American Strategic Investment (NYC) - 2025 Q2 - Quarterly Results

Report Overview General Information This report details American Strategic Investment Co.'s unaudited Q2 2025 results, including forward-looking statements and risks related to REIT status, acquisitions, and market factors - The report provides unaudited supplemental information for American Strategic Investment Co. for the quarter ended June 30, 2025[1] - Forward-looking statements involve multiple risks and uncertainties, including expected benefits from terminating REIT status, ability to successfully acquire new assets or businesses, geopolitical instability (Russia-Ukraine conflict, Israel-Hamas conflict), inflationary and high interest rate environments, market conditions and capital availability for potential future acquisitions or dispositions, and the risk that the company may not continue to meet NYSE continued listing requirements and rules[3] Non-GAAP Definitions This section defines non-GAAP metrics like EBITDA and NOI, used for performance evaluation despite REIT status termination, emphasizing their comparative utility over GAAP accuracy - The company uses non-GAAP metrics such as EBITDA, Adjusted EBITDA, NOI, Cash NOI, and Cash Paid for Interest to evaluate performance[4] - The company terminated its REIT tax status on January 1, 2023, but business and operations did not materially change in Q1 2023, thus historical non-GAAP metrics remain unchanged[5] - Non-GAAP metrics should be considered not more relevant or accurate than GAAP measures, but they facilitate comparison of operating performance across different periods and companies by excluding factors like depreciation, amortization, and interest expense[6][7][8] Financial Performance Key Metrics As of June 30, 2025, the company reported $12,222 thousand in revenue, a net loss of $41,660 thousand, and a basic and diluted net loss per share of $16.39, with a real estate portfolio of 6 properties and 83 tenants at 82.0% leased Financial Results (Amounts in thousands, except per share data) | Financial Results (Amounts in thousands, except per share data) | Value | | :---------------------------------------------------- | :---- | | Revenue from tenants | $12,222 | | Net loss attributable to common stockholders | $(41,660) | | Basic and diluted net loss per share attributable to common stockholders | $(16.39) | | Cash NOI | $4,196 | | Adjusted EBITDA | $381 | Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages) | Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages) | Value | | :------------------------------------------------------------------- | :---- | | Gross asset value | $542,096 | | Net debt | $344,687 | | Total consolidated debt | $350,000 | | Total assets | $463,994 | | Cash and cash equivalents | $5,313 | | Common shares outstanding as of June 30, 2025 | 2,634 | | Net debt to gross asset value | 63.6 % | | Net debt to annualized adjusted EBITDA (annualized based on quarterly results) | 226.2 x | | Weighted-average interest rate cost | 6.4 % | | Weighted-average debt maturity (years) | 1.8 | Real Estate Portfolio | Real Estate Portfolio | Value | | :-------------------- | :---- | | Number of properties | 6 | | Number of tenants | 83 | | Square footage (millions) | 1.0 | | Leased | 82.0 % | | Weighted-average remaining lease term (years) | 6 | Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $463,994 thousand from $507,066 thousand, while total liabilities slightly increased to $428,476 thousand, and stockholders' equity significantly declined to $35,518 thousand due to accumulated losses ASSETS (Amounts in thousands) | ASSETS (Amounts in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :---------------------------- | :------------------------ | :---------------- | | Total real estate investments, net | $362,030 | $398,759 | | Cash and cash equivalents | $5,313 | $9,776 | | Total assets | $463,994 | $507,066 | LIABILITIES AND STOCKHOLDERS' EQUITY (Amounts in thousands) | LIABILITIES AND STOCKHOLDERS' EQUITY (Amounts in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------------------------------- | :------------------------ | :---------------- | | Mortgage notes payable, net | $348,223 | $347,384 | | Total liabilities | $428,476 | $421,480 | | Total stockholders' equity | $35,518 | $85,586 | - Stockholders' equity significantly decreased from $85,586 thousand as of December 31, 2024, to $35,518 thousand as of June 30, 2025, primarily due to an increase in 'Distributions in excess of accumulated earnings' from $(645,870) thousand to $(696,122) thousand[15] Consolidated Statements of Operations For the quarter ended June 30, 2025, rental revenue was $12,222 thousand, with a significant $30,558 