1. ASIC's Q1 2025 revenue dropped to $12.3M, down from $15.5M in Q1 2024. 2. Net loss grew to $8.6M, compared to $7.6M in the previous year. 3. Portfolio occupancy rose to 82%, indicating leasing success amidst challenges. 4. CEO emphasizes focus on renewing leases and diversifying asset portfolio. 5. Fixed-rate debt at 4.4% holds potential stability, given current interest rates.
Revenue decline and increased net loss signal operational difficulties. Historically, similar financial downturns have led to reduced investor confidence.
Significant revenue declines may affect overall NYC commercial real estate sector sentiment. The ongoing focus on tenant leasing could stabilize investments over time.
Immediate negative changes in revenue and net loss affecting sentiment. Future strategic changes may alleviate recent performance issues.
NEW YORK--(BUSINESS WIRE)--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 first quarter ended March 31, 2025.
First Quarter 2025 Highlights
CEO Comments
Nicholas Schorsch, Jr., Chief Executive Officer of ASIC commented, “We remain focused on leasing up available space throughout our portfolio and to working with our existing tenants to sign renewal leases, as demonstrated by the 120 basis point occupancy increase we recorded in the first quarter when compared to the fourth quarter of 2024. Our focus remains on continuing our efforts to opportunistically divest certain of our Manhattan assets consistent with our initiative to diversify our portfolio by acquiring higher-yielding assets.”
Financial Results
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|
Three Months Ended March 31, |
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| (In thousands, except per share data) |
|
|
2025 |
|
|
|
2024 |
|
||
| Revenue from tenants |
|
$ |
12,308 |
|
|
$ |
15,481 |
|
||
|
|
|
|
|
||||||
| Net loss attributable to common stockholders |
|
$ |
(8,592 |
) |
|
$ |
(7,608 |
) |
||
| Net loss per common share (1) |
|
$ |
(3.39 |
) |
|
$ |
(3.28 |
) |
||
|
|
|
|
|||||||
| EBITDA |
|
$ |
(918 |
) |
|
$ |
2,350 |
|
||
| Adjusted EBITDA |
|
$ |
(832 |
) |
|
$ |
2,928 |
|
||
Real Estate Portfolio
The Company’s portfolio consisted of six properties comprised of 1.0 million rentable square feet as of March 31, 2025. Portfolio metrics include:
Capital Structure and Liquidity Resources
As of March 31, 2025, the Company had $7.1 million of cash and cash equivalents(5). The Company’s net debt(6) to gross asset value(7) was 57.9%, with net debt of $342.9 million.
All of the Company’s debt was fixed-rate with the exception of one variable rate loan as of March 31, 2025. The Company’s total combined debt had a weighted-average interest rate of 4.4%(8).
| Footnotes/Definitions | ||
(1) |
The weighted-average remaining lease term (years) is weighted by annualized straight-line rent as of March 31, 2025. |
|
(2) |
Top 10 tenants based on annualized straight-line rent as of March 31, 2025. |
|
(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 March 31, 2025. Based on annualized straight-line rent, top 10 tenants are 55% actual investment grade rated and 22% implied investment grade rated. |
|
(4) |
Annualized straight-line rent is calculated using the most recent available lease terms as of March 31, 2025. |
|
(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 $350.0 million less cash and cash equivalents of $7.1 million as of March 31, 2025. 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 $499.4 million plus accumulated depreciation and amortization of $92.5 million as of March 31, 2025. |
|
(8) |
Weighted based on the outstanding principal balance of the debt. |
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Webcast and Conference Call
ASIC will host a webcast and call on May 9, 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): 1-877-269-7751
International Dial-In: 1-201-389-0908
Conference Replay*
Domestic Dial-In (Toll Free): 1-844-512-2921
International Dial-In: 1-412-317-6671
Conference Number: 13752879
*Available from May 9, 2025 through June 20, 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 potential adverse effects of the geopolitical instability due to the ongoing military conflicts 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) inflationary conditions and higher interest rate environment, (e) economic uncertainties about the ultimate impact of tariffs imposed by, or imposed on, the United States and its trading relationships, (f) that any potential future acquisition or disposition is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all, and (g) that we 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 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, 2024, filed on March 19, 2025 with the United States Securities and Exchange Commission (“SEC”) and all other filings with the SEC 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 report. 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.