Earnings call transcript Q1 2023

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Operator

Good morning, and welcome to the American Strategic Investment Co.'s First Quarter 2023 Earnings Call. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

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

Curtis Parker

you. Thank and earnings joining call. everyone first for you XXXX quarter thank morning us for our Good This Investor our Relations is section event being of website. webcast in the

discuss Michael Joining quarter's and Chris Financial Co.'s call on Chief me Officer; to the today Chief Executive results American Weil, Officer. are Masterson, Strategic Investment the the

or Should materialize, information of expressed these more contains are by actual The from or may implied statements, following materially subject to statements. or uncertainties forward-looking one which forward-looking risks results differ and uncertainties. the risks those

risk for We XXXX, SEC differences. these refer and all filings, SEC discussion including of factors XXth, year the a you all and to the that our Form ended for could XX-K the March detailed filings XXXX, cause XXst, December subsequent filed on more filed of

provided during call. this conference this date only call the of made forward-looking Any statements as of are

required or to stated forward-looking statements, SEC or As our in as obligation law. the company intent revise these any by disclaims update filings, except

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

measure to most measures these which of reconciliation A in directly is comparable our posted our the website GAAP on available is release, earnings at www.americanstrategicinvestment.com.

we about to Please term for throughout consider use we what information be call. earnings to also investment-grade detailed our a will refer more today's implied tenants, release

ahead, I Michael Chief now Weil, Executive Officer. will the Mike. Please go call turn to over

Michael Weil

joining thank morning, today. Good for and Curtis. Thanks us all you

rights changing completing the during shareholders. first corporate leasing while continue We on existing to structure the and to focus our offering activity quarter,

may that of previously, businesses is diversifying beyond the boroughs assets opportunities owning discussed streams, real up of and New we scope expanding extend the York we in five the and company revenue our operate, just estate and opening the own As City.

beyond what drive single opportunity can assets we'll estate real we traditional class. the portfolio can benefit acquire and create New expanding an a of deliver. time, growth our own, add diversifying believe type exciting to asset By York exposure and will to We and nature our reduce over

now tax trust also C no estate a from are a longer corporation investment perspective. real a We and

our prior have we to on reporting periods. we'll focus transitioning metrics begun during change clarity share, reporting as earnings to when Accordingly, continue per well to comparing provide FFO this but

Expanding the pursuing exciting investment to down step Investment American and opportunities additional an strategy is for Strategic road. Co., looking we're income-generating our forward

will almost $X.X straight-line during first we feet, square portfolio, that an existing XX,XXX leases, our the add million quarter, additional totaling In five of completed new rent.

Occupancy the in to the from in of at XX% these the fourth increased quarter, portfolio leases with XX.X% place. end

demand believe Our where we assets remaining estate, beyond year New range is XXXX. the lease of XX% term over portfolio weighted for reflects the seven average real long which the high our and our City York of quality years, extend leases

our portfolio. our lease top XX% are These long-term X.X stability we a term roster. Of quality grade, our of years, investment in have tenants tenant be the what showing consider to XX remaining of providing nearly tenants,

by X.X%, a is that additional occupancy have occupancy bringing built We to leasing XX.X%. increase to pipeline expected up our an

available, which This marketing the lease of XXX and Times totals actively at we Square also will particularly the on XXX,XXX the XXXX at William straight-line We're X once leasing will rent that XXXX. feet. Street Fifth start $XXX,XXX Avenue at X, also square term a XX-XX increase and June Americas, Avenue, space opportunity by have begin

of $XXX City square of in the New belief, New the foot million, million strength real office retail York we necessity fundamental on York space, portfolio City and long-term in remain our highly Based our confident of X.X estate.

in and of office Manhattan. City in primarily New and located consists entirely York retail condominiums portfolio eight Our

number with tenants XX% of lowest a in We've our industries including CBS portfolio, operates our government Cornell agencies of built Medicine, Weill portfolio, financial base a pure-play large the and Across tenant New rates investment-grade unemployment featuring City firms. agencies. and government York including

and of first management quarter of cash lowering are teams in property to our annual and costs XX% an the G&A operating compared growth expenses. resulted NOI The in controlling to through asset subject G&A and expenses activities and XXXX cap.

