Trinity Place (TPHS) - 2021 Q1 - Quarterly Report

Property Development - Trinity Place Holdings Inc. owns a property at 77 Greenwich Street, currently under development as a mixed-use project with 90 residential units, retail space, and a school[118]. - The construction of 77 Greenwich was temporarily suspended due to COVID-19 but has since resumed, with 100% of the building enclosure completed as of March 31, 2021[123]. - The company anticipates receiving temporary certificates of occupancy in stages throughout 2021, with the first received on March 8, 2021[126]. - The SCA has agreed to pay $41.5 million for the purchase of a condominium unit as part of the 77 Greenwich development, with $46.0 million already received[125]. - The company is focused on evaluating new investment opportunities in newly constructed multi-family properties in New York City and nearby areas[119]. Financial Performance - Rent collections at Trinity's properties have remained strong, aligning with pre-pandemic rates, despite broader market trends[122]. - Rental revenues decreased by approximately $28,000 to $299,000 for the three months ended March 31, 2021, compared to $327,000 for the same period in 2020[135]. - The property at 237 11th experienced lower occupancy and increased rent concessions due to construction-related defects, impacting overall revenue[135]. - Property operating expenses increased by approximately $61,000 to $1.7 million for the three months ended March 31, 2021, primarily due to repair costs associated with 237 11th[137]. - General and administrative expenses decreased by approximately $131,000 to $1.2 million for the three months ended March 31, 2021, compared to $1.3 million for the same period in 2020[139]. - Net loss attributable to common stockholders increased by approximately $3.3 million to $6.6 million for the three months ended March 31, 2021, primarily due to an increase in unrealized loss on warrants[148]. Cash Flow and Financing - As of March 31, 2021, total cash and restricted cash amounted to $11.7 million, down from $16.1 million as of December 31, 2020[151]. - The Corporate Credit Facility was established with an initial credit amount of $70.0 million, which can be increased by $25.0 million under certain conditions[153]. - As of March 31, 2021, the outstanding balance of the Corporate Credit Facility was $35.75 million, with an effective interest rate of 9.5%[153]. - The 237 11th Loan had a balance of $55.2 million as of March 31, 2021, with an effective interest rate of 2.75%[157]. - The 77 Greenwich Construction Facility had a balance of approximately $145.9 million at March 31, 2021, with an effective interest rate of 9.25%[159]. - The secured line of credit had an outstanding balance of $8.95 million as of March 31, 2021, with an effective interest rate of 3.25%[166]. - The Corporate Credit Facility bears interest at a rate of 5.25% plus a scheduled interest rate that increases by 125 basis points every six months[153]. - As of March 31, 2021, accrued interest on the Corporate Credit Facility totaled approximately $2.0 million[153]. - The 77 Greenwich Construction Facility has a four-year term ending January 2022, with an extension option for an additional year[159]. Occupancy and Rent Collection - The 237 11th Street property has a current occupancy rate of 28.6% with 105 units, while the joint venture properties have occupancy rates of 100% and 97.4% respectively[123]. - The property at The Berkley collected 100% of rent due during the three months ended March 31, 2021, and was 100% leased as of April 30, 2021[131]. - The property at 250 North 10th collected approximately 92.9% of rent due during the three months ended March 31, 2021, and was also 100% leased as of April 30, 2021[131]. - The Paramus property has a 100% rent collection rate during the three months ended March 31, 2021, and the company is exploring options for its future[126]. - The Company collected 100% of rent due during the three months ended March 31, 2021, with the property approximately 43% leased as of April 30, 2021[158]. Impact of COVID-19 - The impact of COVID-19 on the company's operations has been significant, affecting sales and construction timelines, but there are signs of recovery in the New York City real estate market[120]. - U.S. federal net operating losses (NOLs) were approximately $236.3 million as of March 31, 2021, an increase from $162.8 million at the emergence date of the Syms bankruptcy[176]. - The CARES Act allowed for a full refund of AMT credits for tax years 2018 and 2019, which did not materially impact the company's financial position for Q1 2021[178]. - A valuation allowance of $62.4 million was recorded as of March 31, 2021, indicating that it is more likely than not that the entire deferred tax assets will not be realized[179]. Risk Management - The company emphasizes the importance of considering risks identified in the "Risk Factors" section of its 2020 Annual Report and the current Quarterly Report, which could lead to material differences in actual results compared to anticipated outcomes[187]. - As a smaller reporting company, the company is not required to provide detailed disclosures about market risk, indicating a focus on streamlined reporting[188].