American Strategic Investment (NYC) - 2025 Q1 - Quarterly Results

Forward-looking Statements This section highlights inherent risks and uncertainties that may cause actual results to differ from forward-looking statements - This report contains forward-looking statements involving risks and uncertainties that could cause actual results to differ materially. Key risks include the benefits of terminating REIT status, success in acquiring new assets, geopolitical instability (Russia/Ukraine, Israel/Hamas), inflation, interest rates, and the ability to meet NYSE listing requirements[3] Non-GAAP Financial Measures This section outlines the company's non-GAAP financial measures and their application for performance evaluation Definitions and Usage of Non-GAAP Measures This section defines key non-GAAP metrics like EBITDA, Adjusted EBITDA, NOI, and Cash NOI, explaining their purpose and limitations - The company uses EBITDA, Adjusted EBITDA, NOI, and Cash NOI as key performance indicators[4] - Despite terminating its REIT status effective January 1, 2023, the company has not changed the non-GAAP metrics used to evaluate performance[5] - Adjusted EBITDA is defined as EBITDA adjusted for acquisition expenses, listing costs, non-cash items, and equity-based compensation, and is considered a measure of the ability to service debt[9] - NOI reflects property-level income and expenses on an unleveraged basis, excluding items like interest expense and depreciation to better show a property's operational results[10] - Cash NOI is defined as NOI excluding non-cash items like amortization of lease intangibles and straight-line rent adjustments, intended to reflect the current financial performance of properties[11] Key Metrics This section summarizes the company's financial and operational performance for Q1 2025, including key portfolio statistics Q1 2025 Key Metrics Summary Q1 2025 results show a net loss of $8.6 million, negative Adjusted EBITDA, and a portfolio of 6 properties with $350 million in debt Financial & Capitalization Highlights (Q1 2025) | Metric | Value (in thousands, except where noted) | | :--- | :--- | | Revenue from tenants | $12,308 | | Net loss attributable to common stockholders (in thousands) | $(8,592) | | Basic and diluted net loss per share ($) | $(3.39) | | Cash NOI | $4,234 | | Adjusted EBITDA | $(832) | | Total consolidated debt (in thousands) | $350,000 | | Net debt (in thousands) | $342,917 | | Net debt to gross asset value | 57.9% | | Weighted-average interest rate cost (%) | 4.4% | | Weighted-average debt maturity (years) | 2.3 | Real Estate Portfolio Snapshot (Q1 2025) | Metric | Value | | :--- | :--- | | Number of properties | 6 | | Number of tenants | 83 | | Square footage (millions) | 1.0 | | Leased Percentage (%) | 82.0% | | Weighted-average remaining lease term (years) | 5.4 | Consolidated Financial Statements This section presents the company's balance sheets and statements of operations, highlighting key financial trends Consolidated Balance Sheets Total assets decreased to $499.4 million by Q1 2025, while liabilities slightly increased and equity declined Balance Sheet Comparison (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate investments, net (in thousands) | $395,573 | $398,759 | | Cash and cash equivalents (in thousands) | $7,083 | $9,776 | | Total assets (in thousands) | $499,377 | $507,066 | | Mortgage notes payable, net (in thousands) | $347,637 | $347,384 | | Total liabilities (in thousands) | $422,291 | $421,480 | | Total stockholders' equity (in thousands) | $77,086 | $85,586 | Consolidated Statements of Operations Q1 2025 saw a net loss of $8.6 million, or ($3.39) per share, with declining revenue from tenants Quarterly Operating Results (in thousands, except per share data) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | :--- | | Revenue from tenants (in thousands) | $12,308 | $14,889 | $15,447 | | Total expenses (in thousands) | $16,823 | $17,037 | $44,659 | | Operating loss (in thousands) | $(4,515) | $(2,424) | $(29,212) | | Net loss (in thousands) | $(8,592) | $(6,650) | $(34,482) | | Net loss per share — Basic and Diluted ($) | $(3.39) | $(2.60) | $(13.52) | - Revenue from tenants has shown a