Trinity Place (US:TPHS)2021-08-11 20:16Assets and Properties - Trinity Place Holdings Inc. has a significant asset at 77 Greenwich, a mixed-use project with 90 residential units, retail space, and an elementary school, currently under development[133]. - The company owns a 105-unit multi-family property at 237 11th Street, Brooklyn, which is 84.8% leased as of June 30, 2021[139]. - The total rentable square footage of the company's properties is approximately 380,000 square feet, with 434 units across various locations[139]. - The property at 223 North 8th Street, The Berkley, achieved 100% lease occupancy as of July 31, 2021, with 100% of rent collected during the three and six months ended June 30, 2021[147]. - The property at 250 North 10th Street collected approximately 96% and 94% of rent due for the three and six months ended June 30, 2021, respectively, with a leasing rate of approximately 99% as of July 31, 2021[147]. - The company collected 100% of rent due during the three and six months ended June 30, 2021, with the property approximately 90.7% leased as of July 31, 2021[198]. Financial Performance - Rental revenues increased by approximately $151,000 to $425,000 for the three months ended June 30, 2021, compared to $274,000 for the same period in 2020, driven by higher occupancy and face rents[151]. - Rental revenues for the six months ended June 30, 2021, increased by approximately $146,000 to $724,000 from $578,000 for the same period in 2020, attributed to higher occupancy and reduced rent concessions[165]. - Other income rose by approximately $128,000 to $256,000 for the three months ended June 30, 2021, primarily due to the forgiveness of a $243,000 Paycheck Protection Program Loan[152]. - Net loss attributable to common stockholders increased by approximately $25.2 million to $4.7 million for the three months ended June 30, 2021, compared to income of $20.5 million for the same period in 2020[164]. - Net loss attributable to common stockholders increased by approximately $28.6 million to $11.3 million for the six months ended June 30, 2021, from income of $17.3 million for the same period in 2020[181]. Expenses and Liabilities - Property operating expenses increased by approximately $298,000 to $1.5 million for the three months ended June 30, 2021, largely due to costs associated with repairs and leasing commissions[153]. - Property operating expenses increased by approximately $359,000 to $3.1 million for the six months ended June 30, 2021, compared to $2.8 million for the same period in 2020[169]. - Interest expense, net increased by approximately $627,000 to $881,000 for the three months ended June 30, 2021, due to larger borrowings on the 77 Greenwich Construction Facility and new borrowings under various credit facilities[162]. - Interest expense, net increased by approximately $1.2 million to $1.5 million for the six months ended June 30, 2021, from $250,000 for the same period in 2020[179]. - General and administrative expenses decreased by approximately $196,000 to $1.2 million for the three months ended June 30, 2021, compared to $1.4 million for the same period in 2020[155]. - General and administrative expenses decreased by approximately $327,000 to $2.4 million for the six months ended June 30, 2021, from $2.8 million for the same period in 2020[171]. Cash Flow and Financing - As of June 30, 2021, total cash and restricted cash amounted to $9.8 million, down from $16.1 million as of December 31, 2020[187]. - The Corporate Credit Facility had an outstanding balance of $35.75 million as of June 30, 2021, with an effective interest rate of 9.63%[190]. - The secured line of credit had an outstanding balance of $8.95 million as of June 30, 2021, with an effective interest rate of 3.25%[207]. - The company has a $12.75 million secured line of credit with Sterling National Bank, which was amended to extend the maturity date to March 2022[207]. - Net cash used in operating activities decreased by approximately $4.5 million to $1.6 million for the six months ended June 30, 2021, compared to $6.1 million for the same period in 2020[212]. - Net cash used in investing activities decreased by approximately $15.8 million to $21.4 million for the six months ended June 30, 2021, from $37.2 million for the same period in 2020[213]. - Net cash provided by financing activities decreased by approximately $30.1 million to $16.7 million for the six months ended June 30, 2021, from $46.8 million for the same period in 2020[214]. Tax and NOLs - The company has approximately $240.7 million in federal net operating loss carryforwards as of June 30, 2021, which can reduce future taxable income[133]. - U.S. federal net operating losses (NOLs) increased from approximately $162.8 million at emergence to approximately $240.7 million as of June 30, 2021[215]. - Approximately $11.6 million of federal NOLs were applied against taxable capital gains of approximately $18.5 million in connection with the conveyance of the school condominium[215]. - A valuation allowance of $64.6 million was recorded as of June 30, 2021, indicating that it is more likely than not that the entire deferred tax assets will not be realized[218]. - The CARES Act allowed for a full refund of AMT credits for tax years 2018 and 2019, which did not have a material impact on the company's financial position for the six months ended June 30, 2021[217]. - The company has utilized approximately $23.9 million of federal NOLs from 2009 through June 30, 2021[215]. - The company believes it qualifies for treatment under Section 382(l)(5) of the Code, which may allow for the full utilization of NOLs without annual limitations[219]. COVID-19 Impact and Market Risks - Rent collections at the properties have remained strong, aligning with pre-pandemic rates despite increased vacancy rates in New York City[138]. - The company anticipates a reduction in concessions as more tenants return to New York City, following the implementation of COVID-19 vaccination programs[137]. - The construction of 77 Greenwich was temporarily suspended due to COVID-19 but has since resumed, with significant progress made as of June 30, 2021[139]. - The company is monitoring the impact of COVID-19 on its operations and financial position[222]. - Risks include adverse trends in the New York City residential condominium market and the ability to obtain additional financing on favorable terms[224]. Investment Opportunities - The company is exploring new investment opportunities, focusing on newly constructed multi-family properties in New York City and properties near public transportation[134]. - The company anticipates receiving TCOs in stages throughout 2021, with the first TCO received in March 2021[200]. - The company incurred significant cash outflows for repairs related to construction defects at 237 11th, with remediation work completed as of June 30, 2021[198]. - The new 7-year Berkley Loan of $33.0 million bears interest at a fixed rate of 2.717% and is interest-only for the initial five years[208]. - The mezzanine loan agreement entered in December 2020 is for $7.5 million with a term of three years, and the blended interest rate for the 77 Greenwich Construction Facility and the Mezzanine Loan is 9.44%[205].