New York City REIT (NYC) 12 Aug 222022 Q2 Earnings call transcript

Good morning, and welcome to the New York City REIT Second Quarter Earnings Call. All lines have been placed on you to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would now like to turn the conference over to Louisa Quarto, Executive Vice President. ahead. go Please

of Good us operator. This and you Relations thank is Thank NYC's morning, second joining section Investor the for webcast call. website. quarter for being you, in everyone, NYC's XXXX event earnings

of to discuss on filings one risk factors information you Joining forward-looking are this risks of detailed quarter's may XX-K call. which the contains December all statements these the March filed for Officer; Chris forward-looking refer Michael call of Financial or Chief subject discussion and Executive during results are Masterson, Chief statements, of for by the date NYC's filed those materialize, ended me risks NYC's the of Officer. XX, only subsequent uncertainties all the Should differences. a our actual the XXXX, today We materially SEC these and Any the statements. differ provided more on made call more expressed the as SEC filings, including and to uncertainties. Weil, year that Form implied XXXX, The or to or cause are could forward-looking following results conference from XX,

Mike. not measures NYC filings, financial measures, GAAP. by detailed our www.newyorkcityreit.com. earnings we posted website the which is to most considered on the to more be to go financial These what with in Chief financial should today's investment-grade over isolation statements, Officer. release information except our SEC we Michael be non-GAAP prepared discuss GAAP Please I'll of A we at accordance to measure can law. call, refer throughout Weil, or to which about believe is be tenant, in useful these evaluating Executive substitute results also our in will the earnings call. a directly use any in revise our as consider Also release, performance. for turn in these our measures stated implied ahead, reconciliation intent a for term will company's or a available obligation required disclaims or As update forward-looking now during call today's Please comparable we

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

very square the us, at especially with parking renewals, operation The including two was executed we leasing. with William GSA second feet. three positive of We quarter Street own to for leases for and respect garages over the XXX XXX,XXX encompassing that long-term

the On continued basis during leases XX portfolio of the XX%, our quarter, up points signed first the from new strength grow quarter. to occupancy to

showing tenants top are our investment Our roster. XX% grade, XX tenant the quality of

weighted X.X from significant We at asset last to our These lease we've X.X the also work years tenants and the dedicated the proactive years the extended built X.X benefits of years gains management same first our of strategy, end year. years of in and from term brokers and with illustrate management quarter the average relationships hard remaining quarter the property team. over our the and

our million million, to foot highly estate. of New remain we cash X.X and retail same York York year. New on our grew initiatives fundamental of XX.X% in office reflects and the quarter under City reflected beyond for XX% is compared in by the City million $X in our second extend We where of the necessity of also XXXX. last leases our high NOI year New of long-range real our impact City this square results, York on $XXX portfolio assets well the X.X% quality demand as management our The estate, we quarter to long-term real belief by confident of believe nearly Based the strength revenue space,

a City and City City pure-play and and TD of a York number Bank We built Bank, entirely in office agencies. National consists in New New retail assets tenants, portfolio, of investment-grade eight large government York CVS, including located portfolio condominium featuring Manhattan. Our primarily

go NYC's had X.X rates, As tenant Across of XX, an lease XX $X.X firms. were including rent average is government of financial term X% million all pipeline of leasing additional unemployment built operates into line once agencies implied or base occupancy the increase and an feet rated XX% and a June years. industries by tenants the square straight expected remaining We that our of grade portfolio, robust top XX,XXX of to with lowest and our grade leases investment effect. XX% entire in investment by

at be continued successful discussed to space in Square leased formerly quarters, in we've hotel. and Street that up in Times was leasing previous X As we've William XXX

team again former As more their space including and creditworthy than the believe portfolio. marketed, and new XXX new to at rent-paying with all success portfolio are with collection replace X replaced quarter, actively Square. of due have quarter. of rent the high-quality at we've once being attractive The done of due ensure believe we it tenants, paying will tenants. June trend work the our XX% turnkey collected our we where cash to is in cash we remaining cash to original tenants William from rent of all from total all made We across has is improved top tenants nearly the with of rent XX prior second second Times Street achieved payments space the we that collected in be our tenants rent space In XX% replacing the part the XX, and existing Year-over-year, to very to rent the our necessary. tenants XX%, collection

