Lightstone Value Plus REIT I Reports $8.1 Million Net Loss for Q1 2025

Lightstone Value Plus REIT I, Inc. reported a net loss of $8.1 million for the three months ended March 31, 2025, compared to a net loss of $4.2 million for the same period in 2024. The company's total revenues decreased slightly to $12.4 million from $12.6 million year-over-year, primarily due to a decline in hotel revenues, which fell to $9.5 million from $10.0 million. Rental revenues, however, increased to $2.8 million from $2.6 million, reflecting higher average monthly rents at Gantry Park Landing, a multifamily property owned by the company.

The financial performance of Lightstone REIT showed significant changes compared to the previous fiscal period. Total expenses rose marginally to $12.4 million from $12.4 million, with increases in property operating expenses and general administrative costs. Interest expense also saw a slight uptick, totaling $6.6 million, influenced by market interest rates and the company's financing activities. The company recorded an unrealized loss on marketable equity securities of $1.2 million during the quarter, contrasting with a gain of $3.1 million in the prior year.

Strategically, Lightstone REIT has been focusing on its development projects, including the Exterior Street Project and the Santa Monica Project. The company has paused active development on the Exterior Street Project due to unfavorable market conditions and has classified it as held for sale, with an expected sale price of $84 million. The Santa Monica Project, which faced financial difficulties, is also under review for potential sale or transfer of ownership to the lender following a default on its loan.

Operationally, the company reported a slight increase in occupancy rates at its Lower East Side Moxy Hotel, which reached 87% compared to 83% in the previous year. The hotel also experienced an increase in revenue per available room (RevPAR) to $178.56 from $159.09. As of March 31, 2025, Lightstone REIT had total assets of $438.1 million, down from $447.5 million at the end of 2024, with cash and cash equivalents totaling $26.7 million.

Looking ahead, Lightstone REIT's management expressed cautious optimism regarding its liquidity and capital resources, indicating that current cash reserves, marketable securities, and expected revenues should be sufficient to meet operational needs for at least the next 12 months. However, the company remains vigilant about market conditions and potential impacts on its financial performance, particularly concerning its development projects and overall economic factors.