American Strategic Investment Co. Announces Fourth Quarter 2024 Results
American Strategic Investment Co. (NYSE: NYC) reported its Q4 and full-year 2024 results. Q4 revenue decreased to $14.9M from $15.4M in Q4 2023, partly due to 9 Times Square sale. Net loss improved to $6.7M ($2.60 per share) compared to $73.9M loss in Q4 2023.
Full-year 2024 highlights include revenue of $61.6M (down from $62.7M in 2023), portfolio occupancy of 80.8%, and completion of five new leases totaling 37,407 square feet. The company maintains a conservative balance sheet with 56.9% net leverage and 100% fixed-rate debt at 4.4% weighted-average interest rate.
Portfolio metrics show 77% of top 10 tenants' rent comes from investment grade tenants, with a weighted-average lease term of 8.0 years. The portfolio consists of six properties comprising 1.0M rentable square feet, with 72% office space based on annualized straight-line rent.
American Strategic Investment Co. (NYSE: NYC) ha riportato i risultati del quarto trimestre e dell'intero anno 2024. Le entrate del quarto trimestre sono diminuite a $14.9M rispetto ai $15.4M del quarto trimestre 2023, in parte a causa della vendita di 9 Times Square. La perdita netta è migliorata a $6.7M ($2.60 per azione) rispetto a una perdita di $73.9M nel quarto trimestre 2023.
I punti salienti dell'anno intero 2024 includono entrate di $61.6M (in calo rispetto ai $62.7M del 2023), un'occupazione del portafoglio dell'80.8% e il completamento di cinque nuovi contratti di locazione per un totale di 37.407 piedi quadrati. L'azienda mantiene un bilancio conservativo con un leverage netto del 56.9% e un debito a tasso fisso al 100% con un tasso d'interesse medio ponderato del 4.4%.
I parametri del portafoglio mostrano che il 77% degli affitti dei primi 10 inquilini proviene da inquilini con rating di investimento, con una durata media ponderata del contratto di locazione di 8.0 anni. Il portafoglio è composto da sei proprietà per un totale di 1.0M piedi quadrati affittabili, con il 72% di spazio per uffici basato su un affitto lineare annualizzato.
American Strategic Investment Co. (NYSE: NYC) informó sus resultados del cuarto trimestre y del año completo 2024. Los ingresos del cuarto trimestre disminuyeron a $14.9M desde $15.4M en el cuarto trimestre de 2023, en parte debido a la venta de 9 Times Square. La pérdida neta mejoró a $6.7M ($2.60 por acción) en comparación con una pérdida de $73.9M en el cuarto trimestre de 2023.
Los aspectos destacados del año completo 2024 incluyen ingresos de $61.6M (una disminución desde $62.7M en 2023), una ocupación de cartera del 80.8%, y la finalización de cinco nuevos arrendamientos que totalizan 37,407 pies cuadrados. La compañía mantiene un balance conservador con un apalancamiento neto del 56.9% y una deuda a tasa fija del 100% con una tasa de interés promedio ponderada del 4.4%.
Las métricas de la cartera muestran que el 77% del alquiler de los 10 principales inquilinos proviene de inquilinos con grado de inversión, con un plazo de arrendamiento promedio ponderado de 8.0 años. La cartera consta de seis propiedades que comprenden 1.0M pies cuadrados alquilables, con el 72% de espacio de oficina basado en un alquiler lineal anualizado.
American Strategic Investment Co. (NYSE: NYC)는 2024년 4분기 및 연간 실적을 발표했습니다. 4분기 수익은 2023년 4분기 $15.4M에서 $14.9M으로 감소했으며, 이는 부분적으로 9 Times Square의 매각 때문입니다. 순손실은 2023년 4분기의 $73.9M 손실에 비해 $6.7M ($2.60 per share)로 개선되었습니다.
2024년 연간 하이라이트에는 $61.6M의 수익(2023년 $62.7M에서 하락), 80.8%의 포트폴리오 점유율, 총 37,407 평방 피트에 해당하는 5개의 새로운 임대 계약 완료가 포함됩니다. 회사는 56.9%의 순 레버리지와 4.4%의 가중 평균 이자율로 100% 고정 금리 부채를 유지하며 보수적인 대차대조표를 유지하고 있습니다.
