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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
Securities
Exchange Act of 1934
Date of Report (Date of earliest event
reported): November 12, 2024
American Strategic Investment Co.
(Exact Name of Registrant as Specified in Charter)
Maryland |
|
001-39448 |
|
46-4380248 |
(State or other jurisdiction
of incorporation) |
|
(Commission File Number) |
|
(I.R.S. Employer
Identification No.) |
| |
|
|
|
|
222
Bellevue Ave,
Newport, Rhode Island 02840 |
(Address, including zip code, of Principal
Executive Offices) |
| |
| Registrant’s telephone number, including area code: (212)
415-6500 |
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b)
of the Act:
Title
of each class: |
|
Trading
Symbol(s) |
|
Name
of each exchange on which
registered |
| Class
A common stock, $0.01 par value per share |
|
NYC |
|
New
York Stock Exchange |
| Class
A Preferred Stock Purchase Rights |
|
true |
|
New
York Stock Exchange |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Common
Stock [Member]
Item 2.02 Results of Operations and Financial
Condition.
On November 12, 2024, American Strategic Investment
Co. (the “Company”) issued a press release announcing its results of operations for the quarter ended September 30, 2024,
and supplemental financial information for the quarter ended September 30, 2024, furnished as Exhibits 99.1 and 99.2, respectively, to
this Current Report on Form 8-K.
Item 7.01 Regulation FD Disclosure.
Press Release and
Supplemental Information
As disclosed in Item
2.02 above, the Company issued a press release announcing its results of operations for the quarter ended September 30, 2024, and supplemental
financial information for the quarter ended September 30, 2024, furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report
on Form 8-K.
The
information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 furnished herewith, shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to
the liabilities of that Section and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended,
or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Forward
Looking Statements
The
statements in this Current Report on Form 8-K that are not historical facts may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause actual results or events to be materially different. The words “may,”
“will,” “seeks,” “anticipates,” “believes,” “expects,” “estimates,”
“projects,” “plans,” “intends,” “should” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements
are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could
cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties
include (a) the anticipated benefits of the Company’s election to terminate its status as a real estate investment trust, (b) whether
the Company will be able to successfully acquire new assets or businesses, (c) the ability of the Company to consummate the disposition
of 9 Times Square on the terms contemplated, if at all, (d) the ability of the Company to execute its business plan and sell certain of
its properties on commercially practicable terms, if at all, (e) the potential adverse effects of the geopolitical instability due to
the ongoing military conflict between Russia and Ukraine and Israel and Hamas, including related sanctions and other penalties imposed
by the U.S. and European Union, and the related impact on the Company, the Company’s tenants, and the global economy and financial
markets, (f) the potential adverse effects of inflationary conditions and higher interest rate environment, (g) that any potential future
acquisition or disposition is subject to market conditions and capital availability and may not be completed on favorable terms, or at
all, and (h) the Company may not be able to continue to meet the New York Stock Exchange's (“NYSE”) continued listing requirements
and rules, and the NYSE may delist the Company's common stock, which could negatively affect the Company, the price of the Company's common
stock and the Company's shareholders' ability to sell the Company's common stock, as well as those risks and uncertainties set forth in
the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed on April 1, 2024
and all other filings with the Securities and Exchange Commission after that date including but not limited to the subsequent Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, as such risks, uncertainties and other important factors may be updated from time
to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the
Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results, unless required to do so by law.
Item
9.01 Financial Statements and Exhibits.
(d)
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| |
American Strategic Investment Co. |
| |
|
|
| Date: November 12, 2024 |
By: |
/s/ Michael Anderson |
| |
|
Michael Anderson |
| |
|
Chief Executive Officer |
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AMERICAN STRATEGIC INVESTMENT CO. ANNOUNCES
THIRD QUARTER 2024 RESULTS
Company to Host Investor Webcast and Conference
Call Today at 11:00 AM ET
New York, November 12, 2024 - American
Strategic Investment Co. (NYSE: NYC) (“ASIC” or the “Company”), a company that owns a portfolio of commercial
real estate located within the five boroughs of New York City, announced today its financial and operating results for the third quarter
ended September 30, 2024.
Third Quarter 2024 Highlights
| · | Revenue was $15.4 million compared to $16.0 million for the same quarter in 2023 |
| · | Net loss attributable to common stockholders was $34.5 million, compared
to $9.4 million in the prior year primarily due to non-cash impairments of $27.8 million of which, $1.9 million is related to the
pending sale of 9 Times Square in Manhattan, New York |
| · | Cash net operating income (“NOI”) grew by $0.3 million to $6.8 million for the third quarter
of 2024 from $6.5 million for the third quarter of 2023 |
| · | Adjusted EBITDA was $3.1 million compared to $3.4 million in the third quarter of 2023 |
| · | Portfolio occupancy expanded 70 basis points to 85.8%, compared to 85.1% for the third quarter 2023, with
weighted-average lease term(1) of 5.9 years |
| · | 81% of annualized straight-line rent from top 10 tenants(2) is derived from investment grade
or implied investment grade(3) rated tenants with a weighted-average remaining lease term of 7.7 years as of September 30,
2024 |
| · | Portfolio comprised of fixed and variable rate debt at a 4.9% weighted-average interest rate with 2.5
years of weighted-average debt maturity |
CEO Comments
Michael Anderson, Chief Executive Officer of ASIC
commented, “We are excited to have produced strong results in the quarter, which are highlighted by our effective leasing and increased
occupancy data. In addition, our ongoing focus on reducing costs resulted in meaningful savings that, combined with our portfolio’s
operating performance, enabled us to continue to record incremental Cash NOI growth year-over-year. We are also deriving positive benefits
from our ongoing strategic portfolio management. To that point, in addition to signing a definitive agreement to sell our 9 Times Square
asset, we are marketing two of our other properties. We expect to utilize proceeds from the contemplated sales, if any, to further reduce
leverage and to diversify our cash flow by adding new, higher-yielding opportunities. We expect our ongoing efforts will enhance shareholder
value over time.”
