American Strategic Investment (NYC) Q4 2024 earnings summary

Executive summary

• Completed sale of 9 Times Square for $63.5 million in Q4 2024, generating $13.5 million in net proceeds and reducing leverage.

• Relaunched marketing for 123 William Street and 196 Orchard Street to diversify beyond Manhattan real estate.

• Portfolio at year-end comprised six NYC assets totaling 1 million sq ft, with 80.8% occupancy and a weighted-average lease term of 6.3 years.

• CEO Michael Anderson announced resignation, with Nicholas Schorsch, Jr. appointed as successor.

• Top 10 tenants are 77% investment-grade or implied investment-grade, with a weighted average lease term of eight years.

Financial highlights

• 2024 revenue was $61.6 million, down from $62.7 million in 2023; Q4 revenue was $14.9 million, down from $15.4 million in Q4 2023.

• Full-year GAAP net loss attributable to common stockholders was $140.6 million, compared to $105.9 million in 2023.

• Q4 net loss was $6.7 million, a significant improvement from $73.9 million in Q4 2023.

• Adjusted EBITDA for 2024 was $11.9 million; Q4 Adjusted EBITDA was $1.3 million.

• Cash NOI for 2024 was $27.6 million, up from $27.3 million in 2023; Q4 Cash NOI was $6.4 million.

Outlook and guidance

• Actively building a pipeline of new and renewal leases to increase occupancy.

• Proceeds from asset sales intended for higher-yielding investments outside Manhattan, supporting business diversification.

• Management expects to fund operating expenses and capital requirements over the next 12 months with cash on hand, operations, and other sources.