포트폴리오 지표에 따르면 상위 10명의 세입자 임대료의 77%가 투자 등급 세입자에게서 발생하며, 가중 평균 임대 기간은 8.0년입니다. 포트폴리오는 1.0M 렌탈 평방 피트를 포함하는 6개의 자산으로 구성되며, 연간 직선 임대료 기준으로 72%는 사무실 공간입니다.
American Strategic Investment Co. (NYSE: NYC) a annoncé ses résultats pour le quatrième trimestre et l'année entière 2024. Les revenus du quatrième trimestre ont diminué à 14,9 millions de dollars contre 15,4 millions de dollars au quatrième trimestre 2023, en partie en raison de la vente de 9 Times Square. La perte nette s'est améliorée à 6,7 millions de dollars (2,60 $ par action) par rapport à une perte de 73,9 millions de dollars au quatrième trimestre 2023.
Les points forts de l'année 2024 incluent des revenus de 61,6 millions de dollars (en baisse par rapport à 62,7 millions de dollars en 2023), un taux d'occupation du portefeuille de 80,8 % et l'achèvement de cinq nouveaux baux totalisant 37 407 pieds carrés. L'entreprise maintient un bilan conservateur avec un effet de levier net de 56,9 % et une dette à taux fixe de 100 % avec un taux d'intérêt moyen pondéré de 4,4 %.
Les indicateurs du portefeuille montrent que 77 % des loyers des 10 principaux locataires proviennent de locataires de qualité investissement, avec une durée de bail moyenne pondérée de 8,0 ans. Le portefeuille se compose de six propriétés totalisant 1,0 million de pieds carrés louables, dont 72 % d'espace de bureau basé sur un loyer linéaire annualisé.
American Strategic Investment Co. (NYSE: NYC) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht. Die Einnahmen im vierten Quartal sanken auf $14.9M von $15.4M im vierten Quartal 2023, teilweise aufgrund des Verkaufs von 9 Times Square. Der Nettoverlust verbesserte sich auf $6.7M ($2.60 pro Aktie) im Vergleich zu einem Verlust von $73.9M im vierten Quartal 2023.
Die Höhepunkte des gesamten Jahres 2024 umfassen Einnahmen von $61.6M (ein Rückgang von $62.7M im Jahr 2023), eine Portfoliobelegung von 80.8% und den Abschluss von fünf neuen Mietverträgen mit insgesamt 37.407 Quadratfuß. Das Unternehmen hält eine konservative Bilanz mit 56.9% Netto-Leverage und 100% festverzinslicher Schulden zu einem gewichteten durchschnittlichen Zinssatz von 4.4%.
Portfoliomessungen zeigen, dass 77% der Miete der Top-10-Mieter von Mietern mit Investment-Grade-Rating stammt, mit einer gewichteten durchschnittlichen Mietdauer von 8.0 Jahren. Das Portfolio besteht aus sechs Immobilien mit insgesamt 1.0M vermietbaren Quadratfuß, wobei 72% Bürofläche basierend auf dem annualisierten linearen Mietzins ausmachen.
- Net loss significantly improved to $6.7M in Q4 2024 from $73.9M in Q4 2023
- Cash NOI increased to $6.6M in Q4 2024 from $6.3M in Q4 2023
- 77% of top tenant rent from investment grade tenants
- Secured five new leases worth $2.0M in straight-line rent
- Revenue declined to $14.9M in Q4 2024 from $15.4M in Q4 2023
- Full-year revenue decreased to $61.6M from $62.7M in 2023
- Portfolio occupancy dropped to 80.8% from 87% year-over-year
- Net loss for full-year 2024 increased to $140.6M from $105.9M in 2023
Insights
American Strategic Investment Co.'s Q4 2024 results present mixed financial signals. The company's revenue decreased to
Operational metrics reveal both strengths and challenges. Cash NOI improved to
The company maintains a conservative debt structure with
A significant strength is that
Fourth Quarter 2024 and Subsequent Events
-
Revenue was
compared to$14.9 million for the fourth quarter of 2023 due, in part, to the sale of 9 Times Square$15.4 million -
Net loss attributable to common stockholders was
or$6.7 million per share, compared to net loss of$2.60 , or$73.9 million per share, in the fourth quarter of 2023$32.27 -
Adjusted EBITDA was
$1.3 million -
Cash net operating income (“NOI”) was
compared to$6.6 million in the same quarter of 2023$6.3 million -
77% of annualized straight-line rent from top 10 tenants(1) is derived from investment grade or implied investment grade(2) rated tenants with a weighted-average remaining lease term(3) of 8.0 years as of December 31, 2024
Full Year 2024 Highlights
-
Revenue was
compared to$61.6 million in 2023 due, in part, to the sale of 9 Times Square$62.7 million -
Net loss attributable to common stockholders was
compared to$140.6 million for 2023$105.9 million -
Adjusted EBITDA was
compared to$11.8 million for the full year 2023$12.3 million -
Cash NOI was
compared to$27.6 million in 2023$27.3 million -
Portfolio occupancy of
80.8% with a weighted-average remaining lease term of 6.3 years as of December 31, 2024 -
Completed five new leases totaling 37,407 square feet and
in straight-line rent$2.0 million -
Portfolio debt, as of December 31, 2024, is
100% fixed-rate with a4.4% weighted-average interest rate and 3.6 years of weighted-average debt maturity -
Conservative balance sheet with net leverage of
56.9% as of December 31, 2024
CEO Comments
“In the fourth quarter we completed the sale of 9 Times Square and relaunched the marketing process for 123 William Street and 196 Orchard Street as we continue our expanded asset diversification strategy,” said Michael Anderson, CEO of ASIC. “At the same time, we grew Cash Net Operating Income in both the fourth quarter and for the full year 2024 compared to the same period in 2023. We remain focused on aggressively leasing our portfolio to high quality tenants in 2025.”
Financial Results
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(In thousands, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue from tenants |
|
$ |
14,889 |
|
|
$ |
15,380 |
|
|
$ |
61,570 |
|
|
$ |
62,710 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss attributable to common stockholders |
|
$ |
(6,650 |
) |
|
$ |
(73,876 |
) |
|
$ |
(140,591 |
) |
|
$ |
(105,924 |
) |
Net loss per common share (a) |
|
$ |
(2.60 |
) |
|
$ |
(32.27 |
) |
|
$ |
(56.51 |
) |
|
$ |
(47.57 |
) |
____________________ | |
(1) |
All per share data has been retroactively adjusted to reflect the 1-for-8 reverse stock split that occurred on January 11, 2023. Per share data is based on 2,557,080 and 2,289,094 basic weighted-average shares outstanding for the three months ended December 31, 2024 and 2023, respectively and 2,487,827 and 2,226,721 for the years ended December 31, 2024 and 2023, respectively. |
Real Estate Portfolio
The Company’s portfolio consisted of six properties and comprised 1.0 million rentable square feet as of December 31, 2024. Portfolio metrics include:
-
81% leased, compared to87% at the end of fourth quarter 2023, with 6.3 years remaining weighted-average lease term -
77% of annualized straight-line rent(4) from top 10 tenants derived from investment grade or implied investment grade tenants -
72% office (based on an annualized straight-line rent)
Capital Structure and Liquidity Resources
As of December 31, 2024, the Company had
All of the Company’s debt was fixed-rate as of December 31, 2024. The Company’s total combined debt had a weighted-average interest rate of
The Company’s debt was a weighted-average debt maturity of 3.6 years.
