American Strategic Investment (US:NYC)2022-08-12 20:56Financial Data and Key Metrics Changes - The second quarter revenue was $16.2 million, an increase from $15 million in the same quarter of 2021, reflecting an 8.4% growth [23] - Cash NOI grew by 16.5% to $7 million compared to the same quarter last year [11] - The GAAP net loss attributable to common stockholders was $11.3 million, slightly higher than the net loss of $11.1 million in the second quarter of 2021 [23] - FFO attributable to common stockholders was a negative $4.2 million, compared to negative $4 million in the same quarter of 2021 [24] Business Line Data and Key Metrics Changes - The portfolio occupancy increased to 85%, up 20 basis points from the first quarter [9] - The weighted average remaining lease term extended to 7.1 years from 6.8 years at the end of the first quarter [9] - The top 10 tenants are 71% investment grade, indicating a strong tenant roster [9][13] Market Data and Key Metrics Changes - Year-over-year cash rent collection improved from 91% to 98%, with all cash rent collected from the top 10 tenants in the second quarter [16] - The company has a robust leasing pipeline of 23,400 square feet expected to increase occupancy by an additional 2% [14] Company Strategy and Development Direction - The company maintains a conservative balance sheet with net leverage at 40.1% and no debt maturities until 2024 [25][19] - The focus remains on a Manhattan-centric strategy, with significant potential for value creation in the NYC real estate market [20] - The Board of Directors suspended dividends to fund tenant acquisition and retention costs, allowing for continued leasing momentum [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strength of the NYC real estate market, anticipating increased office and retail traffic as pandemic restrictions are lifted [18] - The company expects to achieve occupancy in the low to mid-90s over the next four quarters based on current market activity [36] Other Important Information - The company’s portfolio consists of eight office and retail condominium assets located entirely in New York City, primarily in Manhattan [12] - The independent Board members and affiliates own a significant number of shares, indicating alignment with shareholder interests [21] Q&A Session Summary Question: G&A expenses were higher than expected; what caused this? - The increase was primarily due to proxy costs, including $600,000 related to a contested proxy and additional legal and audit expenses [32] Question: What is the timing for the leasing pipeline to increase occupancy? - The company anticipates occupancy to increase by 2% within the current quarter and possibly into the next quarter [34] Question: Can you elaborate on the parking garage leases executed during the quarter? - The company replaced a non-performing tenant with a qualified New York City parking operator, executing a long-term lease anticipated to be 15 years [38] Question: Update on the Brooklyn asset leasing status? - The Brooklyn asset is 100% leased, with a lease for a preschool expected to commence shortly [40] Question: What is the current market for acquisitions? - The acquisition market has been slow, but the company continues to seek buildings in the $50 million to $300 million range, focusing on properties with upside potential [42]