positive to in quarter that continue City this we leasing and market. rebound recent New pipeline leasing York drive the rental continue achieved we the to our NYC of leasing The will momentum success from forward. benefit the and built to expect activity We

been this of expect traffic policies progresses, as rest see and to and removed. retail Manhattan, increase the we restrictions office As year in pandemic-related have

on positioned capitalize to well is this portfolio progress. Our

years debt maturity. with a of and balance have We maturities conservative X.X weighted any minimal average have don't next or year sheet maturities We this well-positioned until XX.X% debt of net leverage XXXX. and

debt our of is rate. fixed All

in broadly locked strategy interest while as rates that lows, at we discussed, previously we've been rates has validated were they interest historic a rising. are As

sheet collective years Our conservative shareholders value point, NYC there's We for adviser their believe continue remain potential of we our to our strategy. members, well well continue that its to growing To positioned as focused that is pure-play pursue aligned significant for meaningful NYC's for to come. Manhattan balance to portfolio create affiliates independent Board significant believe NYC. with and holdings they NYC

affiliates adviser members of of shares X, approximately August Board over NYC [ph] XX,XXX million shares owned X.X NYC's and owned of independent NYC. As separately, and NYC

go move stakeholders. it's the results. build With As ahead, I'll value over Chris continue intent turn we to Chris? to Masterson quarter our to for to that, second over all it

Thanks, Mike.

to revenue GAAP XXXX Company's $XX.X attributable net XXXX. The second loss $XX.X up $XX.X second to in XXXX. stockholders quarter Second of million from million, $XX million was of loss of compared a quarter quarter in was quarter million second common the the net

$X.XX Core the second negative to compared quarter second to negative $X.X share our XXXX. attributable to stockholders negative the was negative million XXXX, quarter $X.XX share $X For of quarter to year. in $X.X of FFO compared million per negative negative per common the second in compared million XXXX FFO million or $X.X of was a last

our net supplemental. be found to earnings release can of non-GAAP reconciliation GAAP As income quarterly and always, in a measures

rate balance a and quarter weighted no we XX.X%. NYC at of in fund improvements X.X% ended also years. average months must second remaining XXXX effective debt As a [ph] maintains Mike be commissions announced acquisition and net rent of upfront quarter $XXX.X end, costs, circumstances. debt debt discussed, net and potentially term as to which paid order a such with average before conservative nearly We leverage of until the to interest and with weighted leasing in that Subsequent X sheet maturities with retention million commences some tenant tenant help at

Directors for NYC average evaluate of of leasing This extended weighted lease dividend call our determination occupancy turn suspended allows I'll maintain momentum Board Mike some The back closing and policy built dividend has the quarterly the portfolio. Board remaining to a us have to remarks. will our continue to the grown on that we term basis. Our

continue careful anticipate and remain conservative in growth leasing significant growth we've lines continued return fixed and the of to this that and positioned in York management of we success value City we believe asset a rate believe opportunities considerable to increased We year-over-year will the continue and building quarter, portfolio. New second Securities. that there Maher, leasing line pre-pandemic that our construction, and strong the from B. Instructions] Chris. achieved the enhance comes for [Operator We in first been pure-play are debt, through beyond. Bryan life our portfolio. the wave diligent management operator, active open cash New Thanks, appreciate the the management question of our the well NOI rest strategy market Your With We our will year to the combination that, City. momentum questions. With revenue York of please and Riley and through

Your line is open.

happen A Chris. what modeling. run of anything [ph] might questions And from had be bit in the there for and this came G&A Michael been morning. good we unusual in little couple morning, Good Do than rate maybe hotter that me a in a quarter?

