New York City REIT Inc Aktie

Good morning, and welcome to the American Strategic Investment Company's First Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Curtis Parker, Senior Vice President. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining us for our first quarter 2026 earnings call. This event is also being webcast in the Investor Relations section of our website. Joining me today on the call to discuss the quarter's results are Nicholas Schorsch Jr., American Strategic Investment Company's Chief Executive Officer; and Michael LeSanto, the Chief Financial Officer. The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties.

Please review the forward-looking and cautionary statements section at the end of the first quarter 2026 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements.

We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31, 2025, filed on April 15, 2026, and all subsequent SEC filings for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during this call are only made as of the date of this call. As stated in our SEC filings, the company disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law.

Please note that all first quarter 2026 financial information is unaudited. Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial and operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.

A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website at www.americanstrategicinvestment.com. Please also refer to our earnings release for more detailed information about what we consider to be implied investment-grade tenants, a term we will use throughout today's call.

I'll now turn the call over to Nick Schorsch, Jr., Chief Executive Officer. Please go ahead, Nick.

Thanks, Curtis. Good morning, and thank you all for joining us today. Our first quarter was focused on continuous proactive management of the company with particular attention to the reduction of recurring expenses and management of our balance sheet. We remain committed to operating and unlocking value at our current assets with a focus on tenant retention, property improvements and cost efficiency while simultaneously pruning our exposure to noncore assets.

Near-term lease expirations represented only 6% of annualized straight-line rent and 60% of our leases now extend beyond 2030, up from 57% last quarter. We believe that this extended term, coupled with a high-quality tenant base featuring our top 10 tenants who are 69% investment grade or implied investment grade provides significant portfolio stability. Our $388 million New York City real estate portfolio encompasses roughly 743,000 square feet and consists of 5 properties, most of which are situated in Manhattan.

The office and retail spaces we manage attract a robust group of tenants, including several major investment-grade companies. With an emphasis on resilient sectors and properties located near convenient transit options, we are confident that our portfolio is strategically placed to support both increased occupancy and strong tenant retention. Beyond prioritizing the improvement of our real estate portfolio, our efforts to identify additional profitable investment opportunities is ongoing.

The dispositions we have completed over the last year have, in our opinion, positioned us to be better prepared to seize future investment prospects that support our portfolio's sustained development. Our aim is to create a portfolio that will enhance shareholder returns.

With that, I'll hand it over to Michael LeSanto to go over the first quarter results. Michael?

Thank you, Nick. First quarter 2026 revenue was $7.3 million compared to $12.3 million in the first quarter of 2025, principally due to the disposition of 1140 Avenue of the Americas through a consensual foreclosure with the lenders for that property in late 2025. The company's GAAP net loss attributable to common stockholders was $7.8 million in the first quarter of 2026, impacted by a $2.3 million noncash gain and a $5 million decrease in tenant revenue related to the foreclosure at 1140 Avenue of the Americas.

This is compared to a net loss of $8.6 million in the first quarter of 2025, which was impacted by an impairment recorded in the quarter related to the sale of 9 Times Square. For the first quarter of 2026, adjusted EBITDA was negative $1.1 million compared to negative $0.8 million in the first quarter of 2025. Cash net operating income was $2.8 million compared to $4.2 million in the first quarter of 2025. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release and quarterly supplemental information on our website.

Nick, I'll turn it back to you for some closing remarks.

Thank you, Michael. Our ongoing efforts are aimed at improving operational adaptability, including selective asset sales. We are currently reviewing various approaches for our properties located at 123 William Street and 196 Orchard to maximize long-term portfolio value. The team remains committed to filling vacant units, exploring alternatives for refinancing upcoming debt maturities, renewing agreements with present tenants and closely monitoring costs. We appreciate your participation today and invite you to attend our Annual Stockholders' Meeting online on June 2 at 2:00 p.m. Eastern.

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

Good morning, and welcome to the American Strategic Investment Company's Fourth Quarter and Year-End 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to Curtis Parker, Senior Vice President. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us for ASIC's fourth quarter and year-end earnings call. This event is also being webcast in the Investor Relations section of our website. Joining me today on the call to discuss this quarter's results are Nicholas Schorsch Jr., American Strategic Investment Company's Chief Executive Officer; and Mike LeSanto, the Chief Financial Officer.

The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. Please review the forward-looking and cautionary statements section at the end of our fourth quarter 2025 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements.

We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31, 2025, to be filed on April 15, 2026, for a more detailed discussion of the risk factors that could cause these differences.