cost XXXX first this as part way the compared company. of fourth expenses limiting the to reached result, increased a the As G&A cap quarter, and was quarter to annual quarter the through the of

fixed of assets strong strategy. for real Combined a strengthen our foundation an our expanded Investment while portfolio and believe estate as existing debt We're existing period prudent investments. that with exploring our entering additional income-generating net into Strategic leverage, we Co assets continue for these management rate provides exciting our and assets we of American to

the few scope to of step the last the taken advantage years, future portfolio of expanding the of in invest company. Over we and for long-term we've opportunities our own is next the forward the assets

go turn Chris the first to With to Chris? over over results. that, it Masterson I'll quarter

Chris Masterson

Mike. Thanks

XXXX GAAP attributable a first the million loss stockholders First compared The loss of the net revenue $XX.X compared first common million, of quarter net to company's to XXXX. quarter $XX.X in $XX.X XXXX. to quarter of quarter million million was $XX.X in first was

operating $X from net the $X XXXX. or million in adjusted $X.X increased compared the For Cash of million first $X.X of to in million quarter was million first income XXXX, quarter to by XXXX. $X.X XX.X% EBITDA million

a stockholders million was $X.XX $X.X FFO Our share. negative was attributable per FFO negative negative or to million. $X.X Core common

conservative based non-GAAP a reconciliation in a net years balance to GAAP a we measures At weighted found have our and weighted We and this XXXX. income almost have always, of of earnings can debt As our maturities X.X% be release net on maturity. minimal had don't year four rate supplemental. end, sheet until quarterly debt of any relatively and maturity interest average average quarter only XX.X%, of leverage

lows. discussed, locked historic debt at fixed in is our have interest after were we previously they As while all broadly rate rates, of we

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

Michael Weil

Thanks, Chris.

further focused our company the commence. that to build $XXX,XXX as Company, future. grow we've a for rent additional by Strategic X.X%, would as transformation continuing We have on that the occupancy quarter annualized leases the during new completed leases once of Now add leasing to signed straight-line we're Investment American well pipeline and

forward ahead joining portfolio you the of with today. a looking us solid foundation. opportunities are Thank We to as us for our

operator, open the And please lines for questions.

Operator

Instructions] And Bryan B. from [Operator of we our first the question Riley. line have Maher from

open. line is Your

Bryan Maher

Good you. and Thank morning, Michael Chris

Michael Weil

Hi, Bryan.

Bryan Maher

repeating in But you market that you know read outside stepping market, questions. boots that if couple you? City. it? And stuff mean, in see I look, the in you on we have interests A of how We're about would the that York. New New you're that Do I York opportunities ground any all so, anything the finance market. guys

Michael Weil

pretty Surprisingly, Bryan, has the been market quiet.

to a portfolio, been is as I think we've been to strong of landlords like that hand. And solidifying renewals, our think really new comments, we're focus about able that care leasing at some assets were we in on activity previous ourselves and many taken the able to and the we has leases, this period in -- five talk we've executed portfolio.

an NOI I inability think different and will growing that is the maturities, property as potential have The comes that a debt do occur there's the opportunity. play don't revenue, foundation, where is owners. in shoring situation, period this our portfolio refinance stronger making come we up and that part other different so the to as better, top things we're for a here to to

open assets. opportunity, remains given continue lending the The stable look to market for at will And we targets.

continue occupancy this focuses continue and buildings are said, to the I've important $XXX in of stable that to kind company As asset have million business. an New role million to City really in $XX range. York Those serve

would we only were going about today, part how The it, XX% how as finance equation on assets. as it portfolio, would be our levered. in is of the far As aggressive that -- sits we after

some a So us flexibility the do some existing would assets there things asset. that are opportunities target pursuing to some in with allow

different we participants see ways So have absorb, fit there can certainly market, And the in will be evaluating what into -- in the we'll process. of the – different things company they come as if them. the we

