Financial Data and Key Metrics Changes - For the second quarter, total revenue was approximately $48.8 million, representing a decrease of 3.7% compared to the same quarter in 2024 [15] - Year-to-date total revenue was approximately $97.1 million, reflecting a decrease of 0.1% from the same period last year [16] - Hotel EBITDA for the quarter was approximately $13.9 million, a decrease of 11.5% from the same quarter in 2024 [16] - Year-to-date hotel EBITDA was approximately $26.8 million, representing a decrease of 4.4% over the same period last year [16] - Adjusted FFO for the quarter was approximately $4.8 million, a decrease of approximately $2.7 million from the same quarter in 2024 [16] - Year-to-date adjusted FFO was approximately $9.3 million, a decrease of $3.4 million from the same period last year [16] Business Line Data and Key Metrics Changes - Composite portfolio RevPAR decreased by 5.4% driven by a 3.5% decrease in occupancy and a 1.9% decrease in ADR [6] - Stripping out Tampa, the composite portfolio RevPAR decreased by 5% compared to the prior year, driven by a 2.3% decrease in occupancy and a 2.8% decrease in ADR [6] - Hotel Ballast in Wilmington posted a RevPAR increase of 1.3% year over year, driven by a 2.7% gain in average rate [10] - The Hyde Beach House delivered a RevPAR increase of 12.7%, driven by an 18.5% gain in occupancy [12] Market Data and Key Metrics Changes - Savannah saw an outsized impact during the quarter with RevPAR down nearly 10% year over year [23] - Group booking pace for the remainder of the year remains intact with only minor reductions compared to 2024 [21] - In Arlington, second quarter group revenue increased by 42% over the prior year [24] Company Strategy and Development Direction - The company remains focused on disciplined cost management and targeted revenue strategies to navigate the challenging operating environment [9] - The company is proactively managing upcoming debt maturities and is confident in its ability to work constructively with lending partners [14] - The company anticipates full year 2025 RevPAR for the actual portfolio to be approximately flat compared to last year [28] Management's Comments on Operating Environment and Future Outlook - Management noted that the portfolio underperformed expectations due to growing economic uncertainty and softening demand [7] - There is confidence in the long-term fundamentals of the Savannah market, expecting performance to recover as macro pressures ease [23] - Management expressed cautious optimism about the overall trajectory of the lodging industry despite elevated interest rates and persistent inflationary pressures [27] Other Important Information - The company had total cash of approximately $26.5 million as of June 30, 2025, with $10.5 million in unrestricted cash [18] - The company anticipates routine capital expenditures for the replacement and refurbishment of furniture fixtures and equipment to amount to approximately $7.1 million for calendar year 2025 [19] Q&A Session Summary Question: Why was Savannah the hardest hit hotel in the quarter? - Management clarified that Savannah had significant negative impacts due to a decline in transient travel and a surprising amount of government business affected by funding cuts [34][36] Question: What percentage of the portfolio is government-related business? - Management indicated that government-related business is likely in the high single digits, with some group bookings indirectly tied to government funding [38][40] Question: Does the guidance reduction reflect further government-related pullback? - Management stated that the guidance reflects the most recent forecast for the entire year based on current trends [42] Question: Are there plans for other asset sales? - Management confirmed that they are always looking at options for asset sales, including parking lots or other tangential assets [48] Question: Why is the mortgage market for hotels still challenged? - Management explained that lenders are cautious due to high debt yields and tougher debt service coverage ratios compared to pre-pandemic levels [50][52]

Core Viewpoint - Sotherly Hotels Inc. reported a decline in financial performance for the second quarter of 2025, with decreases in total revenues, net income, and key operating metrics such as RevPAR and EBITDA, reflecting broader macroeconomic challenges impacting hotel demand [1][3][5]. Financial Performance - Total revenues for Q2 2025 were approximately $48.8 million, down from $50.7 million in Q2 2024 [2][7]. - Net income attributable to common stockholders decreased from approximately $2.6 million in Q2 2024 to a loss of approximately $0.4 million in Q2 2025 [7]. - EBITDA for Q2 2025 was approximately $12.0 million, compared to $14.3 million in Q2 2024 [7]. Key Operating Metrics - RevPAR for the composite portfolio decreased by 5.4% to $130.20 in Q2 2025 from $137.67 in Q2 2024, driven by a 3.5% decrease in occupancy and a 1.9% decrease in average daily rate (ADR) [2][22]. - Occupancy rates for the composite portfolio were 70.8% in Q2 2025, down from 73.4% in Q2 2024 [22]. - ADR decreased to $183.88 in Q2 2025 from $187.51 in Q2 2024 [22]. Balance Sheet and Liquidity - As of June 30, 2025, the company had approximately $26.5 million in available cash, with $16.0 million reserved for various expenses [5]. - The company had outstanding debt of approximately $315.8 million at a weighted average interest rate of 5.89% [5]. Strategic Initiatives - The company is working on extending certain mortgages and refinancing hotels with significant equity to improve liquidity [4][5]. - A prospective sale of a parking garage in Atlanta for $17.75 million is expected to close in Q4 2025, which will provide additional liquidity [6][8]. Outlook - The company updated its 2025 guidance, projecting total revenues between $185.2 million and $188.2 million, with a net loss attributable to common stockholders ranging from $9.2 million to $8.6 million [9]. - The company remains cautious about demand in the lodging market, citing macroeconomic factors as potential catalysts for future improvement [5].

