Earnings call transcript Q4 2022

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Operator

Good morning and welcome to the American Strategic Investment Co's Fourth Quarter and Year-End 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I'd now like to turn the conference over to Curtis Parker, Senior Vice President. ahead. go Please

Curtis Parker

Relations Good us Operator. Earnings and you the thank This americanstrategicinvestment.com website Thank ASIC's morning, Fourth joining Investor in webcast for is XXXX of Quarter for our call at you, being everyone, section and Call. Year-End

Chief on Officer. our Officer; me Michael today the are Masterson, call the Joining and discuss Chris to results Weil, Executive Financial Chief

actual for SEC Should risks statements our more the of statements. factors filed to information the are subject by March detailed year materialize uncertainties. contains or that and these of Form forward-looking implied December which risk may from these differences. one could filings, following you We materially filings XX-K on filed more The all risks for a including the or and or of differ XXth, those results discussion XXXX, uncertainties XXst, XXXX cause to refer expressed all forward-looking ended SEC the subsequent

the XXst, these as in of statements statements filings, of year call any except SEC made provided so only The forward-looking obligation disclaims Form call, to update or as are to this ended required intent during Any ASIC be XX-K XXXX filed the revise to call. do December our for this today's subsequent or stated will as date forward-looking by law.

operating for we call, Also, GAAP. our and non-GAAP measures be These prepared can believe in which as in not will a useful isolation during accordance the be measures, financial or substitute we financial performance. today's financial considered should evaluating company's discuss with results in

tenants, is refer our we term call. more information we in use is today's comparable directly website. earnings release grade most be Please our will a what also the measure to to measures these our of about to earnings investment which release, on reconciliation implied throughout available for consider detailed posted A GAAP

over Co. turn go now the call Strategic Investment Chief to Please of ahead, Officer Weil, American Mike. will Michael I Executive

Michael Weil

from City thank first for American our York New you Strategic and Good Curtis. rebranding joining Investment for Company's following REIT. call and earnings morning Thanks, us restructuring

recorded and fourth quarter discuss we'll full the XXXX. improved results Today, year for the our

want successful Before changes we the the offering to to month. completed discuss that, and our we results last get business long-term announced rights of strategy to we've I the

As of we announced at of estate the in the boroughs City. opportunities the and of Diversifying we New is our York the owning and beyond scope opening that revenue may and December, company five businesses streams end operate. expanding assets extend own up the real

delayed By asset single our our pre-pandemic rebound diversifying still levels, nature we'll to we anticipate believe class. of and own, we assets We over portfolio time, acquire of help offset the exposure to and reduce office to which space occurring. will expanding the type a

no trust. with Strategic C to Investment now and investment will XX, January, change. Beginning end we're Corporation XXXX, a year we estate Company a reflect the renamed In real the December taxable that longer company American the

companies. examples anchored own real Some hotels to seek we may and that potential businesses management parking lot of estate include

co-working Additionally, we office to business. space may seek our expand

does existing businesses, that or these beneficial through were and qualifying income is this Many to may modification, but to also that the the carryforwards refers not generate on income not operating invest can shareholders only through our REIT the acquire under we income this in of net limit able tax that income. to believe industry not types of the REIT we income the bad be loss structure. bad would may new use assets what we generate or We of no businesses REIT as

shares shares the non-transferable Existing oversubscription in ownership who these through exercise to Together have million purchase with right. and purchase rights shareholders were commensurate with and month, offering, the those $X strategy, additional a evolution rights completed the last their fully offering. an successful granted we option rights to

We believe long-term our value of see participants that the stock.

we new seek Looking a future, be to raise believe and capital base broader business able who from diversification. that companies investors may with to we of the greater asset

Strategic for new was opportunities Investment as Company portfolio offering important our and American revenue. pursuing with we this diversifying Completing forward to move an step generate

Turning to real occupancy XX.X% the City in average million, square remaining portfolio which of own today years. year-end, in New assets estate term our we portfolio, of X.X York million weighted lease existing a and foot consists of At X.X $XXX.X primarily Manhattan. eight had our

of mix tenants. Our investment large portfolio features a grade

of are on line grade investment or tenants a grade remaining investment rent XX% straight X.X term implied XX top based Our years. average lease with weighted

maturity lease XXXX. balanced expiring and the with leases quarter long-term in fourth XXX% nearly the year. complete strong remains after of the across for We collected our have schedule portfolio with year entire collection XX% a collection Rent rent

Despite closely expansions. renewal focused leases negotiate worked has to our assets. on maximizing and and value sign existing and our our existing expanded tenant the with asset we of remain point, to that the brokerage To community new management team strategy, tenants

and new we totalling nine square completed have feet of we over feet that XXXX, a and and million $X.X XX,XXX straight leases annualized leases of approximately rent. pipeline square forward In total XX,XXX expansions line

square Included Super at Street marketing XXX XX,XXX focused is a with pipeline foot in agency, William lease Bowl. growth the a

