 30 days [2]. - The merger agreement has been unanimously approved by Sotherly's board of directors following a recommendation from a special committee of independent directors [2]. Management Statements - Andrew Sims, Chairman of the Board, emphasized that this transaction provides stockholders with a significant premium and is the highest premium paid for a public, exchange-traded REIT in the past five years [3]. - David Folsom, CEO, noted that the transaction reflects the high-quality portfolio built by Sotherly over the past 20 years and is expected to lead to future success for the hotels [3]. - Webb Wilson from KWHP highlighted Sotherly's distinctive portfolio of hotels and the additional resources that KWHP will bring to ensure continued success [3]. Preferred Stock - Holders of Sotherly's preferred stock will be entitled to receive the merger consideration if they elect to convert their shares into common stock after the merger closes [4]. Closing Timeline - The merger is expected to close in the first quarter of 2026, pending approval from Sotherly stockholders and customary closing conditions [5]. Financial Advisors - Piper Sandler & Co. is serving as the exclusive financial advisor to the Special Committee, while Frost Brown Todd LLP is the legal advisor [8].

Core Viewpoint - Sotherly Hotels Inc. is set to report its financial results for the third quarter of 2025 on November 13, 2025, before the market opens, followed by a conference call for discussion of the results [1] Company Overview - Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on acquiring, renovating, upbranding, and repositioning upscale to upper-upscale full-service hotels primarily in the Southern United States [3] - The company's portfolio includes investments in ten hotel properties, totaling 2,786 rooms, along with interests in two condominium hotels and their associated rental programs [3] - Sotherly Hotels operates hotels under brands such as Hilton Worldwide and Hyatt Hotels Corporation, as well as independent hotels [3] - The company was established in 2004 and is headquartered in Williamsburg, Virginia [3]

Core Viewpoint - Sotherly Hotels (NASDAQ:SOHO) stock experienced a surge following the announcement of a $42 million secured loan with Citi Real Estate Funding [1] Group 1: Loan Details - The loan amount is $42 million [1] - It is secured by a first mortgage on the DeSoto Hotel located in Savannah, Georgia [1] Group 2: Market Reaction - Following the loan announcement, shares of Sotherly Hotels saw a significant increase [1]

Core Viewpoint - Sotherly Hotels Inc. has successfully executed a $42.0 million secured loan to refinance the DeSoto Hotel, marking a significant step in its repositioning strategy that began in 2017 [1][2] Group 1: Loan Details - The secured loan amounts to $42.0 million, collateralized by a first mortgage on the DeSoto Hotel in Savannah, Georgia [1] - The loan is interest-only, with a fixed interest rate of 7.13%, maturing on October 6, 2030 [1] - Proceeds from the loan were utilized to repay the existing first mortgage and for general corporate purposes [1] Group 2: Company Overview - Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on acquiring, renovating, and repositioning upscale to upper-upscale full-service hotels in the Southern United States [2] - The company's portfolio includes ten hotel properties with a total of 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs [2] - The company operates hotels under brands such as Hilton Worldwide and Hyatt Hotels Corporation, in addition to independent hotels [2]