NYC - Earnings call transcript Q1 2024 | New York City REIT, Inc.

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Operator

Good morning, and welcome to the American Strategic Investment Company's first quarter earnings call. [Operator Instructions] I'd now like to turn the conference over to Curtis Parker, Senior Vice President. Please go ahead.

Curtis Parker

Thank you. Good morning, everyone, and thank you for joining us for our first quarter 2024 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, Mike the Strategic Officer. and are discuss American Investment Officer; Company's Executive LeSanto, Chief Michael quarter's the

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

refer are We for factors SEC that including a filings risk this conference for April filed the discussion during these you of as XX-K on subsequent filed SEC the of X, Form of ended XXXX, the our all statements call more Any could provided of made detailed forward-looking XX, all this differences. and XXXX, year only call. filings, the date to cause December

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

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

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

Michael Anderson

Thanks, Curtis. first for including reduction achieved the morning, us. joining expenses, of EBITDA This through the coupled this success. to XXXX. very operating you quarter, leasing thank for growth growth and We in G&A Good morning, in compared positive quarter announced we adjusted results our first all with and ongoing a

point We increase quarter XX.X% a in to to basis compared also XXX the XXXX. occupancy delivered in same

Additionally, process grow the as better we announced, the position to of portfolio started the company future. previously the we to have diversifying in

broader Times market this property have William for will at XXX at to and XXX will evolution the shortly same our our the accelerate monetization we business. approach As effort, started We of believe process part that Street this Street. sale X of Square Orchard and begin

intend leverage proceeds. Square, that portfolio on higher-yielding disposition proceeds our along X and balance the to assets, extend opportunity the order we marketing completed, the into and strategy property, disposition Street, cash Prior the last debt our Street significant believe this If the October XXX sale that property to maturity existing meaningfully Times to reduce facilitate our of of a of through Orchard in diversify to announced property. of the with to any launching sheet XXX to We at extended William we generate will from year. use we XXXX, strategic with year-end,

look moving ahead. initiative on forward to excited lie and opportunities forward this are to that be We the

current focus future, on are our While that assets. also we conscious must look maintain to the our we we

quality straight-line XXXX beyond the stability we on of weighted As our based XXXX, our the the investment of portfolio. Of grade March real XX, XX a annualized rent, our providing grade, top of of our remaining to term tenants remaining stability our lease These own. are years, extend the of XX% tenants, term over further implied was lease average roster. X.X as X.X we tenant believe estate showing XX% portfolio which years, year or had investment enhances leases

asset our foot approach portfolio located our $XXX retail City, the portfolio in New contributes the management million continued office all York Manhattan. estate. marketability X square end the primarily X.X of first to million, We of real of City proactive consisted quarter, assets, of our in believe At York New and

New a large investment-grade number York features of tenants. City-centric portfolio Our

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

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

of existing consistent tenants, us to have positioned as We of tenants, and for portfolio results expenses some dedication to look the to working our again quarter demonstrated properties, our our once management. make long-standing and reduce focus new believe higher-yielding we on first our Manhattan attractive effectiveness retaining to Our to shareholders leverage, new our well create value managing investment seek opportunities. sell properties

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

Michael LeSanto

Michael. you, Thank

revenue million of flat representing XXXX we in produced XXXX, in relatively First first was million. loss a compared a $XX.X to to first company's XXXX. both quarter loss attributable stockholders XXXX common million of the year-over-year GAAP quarter $X.X of $XX.X of net quarter first quarter of the net was million XXXX, $X.X improvement the The as and in

leasing $X.X our was million $X was Cash quarter increased $X operating $X.X XXXX. $X.X in first million of million, operating nearly growth the The G&A X%, compared or net through For reduction a in million XXXX. EBITDA the of compared to quarter to XXXX, first million achieved coupled and by success. income in adjusted ongoing to with over expenses,

can reconciliation supplemental measures quarterly our on a found and GAAP and release to earnings website. non-GAAP in income our As be always, of net

to the XX, loan relatively maturity of in XXXX, October to an XXXX, average and balance the to an option had facilitate to approximately sell quarter-end, on of net debt order we XX%, interest weighted Square. weighted sheet Subsequent rate a to leverage X property. announced the At with at a average quarter-end, maturity. date efforts additional the Times X.X conservative extended provisions, property our loan amendment we of the our Among amendment other XX, to January X.X%, extension years of the on of

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

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

Michael Anderson

Mike, significant proceeds to divestment can The and of management commitment Thanks, begin joining portfolio accomplished our growth thank our you diversification to of ongoing quarter cash attributed and and for to assets for the NOI today. our that assets. on this in sales to we to cash execution sales leverage these is and reduction if certain are The as the process strategy, occupancy in into We all Manhattan. us our we new generate be updated portfolio expected that time expected completed you that on right of and higher-yielding now strategy. forward keeping successful are execute believe the look this to are fuel the

please for questions. open Operator, the line

Operator

Thank you.

comes Our Bryan first question from Maher.

