Trinity Place (US:TPHS)2023-08-14 20:36Financial Position - As of June 30, 2023, the company had total cash and restricted cash of $15.4 million, with $4.4 million in cash and cash equivalents and $11.0 million in restricted cash[135]. - The Corporate Credit Facility (CCF) had an outstanding balance of $38.75 million as of June 30, 2023, with an effective interest rate of 10.325%[195]. - The 77 Mortgage Loan has a balance of $106.0 million as of June 30, 2023, after being paid down by approximately $62.1 million from closed sales of residential condominium units[202]. - The Mezzanine Loan had a balance of $30.3 million and accrued interest of approximately $8.4 million as of June 30, 2023[207]. - The 237 11th Senior Loan and Mezz Loan had outstanding balances of $50.0 million and $10.0 million, respectively, with a blended interest rate of 5.35% as of June 30, 2023[211]. - U.S. federal net operating losses (NOLs) were approximately $293.4 million as of June 30, 2023, an increase from $162.8 million at the emergence date of the Syms bankruptcy[219]. - A valuation allowance of $83.9 million was recorded for deferred tax assets as of June 30, 2023, indicating that realization by future taxable income is unlikely[220]. Sales and Revenue - The company has closed on the sale of 35 residential condominium units at 77 Greenwich as of June 30, 2023, with 55 units remaining for sale[137]. - The company received $41.5 million from the New York City School Construction Authority for the sale of a condominium unit and has received $55.4 million in reimbursable construction costs through June 30, 2023[138]. - Sales of residential condominium units at 77 Greenwich increased by approximately $106,000 to $5.2 million for the three months ended June 30, 2023, from $5.1 million for the same period in 2022[148]. - Sales of residential condominium units at 77 Greenwich increased by approximately $7.1 million to $18.3 million for the six months ended June 30, 2023, from $11.2 million for the same period in 2022[166]. - Total rental revenues increased by approximately $194,000 to $1.4 million for the three months ended June 30, 2023, compared to $1.2 million for the same period in 2022[146]. - Total rental revenues increased by approximately $445,000 to $2.9 million for the six months ended June 30, 2023, compared to $2.5 million for the same period in 2022[164]. Expenses and Losses - Property operating expenses increased by approximately $45,000 to $811,000 for the three months ended June 30, 2023, compared to $766,000 for the same period in 2022[149]. - General and administrative expenses increased by approximately $332,000 to $1.8 million for the three months ended June 30, 2023, from $1.5 million for the same period in 2022[152]. - Net loss attributable to common stockholders increased by approximately $10.7 million to $10.9 million for the three months ended June 30, 2023, from $223,000 for the same period in 2022[163]. - Property operating expenses increased by approximately $508,000 to $2.1 million for the six months ended June 30, 2023, compared to $1.6 million for the same period in 2022[167]. - Cost of sales for residential condominium units increased by approximately $7.0 million to $17.5 million for the six months ended June 30, 2023, from $10.5 million for the same period in 2022[172]. - Net loss attributable to common stockholders increased by approximately $11.8 million to $17.2 million for the six months ended June 30, 2023, compared to $5.4 million for the same period in 2022[180]. - Interest expense, net increased by approximately $7.5 million to $13.5 million for the six months ended June 30, 2023, from $6.1 million for the same period in 2022[178]. - Interest expense - amortization of deferred finance costs increased approximately $1.0 million to $1.8 million for the six months ended June 30, 2023, from $814,000 for the same period in 2022[179]. Strategic Alternatives and Risks - The company is exploring strategic alternatives, including asset sales, refinancing, and potential mergers, due to substantial doubt about its ability to continue as a going concern[135]. - The company has engaged advisors to assist in identifying and evaluating potential strategic alternatives for maximizing stockholder value[135]. - The company is evaluating restructuring options, including potential bankruptcy protection or out-of-court restructuring of liabilities[136]. - The company is exploring opportunities to secure additional funding through asset sales, refinancing, and equity or debt financings[185]. - The company extended the maturity dates of secured lines of credit and loans by 12 months to March 2024 and July 2024, respectively[185]. - The company faces risks related to limited cash resources and reliance on external financing to fund operations in the next 12 months[225]. - Risks include potential adverse trends in the New York City residential condominium market and challenges in executing the business plan related to property development[225]. - The company may encounter difficulties in obtaining required permits and approvals for property development, which could impact future projects[229]. - Risks associated with joint ventures and the ability to maintain state tax benefits for certain properties are also present[229]. - The company is subject to various risks, including stock price volatility and potential dilution from future share issuances[229]. Construction and Development - The construction at 77 Greenwich has faced delays, but substantial completion is expected soon, with remaining work primarily on the exterior and roof deck[137]. - The Paramus property has 77,000 square feet of retail space leased at an annualized rent of $516,000, with the lease expiring in March 2024[142]. - The 237 11th Street property has a total of 105 multi-family units, with an occupancy rate of 98.1% as of June 30, 2023[139].