Any forward-looking statements provided during this call are only made as of the date of this call. As stated in our SEC filings, ASIC disclaims any intent or obligation to update or revise these forward-looking statements, except as required to do so by law. Please note that all fourth quarter 2025 financial information is unaudited.

Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial and operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website. Please also refer to our earnings release for more detailed information about what we consider to be implied investment-grade tenants, a term we will use throughout today's call.

I'll now turn the call over to Nick Schorsch, Chief Executive Officer. Please go ahead, Nick.

Thanks, Curtis. Good morning, and thank you for joining us. Today, we will discuss our results for the fourth quarter and full year 2025. We remain committed to operating and unlocking value at our current assets with a focus on tenant retention, property improvements and cost efficiency, while simultaneously pruning our exposure to non-core assets.

For the year, we executed 13 new and replacement leases totaling 117,000 square feet. We continue to focus our leasing efforts on securing tenants in resilient industries, such as well-capitalized financial service companies, medical institutions and government agencies. At year-end, our $382.6 million, 0.7 million square foot portfolio consisted of 5 real estate assets throughout New York City, primarily in Manhattan, with office properties located in submarkets in close proximity to major transportation hubs. The portfolio had occupancy of 80.3% and a weighted average remaining lease term of 6.1 years as of December 31, 2025.

Our New York City-centric portfolio features a mix of large investment-grade tenants, of whom the top 10 tenants are 69% investment grade or implied investment grade rated based on straight-line rent with a weighted average remaining lease term of 6.9 years. Investment-grade tenants in our portfolio include CVS, Marshalls and government agencies.

Our calendar year 2026 lease expirations are 5% of annualized straight-line rent and 57% of our leases now extend beyond 2030, up from 56% last quarter. We believe that this term, coupled with a high-quality, largely investment-grade tenant base provides significant portfolio stability.

As discussed on last quarter's call, we completed the disposition of our 1140 Avenue of the Americas office property during the fourth quarter. We also pursued a cooperative consensual foreclosure with the lender. And in connection with that transaction, we removed the related assets and liabilities from our balance sheet and recognized a gain of $46.6 million that is reflected in the statements of operations for the year.

We remain committed to strengthening our existing portfolio of real estate assets as we explore additional income-generating investments. We believe with the completion of past sales and the reinvigorated effort to sell 2 additional properties, we will be better positioned to take advantage of opportunities to invest in the long-term future of our portfolio. It is our intention to build a portfolio that we believe will be accretive to shareholders.

With that, I'll turn it over to Mike LeSanto to go over the fourth quarter and full year 2025 results. Mike?

Thank you, Nick. Revenue was $43.3 million for the year ended December 31, 2025, compared to $61.6 million in 2024. The year-over-year change is primarily related to the disposition of properties, notably the dispositions of 9 Times Square in the late fourth quarter of 2024, and the 1140 Avenue of the Americas in fourth quarter 2025.

Revenue for the fourth quarter 2025 was $6.5 million compared to $14.9 million in the fourth quarter of 2024. The company's full year GAAP net loss attributable to common stockholders was $21.2 million compared to a net loss of $140.6 million in 2024. Net loss for the quarter was $6.7 million, in line with the $6.7 million we recorded in the fourth quarter of 2024.

Adjusted EBITDA for 2025 was $0.3 million and $1.2 million for the fourth quarter. Cash NOI for the full year was $16 million and $1.8 million in the fourth quarter. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release, supplemental and Form 10-K.

The company's balance sheet includes 100% fixed rate debt and prudent net leverage of 47.5%. We ended the fourth quarter with net debt of $249.7 million at a weighted average effective interest rate of 4.5% and a weighted average remaining debt term of 1.5 years. Importantly, all of our debt is fixed rate or swapped to fixed rate after we locked in interest rates while they were broadly at historic lows.

With that, I'll turn the call back to Nick for some closing remarks.

Thanks, Mike. We continue to focus on enhancing operational flexibility through efforts such as targeted dispositions. We are also assessing strategies for our properties at 123 William Street and 196 Orchard to generate the greatest long-term value for our portfolio, including potentially selling the properties. If sold, these sales would generate additional cash that we believe can be deployed into higher-yielding assets, creating future value for the portfolio.

Simultaneously, our team is focused on leasing up available space, evaluating options for replacing maturing debt, renewing leases with existing tenants and maintaining tight controls on expenses.

One final note. Please be on the lookout for a notice about our Annual Meeting of Shareholders, which will be distributed to you in the coming months.

Thank you for joining us today.

This concludes today's conference. You may disconnect your lines at this time. Thank you again for your participation.

Greetings, and welcome to the American Strategic Investment Co.'s Third Quarter Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

I would now like to turn the conference over to Curtis Parker, Senior Vice President. Thank you, Curtis. Over to you.