Financial Results
| | |
Three Months Ended September 30, | |
| (In thousands, except per share data) | |
2024 | | |
2023 | |
| Revenue from tenants | |
$ | 15,447 | | |
$ | 16,015 | |
| | |
| | | |
| | |
| Net loss attributable to common stockholders | |
$ | (34,482 | ) | |
$ | (9,390 | ) |
| Net loss per common share (1) | |
$ | (13.52 | ) | |
$ | (4.10 | ) |
| | |
| | | |
| | |
| EBITDA | |
$ | (24,789 | ) | |
$ | 1,848 | |
| Adjusted EBITDA | |
$ | 3,095 | | |
$ | 3,410 | |
(1) All per share data based on 2,551,034 and 2,288,683 diluted weighted-average shares outstanding for the three months ended September 30, 2024 and 2023, respectively.
Real Estate Portfolio
The Company’s portfolio consisted of seven
properties comprised of 1.2 million rentable square feet as of September 30, 2024. Portfolio metrics include:
| · | 5.9 years remaining weighted-average lease term |
| · | 81% of annualized straight-line rent(4) from top 10 tenants derived from investment grade or
implied investment grade tenants with 8 years of weighted-average remaining lease term |
| · | Diversified portfolio, comprised of 24% financial services tenants, 13% government and public administration
tenants, 12% retail tenants, 9% non-profit and 42% all other industries, based on annualized straight-line rent |
Capital Structure and Liquidity Resources
As of September 30, 2024, the Company had
$5.2 million of cash and cash equivalents(5). The Company’s net debt(6) to gross asset value(7)
was 60.1%, with net debt of $394.3 million.
All of the Company’s debt was fixed-rate
with the exception of one variable rate loan as of September 30, 2024. The Company’s total combined debt had a weighted-average
interest rate of 4.9%(8).
Footnotes/Definitions
| (1) | The weighted-average remaining lease term (years) is weighted by annualized
straight-line rent as of September 30, 2024. |
| (2) | Top 10 tenants based on annualized straight-line rent as of September 30, 2024. |
| (3) | As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor,
if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless
of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical
tool, which generates an implied rating by measuring a company’s probability of default. The
term “parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the
voting stock in a tenant. Ratings information is as of September 30, 2024. Based on annualized straight-line rent, top 10 tenants
are 61% actual investment grade rated and 20% implied investment grade rated. |
| (4) | Annualized straight-line rent is calculated using the most recent available lease terms as of September 30,
2024. |
| (5) | Under one of our mortgage loans, we are required to maintain minimum liquid assets (i.e. cash and cash
equivalents and restricted cash) of $10.0 million. |
| (6) | Total debt of $399.5 million less cash and cash equivalents of $5.2 million as of September 30, 2024.
Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of
cash and cash equivalents. |
| (7) | Defined as the carrying value of total assets of $567.9 million plus accumulated depreciation and amortization
of $87.9 million as of September 30, 2024. |
| (8) | Weighted based on the outstanding principal balance of the debt. |
Webcast and Conference
Call
ASIC will host a webcast and call on November 12,
2024 at 11:00 a.m. ET to discuss its financial and operating results. This webcast will be broadcast live over the Internet and can be
accessed by all interested parties through the ASIC website, www.americanstrategicinvestment.com, in the “Investor Relations”
section.
Dial-in instructions for the conference call and the replay are outlined
below.
To listen to the live call, please go to ASIC’s
“Investor Relations” section of the website at least 15 minutes prior to the start of the call to register and download any
necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call
on the ASIC website at www.americanstrategicinvestment.com.
Live Call
Dial-In (Toll Free): 1-888-330-3127
International Dial-In: 1-646-960-0855
Conference ID: 5954637
Conference Replay*
Domestic Dial-In (Toll Free): 1-800-770-2030
International Dial-In: 1-609-800-9909
Conference Number: 5954637
*Available from November 12, 2024 through February 10, 2025.
About American Strategic Investment Co.
American Strategic Investment Co. (NYSE: NYC)
owns a portfolio of commercial real estate located within the five boroughs of New York City. Additional information about ASIC can be
found on its website at www.americanstrategicinvestment.com.
Supplemental Schedules
The Company will file supplemental information
packages with the Securities and Exchange Commission (the “SEC”) to provide additional disclosure and financial information.
Once posted, the supplemental package can be found under the “Presentations” tab in the Investor Relations section of ASIC’s
website at www.americanstrategicinvestment.com and on the SEC website at www.sec.gov.
Important Notice
The statements in this press release that are
not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause
actual results or events to be materially different. The words “may,” “will,” “seeks,” “anticipates,”
“believes,” “expects,” “estimates,” “projects,” “plans,” “intends,”
“should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements
contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many
of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated
by the forward-looking statements. These risks and uncertainties include (a) the anticipated benefits of the Company’s election
to terminate its status as a real estate investment trust, (b) whether the Company will be able to successfully acquire new assets or
businesses, (c) the ability of the Company to consummate the disposition of 9 Times Square on the terms contemplated, if at all; (d) the
ability of the Company to execute its business plan and sell certain of its properties on commercially practicable terms, if at all; (e)
the potential adverse effects of the geopolitical instability due to the ongoing military conflict between Russia and Ukraine and Israel
and Hamas, including related sanctions and other penalties imposed by the U.S. and European Union, and the related impact on the Company,
the Company’s tenants, and the global economy and financial markets, (f) the potential adverse effects of inflationary conditions
and higher interest rate environment, (g) that any potential future acquisition or disposition is subject to market conditions and capital
availability and may not be completed on favorable terms, or at all, and (h) the Company may not be able to continue to meet the New York
Stock Exchange’s (“NYSE”) continued listing requirements and rules, and the NYSE may delist the Company's common stock,
which could negatively affect the Company, the price of the Company's common stock and the Company shareholders’ ability to sell
the Company's common stock, as well as those risks and uncertainties set forth in the Risk Factors section of the Company’s Annual
Report on Form 10-K for the year ended December 31, 2023 filed on April 1, 2024 and all other filings with the Securities and Exchange
Commission after that date including but not limited to the subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K,
as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further,
forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking
statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required
to do so by law.
Contacts:
Investors and Media:
Email: investorrelations@americanstrategicinvestment.com
Phone: (866) 902-0063
American Strategic Investment Co.