XX.X%. XXXX, from is to As increase portfolio and other in XX% pipeline this expected leases occupancy the during commenced to

continuous Americas risk signed Security As that the a a that X,XXX feet excellent square to replacement of earlier building. a XXXX of Scorecard, week, and at with also an this lease customer addition Avenue we announced monitoring offers service we for security

quarter. compared and lower and core our growth resulted to activities EBITDA operating property in significant last The management two in and expenses. performance costs key G&A asset of controlled our and teams adjusted We of FFO metrics,

the third by in $X.XX after a per reverse million. quarter negative from prior Core and in the XX% $X.X improved On quarter, the to also growth for the split increase. quarter adjusting was same over Expense stock to from completed FFO the million. January, a adjusted fourth for that share million basis, XX% core $X.X the $X.X during by over over efficiency to EBITDA million contributed increased $X.X FFO period

fixed provides for foundation Combined debt prudent with our assets management believe expanded we and strategy. that strong net existing leverage, our a rate of and our our them

the last opportunities leases future of tenants and long-term of Over the of ones operations Americas. credit invest our signing replacing co-working the to years, with our we've stronger long-term like worthy in at challenged Avenue internalizing taken with portfolio tenants, advantage by XXXX space several

going Expanding opportunities Chris? and income our the in Chris investment strategy another discuss move financial exploring results to to forward. strategy as greater in this looking additional is step detail. we're is generating strong forward we

Christopher Masterson

Mike. XXst, to in XXXX. $XX.X Revenue million compared million December the ended year Thanks, XXXX was $XX for

$XX.X quarter of XXXX. the $XX.X fourth fourth to million in million the for Revenue quarter XXXX of was compared

and last you fourth amortization for unamortized benefited $X recall revenue year XXXX from from below year, As from income over in of balance the market remaining termination as full liabilities, fees may quarter of revenue. which lease recorded of accelerated million was and

company's year would million net stockholders year-over-year. approximately loss by to of a year million The full full revenue attributable items, increased loss in to XXXX. common $XX.X net X% have these Excluding GAAP was $XX.X compared

full full Net a quarter $XX.X $X XXXX quarter. million and for million. of million for Cash Adjusted million of loss XXXX. was a was and XX% $XX.X XX% compared quarter fourth $XX.X the for the fourth in the was fourth NOI increase the EBITDA year and quarter, the $X.X XXXX the compared year for to million increase was was to

attributable negative quarter. $X.X Core per of common For to or increase stockholders in was was the quarter FFO quarter from million fourth per in share XXXX, FFO negative million. third negative or the share, our negative $X.XX $X.X $X.X $X.XX million an fourth the negative

XX-K. income NYC net balance GAAP earnings of reconciliation can debt found prudent scheduled to a with this a always, XX.X%. maintains year and be conservative our in As and non-GAAP at supplemental sheet leverage Form no measures net maturities release,

million a of net X.X% of weighted average quarter debt a of years. fourth the effective average and rate at remaining ended X.X debt $XXX.X We with weighted term interest

rate. our of debt is All fixed

locked thoughtfully As historic broadly we have they while were rates lows. at previously in interest discussed, we

that call turn back With to for closing Mike some I'll remarks. the

Michael Weil

Thank of growth opportunities to for investment beginning excited company, explore we're expanded strategy. pivotal Great. already Chris. you, been and XXXX the new has our under for The

Co are Investment with our We've American rights the pleased completed results and offering. the of to transformation recent Strategic

current rent building additional would million XX.X% looking Our ahead pipeline this We're year year. expected from is $X.X and our XX% foundation solid line commenced approximately onto the of increase the and to leasing leases occupancy to to X.X% as portfolio. forward straight to add of

operator today. for open line questions. And joining please us you the Thank for

Operator

you. is Thank question from Riley Instructions] [Operator First Bryan with Securities. Maher B.

open. is line Your

Bryan Maher

Great. Good and morning, Michael Chris.

Michael Weil

Hi, Bryan.

Bryan Maher

A few me this questions morning. for

thinking of you to to here. On are the type type vehicles? Is that? of What company us too on early a the size? little about How capital give of you color Can talk that? raising kind about it grow that? from What

Michael Weil

Yeah.

go kind to the going rather was capital a was by opportunity investor just bit. first the opportunities a driven offering wanted the the of be we a It rights structure. perspective, market the into shore is So The to of small base but new from up step. to

a a at market allows to it of estate. raise opportunity equity real and target the the you I right Corp as as operations will understand, Being on we us bring focus, identify side C not come more us at just right versus the or the those to And and of businesses, to the operating REIT an think opportunities, time price.