thousand impairment of real estate investments leading to an operating loss and a net loss of $41,660 thousand, or $16.39 per share (Amounts in thousands, except share and per share data) | (Amounts in thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended December 31, 2024 | Three Months Ended September 30, 2024 | | :---------------------------------------------------- | :------------------------------- | :-------------------------------- | :----------------------------------- | :------------------------------------ | | Revenue from tenants | $12,222 | $12,308 | $14,889 | $15,447 | | Impairment of real estate investments | $30,558 | — | — | $27,817 | | Total expenses | $46,036 | $16,823 | $17,037 | $44,659 | | Operating loss | $(33,814) | $(4,515) | $(2,424) | $(29,212) | | Interest expense | $(7,850) | $(4,083) | $(4,311) | $(5,279) | | Net loss attributable to common stockholders | $(41,660) | $(8,592) | $(6,650) | $(34,482) | | Net loss per share attributable to common stockholders — Basic and Diluted | $(16.39) | $(3.39) | $(2.60) | $(13.52) | - Impairment of real estate investments of $30,558 thousand in the quarter ended June 30, 2025, was the primary driver for the significant increase in total expenses and net loss, compared to no such expense in the prior quarter (March 31, 2025)[16] Non-GAAP Measures Reconciliation For the quarter ended June 30, 2025, Adjusted EBITDA improved to $381 thousand from a prior quarter loss, but Cash NOI remained stable at $4,196 thousand, though lower than the previous year (Amounts in thousands) | (Amounts in thousands) | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | Three Months Ended December 31, 2024 | Three Months Ended September 30, 2024 | | :--------------------- | :------------------------------- | :-------------------------------- | :----------------------------------- | :------------------------------------ | | Net loss | $(41,660) | $(8,592) | $(6,650) | $(34,482) | | EBITDA | $(30,265) | $(918) | $1,243 | $(24,789) | | Adjusted EBITDA | $381 | $(832) | $1,252 | $3,104 | | NOI | $4,235 | $4,171 | $5,868 | $6,860 | | Cash NOI | $4,196 | $4,234 | $6,395 | $6,770 | | Total cash paid for interest | $7,774 | $4,593 | $4,286 | $4,906 | - Adjusted EBITDA turned positive to $381 thousand in the quarter ended June 30, 2025, from negative $832 thousand in the prior quarter, but still represents a significant decrease compared to the same period in 2024[17] - Cash NOI for the quarter ended June 30, 2025, was $4,196 thousand, largely consistent with $4,234 thousand in the quarter ended March 31, 2025, but a decrease from $6,770 thousand in the same period of 2024[17] Debt and Lease Information Debt Overview As of June 30, 2025, the company's total debt was $350,000 thousand, with a weighted-average maturity of 1.8 years and a weighted-average interest rate cost of 6.4%, predominantly fixed-rate Debt Maturity Schedule | Year of Maturity | Number of Encumbered Properties | Weighted Average Debt Maturity (Years) | Weighted-Average Interest Rate | Total Outstanding Balance (In thousands) | | :--------------- | :------------------------------ | :------------------------------------- | :----------------------------- | :--------------------------------------- | | 2025 (remainder) | 1 | — | 8.1 % | — | | 2026 | — | — | 4.2 % | 99,000 | | 2027 | 1 | 1.7 | 4.2 % | 140,000 | | 2028 | 3 | 2.9 | 4.7 % | 60,000 | | 2029 | 1 | 4.1 | 3.9 % | 51,000 | | Thereafter | — | — | — % | — | | Total Debt | 6 | 1.8 | 6.4 % | $350,000 | - As of June 30, 2025, all company debt is at fixed interest rates, with the exception of one floating rate loan[19] Future Minimum Lease Rents As of June 30, 2025, the company's total future minimum base rent payments amount to $313,845 thousand, with $44,245 thousand due in the remainder of 2025 and $40,964 thousand in 2026, decreasing thereafter Future Minimum Base Rent Payments | Year | Future Minimum Base Rent Payments (In thousands) | | :--------------- | :----------------------------------------------- | | 2025 (remainder) | $44,245 | | 2026 | $40,964 | | 2027 | $37,256 | | 2028 | $32,510 | | 2029 | $30,448 | | 2030 | $28,075 | | Thereafter | $100,347 | | Total | $313,845 | - These amounts do not include contingent rent payments that may be collected from certain tenants based on sales thresholds and economic index growth terms[21] Portfolio Diversification Top Ten Tenants As of June 30, 2025, the top ten tenants contribute 53% of total annualized straight-line rent, with City National Bank being the largest at 10%, and a significant portion of these tenants holding investment-grade ratings Top Ten Tenants by Annualized SL Rent | Tenant / Lease Guarantor | Property Type | Tenant Industry | Annualized SL Rent (In thousands) | Percent | Remaining Lease Term (Years) | Investment Grade | | :----------------------- | :------------ | :------------------------ | :-------------------------------- | :------ | :--------------------------- | :--------------- | | City National Bank | Office / Retail | Financial Services | $4,356 | 10 % | 8.0 | Yes | | Planned Parenthood Federation of America, Inc. | Office | Non-Profit | $3,384 | 8 % | 6.0 | Yes | | Equinox | Retail | Fitness | $2,897 | 6 % | 13.4 | No | | The City of New York - Dept. of Youth & Community Development | Office | Government/Public Administration | $2,215 | 5 % | 12.5 | Yes | | CVS | Retail | Retail | $2,161 | 5 % | 9.2 | Yes | | USA General Services Administration | Office | Government/Public Administration | $2,050 | 4 % | 2.0 | Yes | | NYS Licensing | Office | Government/Public Administration | $1,833 | 5 % | 2.1 | Yes | | Marshalls | Retail | Retail | $1,641 | 4 % | 3.3 | Yes | | Edgewood Partners Insurance Center | Office | Office Space | $1,264 | 3 % | 9.1 | No | | 1140 Office Suites, LLC | Office | Office Space | $1,158 | 3 % | 5.8 | No | | Subtotal | | | $22,959 | 53 % | 7.5 | | | Remaining portfolio | | | $22,121 | 47 % | | | | Total Portfolio | | | $45,080 | 100 % | | | - 55% of the top ten tenants have an actual investment grade rating, while 22% have an implied investment grade rating[25] Diversification by Property Type As of June 30, 2025, the company's portfolio is primarily concentrated in office properties, accounting for 71% of annualized straight-line rent and 77% of total square footage, with retail properties as the second largest segment Portfolio Diversification by Property Type | Property Type | Annualized SL Rent (In thousands) | SL Rent Percent | Square Feet (In thousands) | SqFt. Percent | | :------------ | :-------------------------------- | :-------------- | :------------------------- | :------------ | | Office | $32,061 | 71 % | 626 | 77 % | | Retail | $12,133 | 27 % | 159 | 20 % | | Other | $886 | 2 % | 24 | 3 % | | Total | $45,080 | 100 % | 809 | 100 % | Diversification by Tenant Industry As of June 30, 2025, the company's tenant base is broadly diversified, with financial services contributing the largest share at 24% of annualized straight-line rent, followed by government/public administration and office space industries Portfolio Diversification by Tenant Industry | Industry Type | Annualized SL Rent (In thousands) | SL Rent Percent | Square Feet (In thousands) | Sq. ft. Percent | | :---------------------------- | :-------------------------------- | :-------------- | :------------------------- | :-------------- | | Financial Services | $10,792 | 24 % | 123 | 15 % | | Government / Public Administration | $7,722 | 17 % | 173 | 21 % | | Office Space | $5,303 | 12 % | 130 | 16 % | | Retail | $4,834 | 11 % | 45 | 6 % | | Non-profit | $4,316 | 10 % | 88 | 11 % | | Fitness | $2,897 | 6 % | 30 | 4 % | | Services | $2,059 | 5 % | 36 | 4 % | | Parking | $1,833 | 4 % | 87 | 11 % | | Professional Services | $1,050 | 2 % | 20 | 2 % | | Technology | $944 | 2 % | 18 | 2 % | | Other | $3,330 | 7 % | 59 | 8 % | | Total | $45,080 | 100 % | 809 | 100 % | Lease Expirations As of June 30, 2025, nine leases are set to expire in the remainder of 2025, representing $3,375 thousand in annualized straight-line rent and 60 thousand square feet, with peak expirations anticipated in 2027 and 2031 Lease Expiration Schedule | Year of Expiration | Number of Leases Expiring | Annualized SL Rent (In thousands) | Annualized SL Rent Percent | Leased Rentable Square Feet (In thousands) | Percent of Rentable Square Feet Expiring | | :----------------- | :------------------------ | :-------------------------------- | :------------------------- | :----------------------------------------- | :--------------------------------------- | | 2025 (Remaining) | 9 | $3,375 | 7.5 % | 60 | 7.3 % | | 2026 | 7 | $2,155 | 4.8 % | 42 | 5.2 % | | 2027 | 10 | $6,305 | 14.0 % | 137 | 16.9 % | | 2028 | 10 | $4,264 | 9.5 % | 90 | 11.1 % | | 2029 | 4 | $1,785 | 4.0 % | 32 | 4.0 % | | 2030 | 5 | $2,919 | 6.5 % | 55 | 6.7 % | | 2031 | 9 | $6,736 | 14.9 % | 124 | 15.2 % | | 2032 | 2 | $352 | 0.8 % | 6 | 0.7 % | | 2033 | 9 | $5,417 | 12.0 % | 57 | 7.0 % | | 2034 | 4 | $3,425 | 7.6 % | 30 | 3.7 % | | 2035 | 3 | $640 | 1.4 % | 4 | 0.5 % | | 2036 | 2 | $365 | 0.8 % | 10 | 1.2 % | | 2037 | 4 | $4,048 | 9.0 % | 128 | 15.8 % | | 2038 | 3 | $2,897 | 6.4 % | 30 | 3.7 % | | 2039 | — | — | — % | — | — % | | 2040 | — | — | — % | — | — % | | Thereafter (>2040) | 2 | $397 | 1.1 % | 4 | 0.8 % | | Total | 83 | $45,080 | 100 % | 809 | 100 % | - Lease expiration data includes tenant concessions, such as free rent periods[31]