Bryan Maher

staying for Okay. And of then line kind of a minute. that topic on

portfolio pretty the occupancy, couple rate assets a and debt. low XXX% high pretty got occupancy running some fixed rate certain in You've of cases, in

consider that to properties, those do XX%, capital XX% up, selling that could recycle running you XX%, lease any those assumable of of maybe occupied something that's to to up could they something you maybe that re-lease properties debt any If occupancy then into attractive you are were really and have XXX% be a value, create buyer? could

Michael Weil

are debt distressed I right don't Certainly, that at. is than now consider those know we that very do of debt. is yes, is for pool looked assumable that that have I what previous some that sellers. for the It attractive. something buyer deep other more looking is vintage them people And have

opportunity as not the just And do would be had you don't not. that and certainly just we're the don't have benefit distressed And seller I rate or think is you, debt, would we And seller. agree as right be the we because brokerage out, scenario we've conversations want deep an not of seller, institutional we a occupancy -- viewed we with because now. very that, near know distressed the XXX%, at I that the market, pool, to it's as fixed laid a with we I several be

Bryan Maher

that an these in could may view stuff -- residential something at a his they're two Times you And XX-somethings? is XX-somethings converting a through nine where or My to office and little but scenario anybody to to faced kind last want spear, maybe son try Times whatever. your market. or insane is empty bedroom, York with who anything and that into to all office friends, Square know that And virtually bedrooms, to find you property, of market? increases New convert to else, Class do do but residential. nothing We that a helpful me. but tap else space, a if little it you impossible ideal City, about is find something older rent afford, this I maybe outside an live in City, How opportunity Okay. hear be that And than your one better New you these about think renewals in there and difficult, and bunch Square, for might not rent. of lot of hurdles York Is can it's B also be the is for to just something -- that

Michael Weil

I I incredibly low know don't I income that and if that undertaking. specific example, on of converting challenges justified call your from been the won't address Well, is I And that the reasonable out -- there expensive. I the to undertaking. that is type we've of you office office return tell of It's housing. will residential. take but the think you won't would And traditional it some -- out housing, but conversion on address I XX-something, the all that watching jury aspect a

It your is the engineering, the to empty have building. -- the just construction, time, you

You get your work. have to approvals for

three the years significant before architecture, very start you You're then the two And conversion. have et can to construction cetera. you costs,

don't I know. So

a we're is about already I a To me, Organizations about back XX% shows. three to Rene if coming office. two data at XX% And as what tracked office. talking year like say just reported, that's better That's summer. to think New every the we're it's to It's to day. City window, outcome we're to back York

to that week. after tenor don't a you're to regarding going it see we office. know school, XX% their more and much to the I sit I back needs will work mandated Labor back definitely the that don't believe I something are than week go believe that is belief Day, today. something kids of be. different their a office, it I spending office majority But in than My five know when people of will employers back to time be days over be it as from XX% that do to

their again need So happens, think space activity, the market office I and to are renewals will when realize people that going that benefit. they

downsizing. You could see some

because trophy positive Now I that's thousands think in assets. of a us feet are tenants of our for square not hundreds

basis. foot somebody may you get I or to user saying, us long-term in X,XXX tenant that's know material They're feet. benefit Xx a way. not of and was great But new with on a our what, in be square XX,XXX feet square at that the a XX,XXX are we any going a So could tenants XX,XXX full lease for square floor downsize

residential. So we I rising in is sit at more office occupancy anticipated an think to conversion environment future a occupancy today XX% predictable where than that from

Bryan Maher

Great. That's helpful. Thanks, Michael.

Michael Weil

All right. Bryan. Thank you,

Operator

ends now our period. for Michael the this turn question-and-answer some remarks. over call back And our I Will, closing to will CEO,

Michael Weil

us as that think business. But decisions an the see I vision us questions All York you of the as to the real part our important part really and everybody. drive Well, transition or to Brian, what market, last right. of estate make value also I let you, be question because thank recall, let it's me go-forward and investment near thank company. still strategic term one you specifically, would the about New for for the American And your the evaluate shareholder that gives will all opportunities It the long-term. in talk

look you talking you and thank we forward soon. very much, to So again to

Operator

This today's for concludes call. conference your Thank you participation.

may now disconnect. You

New York City REIT (NYC) 12 May 232023 Q1 Earnings call transcript