Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the American Strategic Investment Company Second Quarter 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 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, second 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 Company'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 for subsequent more call. risk could Form contains are by actual The only from or may cause filed date on all implied statements, SEC filed following materially filings statements XXXX, these subject to differences. including XX-K statements. all or for of the uncertainties factors forward-looking one which this forward-looking risks that results Any differ our detailed the and December We during are uncertainties. year you the call of the the forward-looking this risks a conference SEC XX, those of refer filings, made in March XX, provided of XXXX, more as ended discussion to

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

implied a we detailed the available throughout results also what to call, will these at www.americanstrategicinvestment.com. useful our in Please These be today's for of which financial earnings discuss will we about believe can prepared accordance isolation or financial consider reconciliation we to in which considered to with tenants, most A measures our website for information be directly Also our non-GAAP GAAP financial term on is measures comparable measure substitute is today's in during our company's use more we posted the release, not in call. investment-grade GAAP. evaluating measures, performance. should refer be earnings a release as

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

Michael Weil

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

focus second during ongoing generate feet our as produce was over We leases square totaled second $X.X continued to that quarter results. productive on positive of the portfolio throughout quarter leasing will million new The rent. straight-line our extremely that XX,XXX activity four signed

we result, the in-place in quarter, XX.X% basis prior of XXX a just at from end increase the XX% point three a As to grew months. occupancy

weighted portfolio lease years stability average as we believe XX% year we X.X which extend remaining our over beyond Our leases of was term estate the XXXX, the own. increases real of the

what of a quality in highlight platform. tenant they we Our showing of quarter leases like are X.X be the term illustrate the second We because we leasing our consider investment executed top providing remaining of lease further years, XX our during had two to strength the that tenants I'd These tenants, grade, portfolio. stability XX%, to believe roster. our

matches Square. the lease. an years expansion by expansion XX,XXX Accordingly, tenant's the existing is of expansion, the of with doubled original a tenant The to at this we X on to There lease which over in million. occupancy expiration this term first annual The feet. Times rent $X tenant the from straight-line the are date lease $XXX,XXX six doubled building

transaction have Avenue Fifth no a a required with executed and health straight-line in the systems largest rent Second, XXXX. portfolio quarter our our at in XXXX We'll standpoint, since of highest Northeast. of increased one Brooklyn, XX-year leasing row the tenant maintain and to in a lease proactive occupancy fourth financial for commission. renewal management leasing care occupancy led this the annual two relationships the we From expertise our strong current and maintained rate quarters approach as

million of estate. our City square the $XXX million, of contributes approach portfolio to real New management Our foot strength X.X asset long-term York

pure-play government our a including agencies City Agencies. City, XX% York retail of Government Cornell Across located and office We've Weill and consists large primarily operates CVS including eight condominiums all New built resilient a in number portfolio Medical, portfolio, York financial portfolio in industries, New our firms. tenants, investment-grade of featuring of and in base Our Manhattan. tenant

$X.XX the and property asset results, success. quarterly reduction the to grew XX% core expenses, X.X% by management our and increased almost more adjusted of per the EBITDA increases NOI a compared The operating through the and in with efforts achieved G&A quarter, FFO of Compared adjusted cash in teams doubling coupled on first year. ongoing to Touching by prior growth and our share. EBITDA resulted than were leasing

swapped of XXX% X.X% effective of is to the debt weighted rate, and fixed fixed was an including sheet, On weighted X.X with average a years. our rate that attractive average balance debt rate interest maturity

in current very we and New the us pleased building York environment year maturities no through Our financing XXXX, refinancing have maturities lending that been experiencing. insulating the limited we're and have attractive City is risk other from that owners this

Our net a modest XX%. leverage was

In of investments. believe income-generating years, next taken estate for forward the long-term we of the as the portfolio our we of to real in We're and explore committed portfolio, expanding step of the existing scope advantage is to assets assets strengthening recent invest opportunities company. future that we've our additional our

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

Christopher Masterson

Thanks, Mike.

second shareholders as quarter compared quarter million of pay the and rent. to to commenced $XX.X in million million XXXX, to million in $XX.X attributable XXXX of company's incrementally a net was newly revenue was XXXX loss GAAP $XX.X XXXX. of $XX.X began net leases million $XX quarter up the compared loss to second quarter quarter from The first the Second in second

to increased to $X.X $X.X million For X.X% $X to or second quarter XXXX. compared of the million by million in from net the $X.X million Cash $X.X XXXX. in income operating second Difficulty] quarter [Technical XXX% were million

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

relatively our interest of rate we in a X.X% balance weighted reconciliation a release earnings leverage quarter GAAP a conservative and weighted found four always, based net supplemental our be and average had debt of measures non-GAAP on of to on almost can At As XX%, years and of average website. quarterly maturity. sheet income our end, net

this through year. We and have limited debt maturities none XXXX

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

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

Michael Weil

leasing quarter, Thanks, on our up driving rent. Chris. pipeline X.X% occupancy and in executed straight-line last million annualized We to $X.X XX.X% adding

of new operating we City, long-term remain our strategy. quarter asset signed Our we in resulted growth properties proactive we tenants' adjusted focused quarter-over-quarter continued the We signal leasing value commitments properties expansions through our maximizing on believe and to cash management and this New and extensions lower NOI. and expenses York EBITDA lease the in own these in the

would our In May, upon of Net positions CEO the a of CFO and Global we Chris the as resign Lease announced and REIT, that completion between proposed retail ASIC. and I necessity merger

thank great company the years, such, respectively. comfort Anderson recommended leaving to you. to Michael who this be the the of the and last that CFO, insight, results for ownership We'd of we've Marnikovic, take hands for and As may support CEO the to like discuss Joe company's I in over the Board and we positions of the and and with your time get you Chris ASIC

and adviser, I AR believe Joe and both AR Global's Board Michael, General we're that opportunities become employees of serves currently Joe XXXX us. speak CFO. as Global's has joined and XXXX I us excited and Michael AR Global. risen us have about of in I Joe Counsel. Michael long-time to our say for in the with started been the when ahead

for for the open joining us line you Thank questions. today. Operator, please

Operator

line of from Instructions] the [Operator comes first Securities. Riley Bryan question Your you. Thank B. of Maher

open. line Your is

Bryan Maher

to these guess Thank you and calls miss NYC. good going Michael, And morning. on you, with we're I

Michael Weil

Well, pleasure, and Bryan, it's always been appreciate your a we participation.

you. So thank

Bryan Maher

Okay.