Consolidated Balance Sheets
(In thousands. except share and per share data)
| | |
September 30,
2024 | | |
December 31,
2023 | |
| ASSETS | |
(Unaudited) | | |
| |
| Real estate investments, at cost: | |
| | | |
| | |
| Land | |
$ | 129,517 | | |
$ | 188,935 | |
| Buildings and improvements | |
| 341,159 | | |
| 479,265 | |
| Acquired intangible assets | |
| 19,177 | | |
| 56,929 | |
| Total real estate investments, at cost | |
| 489,853 | | |
| 725,129 | |
| Less accumulated depreciation and amortization | |
| (87,889 | ) | |
| (144,956 | ) |
| Total real estate investments, net | |
| 401,964 | | |
| 580,173 | |
| Cash and cash equivalents | |
| 5,234 | | |
| 5,292 | |
| Restricted cash | |
| 10,528 | | |
| 7,516 | |
| Operating lease right-of-use asset | |
| 54,570 | | |
| 54,737 | |
| Prepaid expenses and other assets | |
| 4,353 | | |
| 6,150 | |
| Derivative asset, at fair value | |
| — | | |
| 400 | |
| Straight-line rent receivable | |
| 30,001 | | |
| 30,752 | |
| Deferred leasing costs, net | |
| 8,338 | | |
| 9,152 | |
| Assets held for sale | |
| 52,924 | | |
| — | |
| Total assets | |
$ | 567,912 | | |
$ | 694,172 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Mortgage notes payable, net | |
$ | 396,838 | | |
$ | 395,702 | |
| Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of $226 and $20 at September 30, 2024 and December 31, 2023, respectively) | |
| 18,137 | | |
| 12,975 | |
| Notes payable to related parties | |
| 575 | | |
| — | |
| Operating lease liability | |
| 54,609 | | |
| 54,657 | |
| Below-market lease liabilities, net | |
| 1,361 | | |
| 2,061 | |
| Deferred revenue | |
| 4,019 | | |
| 3,983 | |
| Distributions payable | |
| — | | |
| — | |
| Total liabilities | |
| 475,539 | | |
| 469,378 | |
| | |
| | | |
| | |
| Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding at September 30, 2024 and December 31, 2023 | |
| — | | |
| — | |
| Common stock, $0.01 par value, 300,000,000 shares authorized, 2,663,980 and 2,334,340 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | |
| 26 | | |
| 23 | |
| Additional paid-in capital | |
| 731,567 | | |
| 729,644 | |
| Accumulated other comprehensive income | |
| — | | |
| 406 | |
| Distributions in excess of accumulated earnings | |
| (639,220 | ) | |
| (505,279 | ) |
| Total stockholders’ equity | |
| 92,373 | | |
| 224,794 | |
| Non-controlling interests | |
| — | | |
| — | |
| Total equity | |
| 92,434 | | |
| 224,794 | |
| Total liabilities and equity | |
$ | 567,912 | | |
$ | 694,172 | |
American Strategic Investment Co.
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
| | |
Three Months Ended September 30, | |
| | |
2024 | | |
2023 | |
| Revenue from tenants | |
$ | 15,447 | | |
$ | 16,015 | |
| | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | |
| Asset and property management fees to related parties | |
| 1,994 | | |
| 1,882 | |
| Property operating | |
| 8,596 | | |
| 8,792 | |
| Impairments of real estate investments | |
| 27,817 | | |
| 362 | |
| Equity-based compensation | |
| 76 | | |
| 1,208 | |
| General and administrative | |
| 1,762 | | |
| 1,931 | |
| Depreciation and amortization | |
| 4,414 | | |
| 6,499 | |
| Total operating expenses | |
| 44,659 | | |
| 20,674 | |
| Operating loss | |
| (29,212 | ) | |
| (4,659 | ) |
| Other income (expense): | |
| | | |
| | |
| Interest expense | |
| (5,279 | ) | |
| (4,739 | ) |
| Other income | |
| 9 | | |
| 8 | |
| Total other expense | |
| (5,270 | ) | |
| (4,731 | ) |
| Net loss before income tax | |
| (34,482 | ) | |
| (9,390 | ) |
| Income tax expense | |
| — | | |
| — | |
| Net loss and Net loss attributable to common stockholders | |
$ | (34,482 | ) | |
$ | (9,390 | ) |
| | |
| | | |
| | |
| Net loss per share attributable to common stockholders — Basic and Diluted | |
$ | (13.52 | ) | |
$ | (4.10 | ) |
| Weighted-average shares outstanding — Basic and Diluted | |
| 2,551,034 | | |
| 2,288,683 | |
American Strategic Investment Co.
Quarterly Reconciliation of Non-GAAP Measures
(Unaudited)
(In thousands)
| | |
Three Months Ended | |
| | |
September 30,
2024 | | |
September 30,
2023 | |
| Net loss and Net loss attributable to common stockholders | |
$ | (34,482 | ) | |
$ | (9,390 | ) |
| Interest expense | |
| 5,279 | | |
| 6,499 | |
| Depreciation and amortization | |
| 4,414 | | |
| 4,739 | |
| EBITDA | |
| (24,789 | ) | |
| 1,848 | |
| Impairment of real estate investments | |
| 27,817 | | |
| 362 | |
| Equity-based compensation | |
| 76 | | |
| 1,208 | |
| Other (income) loss | |
| (9 | ) | |
| (8 | ) |
| Adjusted EBITDA | |
| (3,095) | | |
| 3,410 | |
| Asset and property management fees to related parties payable in cash | |
| 1,994 | | |
| 1,882 | |
| General and administrative | |
| 1,762 | | |
| 1,931 | |
| NOI | |
| 6,851 | | |
| 7,223 | |
| Accretion of below- and amortization of above-market lease liabilities and assets, net | |
| (219 | ) | |
| (45 | ) |
| Straight-line rent (revenue as a lessor) | |
| 102 | | |
| 120 | |
| Straight-line ground rent (expense as lessee) | |
| 27 | | |
| 27 | |
| Cash NOI | |
| 6,761 | | |
| 7,325 | |
| | |
| | | |
| | |
| Cash Paid for Interest: | |
| | | |
| | |
| Interest expense | |
| 5,279 | | |
| 4,739 | |
| Amortization of deferred financing costs | |
| (373 | ) | |
| (385 | ) |
| Total cash paid for interest | |
$ | 4,906 | | |
$ | 4,354 | |
Non-GAAP Financial Measures
This release discusses the
non-GAAP financial measures we use to evaluate our performance, including Earnings before Interest, Taxes, Depreciation and Amortization
(“EBITDA”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Net Operating
Income (“NOI”) and Cash Net Operating Income (“Cash NOI”) and Cash Paid for Interest. A description of these non-GAAP
measures and reconciliations to the most directly comparable GAAP measure, which is net loss, is provided above.