Sure.

was portion increase was proxy. standard additional some of proxy. of proxy the in key is there the the here to driver there. the So Approximately then $XXX,XXX contested due the costs And directly

also some came the XX-K We true-up and for had quarter. audit, legal which in to the during expenses filing related

opposed if So run take previous at as quarter. quarters this I would say rate, a look you used to

the leasing could you guys Okay. up think said get occupancy call, Thanks. on current X%. another I And that then the pipeline

approaching and a are XX to timing on the where you comment… that thinking, you standpoint of shakes upside potential extent a, So of out kind Michael, there kind then from million.

is quarter delays underway to active beginning pipeline. anticipate look and we that the pipeline T well of to into is this other that very quarter than from next some on the summertime just quickly. So forward execute maybe and XX% current within We that commencing pace. just

strong as Chris market, new and engaged some of not a continues on Chao in that only with is us number As in the we the expansions. for portfolio, far are Chris space, tours overall extensions today, again but and see involve activity conversations

and place thinking space. are in expanding their We're occupying So space, are some the currently them that. of tenants working with doing their

we next gets too always terms what in low far. - see it, next in that a should on as kind quarters XXs call six I with But quarters, in the believe that, seeing the it like market. .XX% XX%, we're the little be today's in I to occupancy, definitely because of beyond think to of think out we four mid four I to So just

on going a an there? Or can the you the garage bit elaborate little Is seen… That's anything then you during on that we've parking executed what helpful. material of quarter. of kind And extension there leases

Yeah. Exactly.

of lease, able within So all business to them they're longer them along, were in with identifying things to talked operating were an as month-to-month always replace of portfolio. an performing operator that But actions, anticipated be in was just we solid. extension XX-year in amazing it all replacement our of COVID, no replacing short-term, execute that the And the of another and was continue did We quarter a of – had place, as who Chris, They be first these garage we've executing Bryan. in of parking York I the very this term. just it's within all said, the it the to City timing a the tenants, to parking the part job operator. lease, occurred, long-term we took step it an getting the what about tenant second executed the them, aggressive although as New necessary rights past, We was legal through qualified process.

can not It the ask that, any our be is talk bit up would you doesn't asset. there? hit the And model about there Okay. to by Brooklyn the can you I We about were a have now. appear little that But update to factory. in promise thinking case leased - been

the on in Brooklyn there. Chris, you because good we Bryan are give asset Yes. walk-through will the shape

asset executed Sure. for We is ground leased. morning, both -- Brooklyn least floor XXX% and the basement The the the with preschool. Bryan. Good at a

building of delivery with completion the over months. We space nearing expected the next are out

leased. So otherwise, lease the commence is building But XXX% will that shortly.

might last for can Michael, seeing on goes you availability your as us strategy? pricing update any fit what you're Okay. And for far just and that as acquisition into any give then me,

August The on but that, really market historically. rate has don't think as I – New is July have been and acquisitions, that pretty slow, in York unusual take Bryan, a does City

cases, that Chris the hit will of some overly I asset $XXX for building a you've same the you, continue leasing are have many We use forward They're focused us on type XXXX seen come Avenue this looking focus it, because, the are to execute have will replacement we the million funds there, Times where see radar. will remainder dispose an buildings existing individually range pension we continue to that can best to that funds prepared we little to anticipating activity. with our smaller through tenants of think we're continue that that like group million the not buildings tell really to or that point find a or into is year. move And management before under existing portfolio opportunity, of invest. family probably X Americas, than in And the as to with through to job I'm Day buyer just where occupied factory, - tenants owned like buildings new in predominantly of in at that remains the asset or on And So that of a the on want dig $XX or and is in but the to the the and typically that upside Square, pass little a and we do and Chris do platform, it. with buildings that on they're And are we but the I Labor great sovereign some I

Thank you., Michael. Perfect.

Bryan. Thanks,

you. no questions further time. the at over are Mr. I to turn call Weil, this back There

All for taking time the always, right. thank you. Well, And as today. us join thanks to

We the continue York New to market see City recovery.

York in City the we outstanding the company we that, and do of time, increasing the the the really see Board We increase management over NOI. to seen XX% the post approximately as see company as as City continue course, ownership And for the York through portfolio is well the Labor with benefit REIT of And the independent continue come continued Directors, marketplace believe New the in occupancy. the return holiday, to and as city. you've are steady we forward recovery of of to of normal looking shares Day And because anticipating New to COVID.

So thanks, and everybody, we'll talk soon.

This call. concludes conference today's