PDL Community Bancorp Announces Completion of Sale and Leaseback of Real Property

Rhea-AI Summary

Ponce Bank, a subsidiary of PDL Community Bancorp (PDLB), finalized the sale of a property in Jackson Heights, Queens, for $11.8 million. The net book value was $7.8 million as of November 30, 2021. Following the sale, the Bank entered a 17-year lease agreement to lease back the property at an initial annual rent of $530,000, with a 2.0% annual increase. CEO Carlos P. Naudon expressed enthusiasm about the transaction, emphasizing ongoing investments in community safety and stakeholder value enhancement for 2021.

Positive

• Completed sale of property for $11.8 million, exceeding net book value of $7.8 million.
• 17-year leaseback agreement secured at an initial rental income of approximately $530,000.

Negative

• None.

NEW YORK, Dec. 21, 2021 (GLOBE NEWSWIRE) -- On December 16, 2021, Ponce Bank (the “Bank”), a subsidiary of PDL Community Bancorp (the “Company”) (Nasdaq: PDLB), completed the sale of real property that the Bank owned, located at 37-60 82^nd Street, Jackson Heights, Queens, New York (the “Real Property”). The sale price of the Real Property was $11.8 million. The net book value of the Real Property as of November 30, 2021 was $7.8 million.

Concurrent with the sale of the Real Property, the Bank and the purchaser entered into a seventeen-year lease agreement whereby the Bank will lease back the Real Property at an initial base annual rent of approximately $530,000, subject to annual rent increases of 2.0%.

Carlos P. Naudon, the Company’s President and CEO, noted "We are excited about the sale and leaseback of the Jackson Heights real property and look forward to continuing to provide the excellent products and customer service that Ponce Bank has always been known for in the immediate neighborhood. More importantly, 2021 continues to be a year of investing─in the safety of our people and the future of our organization and our communities─with the clear goal of enhancing stakeholder value.”

About PDL Community Bancorp

PDL Community Bancorp is the financial holding company for Ponce Bank and Mortgage World Bankers, Inc. Ponce Bank is a federally chartered savings association. Ponce Bank is designated a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent from alternative funding sources and investing those deposits, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties and construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. Mortgage World Bankers, Inc. is a mortgage lender operating in five states. As a Federal Housing Administration (“FHA”)-approved Title II lender, Mortgage World Bankers, Inc. originates and sells to investors single family mortgage loans guaranteed by the FHA, as well as conventional mortgages.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect borrowers’ ability to service and repay the Company’s loans; the anticipated impact of the COVID-19 novel coronavirus pandemic and the Company’s attempts at mitigation; changes in the value of securities in the Company’s investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the Company’s financial statements will become impaired; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in the Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, PDL Community Bancorp’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

Contact:
Frank Perez
frank.perez@poncebank.net
718-931-9000

FAQ

What was the sale price of the property sold by Ponce Bank on December 16, 2021?

The sale price of the property was $11.8 million.

What is the net book value of the property sold by Ponce Bank as of November 30, 2021?

The net book value of the property was $7.8 million.

What is the initial annual rent for the leaseback agreement following the property sale by Ponce Bank?

The initial annual rent for the leaseback agreement is approximately $530,000.

How long is the lease agreement for the property sold by Ponce Bank?

The lease agreement is for 17 years.

What annual rent increase is stipulated in the leaseback agreement for the Jackson Heights property?

The leaseback agreement includes an annual rent increase of 2.0%.