In December 2022 we announced
that we changed our business strategy and terminated our election to be taxed as a REIT effective January 1, 2023, however, our business
and operations have not materially changed in the first quarter of 2023. Therefore, we did not change any of the non-GAAP metrics that
we have historically used to evaluate performance.
Caution on Use of Non-GAAP Measures
EBITDA, Adjusted EBITDA,
NOI, Cash NOI and Cash Paid for Interest should not be construed to be more relevant or accurate than the current GAAP methodology in
calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and
performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently
than the non-GAAP metrics.
As a result, we believe
that the use of these non-GAAP metrics, together with the required GAAP presentations, provide a more complete understanding of our performance,
including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and
investing activities. However, these non-GAAP metrics are not indicative of cash available to fund ongoing cash needs, including the ability
to pay cash dividends. Investors are cautioned that these non-GAAP metrics should only be used to assess the sustainability of our operating
performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during
the periods in which these costs are incurred.
Adjusted Earnings before Interest, Taxes,
Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest.
We believe that EBITDA and
Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for (i) impairment charges,
(ii) interest income or other income or expense, (iii) gains or losses on debt extinguishment, (iv) equity-based compensation expense,
(v) acquisition and transaction costs, (vi) gains or losses from the sale of real estate investments and (vii) expenses paid with issuances
of common stock in lieu of cash is an appropriate measure of our ability to incur and service debt. We consider EBITDA and Adjusted EBITDA
useful indicators of our performance. Because these metrics’ calculations exclude such factors as depreciation and amortization
of real estate assets, interest expense, and equity-based compensation (which can vary among owners of identical assets in similar conditions
based on historical cost accounting and useful-life estimates), these metrics; presentations facilitate comparisons of operating performance
between periods and between other companies that use these measures. Adjusted EBITDA should not be considered as an alternative to cash
flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities.
Other companies may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other companies.
NOI is a non-GAAP financial
measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase
price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the
financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only
those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to
assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI
is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends
in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately
apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that
are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating
performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life
estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other
companies that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should
be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered
as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability
to pay dividends.
Cash NOI, is a non-GAAP
financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding amortization of above/below
market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful
measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison
of our operating performance between periods and to other companies. Cash NOI should not be considered as an alternative to net income,
as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method
by which we calculate and present Cash NOI may not be directly comparable to the way other companies present Cash NOI.
Cash Paid for Interest is
calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net.
Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial
flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP
or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared
in accordance with GAAP.
EXHIBIT 99.2
American Strategic Investment Co.
Supplemental Information
Quarter ended September 30, 2024
(unaudited)
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
| Table
of Contents |
|
|
| |
|
|
| Item |
|
Page |
| Non-GAAP
Definitions |
|
3 |
| Key
Metrics |
|
5 |
| Consolidated
Balance Sheets |
|
7 |
| Consolidated
Statements of Operations |
|
8 |
| Non-GAAP
Measures |
|
9 |
| Debt
Overview |
|
10 |
| Future
Minimum Lease Rents |
|
11 |
| Top
Ten Tenants |
|
12 |
| Diversification
by Property Type |
|
13 |
| Diversification
by Tenant Industry |
|
14 |
| Lease
Expirations |
|
15 |
Forward-looking Statements:
The
statements in this supplemental package that are not historical facts may be forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause actual results or events to be materially different. The words “may,” “will,”
“seeks,” “anticipates,” “believes,” “expects,” “estimates,” “projects,”
“plans,” “intends,” “should” and similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number
of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results
to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include (a)
the anticipated benefits of the Company’s election to terminate its status as a real estate investment trust, (b) whether the Company
will be able to successfully acquire new assets or businesses, (c) the potential adverse effects of the geopolitical instability due
to the ongoing military conflict between Russia and Ukraine and Israel and Hamas, including related sanctions and other penalties imposed
by the U.S. and European Union, and the related impact on the Company, the Company’s tenants, and the global economy and financial
markets, (d) the potential adverse effects of inflationary conditions and higher interest rate environment, (e) that any potential future
acquisition or disposition is subject to market conditions and capital availability and may not be completed on favorable terms, or at
all, and (f) the Company may not be able to continue to meet the New York Stock Exchange's (“NYSE”) continued listing requirements
and rules, and the NYSE may delist the Company's common stock, which could negatively affect the Company, the price of the Company's
common stock and the Company's shareholders' ability to sell the Company's common stock, as well as those risks and uncertainties set
forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed on April
1, 2024 and all other filings with the Securities and Exchange Commission after that date including but not limited to the subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as such risks, uncertainties and other important factors may be updated
from time to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence
of unanticipated events or changes to future operating results, unless required to do so by law.
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Non-GAAP Financial
Measures
This
section discusses the non-GAAP financial measures we use to evaluate our performance, including, Earnings before Interest, Taxes, Depreciation
and Amortization (“EBITDA”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”),
Net Operating Income (“NOI”) and Cash Net Operating Income (“Cash NOI”) and Cash Paid for Interest. While NOI
is a property-level measure, a description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure,
which is net income, is provided below.
In
December 2022 we announced that that we changed our business strategy and terminated our election to be taxed as a REIT effective January
1, 2023, however, our business and operations operations have not materially changed in the first quarter of 2023. Therefore, we did
not change any of the non-GAAP metrics that we have historically used to evaluate performance.
Caution on
Use of Non-GAAP Measures
EBITDA,
Adjusted EBITDA, NOI, Cash NOI and Cash Paid for Interest are non-GAAP metrics and should not be construed to be more relevant or accurate
than other metrics calculated and presented in accordance with GAAP, including net loss, in evaluating our operating performance. The
method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational
performance and considered more prominently than non-GAAP metrics.
