Lightstone Value Plus REIT I, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues decreased slightly to $15.7 million from $15.8 million in the same period of 2023. However, for the nine months, revenues increased to $45.4 million, up from $41.3 million year-over-year. The company experienced a substantial rise in total expenses for the three months, which surged to $47.6 million from $13.2 million in the prior year, and for the nine months, expenses rose to $73.7 million from $36.9 million. This increase in expenses was primarily attributed to non-cash impairment charges totaling $34.4 million recorded in Q3 2024, impacting the carrying values of the Exterior Street and Santa Monica projects.

The net loss for the three months ended September 30, 2024, was $(31.9 million), a significant increase from a net loss of $(8.5 million) in the same quarter of 2023. For the nine months, the net loss also widened to $(29.6 million) from $(16.2 million) year-over-year. The net loss attributable to common shares for the three months was $(22.6 million), compared to $(8.8 million) in the prior year, resulting in a net loss per share of $(1.06) versus $(0.41).

The company’s total assets decreased to $448.5 million as of September 30, 2024, down from $473.1 million at the end of 2023. Stockholders’ equity also declined to $166.5 million from $198.4 million during the same period. Cash and cash equivalents increased significantly to $27.0 million from $10.5 million at the end of 2023, reflecting improved liquidity.

Strategically, Lightstone has been active in real estate dispositions, selling land parcels in St. Augustine, Florida, for a total of $15.4 million in Q2 2024, and recognizing gains of $10.9 million. The company also recorded a gain of $2.7 million from the sale of municipal impact fee credits in Q3 2024.

The company has suspended regular quarterly distributions on common shares since November 10, 2023, and future distributions will be at the discretion of the Board of Directors. Additionally, the share repurchase program was partially reopened, allowing for redemptions under specific conditions.

Overall, Lightstone Value Plus REIT I, Inc. is navigating a challenging financial landscape, marked by increased expenses and significant impairment charges, while also focusing on liquidity and strategic asset management.