Bryan Maher

hear you Hopefully, me. can operator I could the hear there? barely

Michael Anderson

Yes.

Bryan Maher

do this some. sales, morning. about suspect, you what give questions proceeds. you're us you're the of of can and okay, color know in stay you expect area types, I know use anticipate But you've these on little so going some down redeployed in other about past, a mean, couple more York redeploy capital regions? slightly New you talked thinking? I talked that Do asset would And the going of you asset the or I I debt pay A out to other with to Greater but

Michael Anderson

Sure.

everywhere We and tied looking are region. certainly certainly the York New to not

were York assets, New at include that prior confines. Our estate acquisitions real opportunities able not estate in outside focus REIT of operating that adjacent invest is we on under looking real along to with estate acquisitions and real the business

that but right for right yield focus probably for this with the is opportunities And of so I New would say York, the the looking outside company.

Bryan Maher

you up? it mean those the right about is can assets specific X talk rates? And b, now, in what those Is mean now? assets it, Is and Okay. a, I opened right there has particular? X market cap about why about I demand?

Michael Anderson

for similar XXX that Times as think We asset Street. at at types there of X buyers Square William well the as Sure. are

market the recent in X Square have XXX we on do months be we at and strong then we take Times interest to think And that We net there that think are unsolicited of of sort similar condo there a buyers that capital lot are William property Orchard, investment. as there which that assets like some out a lease had assets will is think there XXX in looking interest for market. to deploy

Bryan Maher

And on all is you're there comfortable that range those? a cap of any sharing rate or

Michael Anderson

But you share to disposition the and I point. get range don't closer point. process, that can we to with we're a into share deals prepared to get this investment we further down entering at we certainly closer as as think that I at know

Bryan Maher

in your kind getting Americas. I the toured XXXX And nice a maybe What shifting I with the that's into gears of is occupancy Okay. It's property. up great that there hang-up have Avenue of the nicely location. XXs? back to mean a the team.

Michael Anderson

think at I lot of interest property. and seeing traffic are that foot a we

We partial just some have took seen increased tenant leasing are but a have some and recently interest. larger building. a floors that floors we of that available, full that Had floor possession in

this for And which we to financial is work the for institutions interest seeing tenant still groups, a And us I high asset. base so and as leasing tend focus some certainly we're financial on think be services that right property from that initiative.

Bryan Maher

at the water. ones. Why mean like out portfolio, I a of some been company covering not fish Okay. a look And that for to on just kind quick we've it's for Is particular X there of reason I Brooklyn? hanging asset? couple when more always seemed years, the of

Michael Anderson

the at think Brooklyn We time on right this don't is point.

and in that We building work leased have re-leasing renewal there done have years. and up some recent entirely

it is just our to think. think doesn't market, fit we disposing the that But certainly right not we dispose time so of, we don't that plan. will for that property look necessarily a in business go-forward that And

Bryan Maher

the last it don't not, able to for we obviously, And Bellevue and answer if I be me, or saw to Okay. you're all but know tender. going

I shares there? in an think coming thoughts out I on and you another it event any you earlier a like stock. feels mean it week, almost liquidity take was of room, bit slug little going an elephant private. the share Can of big in on what's lower the will this

Michael Anderson

Yes.

vision of for it just is in from the in outlined another to we that the have believe the company the particularly speak that we growth we and long-term company, market. of can indication plan think, the in and Bellevue that I it, extent support the

we its to it's make so is for to But the Board and direction is a required to. as support company its sign the the want recommendations And going. process continued will see there it as go the company that

Bryan Maher

look some even in you quarters can if written, and a near undervalued. the -- is or to are Right. But -- for at to of mean, grossly those company book the years. book sure, couple as being get a mean value, just haircut look, relative the book I couple assets we've if stock and traded value for I it's anywhere of you of decent been way, value weird what

Operator

with the for And management closing hand that, over floor to remarks. I'll

Michael Anderson

Thank us. you, operator, for all you thank joining and

we the look of very control outlined earlier, excited to as company. efforts updates revised we've will that today. direction our results outlined put with to make our we've plan we those. into to the continuing expense business the and about progress We're see that we As forward starting to share we're of pleased And place,

Operator

that concludes today's joining. for gentlemen, Thank and you Ladies call.

disconnect. may now You

New York City REIT (NYC) 10 May 242024 Q1 Earnings call transcript