Moving of couple a this on morning. I to had questions

any there can, help on have in or know your you your not take stress XXXX where X there people might is a at at thoughts on or abandon NYC, Square? and whether modest that vacancy anything shared the up you Given hurt some view, of that WeWork, platform? or WeWork going working have of space Times maybe I that's with kind But

Michael Weil

Yes.

and about, in has think WeWork all possibility about. we but eyes that a York a always are is were Regis landlords operate seen to they company of my everybody build technology a really I only been. that convince WeWork not I were kind like think that of new decades. a New different, tried traditional they real themselves we've and thinking that, platform, they phenomenon bit something and for estate are when some as is leasing thinking short-term

have York operate throughout building we and what our or Americas to people. demand we for Avenue country provide whether it's XXXX more the of continue will will space the at types need New rest and WeWork, the And So and to business than really ever I short-term see for what these platforms, name of was. space think, their of means the in continue

Bryan Maher

to some then Are changes office -- Okay. that as mandates, York office relates the as with to cap it in New are the anything activity? relates return et as or you office City rates of a seeing result And transaction it cetera. to there dynamics

Michael Weil

No, not yet.

New through us tunnel not a right as we the that think company, are a now, going York I as but market.

are the the with assets is either number starting are sales are number to defaults of back of especially a performing -- a lenders. debt I the the fairly very banks outcome. landlords And for reminds think think the don't foreclosing to in bank's to going XXXX, we're rumblings or be the aggressive hear it in on delay back well I forced me to that think I of position go cases, we'll facing and maturities of kind properties.

Chris Now, rate And of is I maturity, have about fixed greatest we relate ASIC. as average to benefit in comments, it and back his debt remaining mentioned have four we debt. our years

positioned. well we're So

expanding were in Christmas the existing new all You the know York some and leasing. And and in probably management year the Chao the saw drive and New toughest quarter team frankly, period asset are that holidays tenants in this we outside summertime start putting to active able some extending of really to the really Year of tenants, Chris is market. New we

in full quarter really quarters. continuing happy to in over So looking occupancy next point we two increase and were to forward the a that the

Bryan Maher

acquire on bit. the York. acquire it you the following color you from a ASIC any as there? company I you would know thing now, the But are is you hospitality, that you expanded more owns would is Maybe is picture of Where at is thinking see next us outside where Can give and little look more to opportunities? that New to it. you as parking, landscape going what the that

Michael Weil

you give side. lot be And because operating we color as opportunities interesting we can't But right decisions. the I business in continue some a and any anything at made now continue to announced look have we nor we may of continue haven't City outside of increase company make of be position we'll diversify to decisions. portfolio. will to very and NOI, types the to that to those think grow the well York investment I New occupancy as They able

the tuned. have foundation and properties up kick to the so of strong We own the performance we and improve, continues stay that

I well. involved business side you drive, in something Michael, with Michael that's Joe's going just Joe think that know, XX seat. the core for the more be in background operating has the that really years able experiences of is general one to and and over been has to very are as counsel company than as And been

Chris So they experience a be to those going will opportunities. smooth evaluate continue and their to me, from transition and is

Bryan Maher

there, I Ori out leasing can Chao line, over any next me, but Okay. color towards for give Chris your gravitate to occupancy on don't us just pipeline to think four might last where two with and or And you the know you're that if the seeing you as quarters? Thanks.

Michael Weil

the say call Well, were we jump portfolio, know, as you climb in. But I'm Chao, I And that occupancy I -- in of in pretty the I and at like main But Chris line. operate to don't this. high that haven't to to you've of is know a he saying we last pre-COVID. put that very couple the William three we it's buildings slow a to shouldn't maybe given Chris the so Street position guidance, but to you uptick the something on continues think a asked XXX going over want where steady buildings back a steady And the going of seen level. quarters, in occupancy. be on

the Square, we continued at of X focus an our Our and put from the buildings. lot of have is is management driving brokerage focus Chris Avenue and XXXX Times standpoint where a teams those asset Americas

up, this XX% picking activities occupancy. be driving an And tours, some seeing be month are will time, We certainly think activity. we for is portfolio September that above that, believe I a over important will that

Bryan Maher

G&L. and and new merged me, with for all good That's the RTL Great. luck

Michael Weil

Thank you, Bryan.

Operator

no the further remarks. at team would for turn are to There the questions back management this like now closing to call I time. over

Michael Weil

said wanted right. as again, comments. to Chris in we thank All and our everybody, Well, I

great We are the pretty in the the levels back through embedded very drive pre-COVID bringing company and and We've to Michael and some our excited a shareholders. continue Joe. transition platform, team got and for as as exciting we'll to ASIC opportunities to well to

So you excited you your for best see again you Joe, company to that we're Michael the what thank all we and And luck, wish time. everybody. the in. Thank you, and of take the direction

Operator

This call. concludes today's conference

You now may disconnect.

New York City REIT (NYC) 11 Aug 232023 Q2 Earnings call transcript