Footnotes/Definitions
(1) | Top 10 tenants based on annualized straight-line rent as of December 31, 2024. |
(2) |
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 |
(3) |
The weighted-average remaining lease term (years) is based on annualized straight-line rent as of December 31, 2024. |
(4) |
Annualized straight-line rent is calculated using the most recent available lease terms as of December 31, 2024. |
(5) |
Under one of our mortgage loans, we are required to maintain minimum liquid assets (i.e. cash, cash equivalents and restricted cash) of |
(6) |
Total debt of |
(7) |
Defined as the carrying value of total assets of |
(8) |
Weighted based on the outstanding principal balance of the debt. |
Webcast and Conference Call
ASIC will host a webcast and call on March 19, 2025 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 ID: 5954637#
*Available one hour after the end of the conference call through June 19, 2025
About American Strategic Investment Co.
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of
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 Regarding Forward-Looking Statements
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 potential adverse effects of the geopolitical instability due to the ongoing military conflicts between
Accounting Treatment of Rent Deferrals
The majority of the concessions granted to our tenants as a result of the COVID-19 pandemic are rent deferrals or temporary rent abatements with the original lease term unchanged and collection of deferred rent deemed probable. As a result of relief granted by the FASB and the SEC related to lease modification accounting, rental revenue used to calculate Net Income, have not been, and we do not expect it to be, significantly impacted by these types of deferrals.
American Strategic Investment Co. Consolidated Balance Sheets (In thousands. except share and per share data) |
||||||||
|
|
December 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
(Unaudited) |
|
|
||||
Real estate investments, at cost: |
|
|
|
|
||||
Land |
|
$ |
129,517 |
|
|
$ |
188,935 |
|
Buildings and improvements |
|
|
341,314 |
|
|
|
479,265 |
|
Acquired intangible assets |
|
|
19,063 |
|
|
|
56,929 |
|
Total real estate investments, at cost |
|
|
489,894 |
|
|
|
725,129 |
|
Less accumulated depreciation and amortization |
|
|
(91,135 |
) |
|
|
(144,956 |
) |
Total real estate investments, net |
|
|
398,759 |
|
|
|
580,173 |
|
Cash and cash equivalents |
|
|
9,776 |
|
|
|
5,292 |
|
Restricted cash |
|
|
9,159 |
|
|
|
7,516 |
|
Operating lease right-of-use asset |
|
|
54,514 |
|
|
|
54,737 |
|
Prepaid expenses and other assets |
|
|
5,233 |
|
|
|
6,150 |
|
Derivative asset, at fair value |
|
|
— |
|
|
|
400 |
|
Straight-line rent receivable |
|
|
23,060 |
|
|
|
30,752 |
|
Deferred leasing costs, net |
|
|
6,565 |
|
|
|
9,152 |
|
Total assets |
|
$ |
507,066 |
|
|
$ |
694,172 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDER'S EQUITY |
|
|
|
|
||||
Mortgage notes payable, net |
|
$ |
347,384 |
|
|
$ |
395,702 |
|
Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of |
|
|
15,302 |
|
|
|
12,975 |
|
Operating lease liability |
|
|
54,592 |
|
|
|
54,657 |
|
Below-market lease liabilities, net |
|
|
1,161 |
|
|
|
2,061 |
|
Derivative liability, at fair value |
|
|
— |
|
|
|
— |
|
Deferred revenue |
|
|