We
consider EBITDA, Adjusted EBITDA, NOI and Cash NOI useful indicators of our performance. Because these metrics’ calculations exclude
such factors as depreciation and amortization of real estate assets, interest expense, impairment charges, equity-based compensation,
gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based
on historical cost accounting and useful-life estimates), these metrics’ presentations facilitate comparisons of operating performance
between periods and between other companies that use these measures.
As
a result, we believe that the use of these non-GAAP metrics together with the required GAAP presentations, provide a more complete understanding
of our performance, including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating,
financing, and investing activities. However, these non-GAAP metrics are not indicative of cash available to fund ongoing cash needs,
including the ability to pay cash dividends and capital expenditures. Investors are cautioned that these non-GAAP metrics should only
be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have
a negative effect on our operating performance during the periods in which these costs are incurred.
Adjusted
Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest.
We
believe that EBITDA and Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted
for acquisition and transaction-related expenses, fees related to the listing related costs and expenses, other non-cash items such as
the vesting and conversion of the Class B Units, equity-based compensation expense and including our pro-rata share from unconsolidated
joint ventures, is an appropriate measure of our ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative
to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating
activities. Other companies may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other companies.
NOI
is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues,
excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense
and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information
because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged
basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties.
Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact
on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing
perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in
order to provide results that are more closely related to a property’s results of operations. For example, interest expense is
not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical
cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable
to NOI reported by other companies that define NOI differently. We believe that in order to facilitate a clear understanding of our operating
results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should
not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity
or our ability to pay dividends.
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Cash
NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding
amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe
that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties
and it allows for comparison of our operating performance between periods and to other companies. Cash NOI should not be considered as
an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability
to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other companies present
Cash NOI.
Cash
Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage
(discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall
solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined
in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial
information prepared in accordance with GAAP.
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Key Metrics
As of and for the three months
ended September 30, 2024
Amounts in thousands, except per
share data, ratios and percentages
| Financial
Results (Amounts in thousands, except per share data) | |
| |
| Revenue from tenants | |
$ | 15,447 | |
| Net loss attributable to common stockholders | |
$ | (34,482 | ) |
| Basic and diluted net loss per share attributable
to common stockholders | |
$ | (13.52 | ) |
| Cash
NOI (1) | |
$ | 6,761 | |
| Adjusted
EBITDA (1) | |
$ | 3,095 | |
| | |
| | |
| Balance
Sheet and Capitalization (Amounts in thousands, except ratios and percentages) | |
| | |
| Gross
asset value (2) | |
$ | 655,801 | |
| Net
debt (3) (4) | |
$ | 394,266 | |
| Total
consolidated debt (4) | |
$ | 399,500 | |
| Total assets | |
$ | 567,912 | |
| Cash
and cash equivalents (5) | |
$ | 5,234 | |
| | |
| | |
| Common shares outstanding as of September 30, 2024 | |
| 2,664 | |
| | |
| | |
| Net debt to gross asset value | |
| 60.1 | % |
| Net
debt to annualized adjusted EBITDA (1) (annualized based on quarterly results) | |
| 31.8 | x |
| | |
| | |
| Weighted-average
interest rate cost (6) | |
| 4.9 | % |
| Weighted-average
debt maturity (years) (7) | |
| 2.5 | |
| Interest
Coverage Ratio (8) | |
| 0.6 | x |
| | |
| | |
| Real Estate Portfolio | |
| | |
| Number of properties | |
| 7 | |
| Number of tenants | |
| 79 | |
| | |
| | |
| Square footage (millions) | |
| 1.2 | |
| Leased | |
| 85.8 | % |
| Weighted-average
remaining lease term (years) (9) | |
| 5.9 | |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
| (1) | These Non-GAAP metrics are reconciled below. |
| (2) | Defined
as total assets of $567.9 million plus accumulated depreciation and amortization of $87.9
million as of September 30, 2024. |
| (3) | Represents
total debt outstanding of $399.5 million, less cash and cash equivalents of $5.2 million. |
| (4) | Excludes the effect of deferred financing costs, net. |
| (5) | Under
the terms of one of the Company’s mortgage loans, the Company is required to maintain
minimum liquid assets (i.e. cash and cash equivalents and restricted cash) of $10.0 million
and a minimum net worth in excess of $175.0 million. |
| (6) | The weighted average interest rate cost is based on the outstanding principal balance of the debt. |
