The company's financial position appears increasingly precarious as the debt-to-equity ratio climbed to 10.27 in 2025Q3, up from 5.89 in 2023Q2, signaling an intensifying reliance on debt financing.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Total Assets | 411.38M | 414.38M | 393.44M | 406.57M | 436.05M | 473.03M | 487.23M | 493.48M | 409.95M | 406.02M | 393.06M | 302.97M | 228.65M | 204.03M | 209.3M | 209.58M | 213.96M | 211.22M | 159.96M | 127.6M | 118.39M | 94.23M | 30.76M |
| Asset Growth % | 10.11% | 5.32% | -3.23% | -6.76% | -7.82% | -2.91% | -1.27% | 20.38% | 0.97% | 3.3% | 29.74% | 32.5% | 12.07% | -2.52% | -0.14% | -2.05% | 1.3% | 32.05% | 25.36% | 7.79% | 25.63% | 206.37% | - |
| Real Estate & Other Assets | 369.12M | 372.38M | 0 | 365.07M | 375.89M | 427.82M | 5.41M | 435.73M | 5.45M | 6.95M | 4.09M | 268.69M | 206.47M | 178.35M | 3.28M | 872.41K | 0 | 3.17M | -3.7B | -111.42M | -105.99M | -78.42M | 285.24K |
| PP&E (Net) | 0 | 0 | 356.17M | 0 | 0 | 0 | 443.27M | 2.47M | 357.8M | 348.59M | 354.96M | 260.19M | 240.2K | 480.39K | 181.47M | 183.9M | 188.59M | 187.4M | 140.67M | 111.42M | 105.99M | 78.42M | 27.53M |
| Investment Securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1000K | -1000K | -1000K | 0 | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 | 0 | 0 | 412.28K |
| Total Current Assets | 42.26M | 42M | 37.27M | 41.5M | 60.17M | 45.21M | 38.55M | 50.16M | 46.7M | 50.48M | 28.62M | 28.88M | 16.94M | 13.43M | 15.59M | 15.35M | 15.69M | 10.4M | 3.71B | 5.57B | 4.56B | 11.08M | 2.53M |
| Cash & Equivalents | 9.43M | 7.33M | 17.1M | 21.92M | 13.17M | 25.3M | 23.74M | 33.79M | 29.78M | 31.77M | 11.49M | 16.63M | 9.38M | 7.18M | 4.41M | 2.99M | 3.49M | 1.72M | 3.99M | 1.45M | 501.81K | 8.31M | 67.36K |
| Receivables | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Other Current Assets | 20.19M | 21.38M | 14.22M | 5.42M | 35.28M | 10M | 9.89M | 9.34M | 10.94M | 14.58M | 12.83M | 9.96M | 6.06M | 3.08M | 0 | 6.95M | 5.62M | 6.88M | 1.75M | 0 | 4.56B | 1.2M | 728.45K |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 240.2K | 480.39K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 374.63M | 372.78M | 345.54M | 355.05M | 419.55M | 428.83M | 385.82M | 411.22M | 315.78M | 324.68M | 340.2M | 271.68M | 196.87M | 166.7M | 165.42M | 158.78M | 160.12M | 157.44M | 100.08M | 64.58M | 53.36M | 33.37M | 33.45M |
| Total Debt | 377.49M | 340.38M | 322.95M | 323.03M | 377.91M | 397.68M | 358.63M | 388.72M | 297.32M | 307.02M | 324.88M | 258.19M | 187.96M | 139.7M | 128.97M | 151.88M | 148.26M | 145.44M | 89.39M | 56.84M | 46.19M | 27.75M | 30.09M |
| Net Debt | 368.06M | 333.05M | 305.84M | 301.11M | 364.74M | 372.38M | 334.9M | 354.93M | 267.54M | 275.25M | 313.38M | 241.56M | 178.59M | 132.52M | 124.56M | 148.89M | 144.77M | 143.72M | 85.4M | 55.39M | 45.69M | 19.44M | 30.02M |
| Long-Term Debt | 320.56M | 317.17M | 307.53M | 323.03M | 377.91M | 386.96M | 358.63M | 388.72M | 297.32M | 307.02M | 320.79M | 258.19M | 187.96M | 129.22M | 119.42M | 124.07M | 134.29M | 145.44M | 89.39M | 55.67M | 41.61M | 27.75M | 28.56M |
| Short-Term Borrowings | 88.39M | 0 | 10M | 0 | 0 | 10.72M | 0 | 23.89M | 0 | 24.31M | 50.46M | 52.9M | 27.6M | 10.48M | 9.55M | 27.82M | 0 | 0 | 0 | 0 | 0 | 0 | 1.48M |
| Capital Lease Obligations | 94.92M | 23.2M | 5.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 57.81K |