3,041 |
|
|
|
3,983 |
|
Total liabilities |
|
|
421,480 |
|
|
|
469,378 |
|
|
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
27 |
|
|
|
23 |
|
Additional paid-in capital |
|
|
731,429 |
|
|
|
729,644 |
|
Accumulated other comprehensive earnings (loss) |
|
|
— |
|
|
|
406 |
|
Distributions in excess of accumulated earnings |
|
|
(645,870 |
) |
|
|
(505,279 |
) |
Total stockholders' equity |
|
|
85,586 |
|
|
|
224,794 |
|
Non-controlling interests |
|
|
— |
|
|
|
— |
|
Total equity |
|
|
85,586 |
|
|
|
224,794 |
|
Total liabilities and stockholders' equity |
|
$ |
507,066 |
|
|
$ |
694,172 |
|
____________________ | |
(1) |
Retroactively adjusted to reflect the 1-for-8 reverse stock split which occurred on January 11, 2023. |
American Strategic Investment Co. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue from tenants |
|
$ |
14,889 |
|
|
$ |
15,380 |
|
|
$ |
61,570 |
|
|
$ |
62,710 |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Asset and property management fees to related parties |
|
|
1,927 |
|
|
|
1,926 |
|
|
|
7,751 |
|
|
|
7,680 |
|
Property operating |
|
|
8,746 |
|
|
|
8,230 |
|
|
|
34,185 |
|
|
|
33,797 |
|
Impairment of real estate investments |
|
|
— |
|
|
|
66,053 |
|
|
|
112,541 |
|
|
|
66,565 |
|
Equity-based compensation |
|
|
92 |
|
|
|
151 |
|
|
|
408 |
|
|
|
5,863 |
|
General and administrative |
|
|
2,690 |
|
|
|
1,824 |
|
|
|
9,216 |
|
|
|
9,375 |
|
Depreciation and amortization |
|
|
3,582 |
|
|
|
6,332 |
|
|
|
18,408 |
|
|
|
26,532 |
|
Total operating expenses |
|
|
17,037 |
|
|
|
84,516 |
|
|
|
182,509 |
|
|
|
149,812 |
|
Operating (loss) income |
|
|
(2,148 |
) |
|
|
(69,136 |
) |
|
|
(120,939 |
) |
|
|
(87,102 |
) |
Gain/loss on sale of real estate |
|
|
(276 |
) |
|
|
— |
|
|
|
(276 |
) |
|
|
— |
|
Other income (expenses): |
|
|
|
|
|
|
|
|
||||||||
Interest expense |
|
|
(4,311 |
) |
|
|
(4,749 |
) |
|
|
(19,488 |
) |
|
|
(18,858 |
) |
Other income (expenses) |
|
|
85 |
|
|
|
9 |
|
|
|
112 |
|
|
|
36 |
|
Total other expense |
|
|
(4,502 |
) |
|
|
(4,740 |
) |
|
|
(19,652 |
) |
|
|
(18,822 |
) |
Net loss before income taxes |
|
|
(6,650 |
) |
|
|
(73,876 |
) |
|
|
(140,591 |
) |
|
|
(105,924 |
) |
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss and Net loss attributable to common stockholders |
|
$ |
(6,650 |
) |
|
$ |
(73,876 |
) |
|
$ |
(140,591 |
) |
|
$ |
(105,924 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding — Basic and Diluted (1) |
|
|
2,557,080 |
|
|
|
2,289,094 |
|
|
|
2,487,827 |
|
|
|
2,226,721 |
|
Net loss per share attributable to common stockholders — Basic and Diluted (1) |
|
$ |
(2.60 |
) |
|
$ |
(32.27 |
) |
|
$ |
(56.51 |
) |
|
$ |
(47.57 |
) |
___________________ | |
(1) |
Retroactively adjusted to reflect the 1-for-8 reverse stock split which occurred on January 11, 2023. |
American Strategic Investment Co. Quarterly Reconciliation of Non-GAAP Measures (Unaudited) (In thousands) |
||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
March 31, 2024 |
|
June 30, 2024 |
|
September 30, 2024 |
|
December 31, 2024 |
|
December 31, 2024 |
||||||||||
Net loss and Net loss attributable to common stockholders |
|
$ |
(7,608 |
) |
|
$ |
(91,851 |
) |
|
$ |
(34,482 |
) |
|
$ |
(6,650 |
) |
|
$ |
(140,591 |
) |
Depreciation and amortization |
|
|
5,261 |
|
|
|
5,151 |
|
|
|
4,414 |
|
|
|
3,582 |
|
|