| (7) | The weighted average debt maturity is based on the outstanding principal balance of the debt. |
| (8) | The
interest coverage ratio is calculated by dividing adjusted EBITDA for the applicable quarter
by cash paid for interest (calculated based on the interest expense less non-cash portion
of interest expense and amortization of mortgage (discount) premium, net). Management believes
that Interest Coverage Ratio is a useful supplemental measure of our ability to service our
debt obligations. Adjusted EBITDA and cash paid for interest are non-GAAP metrics and are
reconciled below. |
| (9) | Based on annualized
straight-line rent as of September 30, 2024. |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 |
Consolidated Balance Sheets
Amounts in thousands, except share
and per share data
| | |
September
30,
2024 | | |
December
31,
2023 | |
| ASSETS | |
| (Unaudited) | | |
| | |
| Real estate investments, at cost: | |
| | | |
| | |
| Land | |
$ | 129,517 | | |
$ | 188,935 | |
| Buildings and improvements | |
| 341,159 | | |
| 479,265 | |
| Acquired intangible
assets | |
| 19,177 | | |
| 56,929 | |
| Total real estate investments, at cost | |
| 489,853 | | |
| 725,129 | |
| Less accumulated
depreciation and amortization | |
| (87,889 | ) | |
| (144,956 | ) |
| Total real estate investments, net | |
| 401,964 | | |
| 580,173 | |
| Cash and cash equivalents | |
| 5,234 | | |
| 5,292 | |
| Restricted cash | |
| 10,528 | | |
| 7,516 | |
| Operating lease right-of-use asset | |
| 54,570 | | |
| 54,737 | |
| Prepaid expenses and
other assets | |
| 4,353 | | |
| 6,150 | |
| Derivative asset, at fair value | |
| — | | |
| 400 | |
| Straight-line rent receivable | |
| 30,001 | | |
| 30,752 | |
| Deferred leasing costs, net | |
| 8,338 | | |
| 9,152 | |
| Assets held for sale | |
| 52,924 | | |
| — | |
| Total assets | |
$ | 567,912 | | |
$ | 694,172 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Mortgage notes payable, net | |
$ | 396,838 | | |
$ | 395,702 | |
| Accounts payable, accrued
expenses and other liabilities (including amounts due to related parties of $226 and $20 at September 30, 2024 and December 31,
2023, respectively) | |
| 18,137 | | |
| 12,975 | |
| Notes payable to related parties | |
| 575 | | |
| — | |
| Operating lease liability | |
| 54,609 | | |
| 54,657 | |
| Below-market lease liabilities, net | |
| 1,361 | | |
| 2,061 | |
| Deferred revenue | |
| 4,019 | | |
| 3,983 | |
| Total liabilities | |
| 475,539 | | |
| 469,378 | |
| | |
| | | |
| | |
| Preferred stock, $0.01
par value, 50,000,000 shares authorized, none issued and outstanding at September 30, 2024 and December 31, 2023 | |
| — | | |
| — | |
| Common stock, $0.01 par value, 300,000,000
shares authorized, 2,663,980 and 2,334,340 shares issued and outstanding as of September 30, 2024 and December 31, 2023,
respectively | |
| 26 | | |
| 23 | |
| Additional paid-in capital | |
| 731,567 | | |
| 729,644 | |
| Accumulated other comprehensive income | |
| — | | |
| 406 | |
| Distributions in excess of accumulated
earnings | |
| (639,220 | ) | |
| (505,279 | ) |
| Total stockholders’
equity | |
| 92,373 | | |
| 224,794 | |
| Total liabilities
and equity | |
$ | 567,912 | | |
$ | 694,172 | |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Consolidated Statements of Operations
Amounts in thousands, except share
and per share data
| | |
Three
Months Ended | |
| | |
September
30,
2024 | | |
June 30,
2024 | | |
March 31,
2024 | | |
December
31,
2023 | |
| Revenue from tenants | |
$ | 15,447 | | |
$ | 15,481 | | |
$ | 15,380 | | |
$ | 16,015 | |
| | |
| | | |
| | | |
| | | |
| | |
| Expenses: | |
| | | |
| | | |
| | | |
| | |
| Asset and property
management fees to related parties | |
| 1,994 | | |
| 1,903 | | |
| 1,926 | | |
| 1,882 | |
| Property operating | |
| 8,596 | | |
| 8,382 | | |
| 8,230 | | |
| 8,792 | |
| Impairment of real
estate investments | |
| 27,817 | | |
| — | | |
| 66,053 | | |
| 362 | |
| Equity-based compensation | |
| 76 | | |
| 54 | | |
| 151 | | |
| 1,208 | |
| General and administrative | |
| 1,762 | | |
| 2,801 | | |
| 1,824 | | |
| 1,932 | |
| Depreciation
and amortization | |
| 4,414 | | |
| 5,261 | | |
| 6,332 | | |
| 6,499 | |
| Total expenses | |
| 44,659 | | |
| 18,401 | | |
| 84,516 | | |
| 20,675 | |
| Operating loss | |
| (29,212 | ) | |
| (2,920 | ) | |
| (69,136 | ) | |
| (4,660 | ) |
| Other income (expense): | |
| | | |
| | | |
| | | |
| | |
| Interest expense | |
| (5,279 | ) | |
| (4,697 | ) | |
| (4,749 | ) | |
| (4,739 | ) |
| Other income | |
| 9 | | |
| 9 | | |
| 9 | | |
| 9 | |
| Total other expense,
net | |
| (5,270 | ) | |
| (4,688 | ) | |
| (4,740 | ) | |
| (4,730 | ) |
| Net loss before income taxes | |
| (34,482 | ) | |
| (7,608 | ) | |
| (73,876 | ) | |
| (9,390 | ) |
| Net
loss and Net loss attributable to common stockholders | |
$ | (34,482 | ) | |
$ | (7,608 | ) | |
$ | (73,876 | ) | |
$ | (9,390 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Basic and Diluted Net Loss Per Share: | |
| | | |
| | | |
| | | |
| | |
| Net
loss per share attributable to common stockholders — Basic and Diluted | |
$ | (13.52 | ) | |
$ | (3.28 | ) | |
$ | (32.27 | ) | |
$ | (4.10 | ) |
| Weighted
average shares outstanding —Basic and Diluted | |
| 2,551,034 | | |
| 2,322,594 | | |
| 2,289,094 | | |
| 2,288,683 | |
| Diluted | |
| 2,551,034 | | |
| 2,322,594 | | |
| 2,289,094 | | |
| 2,289,094 | |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Non-GAAP Measures
Amounts in thousands
| | |
Three
Months Ended | |
| | |
September
30,
2024 | | |
June 30,
2024 | | |
March 31,
2024 | | |
December
31, 2023 | |
| EBITDA: | |
| | |
| | |
| | |
| |
| Net loss
and Net loss attributable to common stockholders | |
$ | (34,482 | ) | |
$ | (91,851 | ) | |
$ | (7,608 | ) | |
$ | (73,878 | ) |
| Depreciation and
amortization | |
| 4,414 | | |
| 5,151 | | |
| 5,261 | | |
| 6,332 | |
| Interest
expense | |
| 5,279 | | |
| 5,201 | | |
| 4,697 | | |
| 4,749 | |
| EBITDA | |
| (24,789 | ) | |
| (81,499 | ) | |
| 2,350 | | |
| (62,797 | ) |
| Impairment of real
estate investments | |
| 27,817 | | |
| 84,724 | | |
| — | | |
| 66,053 | |