| Total Current Liabilities | 24.02M | 28.67M | 35.4M | 29.79M | 40.09M | 39.91M | 24.4M | 19.68M | 16.89M | 15.35M | 13.67M | 12.26M | 8.24M | 7.18M | 19.91M | 10.83M | 11.86M | 11.45M | 30.4M | 28.8M | 29M | 26.7M | 4.36M |
| Accounts Payable | 22.46M | 26.58M | 17.9M | 25.7M | 35.96M | 35.63M | 20.19M | 16.27M | 13.81M | 12.97M | 12.33M | 11.12M | 7.43M | 6.79M | 7.44M | 0 | 0 | 11.45M | 8.48M | 3.62M | 3.3M | 0 | 1.79M |
| Deferred Revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.82M | 1.57M | 2.32M | 1.65M | 1.22M | 666.76K | 625.82K | 258.77K | 0 | 547.65K | 0 | 0 | -15.23B | -3.5B | 0 | 918.93K |
| Other Liabilities | 3.5M | 3.73M | 2.61M | 2.23M | 1.55M | 1.96M | 2.79M | 0 | 0 | 0 | 4.09M | 0 | 0 | 29.67M | 26.08M | 23.88M | 13.97M | 546.24K | 12.14K | -55.67M | -41.61M | -27.75M | 521.27K |
| Total Equity | 36.76M | 41.6M | 47.9M | 51.52M | 16.5M | 44.2M | 101.41M | 82.27M | 94.18M | 81.34M | 52.86M | 31.29M | 31.78M | 37.33M | 43.88M | 50.81M | 53.84M | 53.78M | 59.88M | 63.02M | 65.02M | 60.87M | -2.17M |
| Equity Growth % | -48.41% | -13.15% | -7.03% | 212.19% | -62.66% | -56.41% | 23.27% | -12.65% | 15.78% | 53.88% | 68.92% | -1.55% | -14.87% | -14.93% | -13.63% | -5.63% | 0.12% | -10.19% | -4.99% | -3.07% | 6.83% | 2908.57% | - |
| Shareholders Equity | 36.76M | 43.05M | 49.23M | 52.25M | 21.26M | 49.55M | 102.61M | 81.82M | 93.02M | 79.01M | 49.03M | 26.36M | 25.87M | 29.94M | 34.94M | 38.94M | 38.18M | 36.32M | 40.19M | 42.02M | 43.22M | 39.75M | -1.65M |
| Minority Interest | -112 | -1.45M | -1.33M | -733.58K | -4.76M | -5.35M | -1.2M | 441.71K | 1.15M | 2.33M | 3.83M | 4.93M | 5.91M | 7.39M | 8.95M | 11.87M | 15.66M | 17.46M | 19.69M | 21M | 21.81M | 21.12M | -521.27K |
| Common Stock | 204.91K | 198.49K | 196.97K | 189.51K | 174.41K | 150.24K | 142.72K | 142.09K | 140.79K | 144.69K | 144.91K | 105.71K | 102.07K | 100K | 99.54K | 95.41K | 90.97K | 69.4K | 68.97K | 67.12K | 67.04K | 60.04K | 0 |
| Additional Paid-in Capital | 173.42M | 175.37M | 73.5M | 175.61M | 177.65M | 180.29M | 78.23M | 147.09M | 146.25M | 118.4M | 82.75M | 58.66M | 57.53M | 57.02M | 56.91M | 55.68M | 52.54M | 48.59M | 48.32M | 47.95M | 47.76M | 42.22M | 0 |
| Retained Earnings | -136.91M | -131.7M | 0 | -120.99M | -153.52M | -127.3M | 0 | -61.25M | -48.77M | -39.55M | -33.89M | -32.41M | -31.73M | -27.18M | -22.07M | -16.84M | -14.45M | -12.34M | -8.2M | -5.99M | -4.61M | -2.53M | 0 |
| Preferred Stock | 14.64K | 39.73K | 102.32M | 39.73K | 40.6K | 43.65K | 102.33M | 29.62K | 29.1K | 16.1K | 33.89M | 35.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Return on Assets (ROA) | -0.07% | 0.32% | 0.99% | 7.72% | -5.77% | -10.25% | 0.39% | 0.02% | 0.11% | 0.23% | 1.54% | 0.81% | -1.38% | -1.99% | -2.31% | -1.13% | -0.93% | -0.32% | 1.71% | 2.59% | 2.33% | -2.47% | 0.45% |
| Return on Equity (ROE) | -0.74% | 2.91% | 7.93% | 95.66% | -86.39% | -67.57% | 2.08% | 0.12% | 0.5% | 1.38% | 12.73% | 6.84% | -8.62% | -10.11% | -10.23% | -4.55% | -3.67% | -1.05% | 4% | 4.97% | 3.94% | -5.25% | - |
| Debt / Assets | 91.76% | 82.14% | 82.08% | 79.45% | 86.67% | 84.07% | 73.61% | 78.77% | 72.52% | 75.62% | 82.65% | 85.22% | 82.21% | 68.47% | 61.62% | 72.47% | 69.29% | 68.86% | 55.88% | 44.54% | 39.01% | 29.45% | 97.83% |
| Debt / Equity | 10.27x | 8.18x | 6.74x | 6.27x | 22.90x | 9.00x | 3.54x | 4.73x | 3.16x | 3.77x | 6.15x | 8.25x | 5.91x | 3.74x | 2.94x | 2.99x | 2.75x | 2.70x | 1.49x | 0.90x | 0.71x | 0.46x | - |
