New York City REIT (NYC) 12 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the American Strategic Investment Company Third Quarter Earnings Call. My name is Karen, and I'll be your operator today. [Operator Instructions] Thank you. I'd like to turn the conference over to Curtis Parker, Senior Vice President. Please go ahead.

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

SEC our today. materially the Should XXXX, subsequent XXXX, call may statements. We this of Any that as the statements cause results and uncertainties. are to XXXX, earnings differences. risks Joining the Executive Chief one section April implied these for the Form by Private cautionary meaning Act contains forward-looking which Mike Financial a year Reform the me or forward-looking to of December of the Chief call filings, and or that materialize, American of our forward-looking subject all results review XX, X, forward-looking ended are from call or the actual release Securities the risk XXXX differ uncertainties made following today actual quarter's call. to and factors XX-K statements date filed could Investment these all Litigation more and the on SEC quarter detailed Please of Officer; results from refer including are factors risks this various during only filed conference end of provided forward-looking the more Officer. The made could for on expressed the Michael LeSanto, at cause during of statements Company's materially statements those discussion the Anderson, to Strategic third for the differ discuss information you of within filings

we These during disclaims our by reconciliation results believe performance. can GAAP. in should measures or substitute accordance to for statements, these stated on in we except in financial a the A posted non-GAAP isolation GAAP useful as of which call, in measures, is revise to company www.americanstrategicinvestment.com. measure law. Also, any at or evaluating directly intent release, obligation the website our be will as most these available financial our update As which prepared filings, comparable be considered earnings in not financial SEC our forward-looking company's measures required today's discuss the with or is

to what earnings consider ahead, turn over now to also release for a throughout information will call tenants, Chief more call. I Please We implied we go Michael detailed investment-grade our will to Officer. Executive refer we Anderson, about be term today's the Michael. use

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

the growth quarter results positive success incremental of third Our for compared this through growth NOI third gains. XXXX. included quarter We and to the achieved leasing cash additional occupancy ongoing

XX.X% Specifically, point expansion to we occupancy to delivered quarter XX basis in same compared in XXXX. a the

would previously on million generate in impairment our leverage our and proceeds cash We noncash strengthening we've of $XX.X property for Times at the close of approximately which of this expected entered for announced, operating reduce quarter's to our this sale million, Beyond net is $XX.X a $X.X property strong Square execution, position. definitive this incurred balance results. sheet sell X quarter into property the to in fourth agreement as 'XX. The a million, of

sheet, Importantly, year-end generate further we as and as We be assets on higher-yielding sale. XXX our as portfolio shared, our used XXX significant are will sale diversify from these extended last for William to year. to believe to Orchard and close we Street this our we properties any returns. Proceeds transaction. well debt this asset discussed positioned into work strengthen previously successfully balance marketing through are To actively we

We value. are initiative about excited long-term its and potential this to increase

on our current our assets. portfolio, creating our remains While committed to we in are long-term value focus

coupled significant straight-line of investment grade implied stability. X.X with rent. is a based provides our of leases that tenant XX% XXXX or term lease September remaining average XX, annualized extending featuring XX% this, investment are top beyond with XX who portfolio weighted tenants portfolio's high-quality years on grade Our as We base XXXX, believe

We New in management from focusing our retail locations, believe our City our proactive portfolio. strong success. investment-grade asset foot and York several industries firms. a million we've strategy positioned and primarily Manhattan, base, Located estate X real office X.X believe has long-term resilient properties for large including $XXX we enhanced million, benefit on tenant By square transit-oriented ourselves

a absorption long-running We the are data positive office market, space. lessees available showing third for we City halting our own from quarter strong by rates. to continue York In portfolio, vacancy in potential our remaining trend net further encouraged and see interest New reversing

of approach. for property retention, foundation maximizing built Our third effectiveness the highlight results value. portfolio management tenant control, and we've cost we solid shareholder a enhancements our consistent quarter By prioritizing believe

divest reduce Mike? opportunities, over and assets this third we that, additional yielding quarter leverage our deliver certain Manhattan Mike pursue the value. As confident go are in it LeSanto over ability to strategy to to results. turn unlock With we higher on and I'll to