Bryan Maher

garages, York you're more a maybe trading be? I that a those you on City hotels Can color times suppose to a) some mean like you that it's or to what the going us where where seeing parking know some just at if of talked garages. you've flavor little now, and about you're what's other replacement give you And be give New parking those and couple costs markets discount assets in gateway might markets. it's as of us opportunities at? to and I Can looking

Michael Weil

Yeah.

than operator control garages look expectation is wider currently kind think own by at we terrific for in So of the the set run a long-term clear company just is for We market. management on of the they're this where a York a parking set the the contract. don't that and I period City parking New that transition opportunity But hotels we way much garages. to

have be for the better does think. of at estate both a to But being where going forward the the discount, and sides look inclusively you operation, market business just able able and operate believe. present to fit business a And security real we to we the it's something us,

don't don't would combination the again on know that But experience most as with something we're now where have. hospitality experience those this where a Hotels experience I platform. and is great estate are platforms market we have that identify operating that ready our see to -- of right be. where we opportunities real

Bryan Maher

Okay.

conversion Moving expected given And on property? that any Square. its a little we of anything thoughts like the there to doing on there strategic at with Occupancy really than X Is is that property? on Times any particular lighter portfolio. was of going type location,

Michael Weil

question So think because on candidate first. working a I leases X pipeline with not. second the in property Chow. Chris building, We've And longer on Square, property, don't conversion It's great a we we've very got some active got it that activity term that in Times to Cushman Most likely of is for number leasing. a have broker residential. that

market see XXs a path but our that we the identified is increase With this just results, quarterly deals seeing slow. see XX% revenue, are recurring steady approaching into active in the revenue. pipeline, you coming We We're through and execution, in back the the have occupancy.

and one-time pipeline $X.X us executed will And special numbers. our million XX% of those event of type any additional rent not to revenue rent in straight an gets when line generate commenced. that There's

to continue and in in X see Americas. XXXX Times So will occupancy you of Square the Avenue increase the primarily

XXX to very well. of there couple button like active in William We'd Street. a as got we're We've up that deals

activity. LaSalle and direct by the over working been encouraged had has the XXXX of we're the at Americas, taken So Avenues leasing on quarter. We're Lang that fourth Chris also the in that Jones market something activity I excited

footprint a City they're We bigger landlord New the York that just and their amongst a in business think larger is best. team,

XXXX have So over team of we Avenues were happy to the take the at America.

Bryan Maher

EPS and planning changing you Are then stop in in Okay. planning XXXX on FFO And move Are quick you for the me. the adjusted for planning change ticker to you EPS? ones reporting Chris? And given maybe name? more Michael, and are strategy to for and two symbol just now

Michael Weil

Chris, first? do you want to go

Christopher Masterson

Sure.

FFO, is. appropriate the made haven't to yet. decisions still most So we evaluating what the regards any FFO, We're really option in core

get we'll once you that. we a on back that's So decision make something to

Michael Weil

right estate can if real lot of have to a just to Yeah. driven now, driven, I that, going a we And portfolio. are it's be do add we as primarily

touch not I as do, don't second we be just So think sorry. will conversion as yet. question, don't urgent, the we that but transition say want Bryan? -- be that. something I we'll is was start And in I'm it to the What to

Bryan Maher

your Ticker have NYC to doesn't seem. as Continuing

Michael Weil

Yes.

We make are be it the the find existing staying able the NYC. they being, the easier wanted ticker. with to NYC used to for to to For and time were we continue ticker shareholders to us

Bryan Maher

just Okay. more Maybe real one if I quick. add could

have some suspect You for know, does opportunity lenders. that through Where to buildings opportunity thinking could and or create six, when chain properties, you office year? road that, kind of the that press the we're Does keys funds managers are to happen? reading a and you of some about and the opportunities? Do you that nine lot that's of in of a it kind command you know, the servicer feed months down three, handing big an creates back that,

Michael Weil

the few quarters a that's I Yeah, down think road.

any rate standpoint issues. from debt regarding our an opportunities. a buyer's portfolio. from have or know, you don't think fixed in it do will we types those as long of We acquisition standpoint, I have create concerns very Fortunately, some But

necessary, have We if all We're and to banks the number extending going things know see this. to do how back. if at a from quite or of to now. plate the on banks to choice at that their bit servicers any the right their the properties it They taking have can special react

for very on. resale properties the well market look they foreclosed to they have So may that

I So for very lead relationships bank we're will to We're think our opportunities like watching it ours. closely. talking and companies to do

Bryan Maher

Yeah. Thank you.

Michael Weil

Bryan. you, Thank Yeah.

Operator

any to closing this no have turn for remarks. Mike over time. We Weil at questions I'll it further

Michael Weil

for to comments thank and really Well, you, end was as for to opening grow thanks, as exciting everybody, also as today. opportunity an excited joining the revenue. We're to XXXX. year said quarter It expenses. by a us in very good And us right. well All control a my I in always

for adjusted great of shareholders. a continue company matter as the items EBITDA really growth value line our look both the drive we the to and to Obviously, deal grow and

updated. everybody So to we'll opportunities joining the you to continue thank in And for forward keep market. the We look again, us.

Operator

conference Thank participating. call. Ladies you and today's this concludes for gentlemen

may You now disconnect.

New York City REIT (NYC) 16 Mar 232022 Q4 Earnings call transcript