Executive Summary

Q2 2023 revenue was $2.52M, down 3.1% year over year (vs. $2.60M) but up 2.2% sequentially; EBITDA increased sequentially to $1.08M from $0.75M, lifting EBITDA margin to ~42.9% from ~30.5% .
Diluted loss per share was $(0.40), improving year over year from $(0.47) but deteriorating sequentially from $(0.07) due to higher legal/professional fees and interest expense .
FFO turned positive to $0.31M vs. $(0.04)M in Q1; AFFO turned positive to $0.07M vs. $(0.66)M in Q1, driven by higher NOI and lower capital expenditures vs. Q1 intensity .
Occupancy continued to improve to 96.8% (retail 97.5%, flex 94.9%); portfolio remains focused on retail/flex post hotel exit, supporting stable same-property NOI .
No Q2 earnings call transcript or formal guidance was furnished; the Special Committee’s strategic review (initiated Mar 10, 2023) and sequential dividend increase ($0.08 in Q2 vs. $0.01 in Q1) are potential stock-reaction catalysts .

What Went Well and What Went Wrong

What Went Well

Portfolio occupancy improved to 96.8% (retail 97.5%, flex 94.9%), supporting stabilized rental economics and same-property NOI of $1.59M for the quarter .
EBITDA and margins improved sequentially (EBITDA $1.08M; margin ~42.9%) as retail and flex revenues offset the absence of hotel revenues following Clemson disposition .
Management highlighted robust leasing and underlying portfolio strength: “we are seeing continued interest in our properties… occupancy to 96.7 percent” (Q1 commentary; provides trajectory into Q2) .

What Went Wrong

Net loss persisted at $(0.86)M for Q2; diluted loss per share widened sequentially to $(0.40), reflecting elevated professional fees and interest expense .
Legal, accounting and professional fees rose to $0.62M in Q2 from $0.37M in Q2’22, consistent with costs tied to the Special Committee’s process; interest expense remained high at $0.85M .
Year-to-date AFFO remained negative through Q2 (six months AFFO $(0.49)M), as capital expenditures related to tenant improvements/leasing commissions were sizeable in H1 .

Financial Results

Metric	Q2 2022	Q1 2023	Q2 2023
Revenue ($USD)	$2,595,901	$2,460,976	$2,515,901
Diluted EPS ($)	$(0.47)	$(0.07)	$(0.40)
EBITDA ($USD)	$1,120,130	$750,319	$1,079,858
EBITDA Margin (%)	43.1%	30.5%	42.9%
NOI ($USD)	$1,614,861	$1,663,484	$1,721,310
FFO ($USD)	$284,191	$(40,715)	$305,467
AFFO ($USD)	$127,673	$(657,538)	$74,573

Segment revenue breakdown:

Segment Revenue ($USD)	Q2 2022	Q1 2023	Q2 2023
Retail Center Property Revenues	$1,623,207	$1,891,679	$1,903,769
Flex Center Property Revenues	$609,843	$569,297	$612,132
Hotel Property Room Revenues	$356,076	$0	$0
Hotel Property Other Revenues	$6,775	$0	$0
Total Revenue	$2,595,901	$2,460,976	$2,515,901

Key operating KPIs:

KPI	Q2 2022	Q1 2023	Q2 2023
Percent Leased (Total)	96.4%	96.7%	96.8%
Retail Percent Leased	94.8%	97.5%	97.5%
Flex Percent Leased	94.6%	94.4%	94.9%
WALT (Retail & Flex Avg, years)	—	4.12	4.44
Dividends per Common Share ($)	$0.16	$0.01	$0.08
Weighted Avg Mortgage Interest Rate	—	4.1%	4.3%

Guidance Changes

No formal quantitative guidance (revenue, margins, OpEx, tax rate, segment-specific) was provided in the Q2 2023 8‑K or supplemental materials; no Q2 press releases or call transcript were available in the period searched.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3/Q4 2023	—	—	No formal guidance disclosed in available filings
Margins (EBITDA/NOI)	Q3/Q4 2023	—	—	No formal guidance disclosed in available filings
OpEx (Legal/Prof Fees)	FY 2023	—	—	No formal guidance disclosed; elevated fees noted
Dividend	Q3 2023	—	—	No formal guidance; Q2 dividend per share was $0.08

Earnings Call Themes & Trends

No Q2 2023 earnings call transcript found. Narrative tracked via Q1 press release and FY22 materials.