|
18,408 |
|
Interest expense |
|
|
4,697 |
|
|
|
5,201 |
|
|
|
5,279 |
|
|
|
4,311 |
|
|
|
19,488 |
|
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
EBITDA |
|
|
2,350 |
|
|
|
(81,499 |
) |
|
|
(24,789 |
) |
|
|
1,243 |
|
|
|
(102,695 |
) |
Impairment of real estate investments |
|
|
— |
|
|
|
84,724 |
|
|
|
27,817 |
|
|
|
— |
|
|
|
112,541 |
|
Acquisition, transaction and other costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Listing expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Vesting and conversion of Class B Units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equity-based compensation |
|
|
54 |
|
|
|
186 |
|
|
|
76 |
|
|
|
92 |
|
|
|
408 |
|
Other income (expenses) |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
(9 |
) |
|
|
(85 |
) |
|
|
(112 |
) |
Management fees paid in common stock to the Advisor in lieu of cash |
|
|
533 |
|
|
|
1,077 |
|
|
|
— |
|
|
|
— |
|
|
|
1,610 |
|
Adjusted EBITDA |
|
|
2,395 |
|
|
|
3,402 |
|
|
|
3,095 |
|
|
|
1,250 |
|
|
|
11,752 |
|
Asset and property management fees to related parties |
|
|
1,371 |
|
|
|
850 |
|
|
|
1,994 |
|
|
|
1,927 |
|
|
|
6,142 |
|
General and administrative |
|
|
2,801 |
|
|
|
1,964 |
|
|
|
1,762 |
|
|
|
2,689 |
|
|
|
9,216 |
|
NOI |
|
|
6,567 |
|
|
|
6,216 |
|
|
|
6,851 |
|
|
|
5,866 |
|
|
|
27,110 |
|
Accretion of below- and amortization of above-market lease liabilities and assets, net |
|
|
(55 |
) |
|
|
(57 |
) |
|
|
(219 |
) |
|
|
(145 |
) |
|
|
(476 |
) |
Straight-line rent (revenue as a lessor) |
|
|
(30 |
) |
|
|
153 |
|
|
|
102 |
|
|
|
644 |
|
|
|
869 |
|
Straight-line ground rent (expense as lessee) |
|
|
27 |
|
|
|
27 |
|
|
|
27 |
|
|
|
28 |
|
|
|
109 |
|
Cash NOI |
|
$ |
6,509 |
|
|
$ |
6,339 |
|
|
$ |
6,761 |
|
|
$ |
6,393 |
|
|
$ |
27,612 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash Paid for Interest: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense |
|
$ |
4,697 |
|
|
$ |
5,201 |
|
|
$ |
5,279 |
|
|
$ |
4,311 |
|
|
$ |
19,488 |
|
Amortization of deferred financing costs |
|
|
(386 |
) |
|
|
(377 |
) |
|
|
(373 |
) |
|
|
(25 |
) |
|
|
(1,161 |
) |
Total cash paid for interest |
|
$ |
4,311 |
|
|
$ |
4,824 |
|
|
$ |
4,906 |
|
|
$ |
4,286 |
|
|
$ |
18,327 |
|
American Strategic Investment Co. Quarterly Reconciliation of Non-GAAP Measures (Unaudited) (In thousands) |
||||
|
|
Three Months Ended |
||
|
|
December 31, 2023 |
||
Net loss attributable to common stockholders |
|
$ |
(73,878 |
) |
Depreciation and amortization |
|
|
6,332 |
|
Interest expense |
|
|
4,749 |
|
EBITDA |
|
|
(62,797 |
) |
Equity-based compensation |
|
|
151 |
|
Other income |
|
|
(9 |
) |
Management fees paid in common stock to the Advisor in lieu of cash |
|
|
||
Adjusted EBITDA |
|
|
3,397 |
|
Asset and property management fees to related parties |
|
|
1,926 |
|
General and administrative |
|
|
1,824 |
|
NOI |
|
|
7,147 |
|
Accretion of below- and amortization of above-market lease liabilities and assets, net |
|
|
(25 |
) |
Straight-line rent (revenue as a lessor) |
|
|
(848 |
) |
Straight-line ground rent (expense as lessee) |
|
|
28 |
|
Cash NOI |
|
$ |
6,302 |
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250319797036/en/
Investors and Media:
Email: investorrelations@americanstrategicinvestment.com
Phone: (866) 902-0063
Source: American Strategic Investment Co.