SOHOB

The single most important fact in this filing overrides every ratio: Sotherly was acquired. The 10-K states that 'in connection with the consummation of the Merger, the final day of trading of the Company's common stock was February 12, 2026,' and that as of April 1, 2026 'there was one holder of record' — i.e., the common (SOHO) was taken private. SOHOB is a separate preferred-class stub whose economics depend entirely on the merger/liquidation terms, none of which are in the data provided. You cannot underwrite a security whose payoff is governed by deal terms you can't see, and the on-screen 'fundamentals' are corrupted: shares outstanding reads 100.00 (YoY -100%), producing an absurd $872.50 market cap and a 0.0 P/S. Those are extraction failures, not real figures, so any valuation built on them is meaningless.

Even setting the merger aside, the underlying business was deteriorating into the transaction. FY2025 revenue fell 3.0% to $176M, the company swung to a -$7.69M net loss (from +$1.30M), operating income dropped 38.5% to $12.7M, and operating cash flow collapsed 60.2% to $10.3M. The balance sheet is REIT-typical but stressed at this point: $315M long-term debt against just $28.3M of equity (13.43x liabilities/equity) and $7.01M cash, with a -$145M accumulated deficit and ROE of -27.2%. Property-level RevPAR was soft and mostly down year-over-year at the larger hotels (e.g., Jacksonville Riverfront RevPAR $87.12 vs $95.29; Hyatt Centric Arlington $149.54 vs $161.35).