Michael. you, Thank

was revenue Michael XXXX impairments, of quarter of company's net to million in due the earlier. $XX.X one loss $X.X third of third compared quarter was to common in Third in The million quarter a XXXX of attributable to third the compared loss million $XX.X stockholders primarily to XXXX million the quarter noncash discussed which XXXX. net GAAP $XX of

operating operating achieved in to was third quarter Cash million of $X.X The $X.X in quarter million XXXX. million reduction $X.X was the growth with by million grew quarter ongoing For success leasing the $X.X the EBITDA third of compared $X.X of from XXXX, third income through G&A the net XXXX. along adjusted expenses. to and million in

a website. At non-GAAP net our earnings quarterly balance and net our call GAAP back I'll turn of Michael our XX%, release reconciliation the interest can average included quarter for some X.X% X.X average closing remarks. in measures leverage to debt now of weighted sheet on of weighted approximately supplemental a years end, income found be maturity. of to rate always, As and

today. Thank you, for all you Mike, and thank us joining

management. increased growing occupancy result our and by cash NOI performance strategic direct a quarterly Our driven is strong portfolio of

assets, new believe enhance We reducing generating proceeds crucial we our anticipate this cash and to questions. for on shareholder be is Manhattan significant value divesting a leverage. opportunities. we updated our As line our are the move and Operator, funds progress. strategic to higher-yielding These certain you portfolio please committed keeping will expanding open in begin into

Instructions] [Operator

question comes line from Maher Riley Our of Bryan first the from B. Securities.

these for of of On about type you tell your the you're Orchard? brokers are you're properties how properties? that? that engaged? looking me sale, And going you the marketing Do of XXX interest would gauge can kind What in and how level buyers at doing

institutional have XXX from is types X fully engaged is retail occupied office more type on properties. attracting those Thanks, brokers interest. investors buyers condo We both properties. family of do on attracting interest those seeing different Sure. XXX Bryan. of to whereas more We're

some months both confident executed optimistic traction. that that interest think that in seeing are Orchard. coming will rates assets. We we help, some with will the we'll drive XXX we're particularly And we've those and be We on think in leasing transact interest on will got XXX remain there value

any date, on might a plan give And dollars? Okay. position you be a been those color coy have in you to reinvested? us proceeds to little on you those to more Are redeploy where how

New of there. business can England look opportunity the hospitality, of X the in Square to would estate Yes, at we see and we're on would of in iconic outside with Time say, think the closing York quarter, got the of core real mix beginning, this I that really operations we a of transaction also we in New real value kind where that opportunities, drive looking area interesting City still we've but given control kind market estate and the operating businesses lot

we've operations assets whereas gives how sorts of REIT own were we of do more in with the businesses, those of that we the us hamstrung go and let underlying by REIT status, those we and operations the operate Given the assets it previously. restrictions of flexibility what some could in

it Anything mean, I What upon else? What's Okay. helpful. And just in the Is office? in something trends be of give are it types improvements return Is you you leasing detail us City. more little last, then to there. would their New touched York a Can tenants? think motivation? I

Sure. Yes, office norm. return being to we're the certainly seeing

I year-over-year. think office where put properties graphic has own the markets we in increased markedly

have also leasing are shorter-term now and workforce. basis of returning opportunistic COVID may that home a seeing office to space from think given smaller work on a during lot a I groups full that we're taken with

expand looking footprint. they're so their to And

largely So tenants a new looking into lot convert we're looking into that seeing mandate. it's we're to by operating of subtenants return that driven direct of to assets leases And lot in. a markets and owning office the and

queue. see remarks. do back further for I questions going to turn I'm any in closing Curtis call not the over the to

of closing proceeds We're look elsewhere more sharing those morning. I'd like those X joining the quarter to we quarter transaction this and this. for Square begin as this operator. and about all forward sharing Thank consummate excited deploy the on updates. to Thanks, you excited about that Time to updates and and take us

all you This concludes today's joining. Thank call. for

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