| Net Debt / EBITDA | 9.98x | 8.32x | 8.11x | 7.68x | 30.77x | - | 8.38x | 1.99x | 1.75x | 1.80x | 10.84x | 8.73x | 9.14x | 6.99x | 8.11x | 9.97x | 11.78x | 12.02x | 5.77x | 3.80x | 4.30x | 12.91x | 6.13x |
| Book Value per Share | 1.80 | 2.14 | 2.54 | 2.80 | 1.06 | 3.09 | 7.43 | 6.09 | 6.81 | 5.46 | 4.21 | 3.02 | 3.13 | 3.73 | 4.53 | 5.37 | 7.51 | 7.71 | 8.67 | 9.30 | 9.75 | 10.14 | -0.36 |
High leverage liquidity constraints
According to the latest quarterly financial data, Sotherly’s debt-to-equity ratio reached 10.27 in 2025Q3, a significant increase from 5.89 in 2023Q2, which suggests that the company’s reliance on debt financing has intensified as equity value has eroded during recent periods of operational volatility.
The rapid expansion of the D/E ratio indicates that the company is increasingly reliant on debt to sustain its capital structure, leaving little room for error in a high-interest-rate environment. Investors should monitor whether this leverage profile limits the company's ability to refinance maturing obligations without further diluting common shareholders.
As reported in financial statements, cash balances have declined to $9.4M in 2025Q3 from a peak of $29.3M in 2024Q1, signaling a tightening liquidity position that may constrain the company's ability to fund necessary property-level capital improvements or meet short-term debt service requirements.
The consistent drawdown of cash reserves suggests that the company is consuming its liquidity buffer to cover operational shortfalls and debt obligations. This trend warrants further investigation into the company's access to revolving credit facilities and its ability to maintain covenant compliance during periods of seasonal revenue troughs.
Based on reported figures, total equity has contracted to $36.8M in 2025Q3 from $55.5M in 2023Q2, reflecting the cumulative impact of negative earnings and the potential for preferred equity obligations to further subordinate the interests of common shareholders in the capital stack.
The shrinking equity base highlights the difficulty of generating retained earnings to bolster the balance sheet, effectively increasing the risk profile for common equity holders. This contraction appears to be a direct consequence of the company's inability to maintain consistent profitability, which may necessitate future capital raises or asset sales.
Analysis of the balance sheet reveals that the company's $377.5M in total debt, when compared against a market capitalization that has faced significant pressure, suggests a precarious capital structure where preferred equity dividends act as a persistent, non-discretionary drain on available cash flow.
The presence of preferred equity creates a structural hurdle that must be cleared before common shareholders can realize value, which may be underappreciated by the market. This layer of the capital stack effectively functions as a fixed-cost liability that exacerbates the company's sensitivity to RevPAR fluctuations and interest rate volatility.
Quick answers to the most common questions about buying SOHO stock.
As of 2024, Sotherly Hotels Inc. (SOHO) had total assets of $414.4M including $42.0M in current assets.
Sotherly Hotels Inc. (SOHO) carries total debt of $340.4M. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Sotherly Hotels Inc. (SOHO) has total shareholders' equity (book value) of $43.1M ($2.14 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Sotherly Hotels Inc. (SOHO) reported a current ratio of 1.47x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.