Trinity Place Holdings Announces Update on Review of Strategic Alternatives

Rhea-AI Summary

Trinity Place Holdings Inc. (NYSE American: TPHS) announced an update on its strategic review process to maximize shareholder value. The company has engaged Houlihan Lokey and Ackman Ziff as financial advisors to evaluate various strategic alternatives, which may include financing options, mergers, or sales. However, there is no guarantee that this review will yield a conclusive outcome, and no timetable has been set for its completion. The company’s largest asset is a mixed-use project at 77 Greenwich Street in New York City, nearing completion. As of September 30, 2022, TPHS reported net operating loss carryforwards of approximately $268 million.

Positive

• Engagement of Houlihan Lokey and Ackman Ziff as financial advisors to enhance strategic alternatives.
• Possibility of maximizing shareholder value through potential strategic transactions.
• Large asset in New York City nearing completion, expected to add value.

Negative

• No guarantee that strategic review will result in actionable alternatives.
• Potential for disruption to business operations and stock price fluctuations during the review process.
• Exploration of strategic alternatives may incur significant costs and divert management's focus.

Engages Houlihan Lokey and Ackman Ziff as Advisors in Strategic Review Process

NEW YORK--(BUSINESS WIRE)-- Trinity Place Holdings Inc. (NYSE American: TPHS) (the “Company”) announced that it is providing an update on its ongoing review of potential strategic alternatives. As previously disclosed, the Company has been engaged in a process to review and evaluate potential strategic alternatives to maximize shareholder value. To that end the Company has engaged from time to time with various parties who have expressed interest in the Company’s assets and attributes, and has considered a range of potential strategic transactions, including financing alternatives, a potential financial restructuring or a reorganization, merger, reverse merger, sale or other strategic transaction, with the goal of maximizing the value of the assets and attributes of the Company.

The Company has retained Houlihan Lokey and Ackman Ziff as its financial advisors to assist with its evaluation of potential strategic alternatives.

There can be no assurance that the strategic review process will result in any strategic alternative, or any assurance as to its outcome or timing. The Company has not set a timetable for completion of the review process and does not intend to disclose developments related to the process unless and until the Company executes a definitive agreement with respect thereto, or it otherwise determines that further disclosure is appropriate or required.

About Trinity Place Holdings

Trinity Place Holdings Inc. is a real estate holding, investment, development and asset management company. The Company’s largest asset is a property located at 77 Greenwich Street in Lower Manhattan, which is nearing completion as a mixed-use project consisting of a 90-unit residential condominium tower, retail space and a New York City elementary school. The Company also owns a 105-unit, 12-story multi-family property located at 237 11^th Street in Brooklyn, New York as well as a property occupied by retail tenants in Paramus, New Jersey. In addition to its real estate portfolio, the Company also controls a variety of intellectual property assets, including Filene’s Basement and related trademarks, focused on the consumer sector, a legacy of its predecessor, Syms Corp. The Company also had approximately $268.0 million of federal net operating loss carryforwards as well as approximately $232.9 million of state and local net operating loss carryforwards at September 30, 2022, which can be used to reduce its future taxable income and capital gains.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and projections about future events and are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified, and, consequently, the actual performance of the Company may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include the risk that the Company may not identify one or more strategic alternatives or ultimately pursue a strategic alternative, the risk that the Company’s exploration of strategic alternatives or the public announcement thereof may be disruptive to the Company’s business operations or cause the Company’s stock price to fluctuate significantly, the risk that the Company’s exploration of strategic alternatives may be time consuming and involve the dedication of significant resources and may require the Company to incur significant costs and expenses, the risk that the Company’s exploration of strategic alternatives could divert the attention of the Company’s management and its board of directors from existing business operations, negatively impact the Company’s ability to attract, retain and motivate key employees, and expose the Company to potential litigation in connection with the process of exploring strategic alternatives or any resulting transaction, among other risks and uncertainties, as well as the factors described in more detail in the Company’s most recent Annual Report on Form 10-K, as well as to its subsequent filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date hereof, and we assume no obligation to update any forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230328005603/en/

Linda Flynn, (212) 235-2191

Linda.Flynn@tphs.com

Source: Trinity Place Holdings Inc.

FAQ

What is the strategic review process announced by Trinity Place Holdings (TPHS)?

Trinity Place Holdings is reviewing potential strategic alternatives with the aim of maximizing shareholder value, engaging financial advisors to explore options.

Who are the financial advisors engaged by TPHS for their strategic review?

Trinity Place Holdings has retained Houlihan Lokey and Ackman Ziff as financial advisors.

What is the main asset of TPHS being developed?

The main asset is a mixed-use project at 77 Greenwich Street in New York City, which includes a residential condominium tower.

What are the net operating loss carryforwards reported by TPHS?

As of September 30, 2022, TPHS reported approximately $268 million in federal net operating loss carryforwards.

Could the strategic review process impact TPHS's stock price?

Yes, the strategic review may cause fluctuations in the stock price due to uncertainties and potential disruptions.