NYC - Earnings call transcript Q4 2023 | New York City REIT, Inc.

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Operator

Good morning, and welcome to the American Strategic Investment Company's Fourth Quarter and Year-End 2023 Earnings Call. [Operator Instructions] I will now turn the conference over to Curtis Parker, Senior Vice President. Please go ahead.

Curtis Parker

Thank you, operator. Good morning, everyone, and thank you for joining us for ASIC's Fourth Quarter and Year-End Earnings Call. being the also of Relations is website. our event webcast Investor in section This

on to Chief the results today Financial me Joining call Anderson, Joe the Strategic Officer. and are discuss American Investment Officer; Company's Executive Marnikovic, Chief Michael quarter's the

information and the of quarter The statements the and uncertainties. Securities Please contains materially the are which section statements call our for of various cause could from to during release end earnings cautionary fourth Act forward-looking review XXXX Reform XXXX, forward-looking of at subject today. Private statements made within following that meaning Litigation to our results the risks forward-looking factors actual differ

or all or our materialize, these Should for one including may of differences. of SEC more or for year forward-looking the actual ended XX-K uncertainties more December discussion XXXX; statements. that detailed We cause by Form you implied of the those factors filings, to XXXX, X, refer a differ on risks risk expressed could the results materially April filed filed XX, the these from

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

stated disclaims or to statements, fourth quarter any or is filings, SEC information obligation unaudited. by forward-looking in to except revise note intent these do required that all our update as so As Please ASIC law. XXXX financial

in to discuss GAAP will measures considered accordance on company's we our which as A which financial be of measures, GAAP. call, measure our the or these is believe release, useful financial should today's operating directly for and website. financial prepared the posted most in a non-GAAP performance. in isolation comparable our earnings be with during evaluating we These Also substitute results is available in not reconciliation can measures

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

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

Michael Anderson

fourth morning, full discuss Good XXXX. us. in initiatives of for leasing costs. we Two Curtis. quarter ASIC controlling and and thank and you important joining Today, the year for most were XXXX will Thanks, for results our the

end the XXX growth of within in from portfolio end contributed to point leases, quarter, which our of we Through the XX.X% a at completed basis real new occupancy to XXXX. XX estate fourth XX.X% the

As fourth quarter, sold the part early unoccupied the Factory, exploring for options. of Hit been a our reduction expense we which in efforts, asset had small strategic we

$X.X proceeds carrying eliminated million sale $XXX,XXX. The cash and in annual generated of approximately costs

New consists weighted years. estate a City, lease X.X portfolio primarily throughout of Gap] [Audio At term of our remaining year-end, average in real foot X York assets million and Manhattan. Our occupancy million, existing square portfolio X.X $XXX.X

City-centric tenants Weill investment York average term remaining assume or in based tenants investment features XX% years. include portfolio Medical, straight-line grade, on Cornell Investment-grade of government investment-grade implied New are and top lease large of tenants, our a Our XX CVS with the mix portfolio rent, agencies. grade a weighted X.X

companies resilient on and leasing We such continue securing well-capitalized institutions. to service financial tenants medical our as in efforts focus industries

major properties proximity Our office transportation close core in are with submarkets to located hubs.

X have Avenue One of particular, since us points by of increase XXst desirable the Americas. occupancy enable to properties office and the fourth build XXX in will remains West for us quarter leasing, points, momentum we positive which XXXX and South, such basis saw Street a XXXX. submarket basis area believe we on at XXX Midtown the respectively, produced These XXX

million we renewal expansions. asset who led by are of community almost XXX,XXX In leases, square tenant sign results the with to has totaled fourth worked XX,XXX brokerage our rent, and leasing straight-line XXXX, including rate. quarter X strong of management and new tenants XX straight-line and Our feet and totaling $X.X million existing closely that completed team, leases, in over the square new $X.X including feet

opportunities would our real portfolio to we'll to it go we to taken that invest that, our estate occupancy years, continue investments. accretive we leases results. explore recent year and in assets, of believe of pursue long-term over in as XXXX Marnikovic committed the to advantage full further of of transactions increase currently quarter XX.X%. our I'll commencement portfolio, additional ahead, look to future the strengthening to fourth turn we shareholders. With income-generating be Joe? portfolio As we existing In pipeline We have the will over and to remain Joe

Joseph Marnikovic

$XX for Thanks, ended million, to million December XXXX, fourth Michael. to quarter Revenue million million compared XXXX XX, compared was quarter XXXX. fourth XXXX. $XX.X $XX.X in the the year Revenue of in the for $XX.X was

net GAAP was compared of to attributable $XX.X $XXX.X loss year million to loss a million, in stockholders million, XXXX. common quarter compared full company's Net the the The loss million $XX.X to was for XXXX. fourth quarter net $XX.X for

a office office This of one million company's to, it impairment ongoing $XX.X among factors, the Net the on experienced a other leasing reduction investment to in in made impairment reduced anticipated this by a the was and from loss by impacted Midtown the period properties due relates to specifically quarter industry noncash of resulted property. hold the as the for fair value pressures for Manhattan. noncash primarily

$X.X million would or for Cash quarter. EBITDA, $X.X XXXX was year noncash a for NOI full Adjusted quarter. been the $XX.X was the million the net over was million loss million $X.X approximately the XXXX. XXXX fourth for $XX.X have the $XX.X improvement million was and fourth impairments, and in for million Excluding

in $X.X $X.XX per $X.X million Core stockholders year. was For quarter million, the last negative fourth $X.X negative FFO $X.XX or the negative fourth share negative of quarter compared the XXXX. share, compared negative per of to attributable common fourth million XXXX, to negative our quarter or in FFO to million $X.X was

