Caliber(US:CWD)2025-05-15 21:17Financial Performance - Total revenues for the three months ended March 31, 2025, were $7.3 million, a decrease of 68.4% compared to $23.0 million in 2024, primarily due to the deconsolidation of Caliber Hospitality Trust and related entities[241]. - Total expenses for the same period were $9.9 million, down 63.9% from $27.3 million in 2024, mainly due to reduced consolidated fund expenses following deconsolidation[242]. - Unconsolidated Platform revenues decreased to $3.5 million in Q1 2025 from $4.7 million in Q1 2024, representing a 24.9% decline[244]. - For the three months ended March 31, 2025, CaliberCos Inc. reported a net loss attributable to the company of $4.407 million, compared to a net loss of $3.805 million in the same period of 2024, representing an increase in loss of approximately 15.8%[278]. - Total revenues for the three months ended March 31, 2025, were $7.261 million, a decrease from $22.951 million in the same period of 2024, indicating a decline of approximately 68.4%[279][280]. - Operating costs for the three months ended March 31, 2025, were $4.044 million, down from $5.262 million in 2024, reflecting a reduction of about 23.1%[279][280]. Assets and Liabilities - Total assets as of March 31, 2025, were $55.725 million, down from $57.077 million as of December 31, 2024[252]. - Total liabilities increased to $67.089 million as of March 31, 2025, compared to $65.521 million at the end of 2024[252]. - The stockholders' deficit equity was $(11.364) million as of March 31, 2025, worsening from $(8.444) million at the end of 2024[252]. - The company had a portfolio of 196 unsecured notes with an aggregate principal balance of $33.2 million as of March 31, 2025, with $26.1 million maturing within the next 12 months[281]. - As of March 31, 2025, fixed-rate debt had a fair value of $58.1 million and a carrying value of $62.6 million[321]. Investment and Development - Caliber has over $2.9 billion in assets under management (AUM) and assets under development (AUD) as of March 31, 2025[220]. - The company is actively developing 1,776 multifamily units, 697 single-family units, and 3.7 million square feet of commercial and industrial space, with a total estimated project cost of $2.1 billion[221]. - The company estimates it could earn up to $87.7 million in performance allocations if all AUD projects are completed and sold[221]. - Caliber's investment strategy focuses on middle-market projects valued between $5.0 million and $50.0 million, leveraging local market intelligence[222]. - The company anticipates that recent legislative changes will significantly expand its potential investor base, although the exact impact remains uncertain[230]. - The company raised $2.99 million in originations during the first quarter of 2025, contributing to the overall managed capital growth[258]. - The residential investment funds saw an increase of $1.9 million in managed capital, driven by $1.1 million in capital raised and $1.0 million from diversified funds[261]. - The commercial investment funds experienced a $1.3 million increase in managed capital, with $0.6 million raised and $0.8 million contributed by diversified funds[262]. - The total real estate FV AUM as of March 31, 2025, was $752.7 million, compared to $716.6 million as of December 31, 2024, reflecting a growth of 5.0%[265]. Interest and Financing - Interest expense rose to $1.6 million in Q1 2025 from $1.3 million in Q1 2024, driven by an increase in short-term operating loans[249]. - The company incurred interest expense of $1.611 million for the three months ended March 31, 2025, compared to $1.294 million in the same period of 2024, representing an increase of approximately 24.5%[290]. - A 100 basis point increase in variable interest rates on variable-rate debt would increase annual interest expense by $0.2 million[322]. - Management plans to raise $20.0 million through preferred stock series AA financing to address the maturity of corporate notes[284]. - Year to date through May 13, 2025, the company has successfully refinanced $2.8 million of 12-month term corporate notes into a new 36-month term corporate note program[285]. Market Conditions - The annual inflation rate in the U.S. decreased to 2.4% in March 2025, following a peak of 9.1% in June 2022, impacting investment behaviors[236]. - The Federal Reserve increased the federal funds rate by 525 basis points from January 1, 2022, to September 18, 2024, before decreasing it by 100 basis points by March 31, 2025[236]. - Increased costs of construction materials and labor due to inflation are affecting project execution and overall revenue generation[236]. Cash Flow - Net cash used in operating activities for the three months ended March 31, 2025, was $(1.738) million, compared to $(1.527) million in 2024, indicating an increase in cash outflow of about 13.8%[291]. - The company reported a net change in cash and cash equivalents of $(537) thousand for the three months ended March 31, 2025, an improvement from $(12.306) million in the same period of 2024[292]. - Net cash flows used in operating activities increased during the three months ended March 31, 2025, primarily due to increased interest payments related to corporate notes and short-term loans[293]. - Net cash flows used in investing activities remained relatively constant during the three months ended March 31, 2025, with changes primarily due to the deconsolidation of VIEs and a decrease in investment in real estate assets[294]. - Net cash flows provided by financing activities increased by $2.7 million during the three months ended March 31, 2025, compared to the same period in 2024[295]. Revenue Recognition - Hospitality revenues are recognized as earned when a guest occupies a room or utilizes hotel services, with revenues recorded net of sales tax[312]. - Consolidated funds generated rental revenue of $0.1 million for the three months ended March 31, 2025, compared to $0.4 million for the same period in 2024[316]. - Interest income for the three months ended March 31, 2025, was $0, down from $1.0 million for the same period in 2024[317]. Risk Management - The company diversifies investments across multiple asset types and geographic locations to mitigate credit risk[323]. - The company maintains financing relationships with a diversified mix of lenders, including large national banks and private equity lenders[324].