consistent decline over the last four quarters[16] Non-GAAP Measures Reconciliation This section provides a reconciliation of GAAP net loss to key non-GAAP performance metrics, including Adjusted EBITDA and Cash NOI Reconciliation of GAAP to Non-GAAP Measures Q1 2025 Adjusted EBITDA turned negative at $(832) thousand, while Cash NOI declined to $4.2 million Quarterly Non-GAAP Performance (in thousands) | Metric | Q1 2025 | Q4 2024 | Q3 2024 | | :--- | :--- | :--- | :--- | | Net loss (in thousands) | $(8,592) | $(6,650) | $(34,482) | | EBITDA (in thousands) | $(918) | $1,243 | $(24,789) | | Adjusted EBITDA (in thousands) | $(832) | $1,252 | $3,095 | | NOI (in thousands) | $4,171 | $5,868 | $6,851 | | Cash NOI (in thousands) | $4,234 | $6,395 | $6,761 | | Total cash paid for interest (in thousands) | $4,593 | $4,286 | $4,906 | Debt & Lease Overview This section details the company's debt structure and future minimum lease rent obligations Debt Overview As of Q1 2025, total debt is $350 million with a 2.3-year weighted-average maturity and 4.4% interest rate Debt Maturity Schedule (as of March 31, 2025) | Year of Maturity | Total Outstanding Balance (in thousands) | | :--- | :--- | | 2027 | $99,000 | | 2028 | $140,000 | | 2029 | $60,000 | | 2030 | $51,000 | | Total Debt | $350,000 | - The weighted-average debt maturity is 2.3 years and the weighted-average interest rate is 4.4%[18] - All debt is fixed-rate except for one variable-rate loan[19] Future Minimum Lease Rents Total future minimum base rent payments amount to $309.3 million, with $43.7 million expected in remaining 2025 Future Minimum Base Rent Schedule (in thousands) | Period | Future Minimum Base Rent (in thousands) | | :--- | :--- | | 2025 (remainder) | $43,729 | | 2026 | $40,181 | | 2027 | $36,730 | | 2028 | $32,062 | | 2029 | $29,960 | | 2030 | $27,560 | | Thereafter | $99,091 | | Total | $309,313 | Portfolio Composition This section details the company's real estate portfolio, including tenant diversification, property types, industry exposure, and lease expiration schedule Top Ten Tenants The top ten tenants contribute 51% of annualized straight-line rent, with City National Bank as the largest at 10% Top 5 Tenants by Annualized SL Rent | Tenant | Annualized SL Rent (in thousands) | Percent of Total (%) | Remaining Lease Term (Years) | | :--- | :--- | :--- | :--- | | City National Bank | $4,356 | 10% | 8.3 | | Planned Parenthood | $3,388 | 7% | 6.3 | | Equinox | $2,897 | 6% | 13.7 | | The City of New York | $2,215 | 5% | 12.8 | | CVS | $2,161 | 5% | 9.4 | - The top 10 tenants account for 51% of total annualized straight-line rent[22] - Of the top 10 tenants, 55% have actual investment grade ratings and 22% have implied investment grade ratings[24] Diversification by Property Type The portfolio is heavily weighted towards office properties, comprising 71% of rent and 77% of square footage Portfolio by Property Type | Property Type | Annualized SL Rent (in thousands) | Percent of Rent (%) | Square Feet (in thousands) | Percent of SqFt (%) | | :--- | :--- | :--- | :--- | :--- | | Office | $32,292 | 71% | 626 | 77% | | Retail | $12,133 | 27% | 159 | 20% | | Other | $1,066 | 2% | 24 | 3% | | Total | $45,491 | 100% | 809 | 100% | Diversification by Tenant Industry Tenant industries are concentrated in Financial Services (26%) and Government/Public Administration (17%) Top 5 Industries by Annualized SL Rent | Industry Type | Annualized SL Rent (in thousands) | Percent of Rent (%) | | :--- | :--- | :--- | | Financial Services | $12,012 | 26% | | Government / Public Administration | $7,722 | 17% | | Retail | $4,834 | 11% | | Office Space | $4,463 | 10% | | Non-profit | $4,316 | 10% | Lease Expirations Significant lease expirations are scheduled for the remainder of 2025 (12.3% of rent), 2027 (13.9%), and 2031 (13.7%) Lease Expiration Schedule by Annualized SL Rent | Year of Expiration | Annualized SL Rent Percent Expiring (%) | | :--- | :--- | | 2025 (Remaining) | 12.3% | | 2026 | 4.7% | | 2027 | 13.9% | | 2028 | 7.5% | | 2029 | 3.9% | | 2030 | 6.4% | | 2031 | 13.7% | - A total of 13 leases, representing 12.3% of annualized rent and 14.2% of leased square feet, will expire in the remainder of 2025[30]