Trinity Place (US:TPHS)2022-09-07 20:15Financial Position - As of June 30, 2022, Trinity Place Holdings Inc. had total cash and restricted cash of $16.4 million, including $3.1 million in cash and cash equivalents and $13.3 million in restricted cash[199]. - As of June 30, 2022, total cash and restricted cash amounted to $16.4 million, down from $24.8 million as of December 31, 2021[252]. - The company has approximately $261.8 million of federal net operating loss carryforwards (NOLs) as of June 30, 2022, which can be utilized to reduce future taxable income[196]. - The company's U.S. federal net operating losses (NOLs) were approximately $261.8 million as of June 30, 2022, with a valuation allowance of $72.6 million recorded[290]. - The company has a provision in its certificate of incorporation to preserve certain tax benefits associated with its NOLs, prohibiting stock transfers that would result in a person or group becoming a 4.75% stockholder[295]. Property and Leasing - The company owns a 10% interest in a joint venture for a 234-unit multi-family property at 250 North 10th Street, Brooklyn, which is 98.3% leased as of June 30, 2022[202]. - The 237 11th Street property, a 105-unit multi-family building, is 99.1% leased, with a total building size of approximately 80,000 rentable square feet[202]. - The Paramus property is fully leased (100%) with 77,000 square feet of retail space, generating annualized rent of $638,000, with leases expiring in 2023[207]. - The company has closed on the sale of 19 residential condominium units at 77 Greenwich through June 30, 2022, with ongoing closings expected[202]. Revenue and Expenses - Rental revenues increased by approximately $654,000 to $1.2 million for the three months ended June 30, 2022, compared to $577,000 for the same period in 2021, driven by higher occupancy and base rents[212]. - For the six months ended June 30, 2022, rental revenues increased by approximately $1.5 million to $2.5 million from $1.0 million for the same period in 2021, due to higher occupancy and base rents[230]. - Gross sales proceeds from residential condominium units at 77 Greenwich were approximately $5.1 million for the three months ended June 30, 2022, with units sold being generally lower priced and smaller[214]. - Gross sales proceeds from residential condominium units at 77 Greenwich for the six months ended June 30, 2022, were approximately $11.2 million[232]. - Property operating expenses decreased by approximately $1.1 million to $766,000 for the three months ended June 30, 2022, primarily due to lower remediation costs[215]. - Property operating expenses decreased by approximately $2.2 million to $1.6 million for the six months ended June 30, 2022, reflecting completion of remediation efforts[233]. - Real estate tax expense increased by approximately $337,000 to $416,000 for the three months ended June 30, 2022, mainly due to less capitalized real estate taxes for 77 Greenwich[216]. - Real estate tax expense increased by approximately $648,000 to $806,000 for the six months ended June 30, 2022, due to less capitalized real estate taxes for 77 Greenwich[234]. - Net loss attributable to common stockholders decreased by approximately $6.2 million to $223,000 for the three months ended June 30, 2022, attributed to increased rental revenue and lower property operating expenses[228]. - Net loss attributable to common stockholders decreased by approximately $8.5 million to $5.4 million for the six months ended June 30, 2022, from $13.9 million for the same period in 2021[246]. Financing and Debt - The construction facility for 77 Greenwich had a balance of $112.9 million as of June 30, 2022, with $33.6 million remaining availability to complete construction[202]. - The company anticipates entering into an amendment to the 77 Mortgage Loan agreement to extend the Final Completion milestone, which is currently set for September 28, 2022[198]. - The Corporate Credit Facility had an outstanding balance of $35.75 million as of June 30, 2022, with an effective interest rate of 9.875%[258]. - The commitment under the Corporate Credit Facility was reduced from $70.0 million to $62.5 million, with a potential increase of $25.0 million upon meeting certain conditions[259]. - As of June 30, 2022, the 77 Mortgage Loan had been paid down by approximately $25.8 million, resulting in a balance of $112.9 million, with $4.0 million in accrued PIK interest[269]. - The Mezzanine Loan balance as of June 30, 2022, was $30.3 million, with accrued interest totaling approximately $3.3 million[272]. - The 77 Mortgage Loan bears interest at a rate of 7.00% plus LIBOR, increasing to 9.00% plus LIBOR if the principal balance exceeds $91.0 million[266]. - The 77 Mortgage Loan has a two-year term with an option to extend for an additional year under certain circumstances[266]. - The blended interest rate for the 77 Greenwich Construction Facility and the Mezzanine Loan was 8.26% on an annual basis[270]. - The New Berkley Loan was a 7-year loan of $33.0 million with a fixed interest rate of 2.717%, which was repaid in full in April 2022[277]. - As of June 30, 2022, the outstanding balance from the 237 11th Senior Loan was $48.8 million and $10.0 million from the 237 11th Mezz Loan[275]. - Interest expense, net increased by approximately $3.4 million to $6.1 million for the six months ended June 30, 2022, from $2.6 million for the same period in 2021[243]. Investment and Future Plans - The company is exploring new investment opportunities, particularly in newly constructed multi-family properties in New York City, while also considering stock repurchases and potential acquisitions[197]. - The company is exploring various capital-raising transactions, including asset sales and equity offerings, to address liquidity needs[249]. - The company raised $4.8 million from a private placement of 2,539,473 shares at $1.90 per share in October 2021[283]. - A common stock rights offering in December 2021 resulted in gross proceeds of $1.7 million from the issuance of 903,576 shares at $1.90 per share[284]. - The company recorded a cost of sales of approximately $10.5 million related to the commencement of sales of residential condominium units for the six months ended June 30, 2022[237]. Cash Flow - Net cash provided by operating activities increased by approximately $23.3 million to $370,000 for the six months ended June 30, 2022, compared to a net cash used of $22.9 million for the same period in 2021[287]. - Net cash provided by investing activities increased by approximately $17.4 million to $17.3 million for the six months ended June 30, 2022, primarily due to proceeds from the sale of The Berkley[288]. - Net cash used in financing activities increased by approximately $42.9 million to $26.2 million for the six months ended June 30, 2022, largely due to loan paydowns and the payoff of the Pacolet Partner Loan[289].