| Equity-based compensation | |
| 76 | | |
| 186 | | |
| 54 | | |
| 151 | |
| Management Fees paid
in stock to Advisor in lieu of cash | |
| — | | |
| 1,077 | | |
| 533 | | |
| — | |
| Other
income | |
| (9 | ) | |
| (9 | ) | |
| (9 | ) | |
| (9 | ) |
| Adjusted EBITDA | |
| 3,095 | | |
| 4,479 | | |
| 2,928 | | |
| 3,398 | |
| Asset and property
management fees to related parties paid in cash | |
| 1,994 | | |
| 850 | | |
| 1,371 | | |
| 1,926 | |
| General
and administrative | |
| 1,762 | | |
| 1,964 | | |
| 2,801 | | |
| 1,824 | |
| NOI | |
| 6,851 | | |
| 7,293 | | |
| 7,100 | | |
| 7,148 | |
| Accretion of below-
and amortization of above-market lease liabilities and assets, net | |
| (219 | ) | |
| (57 | ) | |
| (55 | ) | |
| (25 | ) |
| Straight-line rent
(revenue as a lessor) | |
| 102 | | |
| 153 | | |
| (30 | ) | |
| (848 | ) |
| Straight-line
ground rent (expense as lessee) | |
| 27 | | |
| 27 | | |
| 27 | | |
| 28 | |
| Cash NOI | |
$ | 6,761 | | |
$ | 7,416 | | |
$ | 7,042 | | |
$ | 6,303 | |
| | |
| | | |
| | | |
| | | |
| | |
| Cash Paid for Interest: | |
| | | |
| | | |
| | | |
| | |
| Interest expense | |
$ | 5,279 | | |
$ | 5,201 | | |
$ | 4,697 | | |
$ | 4,749 | |
| Amortization
of deferred financing costs | |
| (373 | ) | |
| (377 | ) | |
| (386 | ) | |
| (386 | ) |
| Total cash paid for interest | |
$ | 4,906 | | |
$ | 4,824 | | |
$ | 4,311 | | |
$ | 4,363 | |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Debt Overview
As of September 30, 2024
| Year of Maturity | |
Number
of
Encumbered
Properties | | |
Weighted-
Average Debt
Maturity
(Years) (1) | | |
Weighted-
Average Interest
Rate (1) (2) | | |
Total
Outstanding
Balance (3) | |
| | |
| | | |
| | | |
| | | |
| (In
thousands) | |
| 2024 (remainder) | |
| 1 | | |
| 0.08 | | |
| 8.1 | % | |
$ | 49,500 | |
| 2025 | |
| — | | |
| — | | |
| — | % | |
| — | |
| 2026 | |
| 1 | | |
| 1.8 | | |
| 4.2 | % | |
| 99,000 | |
| 2027 | |
| 1 | | |
| 2.4 | | |
| 4.7 | % | |
| 140,000 | |
| 2028 | |
| 3 | | |
| 3.7 | | |
| 4.7 | % | |
| 60,000 | |
| 2029 | |
| 1 | | |
| 4.8 | | |
| 3.9 | % | |
| 51,000 | |
| Thereafter | |
| — | | |
| — | | |
| — | % | |
| — | |
| Total Debt | |
| 7 | | |
| 2.5 | | |
| 4.9 | % | |
$ | 399,500 | |
| (1) | Weighted
based on the outstanding principal balance of the debt. |
| (2) | All
of the Company’s debt is fixed rate with the exception of one variable rate loan as
of September 30, 2024. |
| (3) | Excludes
the effect of deferred financing costs, net. Current balances as of September 30, 2024
are shown in the year the debt matures. |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Future Minimum Lease Rents
As of September 30, 2024
Amounts in thousands
| | |
Future Minimum
Base Rent Payments (1) | |
| 2024 (remainder) | |
$ | 13,626 | |
| 2025 | |
| 50,968 | |
| 2026 | |
| 45,861 | |
| 2027 | |
| 41,860 | |
| 2028 | |
| 36,914 | |
| 2029 | |
| 33,484 | |
| Thereafter | |
| 147,716 | |
| Total | |
$ | 370,429 | |
| (1) | Represents
future minimum base rent payments on a cash basis due to the Company over the next five years
and thereafter. These amounts exclude contingent rent payments, as applicable, that may be
collected from certain tenants based on provisions related to sales thresholds and increases
in annual rent based on exceeding certain economic indexes among other items. |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Top Ten Tenants
As of September 30, 2024
Amounts in thousands, except percentages
| Tenant / Lease Guarantor | |
Property
Type | |
Tenant
Industry | |
Annualized
SL Rent (1) | | |
SL Rent
Percent | | |
Remaining
Lease Term (2) | | |
Investment
Grade (3) |
| City National Bank | |
Office / Retail | |
Financial Services | |
$ | 4,356 | | |
| 7 | % | |
| 8.8 | | |
Yes |
| Planned Parenthood Federation of America, Inc. | |
Office | |
Non-Profit | |
| 3,388 | | |
| 6 | % | |
| 6.8 | | |
Yes |
| Equinox | |
Retail | |
Fitness | |
| 2,897 | | |
| 5 | % | |
| 14.2 | | |
No |
| Cornell University | |
Office | |
Healthcare Services | |
| 2,476 | | |
| 4 | % | |
| — | | |
Yes |
| The City of New York - Dept. of Youth & Community Development | |
Office | |
Government/Public Administration | |
| 2,215 | | |
| 4 | % | |
| 13.3 | | |
Yes |
| CVS | |
Retail | |
Retail | |
| 2,161 | | |
| 4 | % | |
| 9.9 | | |
Yes |
| USA General Services Administration | |
Office | |
Government/Public Administration | |
| 2,050 | | |
| 3 | % | |
| 2.7 | | |
Yes |
| I Love NY Gifts | |
Retail | |
Retail | |
| 1,932 | | |
| 3 | % | |
| 11.7 | | |
No |
| NYS Licensing | |
Office | |
Government/Public Administration | |
| 1,833 | | |
| 3 | % | |
| 2.8 | | |
Yes |
| Marshalls | |
Retail | |
Retail | |
| 1,641 | | |
| 3 | % | |
| 4.1 | | |
Yes |
| Subtotal | |
| |
| |
| 24,949 | | |
| 42 | % | |
| 7.7 | | |
|
| | |
| |
| |
| | | |
| | | |
| | | |
|
| Remaining portfolio | |
| |
| |
| 34,046 | | |
| 58 | % | |
| | | |
|
| | |
| |
| |
| | | |
| | | |
| | | |
|
| Total Portfolio | |
| |
| |
$ | 58,995 | | |
| 100 | % | |
| | | |
|
| (1) | Calculated
using the most recent available lease terms as of September 30, 2024. |
| (2) | Based
on straight-line rent as of September 30, 2024. |
| (3) | As
used herein, investment grade includes both actual investment grade ratings of the tenant
or guarantor, if available, or implied investment grade. Implied investment grade may include
actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent
has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s
analytical tool, which generates an implied rating by measuring a company’s probability
of default. The term "parent" for these purposes includes any entity, including
any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information
is as of September 30, 2024. Top 10 tenants are 61% actual investment grade rated and
20% implied investment grade rated. |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Diversification by Property Type
As of September 30, 2024
Amounts in thousands, except percentages
| | |
Total
Portfolio | |
| Property Type | |
Annualized
SL Rent (1) | | |
SL Rent
Percent | | |
Square
Feet | | |
SqFt.
