Liquidity is under significant strain, with 2025Q3 cash balances falling to $9.4M from a $29.3M peak in 2024Q1, further complicated by negative AFFO of -$3.2M that renders dividend coverage impossible.
| 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 |
|---|
| Cash from Operations | 14.24M | 25.89M | 21.4M | 6.66M | 2.32M | -11.26M | 22.46M | 26.16M | 15.76M | 17.14M | 11.38M | 14.85M | 9.59M | 9.01M | 7.55M | 4.73M | 3.18M | 7.21M | 12.79M | 10.84M | 6.44M | 117.96K | 2.71M |
| Operating CF Growth % | -130.13% | 20.97% | 221.39% | 186.71% | 120.62% | -150.15% | -14.15% | 66.04% | -8.06% | 50.64% | -23.39% | 54.79% | 6.47% | 19.36% | 59.68% | 48.57% | -55.89% | -43.58% | 17.92% | 68.39% | 5359.03% | -95.65% | - |
| Operating CF / Revenue % | 7.95% | 14.23% | 12.31% | 4.01% | 1.82% | -15.75% | 12.09% | 14.68% | 10.21% | 11.21% | 8.21% | 12.08% | 10.74% | 10.32% | 9.3% | 6.11% | 4.45% | 10.2% | 18.31% | 16.13% | 11.13% | 0.44% | 11.09% |
| Net Income | -310.42K | 1.18M | 3.81M | 33.96M | -26.22M | -53.68M | 1.18M | -608.16K | 29.49K | 900.15K | 6.4M | -738.51K | -4.44M | -5.33M | -6.48M | -2.38M | -1.97M | -597.89K | 2.46M | 3.18M | 2.48M | -1.54M | 139.84K |
| Depreciation & Amortization | 19.75M | 19.38M | 18.79M | 18.65M | 19.91M | 19.9M | 21.64M | 20.88M | 17M | 15.02M | 13.59M | 11.97M | 8.47M | 8.66M | 8.7M | 8.51M | 8.42M | 6.35M | 5.05M | 5.05M | 4.31M | 1.89M | 2.05M |
| Stock-Based Compensation | 559.3K | 497.5K | 559.22K | 998.42K | 0 | 754.11K | 385.56K | 379.15K | 347.39K | 211.68K | 285.98K | 245.56K | 176.44K | 110.4K | 74.93K | 254.63K | 134.51K | 265.7K | 259.86K | 187M | 0 | 0 | 0 |
| Other Non-Cash Items | -3.86M | 2.35M | -340K | -31.61M | 9.34M | 548.01K | 764.84K | 995.72K | 751.73K | 1.12M | 1.28M | 1.43M | 1.7M | 1.31B | 908.34M | -3.95M | -189.09M | -1.47B | 3.68M | 2.17M | 1.75M | -924.89K | 343.41K |
| Working Capital Changes | -3.87M | 2.48M | -1.42M | -15.34M | -702K | 20.28M | 277.09K | 3.36M | -2.75M | -1.66M | -4.44M | -921.39K | 1.32M | 1.24M | 2.36M | -1.54M | -2.19M | -116.88K | 1.34M | 205.03K | -2.1M | 896.17K | 182.1K |
| Cash from Investing | -11.82M | -14.14M | -6.73M | 46.66M | -2.39M | -3.78M | -18.71M | -100.9M | -18.3M | -12.94M | -41.13M | -71.1M | -29.53M | -3.16M | -6.13M | -3.47M | -11.01M | -51.93M | -35M | -12.71M | -15.76M | -59.01M | -2.4M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | -6.35M | -79.73M | -3.99M | 0 | -25.53M | -61.11M | -30.73M | 0 | 437.5K | 238.39K | 318.52K | -4.62M | -6.61M | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | -6.35M | -79.73M | -8.68M | -5.28M | -30.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 52.4M | 0 | 0 | 19.01M | 0 | 11.16M | 7.04M | 8.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -7.52M | -14.14M | -6.73M | 2.22M | 789.09K | 236.53K | -12.36M | 938.44K | 3.41M | 1.97M | 4.53M | -189.47K | 36.83M | -248.01K | -587.94K | -821.67K | 1.47M | -771.98K | 4.86M | 2.03M | -3M | -3.46M | -1.12M |
| Cash from Financing | -5.3M | -9.27M | -15.78M | -51.55M | -9.66M | 22.36M | -13.64M | 79.17M | 549.71K | 15.8M | 24.61M | 63.5M | 22.13M | -3.09M | -2.8K | -1.76M | 9.6M | 42.45M | 24.76M | 2.81M | 1.51M | 69.42M | -400.01K |
| Dividends Paid | -5.98M | -7.98M | -9.97M | 0 | 0 | -4.19M | -14.96M | -12.15M | -9.73M | -6.19M | -4.1M | -2.69M | -1.82M | -1.17M | -258.82K | 0 | -214.04K | -7.25M | -4.67M | -4.56M | -3.42M | 0 | 0 |
| Common Dividends | 0 | 0 | 0 | 0 | 0 | -2M | -7.86M | -6.32M | -5.95M | -5.85M | -4.1M | -2.69M | 0 | -1.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | -2M | 378.93K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -766.46K |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8.58M | -2.06M | 0 | -25.62K | -14.45M | -11.55M | -7.15K | -35.29K | 0 | 0 | 0 | 0 | -490K | -5.19M | 0 |
| Other Financing | 43.92K | -1.67M | -525.44K | -359.39K | -19.51K | -1.56M | -106.95K | -3.82M | -837.99K | -1.8M | -1.38M | -2.64M | -9.86M | -1.1M | -1.82M | -665.19K | -288.71K | 0 | -2.56M | -3.74M | -5.03M | -276.33K | 366.45K |
| Net Change in Cash | -2.88M | 2.47M | -1.11M | 1.76M | -9.72M | 7.32M | -9.88M | 4.44M | -1.99M | 20.27M | -5.14M | 7.26M | 2.2M | 2.77M | 1.42M | -497.6K | 1.77M | -2.27M | 2.54M | 943.68K | -7.81M | -87.02K | -87.02K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8.48M | 0 |