Thank you. Hello, everyone, and thank you for joining us for our third quarter 2025 earnings call. This event is also being webcast in the Investor Relations section of our website. Joining me today on the call to discuss the quarter's results are Nick Schorsch Jr., American Strategic Investment Co's Chief Executive Officer; and Michael LeSanto, the Chief Financial Officer.

The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. Please review the forward-looking and cautionary statements section at end of the third quarter 2025 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements.

We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31, 2024, filed on March 19, 2025, and all subsequent SEC filings for a more detailed discussion of the risks that could cause these differences.

Any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, the company disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law.

Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be used in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website at www.americanstrategicinvestment.com. Please also refer to our earnings release for more detailed information about what we consider to be implied investment-grade tenants, a term we will use throughout today's call.

I will now turn the call over to Nick Schorsch Jr., Chief Executive Officer. Please go ahead. Nick.

Thanks, Curtis. Good morning, and thank you all for joining us, and thank you for accommodating the updated timing of today's call. The additional timing ensured our newly appointed auditors, as Mike will describe in greater detail, to complete their review of our results.

Our third quarter was focused on continuous proactive management of the company, with particular attention to the reduction of reoccurring expenses and management of our balance sheet. We remain committed to operating and unlocking value at our current assets with a focus on tenant retention, property improvements and cost efficiency.

During the quarter, we executed a meaningful lease renewal at 196 Orchard, which extended the weighted average remaining lease term of the portfolio to 6.2 years at quarter end, up from 5.9 years at the end of the second quarter of this year.

Near-term lease expirations are 8% of annualized straight-line rent and 56% of our leases now extend beyond 2030, up from 54% last quarter. We believe that this term, coupled with a high-quality tenant base featuring top 10 tenants who are 69% investment grade or implied investment grade, provides significant portfolio stability.

We own 6 properties with 1 property, 1140 Avenue of the Americas, expected to be disposed of during the current quarter. Excluding this property, our $390 million approximately 743,000-square-foot New York City real estate portfolio is located primarily in Manhattan. Our office and retail properties benefit from a strong tenant base that includes large investment-grade firms. By focusing on resilient industries near transit-oriented locations, we believe the portfolio is well positioned for occupancy growth and tenant retention.

As a key part of our strategy to unlock value, diversify our holdings and strengthen our balance sheet, we are also continuing to market 123 William Street and 196 Orchard for sale. Assuming we can sell these properties on favorable terms, upon closing, we expect to use the net proceeds to retire debt and reinvest in higher-yielding assets to enhance our long-term portfolio value.

In September, we entered into an agreement for the strategic disposition of 1140 Avenue of the Americas via a cooperative consensual foreclosure with the lender, which is anticipated to close in the fourth quarter of 2025. Upon completion, this transaction is expected to eliminate a $99 million liability that matures in July 2026. This transaction is consistent with our strategy to proactively manage our balance sheet and allocate capital toward what we believe are the highest returns. In making this decision, we consider the significant ongoing and upfront expenses needed to operate the property and to retain and attract new tenants compared to the capital being invested towards other assets in the portfolio.

With that, I'll turn it over to Michael LeSanto to go over the third quarter results. Michael?

Thank you, Nick. Third quarter 2025 revenue was $12.3 million compared to $15.4 million in the third quarter of 2024, principally due to the sale of 9 Times Square in the fourth quarter of 2024.

The company's GAAP net gain attributable to common stockholders was $35.8 million in the third quarter of 2025, impacted by a $44.3 million noncash gain related to the foreclosure at 1140 Avenue of the Americas. This is compared to a net loss of $34.5 million in the third quarter of 2024 which was impacted by an impairment recorded in the quarter related to the sale of 9 Times Square.

For the third quarter of 2025, adjusted EBITDA was $1.9 million compared to $4.1 million in the third quarter of 2024.

Cash net operating income was $5.3 million compared to $7 million in the third quarter of 2024. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release and quarterly supplemental on our website.

We also proactively and significantly reduced our professional fees by looking to change our audit partners via the engagement of CBIZ CPAs as our new independent registered public accounting firm for the fiscal year ending December 31, 2025, beginning with the review of our unaudited results for the third quarter of 2025.

The decision to change the company's independent registered accountants was the result of a competitive bid process as well as the company's focus on streamlining its cost structure and reducing its general and administrative expenses, and there was no dispute or conflict with the prior firm. We look forward to a long and productive relationship with CBIZ CPAs in the future.

I'll now turn the call back to Nick for some closing remarks.