Percent | |
| Office | |
$ | 43,324 | | |
| 73 | % | |
| 813 | | |
| 82 | % |
| Retail | |
| 14,334 | | |
| 24 | % | |
| 168 | | |
| 17 | % |
| Other | |
| 1,337 | | |
| 3 | % | |
| 14 | | |
| 1 | % |
| Total | |
$ | 58,995 | | |
| 100 | % | |
| 995 | | |
| 100 | % |
| (1) | Calculated
using the most recent available lease terms as of September 30, 2024. |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Diversification by Tenant Industry
As of September 30, 2024
Amounts in thousands, except percentages
| | |
Total
Portfolio | |
| Industry Type | |
Annualized
SL Rent (1) | | |
SL Rent
Percent | | |
Square
Feet | | |
Sq. ft.
Percent | |
| Financial Services | |
$ | 13,920 | | |
| 24 | % | |
| 179 | | |
| 18 | % |
| Government / Public Administration | |
| 7,722 | | |
| 13 | % | |
| 173 | | |
| 17 | % |
| Retail | |
| 7,035 | | |
| 12 | % | |
| 53 | | |
| 5 | % |
| Non-profit | |
| 5,285 | | |
| 9 | % | |
| 114 | | |
| 12 | % |
| Office Space | |
| 5,070 | | |
| 9 | % | |
| 112 | | |
| 11 | % |
| Services | |
| 3,948 | | |
| 7 | % | |
| 70 | | |
| 7 | % |
| Healthcare Services | |
| 3,138 | | |
| 5 | % | |
| 43 | | |
| 4 | % |
| Fitness | |
| 2,897 | | |
| 5 | % | |
| 30 | | |
| 3 | % |
| Professional Services | |
| 2,798 | | |
| 5 | % | |
| 48 | | |
| 5 | % |
| Technology | |
| 1,998 | | |
| 3 | % | |
| 37 | | |
| 4 | % |
| Other
(2) | |
| 5,184 | | |
| 8 | % | |
| 136 | | |
| 14 | % |
| Total | |
$ | 58,995 | | |
| 100 | % | |
| 995 | | |
| 100 | % |
| (1) | Calculated
using the most recent available lease terms as of September 30, 2024. |
| (2) | Other
includes nine industry types as of September 30, 2024. |
| American Strategic
Investment Co. |
| Supplemental
Information |
| Quarter ended September 30,
2024 (Unaudited) |
Lease Expirations
As of September 30, 2024
| Year of Expiration | |
Number
of
Leases Expiring | | |
Annualized
SL
Rent [1] | | |
Annualized
SL
Rent Percent | | |
Leased
Rentable
Square Feet | | |
Percent
of
Rentable
Square Feet
Expiring | |
| | |
| | | |
| (In
thousands) | | |
| | | |
| (In
thousands) | | |
| | |
| 2024 (Remaining) | |
| 8 | | |
$ | 6,733 | | |
| 11.4 | % | |
| 103 | | |
| 10.4 | % |
| 2025 | |
| 15 | | |
| 6,156 | | |
| 10.4 | % | |
| 118 | | |
| 11.9 | % |
| 2026 | |
| 9 | | |
| 2,801 | | |
| 4.7 | % | |
| 56 | | |
| 5.7 | % |
| 2027 | |
| 15 | | |
| 7,213 | | |
| 12.2 | % | |
| 157 | | |
| 15.8 | % |
| 2028 | |
| 9 | | |
| 3,463 | | |
| 5.9 | % | |
| 59 | | |
| 5.9 | % |
| 2029 | |
| 8 | | |
| 3,508 | | |
| 5.9 | % | |
| 63 | | |
| 6.3 | % |
| 2030 | |
| 5 | | |
| 2,659 | | |
| 4.5 | % | |
| 51 | | |
| 5.1 | % |
| 2031 | |
| 9 | | |
| 6,502 | | |
| 11.0 | % | |
| 112 | | |
| 11.3 | % |
| 2032 | |
| 3 | | |
| 781 | | |
| 1.3 | % | |
| 14 | | |
| 1.4 | % |
| 2033 | |
| 8 | | |
| 4,967 | | |
| 8.4 | % | |
| 47 | | |
| 4.7 | % |
| 2034 | |
| 4 | | |
| 3,425 | | |
| 5.8 | % | |
| 30 | | |
| 3.0 | % |
| 2035 | |
| 3 | | |
| 640 | | |
| 1.1 | % | |
| 4 | | |
| 0.4 | % |
| 2036 | |
| 4 | | |
| 2,298 | | |
| 3.9 | % | |
| 17 | | |
| 1.7 | % |
| 2037 | |
| 4 | | |
| 4,048 | | |
| 6.9 | % | |
| 128 | | |
| 12.9 | % |
| 2038 | |
| 3 | | |
| 2,897 | | |
| 4.9 | % | |
| 30 | | |
| 3.0 | % |
| 2039 | |
| 2 | | |
| 558 | | |
| 0.9 | % | |
| — | | |
| — | % |
| Thereafter (>2039) | |
| 1 | | |
| 346 | | |
| 0.8 | % | |
| 6 | | |
| 0.4 | % |
| Total | |
| 110 | | |
$ | 58,995 | | |
| 100 | % | |
| 995 | | |
| 100 | % |
| (1) | Calculated
using the most recent available lease terms as of September 30, 2024. Includes tenant
concessions, such as free rent, as applicable. |
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