Trinity Place (US:TPHS)2022-11-14 22:20Financial Position - As of September 30, 2022, Trinity Place Holdings Inc. had total cash and restricted cash of $11.7 million, including $2.2 million in cash and cash equivalents and $9.5 million in restricted cash[131]. - The company has approximately $268.0 million in federal net operating loss carryforwards (NOLs) that can be utilized to reduce future taxable income and capital gains[128]. - As of September 30, 2022, total cash and restricted cash amounted to $11.7 million, down from $24.8 million as of December 31, 2021[181]. - The Corporate Credit Facility had an outstanding balance of $35.75 million as of September 30, 2022, with an effective interest rate of 9.875%[184]. - The company expects to meet its working capital needs through cash on hand, proceeds from new debt financings, and cash flow from operations[179]. - The company had net cash provided by operating activities of $6.8 million for the nine months ended September 30, 2022, an increase of approximately $37.6 million compared to a net cash used of $30.8 million for the same period in 2021[215]. - Net cash provided by investing activities increased to $17.3 million for the nine months ended September 30, 2022, up from net cash used of $84,000 in the same period in 2021, primarily due to $17.4 million in net proceeds from the sale of The Berkley[217]. - Net cash used in financing activities increased to $37.3 million for the nine months ended September 30, 2022, compared to net cash provided of $27.5 million for the same period in 2021, largely due to $31.8 million in loan paydowns[218]. Property and Development - Construction at the 77 Greenwich property is nearing completion, with the majority expected to be finished by the end of November 2022, despite delays caused by COVID-19 and supply chain issues[130]. - The 237 11th Street property, acquired for $81.2 million, consists of 105 multi-family units and is fully leased, with a 15-year Section 421-a real estate tax exemption[135]. - The Paramus property is fully leased with an annualized rent of $638,000, and the lease is set to expire in 2023[136]. - The joint venture property at 250 North 10th Street has a 98.3% occupancy rate, with a total of 234 units[133]. - The company is in discussions to amend the 77 Mortgage Loan agreement to extend the Final Completion milestone due to delays in construction[130]. - Management is exploring new investment opportunities, focusing on newly constructed multi-family properties in New York City and properties near public transportation[129]. - The company is actively considering potential acquisitions, developments, and partnerships to enhance growth opportunities[129]. Sales and Revenue - Total rental revenues increased by approximately $510,000 to $1.5 million for the three months ended September 30, 2022, compared to $967,000 for the same period in 2021, driven by higher occupancy and base rents[141]. - Sales of residential condominium units at 77 Greenwich rose by approximately $16.1 million to $17.5 million for the three months ended September 30, 2022, with six units closed compared to one unit in the same period of 2021[143]. - Total rental revenues increased by approximately $2.0 million to $4.0 million for the nine months ended September 30, 2022, compared to $2.0 million for the same period in 2021[159]. - Sales of residential condominium units at 77 Greenwich increased by approximately $27.3 million to $28.7 million for the nine months ended September 30, 2022, with 11 units closed compared to one unit in the same period of 2021[161]. Expenses and Losses - Property operating expenses increased by approximately $323,000 to $1.2 million for the three months ended September 30, 2022, primarily due to costs associated with 77 Greenwich[144]. - Real estate tax expense increased by approximately $215,000 to $486,000 for the three months ended September 30, 2022, mainly due to higher taxes for 77 Greenwich[145]. - Net loss attributable to common stockholders increased by approximately $2.8 million to $6.4 million for the three months ended September 30, 2022, primarily due to lower unrealized gains on warrants and increased operating and interest expenses[157]. - Property operating expenses decreased by approximately $1.9 million to $2.8 million for the nine months ended September 30, 2022, primarily due to lower remediation costs[162]. - General and administrative expenses increased by approximately $366,000 to $4.4 million for the nine months ended September 30, 2022, compared to $4.1 million for the same period in 2021[163]. - Cost of sales for residential condominium units increased by approximately $25.8 million to $27.2 million for the nine months ended September 30, 2022, compared to $1.4 million for the same period in 2021[165]. - Interest expense, net increased by approximately $4.6 million to $9.6 million for the nine months ended September 30, 2022, from $5.0 million in the same period in 2021[172]. - Net loss attributable to common stockholders decreased by approximately $5.8 million to $11.7 million for the nine months ended September 30, 2022, from $17.5 million for the same period in 2021[175]. Loans and Financing - The 77 Mortgage Loan was initially for $166.7 million, with $133.1 million drawn at closing and a remaining availability of $33.6 million as of September 30, 2022[191][196]. - As of September 30, 2022, the outstanding balance of the 77 Mortgage Loan was $105.6 million, which included $4.3 million in PIK interest, after a paydown of approximately $41.3 million from sales proceeds[196]. - The Mezzanine Loan had a balance of $30.3 million and accrued interest of approximately $4.5 million as of September 30, 2022[200]. - The company was in default under both the 77 Mortgage Loan and Mezzanine Loan due to incomplete items by the Final Completion milestone of September 28, 2022[197][201]. - The secured line of credit had an outstanding balance of $9.75 million and an effective interest rate of 6.25% as of September 30, 2022[209]. - The 250 North 10th JV acquired a property for $137.75 million, financed with an $82.75 million mortgage loan at an interest rate of 3.39%[210]. - The Berkley Partner Loan had a balance of $10.1 million when it was repaid in full in April 2022[208]. - The blended interest rate for the 77 Greenwich Construction Facility and the Mezzanine Loan was 10.5% annually[198]. - 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[192]. - The company anticipates obtaining an extension for the completion date of the 77 Mortgage Loan due to delays[194]. Equity and Share Transactions - In October 2021, the company issued 2,539,473 shares at $1.90 per share, raising gross proceeds of $4.8 million[211]. - In December 2021, the company completed a rights offering, issuing 903,576 shares at $1.90 per share, resulting in gross proceeds of $1.7 million[212]. - The company sold 701,327 shares for approximately $1.4 million during the year ended December 31, 2021, at a weighted average price of $1.95 per share[214]. - The company has not sold any shares under its "at-the-market" equity offering program during the nine months ended September 30, 2022[213]. Tax and Valuation - A valuation allowance of $74.8 million was recorded as of September 30, 2022, indicating that it is more likely than not that the entire deferred tax assets will not be realized[220]. - The company believes it qualifies for treatment under Section 382(l)(5) of the Code, which may allow it to utilize its NOLs without annual limitations[221].