Net income attributable to common shares swung from a profit to a loss of $551k.
Multifamily property operating expenses increased 16% YoY while revenue grew only 2.8%.
Commercial segment NOI grew 51% due to increased occupancy at key assets.
Company spent $3.9 million purchasing TCI and IOR shares.
The latest 10-Q filing presents a company in a high-stakes transition. On one hand, the completion of several multifamily projects and the growth in commercial NOI suggest a path toward scaled profitability. On the other, the immediate financial data shows a company grappling with rising expenses and a tightening liquidity position, with cash and restricted cash declining by $6.4 million during the quarter. Investors are left to weigh the ability of management to stabilize new assets against the reality of a shrinking FFO and an oppressive debt-service burden. The outcome will likely depend on the speed of lease-ups for the 672 new units and the company's ability to refinance or extend its existing mortgage obligations without further compressing margins.