Financial Performance - Total revenue increased by 09% to $1350 million[3] - Adjusted EBITDA decreased by 24% to $326 million[3] - Adjusted EBITDA margin decreased by 90 bps to 241%[3] - AFFO increased 551% to $211 million[3] - AFFO per share increased 80% to $081[3] - GAAP net loss of $(7) million, or $(003) per diluted common share[3] Guidance - Full-year 2025 adjusted EBITDA is now expected to be $129 to $134 billion, revised down from the prior guidance of $135 to $140 billion[5] - Adjusted FFO per share for full-year 2025 is expected to be $320 to $340, revised down from the prior guidance of $340 to $360[5] - Third-quarter 2025 adjusted EBITDA is expected to be $326 to $336 million[5] - Third-quarter 2025 AFFO per share is expected to be $075 to $079[5]

Company Overview - Armada Hoffler (AHH) is a vertically integrated REIT focused on developing, building, acquiring, and managing retail, office, and multifamily properties primarily in the Mid-Atlantic and Southeastern US[3] - The company's weighted average stabilized portfolio occupancy was 949% as of June 30, 2025[6] Financial Performance (Q2 2025) - Second Quarter Normalized FFO per diluted share was $025[6] - Net income attributable to AHH and OP Unitholders was $3907 thousand, or $004 per diluted share[11] - Total revenues reached $101263 thousand, with rental revenues contributing $65147 thousand and general contracting and real estate services revenues at $31976 thousand[13] 2025 Outlook - The company projects a property portfolio NOI between $1736 million and $1760 million[8] - Construction segment profit is expected to be between $50 million and $70 million[8] - Normalized FFO per diluted share is projected to be between $100 and $110[8] Debt and Leverage - Total debt outstanding as of June 30, 2025, was $1448237 thousand[11] - The company's stabilized portfolio debt to stabilized portfolio adjusted EBITDAre was 52x[11] - As of June 30, 2025, 938% of the company's debt was fixed-rate, with a weighted average interest rate of 44%[30, 31, 38]

Core Viewpoint - Sotherly Hotels Inc. reported strong financial results for Q1 2025, with significant increases in net income and total revenues compared to the same period in 2024, despite some challenges in the hotel industry. Financial Performance - Total revenues for Q1 2025 were approximately $48.3 million, up from approximately $46.5 million in Q1 2024, representing a growth of 3.8% [2][3] - Net income attributable to common stockholders increased from a loss of approximately $0.7 million in Q1 2024 to income of approximately $2.7 million in Q1 2025, a change of about $3.4 million [2][3] - EBITDA for Q1 2025 was approximately $15.0 million, compared to approximately $10.8 million in Q1 2024, marking a significant increase [2][3] Key Operating Metrics - RevPAR for the composite portfolio increased by 5.0% to $129.74 in Q1 2025 from $123.59 in Q1 2024, driven by a 3.9% increase in occupancy to 68.8% [2][3] - Hotel EBITDA rose to approximately $12.9 million in Q1 2025, up from approximately $12.4 million in Q1 2024, reflecting a 4.5% increase [2][3] Balance Sheet and Liquidity - As of March 31, 2025, the company had approximately $32.8 million in available cash, with $21.3 million reserved for various expenses [5] - The company had outstanding debt of approximately $317.6 million at a weighted average interest rate of 5.88% [5] 2025 Outlook - The company provided guidance for 2025, projecting total revenues between $183.4 million and $188.2 million, with a net loss attributable to common stockholders ranging from $8.7 million to $7.8 million [6] - The guidance reflects macroeconomic uncertainties and potential volatility in hotel demand [6] Preferred Dividends - The company announced quarterly cash dividends for its preferred stock series, with payments scheduled for June 16, 2025 [3]

Core Insights - AMH reported a strong first quarter for 2025, with Core FFO per share increasing by 6.6% year-over-year to $0.46, reflecting confidence in industry fundamentals despite economic uncertainty [3][10] - The company achieved a net income of $110.0 million, or $0.30 per diluted share, for the first quarter of 2025, slightly up from $109.3 million in the same period last year [4][8] - Rents and other single-family property revenues rose by 8.4% to $459.3 million, driven by an increase in the average occupied portfolio and higher rental rates [5][8] Financial Performance - Core NOI from the total portfolio increased by 8.9% to $258.8 million, supported by an 8.0% rise in core revenues [6][10] - For the Same-Home portfolio, core revenues grew by 4.3% to $357.8 million, with a 4.5% increase in Average Monthly Realized Rent per property [7][9] - The company achieved a Same-Home Average Occupied Days Percentage of 95.9% in Q1 2025, with blended rate growth of 3.6% [8][9] Portfolio and Investments - As of March 31, 2025, AMH owned 60,700 single-family properties, an increase from 60,531 homes at the end of 2024, including 545 newly constructed homes delivered through the AMH Development Program [12][21] - The company has a total of 661 properties held for sale and 3,487 properties in unconsolidated joint ventures [12] Capital Activities and Balance Sheet - AMH paid off approximately $493.2 million on its asset-backed securitization during Q1 2025 [13] - As of March 31, 2025, the company had cash and cash equivalents of $69.7 million and total outstanding debt of $5.0 billion, with a weighted-average interest rate of 4.5% [14] Guidance for 2025 - The company expects full-year 2025 Core FFO attributable to common share and unit holders to be in the range of $1.80 to $1.86, representing growth of 1.7% to 5.1% [16] - Core revenues growth for Same-Home properties is projected between 2.50% and 4.50%, with core property operating expenses growth expected between 3.00% and 5.00% [17]