American Strategic Investment (US:NYC)2022-05-13 18:27Financial Data and Key Metrics Changes - First quarter 2022 revenue was $15.6 million, an increase from $15.2 million in the first quarter of 2021 [17] - GAAP net loss attributable to common stockholders was $11.1 million, improved from a net loss of $13.5 million in the first quarter of 2021 [17] - Core FFO was negative $2 million compared to negative $2.9 million in the first quarter of 2021, translating to negative $0.15 per share versus negative $0.23 per share last year [17][18] - Adjusted EBITDA increased by 50% and core FFO grew by 31% [14] Business Line Data and Key Metrics Changes - Portfolio occupancy grew by 1.5% to 84.4% at quarter end, with significant increases at 9 Times Square (3%) and 123 William Street (1.5%) [7] - Rent collection was strong at 98% of original cash rent collected, up from 96% last quarter and an 11% improvement from the first quarter of last year [10] - The company achieved 100% net absorption of lease square footage during the quarter, with no lease expirations or terminations [12] Market Data and Key Metrics Changes - The portfolio consists of eight office and retail condominium assets located entirely in New York City, primarily in Manhattan, with a total value of $854 million and a size of 1.2 million square feet [11] - The top 10 tenants were 71% investment grade or implied investment grade rated, with an average remaining lease term of 9.5 years [12] Company Strategy and Development Direction - The company continues to focus on proactive asset and property management strategies to enhance portfolio value [7] - There is a strong belief in the long-term strength of New York City real estate, with expectations for continued rent payments and lease renewals as workers return to offices [11] - The company has built a leasing pipeline of 18,000 square feet expected to increase occupancy by 1.6% and straight-line rent by $900,000 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about future value-generating opportunities and the ongoing recovery of New York City [20] - The company anticipates continued momentum in occupancy, rent collection, and overall portfolio performance as business activities resume [40] Other Important Information - The company maintains a conservative balance sheet with net leverage at 40% and no debt maturities until 2024 [18] - All debt is fixed rate, with a weighted average effective interest rate of 4.4% [18] Q&A Session Summary Question: Impact of WeWork on shared space business - Management noted an increase in usage of their shared space business, supported by local advertising and referrals from existing licensees [26][27] Question: Short-term parking license renewals - Management clarified that short-term extensions are temporary while anticipating execution of long-term agreements [28][29] Question: Impact of inflation on operating expenses - Management acknowledged some inflation impact but noted that higher operating expenses in the first quarter are typically seasonal due to winter heating costs [34] Question: New tenant industries and future space demand - Management indicated a diverse range of new tenants, including data tech, nonprofit, creative, and financial services, with strong momentum in demand [36]