Trinity Place (US:TPHS)2021-11-12 21:53Financial Performance - Trinity Place Holdings Inc. has approximately $244.3 million in federal net operating loss carryforwards as of September 30, 2021, which can be utilized to reduce future taxable income and capital gains [147]. - Net loss attributable to common stockholders decreased by approximately $4.4 million to $1.0 million for the three months ended September 30, 2021, from $5.4 million for the same period in 2020, mainly due to increased rental revenue and lower property operating expenses [180]. - Net loss attributable to common stockholders increased by approximately $24.2 million to $12.3 million for the nine months ended September 30, 2021, from net income of $11.9 million for the same period in 2020 [200]. - Other income increased by approximately $101,000 to $332,000 during the nine months ended September 30, 2021, primarily due to the forgiveness of a PPP Loan of $243,000 [184]. - General and administrative expenses increased by approximately $29,000 to $1.2 million for the three months ended September 30, 2021, compared to the same period in 2020 [170]. - General and administrative expenses decreased by approximately $298,000 to $3.7 million for the nine months ended September 30, 2021, from $4.0 million for the same period in 2020 [188]. Property Operations - The company owns a 105-unit multi-family property at 237 11th Street, Brooklyn, which is 92.4% leased as of September 30, 2021 [153]. - Rent collections at the properties have remained strong, aligning with pre-pandemic rates, with 100% of rent due collected during the three and nine months ended September 30, 2021 [156]. - The Paramus property is fully leased at 100% occupancy, consisting of approximately 77,000 square feet, with a lease agreement with Restoration Hardware set to end on March 31, 2023 [156]. - The Berkley property collected 99.3% and 99.8% of rent due for the three and nine months ended September 30, 2021, respectively, and was 100% leased as of October 31, 2021 [161]. - The company collected 100% of rent due during the three and nine months ended September 30, 2021, with the property approximately 92.4% leased as of October 31, 2021 [218]. Development Projects - The 77 Greenwich project is nearing completion, with 90 luxury residential condominium units and 7,500 square feet of retail space, and construction was temporarily suspended due to COVID-19 but has since resumed [153]. - The company has received $46.1 million from the New York City School Construction Authority for the construction of a school as part of the 77 Greenwich development, with an additional $50.1 million in reimbursable construction costs [155]. - The COVID-19 pandemic has significantly impacted the company's operations, particularly affecting sales activity at 77 Greenwich, although recent months have shown signs of recovery in the New York City real estate market [149]. Financial Position - Total cash and restricted cash as of September 30, 2021, was $12.6 million, down from $16.1 million as of December 31, 2020 [205]. - The Corporate Credit Facility had an outstanding balance of $35.75 million as of September 30, 2021, with an effective interest rate of 9.63% [211]. - The company has an outstanding balance of $48.7 million from the 237 11th Senior Loan and $10.0 million from the 237 11th Mezz Loan as of September 30, 2021 [217]. - The company repaid the 237 11th mortgage loan's balance of $56.4 million in full in June 2021, along with an exit fee of $567,000 [215]. - As of September 30, 2021, the outstanding balance on the 77 Greenwich Construction Facility was approximately $159.4 million, down from $139.0 million at December 31, 2020 [219]. Cash Flow - Net cash used in operating activities decreased by approximately $5.6 million to $1.4 million for the nine months ended September 30, 2021, compared to $7.0 million for the same period in 2020 [230]. - Net cash used in investing activities decreased by approximately $18.9 million to $29.5 million for the nine months ended September 30, 2021, from $48.4 million for the same period in 2020 [231]. - Net cash provided by financing activities decreased by approximately $27.4 million to $27.5 million for the nine months ended September 30, 2021, from $54.9 million for the same period in 2020 [232]. Taxation and NOLs - U.S. federal net operating losses (NOLs) increased from approximately $162.8 million at the emergence date of the Syms bankruptcy to approximately $244.3 million as of September 30, 2021 [233]. - Approximately $11.6 million of federal NOLs were applied against taxable capital gains of approximately $18.5 million [234]. - A valuation allowance of $65.8 million was recorded as of September 30, 2021, indicating that it is more likely than not that the entire deferred tax assets will not be realized [237]. - 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 [238]. - The company utilized approximately $23.8 million of federal NOLs from 2009 through September 30, 2021 [234]. Risks and Monitoring - The company is monitoring the impact of the COVID-19 pandemic on its operations and financial performance [243]. - Risks include limited cash resources, reliance on external financing, and potential defaults on obligations [243].