Thank you, Michael. As we prepare to close out this year, we continue to focus on enhancing operational flexibility through the consensual foreclosure of 1140 Avenue of the Americas and our ongoing efforts to sell 123 William Street and 196 Orchard. We believe these sales will generate cash on the balance sheet that can be deployed into higher-yielding assets, creating future value for the portfolio. Simultaneously, our team is focused on leasing up available space, renewing leases in tenants and maintaining tight controls on expenses across the board.

Thank you for joining us today, and we look forward to presenting our full year 2025 results for you in a few months.

Thank you. And with that, ladies and gentlemen, we thank you for your participation. This does conclude today's teleconference. You may disconnect your lines at this time and have a wonderful evening.

Greetings. Welcome to the American Strategic Investment Company's Second Quarter 2025 Earnings Call. [Operator Instructions] Please note that today's conference is being recorded.

At this time, I'll turn the conference over to Curtis Parker, Senior Vice President. Curtis, you may now begin.

Thank you. Good morning, everyone, and thank you for joining us for our second quarter 2025 earnings call. This event is also being webcast in the Investor Relations section of our website.

Joining me today on the call to discuss the quarter's results are Nick Schorsch Jr., American Strategic Investor Company's Chief Executive Officer; and Michael LeSanto, the Chief Financial Officer.

The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. Please review the forward-looking and cautionary statements section at the end of the second quarter 2025 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today.

Should 1 or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements. We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31, 2024, filed on March 19, 2025, and all subsequent SEC filings for a more detailed discussion of the risk factors that could cause these differences.

Any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, the company disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law.

Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website at www.americanstrategicinvestment.com. Please also refer to our earnings release for more detailed information about what we consider to be implied investment-grade tenants, a term we will use throughout today's call.

I'll now turn the call over to Nick Schorsch Jr., Chief Executive Officer. Please go ahead, Nick.

Thanks, Curtis. Good morning, and thank you all for joining us.

Our second quarter results were largely in line with the first quarter with occupancy flat at 82% and the continued focus on leasing up available space. We remain committed to operating and creating value at our current assets with a focus on tenant retention, property improvements and cost efficiency. During the quarter, we executed 2 lease renewals, 1 each at 123 William and 1140 Avenue of the Americas, extending the weighted average remaining lease term of the portfolio to 6 years at quarter end. As a result of our leasing progress, we have reduced near-term lease expirations to only 7% of annualized straight-line rent from 12% at the end of the last quarter. Further, 54% of our leases now extend beyond 2030, up from 51% last quarter. We believe that this term, coupled with a high-quality tenant base featuring top 10 tenants who are 77% investment grade or implied investment grade provides significant portfolio stability. As a key part of our strategy to unlock value, diversify our holdings and strengthen our balance sheet, we are continuing to market 123 William Street and 196 Orchard for sale. Assuming we can sell these properties on favorable terms, upon closing, we expect to use the net proceeds to retire debt and reinvest in higher-yielding assets to enhance our long-term portfolio value.

Our $440 million, approximately 1 million square foot New York City real estate portfolio is located primarily in Manhattan. With 6 office and retail properties, we benefit from a strong tenant base that includes large investment-grade firms. By focusing on resilient industries near transit-oriented locations, we believe the portfolio is well positioned.

With that, I'll turn it over to Michael LeSanto to go over the second quarter results. Michael?

Thank you, Nick.

Second quarter 2025 revenue was $12.2 million compared to $15.8 million in the second quarter of 2024, principally due to the sale of 9 Times Square in the fourth quarter of 2024. The company's GAAP net loss attributable to common stockholders was $41.7 million in the second quarter of 2025 compared to a net loss of $91.9 million in the second quarter of 2024 due primarily to an impairment recorded in the quarter related to the sale of 9 Times Square.

For the second quarter of 2025, adjusted EBITDA was $0.4 million compared to $4.5 million in the second quarter of 2024. Cash net operating income was $4.2 million compared to $7.4 million in the second quarter of 2024. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release and quarterly supplemental on our website. Additionally, during the second quarter, the lender for 1140 Avenue the Americas commenced foreclosure proceedings with respect to the property. As further updates on this process become available, we will share them with you.

I'll now turn the call back to Nick for some closing remarks.

Thank you, Michael.

Our ongoing sale process of select Manhattan properties represents a deliberate strategy designed to unlock substantial capital while reducing our debt burden. If consummated, on the anticipated terms, we believe the proceeds from these potential sales would provide essential funding to pursue new investment opportunities with superior returns compared to the assets in our current portfolio. We view this repositioning as fundamental to maximizing shareholder returns and will provide regular updates on our progress.

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Have a wonderful day.