American Strategic Investment Co. (NYC)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $12.22M, down from $15.75M in Q2 2024 on the prior-year sale of 9 Times Square; GAAP net loss narrowed to $41.7M vs. $91.9M YoY given a smaller impairment charge this quarter .
• Adjusted EBITDA fell to $0.38M (vs. $4.48M in Q2 2024) and Cash NOI declined to $4.20M (vs. $7.42M), reflecting lower rent base and elevated property-level costs; occupancy was flat at 82% QoQ while WALT extended to 6.0 years on two renewals .
• Balance sheet metrics deteriorated: net debt rose to $344.7M with net debt/gross asset value at 63.6%, and weighted-average interest rate increased to 6.4% (from 4.4% in Q1) .
• Notable events: lender commenced foreclosure proceedings on 1140 Avenue of the Americas (disclosed on the call), and post-quarter the NYSE notified the company of non-compliance with listing standards (30-day avg. market cap ~$34.3M; equity ~$35.5M as of 6/30/25), raising headline risk and strategic urgency .

What Went Well and What Went Wrong

What Went Well

• Lease renewals at 123 William and 1140 Avenue of the Americas extended WALT to 6.0 years; management emphasized focus on tenant retention and lease extensions to stabilize the portfolio .
• CEO reiterated strategy to divest select Manhattan assets (123 William, 196 Orchard) to retire debt and reinvest in higher-yield assets; management framed this as a key value-unlock lever .
• Top-10 tenant credit mix remains anchored by investment-grade or implied investment-grade counterparties (77% of top-10 straight-line rent), supporting rent durability perceptions .

What Went Wrong

• Revenue and cash generation compressed: revenue down to $12.22M and Cash NOI to $4.20M, driven by the reduced rent base following asset sales and higher interest burden, pressuring Adjusted EBITDA to $0.38M .
• