NEW YORK–(BUSINESS WIRE)–American Strategic Investment Co. (NYSE: NYC), a company that owns a portfolio of commercial real estate located within the five boroughs of New York City, announced today its financial and operating results for the first quarter ended March 31, 2024.
First Quarter 2024 and Subsequent Event Highlights
- Revenue was consistent at $15.5 million for the first quarter of 2024 and 2023
- Net loss attributable to common stockholders improved to $7.6 million, compared to $11.8 million in the first quarter 2023
- Cash net operating income (“NOI”) was consistent at $7.0 million for the first quarter of 2024 and 2023
- Adjusted EBITDA grew to $2.9 million compared to $2.5 million in the first quarter 2023
- Portfolio occupancy grew 320 basis points to 87.2% as of March 31, 2024 compared to the first quarter 2023, with weighted-average lease term(1) of 6.3 years
- 81% of annualized straight-line rent from top 10 tenants(2) is derived from investment grade or implied investment grade(3) rated tenants with a weighted-average remaining lease term of 8.2 years as of March 31, 2024
- Portfolio comprised of 100% fixed rate with a 4.4% weighted-average interest rate and 3.4 years of weighted-average debt maturity
- Subsequent to quarter-end, the Company announced an amendment which extends the maturity for the Capital One Loan Agreement and intent to dispose of 9 Times Square property
CEO Comments
“We believe our first quarter results once again demonstrated the effectiveness of our consistent focus on portfolio management as we improved net loss attributable to common stockholders to $7.6 million, compared to $11.8 million in the first quarter 2023, realized an increase in Adjusted EBITDA compared to last year, and achieved a 320 basis point increase in occupancy compared to the same quarter last year,” said Michael Anderson, CEO of American Strategic Investment Co. “We believe our longstanding focus on continuously strengthening our portfolio, while at the same time managing our expenses, has positioned us well to create value for shareholders. As we look ahead, we believe that monetizing some of our Manhattan properties, if completed, will result in a further reduction in leverage, and support efforts to diversify into new higher-yielding investment opportunities.”
Financial Results
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Three Months Ended March 31, |
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(In thousands, except per share data) |
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2024 |
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2023 |
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Revenue from tenants |
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$ |
15,481 |
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$ |
15,534 |
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Net loss attributable to common stockholders |
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$ |
(7,608 |
) |
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$ |
(11,758 |
) |
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Net loss per common share (1) |
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$ |
(3.28 |
) |
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$ |
(5.77 |
) |
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EBITDA |
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$ |
2,350 |
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$ |
(143 |
) |
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Adjusted EBITDA |
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$ |
2,928 |
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$ |
2,533 |
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(1) All per share data based on 2,322,594 and 2,038,880 diluted weighted-average shares outstanding for the three months ended March 31, 2024 and 2023, respectively. |
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Real Estate Portfolio
The Company’s portfolio consisted of seven properties comprised of 1.2 million rentable square feet as of March 31, 2024. Portfolio metrics include:
- 87.2% leased
- 6.3 years remaining weighted-average lease term
- 81% of annualized straight-line rent(4) from top 10 tenants derived from investment grade or implied investment grade tenants with 8.2 years of weighted-average remaining lease term
- Diversified portfolio, comprised of 24% financial services tenants, 13% government and public administration tenants, 12% retail tenants, 9% non-profit and 42% all other industries, based on annualized straight-line rent
Capital Structure and Liquidity Resources
As of March 31, 2024, the Company had $5.3 million of cash and cash equivalents(5). The Company’s net debt(6) to gross asset value(7) was 46.9%, with net debt of $394.2 million.
All of the Company’s debt was fixed-rate as of March 31, 2024. The Company’s total combined debt had a weighted-average interest rate of 4.4%.(8)
Footnotes/Definitions
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(1) |
The weighted-average remaining lease term (years) is weighted by annualized straight-line rent as of March 31, 2024. | |
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(2) |
Top 10 tenants based on annualized straight-line rent as of March 31, 2024. |
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(3) |
As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. The term “parent” for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of March 31, 2024. Based on annualized straight-line rent, top 10 tenants are 60% actual investment grade rated and 20% implied investment grade rated. |
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(4) |
Annualized straight-line rent is calculated using the most recent available lease terms as of March 31, 2024. |
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(5) |
Under one of our mortgage loans, we are required to maintain minimum liquid assets (i.e. cash and cash equivalents and restricted cash) of $10.0 million. |
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(6) |
Total debt of $399.5 million less cash and cash equivalents of $5.3 million as of March 31, 2024. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents. |
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(7) |
Defined as the carrying value of total assets of $689.8 million plus accumulated depreciation and amortization of $149.9 million as of March 31, 2024. |
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(8) |
Weighted based on the outstanding principal balance of the debt |
About American Strategic Investment Co.
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of commercial real estate located within the five boroughs of New York City. Additional information about ASIC can be found on its website at www.americanstrategicinvestment.com.
