Broad Street Realty Reports $5.6 Million Net Loss in Q1 2025 Amid Revenue Growth

Broad Street Realty, Inc. reported a net loss of $5.6 million for the first quarter of 2025, compared to a loss of $1.9 million in the same period of 2024. The company's total revenues increased to $10.6 million, up from $10.1 million year-over-year, driven primarily by a 3% rise in rental income, which reached $9.8 million, and a 41% increase in commissions to $707,000. Despite the revenue growth, the company faced higher operating expenses, which totaled $10.8 million, a slight decrease from $11 million in the previous year, primarily due to lower depreciation and amortization costs.

In terms of operational metrics, Broad Street Realty's portfolio consisted of 15 properties across four states, with a total gross real estate asset value of approximately $375.9 million. The occupancy rate for the total portfolio was reported at 87.9%, down from 89.5% at the end of 2024. The company noted a decline in the leased percentage of its retail properties, which fell to 90.1% from 90.9%. The weighted average remaining lease term for retail properties remained stable at 5.2 years.

Strategically, the company is navigating significant changes following a recent restructuring involving its Fortress Member, which has taken control of the Eagles Sub-Operating Partnership. This shift occurred after the Fortress Member rescinded a temporary waiver related to a yield requirement, resulting in the Fortress Member becoming the managing member of the Eagles Sub-OP. This change has implications for Broad Street Realty's liquidity and operational control, as the Fortress Member now oversees cash accounts and has the authority to dictate financial decisions, including potential property sales to meet financial obligations.

Looking ahead, Broad Street Realty faces challenges regarding its liquidity and debt obligations. The company has three mortgage loans maturing within the next year, totaling approximately $24 million. Management has indicated that it may not have sufficient cash flow to cover these obligations and is exploring options to sell properties to meet its debt requirements. The company has expressed substantial doubt about its ability to continue as a going concern over the next year, emphasizing the need for successful refinancing or property sales to stabilize its financial position.