American Strategic Investment (US:NYC)2022-03-17 17:39Financial Data and Key Metrics Changes - The company achieved a total return of 55% for shareholders from the beginning of 2021 through March 1, 2022, outperforming the S&P 500 by over 36% and New York City-focused peer REITs by over 31% [10] - Revenue for the year ended December 31, 2021, was $70.2 million, with fourth-quarter revenue at $24.2 million, compared to $9.9 million in Q4 2020 and $15.8 million in Q3 2021 [26] - Cash NOI for Q4 2021 increased by 74% to $7.1 million compared to Q4 2020 [29] Business Line Data and Key Metrics Changes - The company collected 96% of the original cash rent due in Q4 2021, a 4% increase from Q3 2021 and a 14% improvement from Q4 2020 [12] - The company executed 17 new leases for over 200,000 square feet in 2021, adding approximately $7.4 million of annualized straight-line rent [19] - The company replaced over 69% of the space formerly occupied by Knotel with creditworthy tenants, achieving a weighted average remaining lease term of 7 years and combined annualized straight-line rent of almost $2.5 million [16] Market Data and Key Metrics Changes - The company's portfolio had an occupancy rate of 82.9% at year-end, with a forward-leasing pipeline that could increase occupancy to 84% [20] - The top 10 tenants were 72% investment-grade or implied investment-grade rated, with an average remaining lease term of 9.6 years, enhancing the quality and stability of earnings [24] Company Strategy and Development Direction - The company is focused on proactive asset and property management initiatives to navigate the impacts of the pandemic and is well-positioned to benefit from the return of workers and tourists to New York City [9][11] - The company aims to grow occupancy and earnings, with expectations of reaching 95% to 96% occupancy over time as corporate tenants return to offices [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strength of New York City real estate, citing the necessity of office and retail space in the city [23] - The management team highlighted the importance of their proactive approach to asset management, which has helped maintain rent collection and tenant relationships during the pandemic [35] Other Important Information - The company reported a full-year GAAP net loss attributable to common stockholders of $39.5 million, an improvement from a net loss of $41 million in 2020 [28] - The company maintains a conservative balance sheet with net leverage at 40.1% and no debt maturity scheduled within the next 3 years [31] Q&A Session Summary Question: What triggered the amortization of below-market lease liabilities? - The amortization was triggered by the termination of the parking garage lease in Q4, leading to the acceleration of all related amortization [40] Question: What is the occupancy situation at 123 William Street and 9 Times Square? - Management indicated that there is net positive absorption at both buildings, with no notable upcoming vacancies impacting occupancy [45] Question: What drove the occupancy dip at Avenue of the Americas, and what are the expectations for 2022? - Management noted strong leasing activity in 2022 and a pipeline that could add approximately 1 percentage point to occupancy, with expectations of continued growth [46] Question: What is the acquisition outlook for the company? - The company is monitoring the acquisition pipeline and is looking for opportunities, particularly in Manhattan, but has not yet identified any positive additions to the portfolio [48]