Trinity Place (US:TPHS)2023-11-14 22:07Financial Position - As of September 30, 2023, the company had total cash and restricted cash of $9.0 million, with approximately $809,000 in cash and cash equivalents and $8.2 million in restricted cash[144]. - As of October 31, 2023, cash and cash equivalents totaled approximately $583,000, raising concerns about the ability to fund operations beyond a few months[198]. - The secured line of credit had an outstanding balance of $11.75 million as of September 30, 2023, with an interest rate reduced to 2.5%[233]. - As of September 30, 2023, total cash and restricted cash amounted to $9.0 million, with approximately $809,000 in cash and cash equivalents and $8.2 million in restricted cash[197]. Sales and Revenue - The company closed on the sale of 10 residential condominium units since December 31, 2022, totaling 38 units sold as of September 30, 2023, with three units sold in Q3 2023[150]. - Sales of residential condominium units at 77 Greenwich decreased by approximately $8.3 million to $9.2 million for the three months ended September 30, 2023, from $17.5 million for the same period in 2022[164]. - Total rental revenues decreased by approximately $17,000 to $1.5 million for the three months ended September 30, 2023, compared to the same period in 2022[162]. - Rental revenues increased by approximately $428,000 to $4.4 million for the nine months ended September 30, 2023, compared to $4.0 million for the same period in 2022[177]. - Other income increased by approximately $127,000 to $173,000 for the nine months ended September 30, 2023, from $46,000 for the same period in 2022[178]. Expenses and Losses - Net loss attributable to common stockholders increased by approximately $5.5 million to $11.9 million for the three months ended September 30, 2023, from $6.4 million for the same period in 2022[176]. - Net loss attributable to common stockholders increased by approximately $17.3 million to $29.0 million for the nine months ended September 30, 2023, compared to $11.7 million for the same period in 2022[192]. - General and administrative expenses increased by approximately $354,000 to $4.8 million for the nine months ended September 30, 2023, compared to $4.4 million for the same period in 2022[182]. - Real estate tax expense increased by approximately $290,000 to $1.6 million for the nine months ended September 30, 2023, from $1.3 million for the same period in 2022[181]. - Interest expense, net increased by approximately $4.4 million to $7.9 million for the three months ended September 30, 2023, from $3.5 million for the same period in 2022[174]. - Interest expense, net increased by approximately $11.8 million to $21.4 million for the nine months ended September 30, 2023, from $9.6 million for the same period in 2022[189]. Debt and Financing - The company is exploring strategic alternatives, including potential equity and/or debt financing, refinancing existing debt, and possible sale or merger transactions[145]. - The company has entered into forbearance agreements with lenders, extending the period for certain defaults until December 31, 2023, unless terminated earlier[147]. - The Corporate Credit Facility has a total commitment of $70.0 million, with a maturity date of December 19, 2024, subject to extensions[205]. - As of September 30, 2023, the outstanding balance of the CCF was $40.75 million, with accrued interest totaling approximately $9.1 million[215]. - The 77 Mortgage Loan had a total amount borrowed of $133.1 million, with $30.6 million drawn by September 30, 2023, leaving $3.0 million undrawn[217]. - The 77 Mortgage Loan's all-in interest rate was 12.05% as of September 30, 2023[218]. - The Company entered into a forbearance agreement in August 2023, allowing for the deferral of a $7.0 million repayment and cash interest payments until August 31, 2023[211]. - The Mezzanine Loan was originally $7.5 million, with a blended interest rate of 12.05% as of September 30, 2023[223]. - The Company has paid down approximately $69.9 million of the 77 Mortgage Loan from closed sales of residential condominium units, reducing the balance to $100.5 million[222]. - The CCF was fully drawn as of September 30, 2023[216]. - The Company is required to enter into a Strategic Transaction or repay the CCF by $5.0 million from equity proceeds by the end of the Restricted Period[210]. - As of September 30, 2023, the Mezzanine Loan balance was $30.3 million with accrued interest of approximately $9.8 million[228]. - The 237 11th Senior Loan had an outstanding balance of $50.0 million and the Mezz Loan had an outstanding balance of $10.0 million, with a blended interest rate of 5.35% per annum[231]. Operational Challenges and Risks - The company is currently in default of covenants under the 77 Mortgage Loan, Mezzanine Loan, and Corporate Credit Facility, with forbearance agreements expiring on December 31, 2023[244]. - The company faces risks related to obtaining additional financing and refinancing existing loans on favorable terms[246]. - There are concerns regarding the adverse trends in the New York City residential condominium market[246]. - The company may encounter higher-than-anticipated costs in property development, affecting investment returns[246]. - Risks associated with the ability to enter into new leases and renew existing leases with tenants at commercial and residential properties[246]. - The company is subject to competition for new acquisitions and investments in real estate[246]. - There are potential risks related to joint ventures and acquisitions in owned and leased real estate[246]. - The company may face challenges in maintaining state tax benefits for certain properties[246]. - Compliance costs with environmental laws and regulations may impact financial performance[246]. - The company is exposed to risks from political and economic uncertainty, including the outbreak of contagious diseases[246]. - Stock price volatility may hinder the company's ability to raise capital in the future[246]. Property and Development - The company has 52 remaining residential condominium units available for sale at 77 Greenwich as of September 30, 2023[152]. - The Paramus property is leased at 94.8% occupancy, while the 237 11th Street property has a leasing rate of 97.1% as of September 30, 2023[152]. - The company has received $46.4 million from the New York City School Construction Authority for the sale of a condominium unit and construction supervision fees as of September 30, 2023[152]. - The company anticipates that the pace of signing and closing contracts on residential condominium units will normalize to historical trends, although predictions remain uncertain[151].