Topic	Previous Mentions (Q4 2022)	Previous Mentions (Q1 2023)	Current Period (Q2 2023)	Trend
Strategic Alternatives	Special Committee established; advisors retained	Legal costs tied to process; impacted FFO	Elevated professional fees sustained	Ongoing; cost overhang persists
Occupancy/Leasing	96.0% occupancy; WALT 3.9 years	96.7% occupancy; robust leasing (8 new, 11 renewals)	96.8% occupancy; retail 97.5%, flex 94.9%	Improving, stable at high-90s
Portfolio Mix (Hotel Exit)	Disposed Greensboro Hampton Inn, Clemson Hotel	No hotel revenue in Q1	No hotel revenue in Q2	Transition complete; retail/flex-focused
Debt/Rate Environment	Wtd avg rate 4.2%; maturity ~6.1 years	4.1% rate; maturity ~5.84 years	4.3% rate; maturity ~6.0 years	Slight uptick in rates; maturities remain long
Capex/Leasing Investment	FY22 capex $1.02M	Q1 capex $0.65M	H1 capex $0.74M	Elevated vs historical; moderating vs Q1

Management Commentary

“First quarter results were disappointing and we do not believe they reflect the underlying strength of our portfolio. Robust leasing activity late in 2022 and year-to-date in 2023 have… increased our portfolio-wide occupancy to 96.7 percent.” — Thomas E. Messier, CEO .
“We are seeing continued interest in our properties from both new tenants, and from existing tenants electing to renew their leases.” — Thomas E. Messier, CEO .
Strategic review context: Special Committee formed to explore alternatives including sale, JV, restructuring; no assurance of outcome or timetable .

Q&A Highlights

No Q2 2023 earnings call transcript or Q&A was available in the period searched; no call-based guidance clarifications or tone observations can be provided [List: earnings-call-transcript returned none].

Estimates Context

S&P Global consensus (EPS and Revenue) for Q2 2023 was unavailable due to request limits; therefore, estimate comparisons cannot be provided at this time. Values would typically be retrieved from S&P Global; unavailable for this report.
Given the absence of estimates, the focus is on sequential and year-over-year actuals and non-GAAP metrics (NOI, FFO, AFFO) as furnished in Exhibits.

Key Takeaways for Investors

Sequential improvement in EBITDA and margin despite a continued net loss suggests operating stability in the retail/flex portfolio post-hotel exit; EBITDA $1.08M, margin ~42.9% .
Positive inflection in quarterly FFO ($0.31M) and AFFO ($0.07M) vs. Q1 drag from capex/legal costs indicates better cash coverage of distributions near term, though H1 AFFO remains negative .
Occupancy at 96.8% and retail at 97.5% provide visibility into rental revenue durability; same-property NOI remained solid at $1.59M .
Professional fees tied to the Special Committee (Q2 $0.62M) are a near-term earnings headwind; investors should monitor process updates and potential corporate actions .
Debt metrics are manageable with long-dated maturities (~6.0 years) but weighted average rates ticked up to 4.3%; refinancing environment bears watching .
Dividend increased sequentially ($0.08 in Q2), but sustainability depends on AFFO trajectory and capex/leasing cadence; watch leasing economics and capital intensity .
Without formal guidance or a call transcript, catalysts include: strategic alternatives announcements, leasing wins, and any asset sales/redeployment; lack of estimates may limit near-term consensus-driven stock reactions .

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