| Cash at Beginning | 26.53M | 26.24M | 27.34M | 25.58M | 35.3M | 27.98M | 37.87M | 33.43M | 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 | 154.38K | 154.38K |
| Cash at End | 29.62M | 28.71M | 26.24M | 27.34M | 25.58M | 35.3M | 27.98M | 37.87M | 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 | 67.36K | 67.36K |
| Free Cash Flow | 7.37M | 25.89M | 21.4M | -1.31M | -854.34K | -15.28M | 9.8M | 4.06M | -1.96M | 2.23M | -8.76M | 5.05M | -26.04M | 6.1M | 1.57M | 1.84M | -9.61M | -39.32M | -20.47M | -3.89M | -6.32M | -55.43M | 1.43M |
| FCF Growth % | -61.41% | 20.97% | 1738.86% | -52.84% | 94.41% | -255.92% | 141.45% | 306.72% | -188.17% | 125.42% | -273.44% | 119.4% | -526.57% | 288.7% | -14.75% | 119.17% | 75.56% | -92.09% | -426.07% | 38.44% | 88.6% | -3971% | - |
| FCF / Revenue % | 4.11% | 14.23% | 12.31% | -0.79% | -0.67% | -21.37% | 5.27% | 2.28% | -1.27% | 1.46% | -6.32% | 4.11% | -29.13% | 6.99% | 1.93% | 2.38% | -13.44% | -55.57% | -29.32% | -5.79% | -10.92% | -208.93% | 5.86% |
Liquidity and refinancing risk
According to the provided financial data, Sotherly's AFFO turned negative in 2025Q3 at -$3.2M, rendering dividend coverage impossible and highlighting the severe cash flow volatility inherent in the company's current operating model as it struggles to maintain positive distributable cash flow during seasonal troughs.
The erratic nature of AFFO, which swung from a positive $6.6M in 2024Q2 to a deficit in 2025Q3, suggests that the company lacks the recurring cash flow stability required to support a consistent dividend policy. Investors should monitor the company's ability to generate positive AFFO in future quarters, as the current trend indicates a potential for further capital preservation measures.
Based on reported figures, Sotherly allocated $2.6M to capital expenditures in 2025Q3, a significant outflow that, when combined with negative operating cash flow, exacerbates the company's liquidity constraints and limits its ability to fund necessary property improvements without external financing or further balance sheet strain.
The recurring need for capital investment in aging assets, often categorized as FF&E reserves, appears to be a primary driver of the company's negative free cash flow. This ongoing requirement for capital deployment suggests that the company may be trapped in a cycle of spending to maintain asset quality while struggling to achieve sufficient RevPAR growth to offset these costs.
As reported in financial statements, the divergence between GAAP net income and FFO metrics underscores the significant impact of non-cash depreciation charges, which frequently obscure the reality that Sotherly's core operations are currently failing to generate sufficient cash to cover both debt service and essential capital maintenance.
The wide variance between net income and FFO suggests that investors should prioritize cash-based metrics to assess the company's true financial health. The persistent gap between these figures may indicate that the company's asset base is not generating the cash yield necessary to justify its current valuation or debt load.
Analysis of the cash flow statement reveals that Sotherly's FFO-to-Net Income conversion is highly inconsistent, with the 2025Q3 FFO of -$646.4K reflecting a failure to convert operational activity into meaningful cash earnings, a trend that warrants further investigation into the company's underlying cost structure.
The erratic conversion ratios suggest that the company's operating cash flow is highly sensitive to working capital fluctuations and seasonal revenue shifts. This instability implies that the company's earnings quality is low, making it difficult for analysts to project future cash availability with any degree of certainty.
Quick answers to the most common questions about buying SOHO stock.
Sotherly Hotels Inc. (SOHO) generated $25.9M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Sotherly Hotels Inc. (SOHO) generated $25.9M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sotherly Hotels Inc. (SOHO) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Sotherly Hotels Inc. (SOHO) returned $8.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.