XXX% balance As debt of to found release, $XXX.X weighted relatively can average the net with debt of We fixed-rate effective X.X improving of at of of a with XX-K. rate interest always, remaining a a average income our weighted ended and XX%. a net leverage sheet earnings Form reconciliation years. supplemental net measures maintains X.X% be in non-GAAP million GAAP and and NYC conservative fourth quarter debt

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

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

Michael Anderson

Great. Thank you, Joe.

we we retirement. as as conclude, your entire your XXXX wish looking Chief on Michael Before as solid you our Senior the building in XXXX. contributions the I CFO. to the well new from same thank ahead company's behalf XXXX CFO. you served many We the LeSanto of want team Officer as and portfolio. to to the us on for time, of Accounting joined our Mike year Mike welcome At through Controller, Portfolio foundation on I are forward then and our

me Let from name at of accomplishments the year-over-year. in the of by the year beginning occupancy year activity growth X% the rights of a company We of reiterating last year. our expanded followed few in Leasing the change culminated throughout that shareholders. end the investment to with and and our strategy offering

forward to Our believe to straight-line current to occupancy rent. is in approximately XXXX, we you. look leasing of positioned pipeline which are add progress expected to We $XXX,XXX on with sharing our build well would XX.X% we increase additional and

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

Operator

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

Bryan Maher

earnings getting XX-K the questions it was not XX Joe, the many helpful I too mean today. call. before and hours Michael

the like questions in lot that. [ XXXX already you this a have and there. me So XX-K, reading But the value in the the question the a $XX is was that of something ] And print regarding million? new debt's do answered on and I tell I property impairment $XX specifically took million if is

that. And to the sell value? that handing for solve It it do or like going get debt trying new be case, there if I without hard for you above that's ultimately property seems it's how mean, to to back X the on

Michael Anderson

leasing executing term and X an traffic We've afternoon. on Bryan, as as and We leasing is you correct seen, the good in we've as X impaired in as on new on, with focus as to month, Thanks, on foot still that the certainly sheet. this through is to do building, both available rates leasing. deals that the activity or the have relates value. space been speak property building. well well The in increase last it That

both find the we'll footprint, focus, at continue. to higher at there well right work the expand also out, about a years now think we're rates building lending market existing in property. that about efforts the And with refinance X.X we going the to refi work as and lender as the leasing opportunity community to So with rates for seeing those large as is on that continued their be the and stay to expect certainly, tenants

Bryan Maher

or It's -- relative color we little think situated there? to And on pipeline city. in that little the Square. with about on well how don't What's traffic us How you give a for you can Times Times give color us going bit what's I X Can this just should more continuing more a year? on Square up? property the Okay. Chris, to lease X maybe is know,

Michael Anderson

from chime from It's well. each buildings relates close it's -- -- very has Penn various submarket, become down Port similar equidistant relatively it XXXX, And to are right Sure. kind I'll both to options. I in let other. Station. Authority. Central, transportation a block the Times to as X of Chris It's attractive But obviously, Square, our as think Grand

so work have we've believe at third more at there, move over as desirable, of we're to as the do building the in with is X% market leasing XXXX, saw that And see to a frequency, and to very seen occupancy quarter. out city then but that starting people increase we rates we return begin increase that, and

Times pricing would things. lot are similar interest of from XXXX both increased see say elasticity a And Square that XXXX, I to and X think and where the we I landlord-type

Bryan Maher

nearly embedded in the of is maybe sheet right? it's that the me. tough there really if equity, the at is And look value a the some portfolio stock trading and share, to company in stock for the mean assets these you future. $X, mean at I in I drive $XXX Okay. a some in clearly, can which balance last cover, the

Can us next into some you having to acquisitions which the over deploy years? capital see to the kind value the you ability highlight from garner of of assets for couple embedded and maybe most

Michael Anderson

Sure.

XX% as New XX%, nonprofits. asset we It's it. asset and and as one around base has Street, with some the governmental occupancy. flagship strong be significant William value well-capitalized large, assets We New own the very State tenant well certainly, think sitting in larger City agencies equity that I of really York that, think XXX that would York

those in we've leases net that with that occupied and So condos those X are -- at is that fully also tenants significant there we on equity Orchard We the got retail Similarly, strong there deals think opportunities do asset. think there. in assets. on

And and meaningful Square so confirming in working as at we've at are X a to million Times does through refi for and beyond equity are $XX.X it us have above also X looked appraisals Times Square, level [ ]. the of debt the that

prove are could largest company to So decide I and strongest should the to in take X reinvestment coming that think them provide assets opportunities, market we proceeds those to to any X probably of the for years. the

Operator

at time. further to turn There Anderson the will questions this Michael are remarks. call closing over for now I some no

Michael Anderson

all we continue you, office efforts of well leasing have for portfolio as about as operator, as us. year on joining you initiatives. our excited that we focus us, thank Thank the We're in meaningful and to expense-reduction ahead

CFO for Joe excited and CFO thank as come. retirement again his Michael service my to once year to wish LeSanto side our by him have his as and for best new the like the to I'd in And

you thank So all.

Operator

call. today's conference concludes This

now disconnect. You may

New York City REIT (NYC) 2 Apr 242023 Q4 Earnings call transcript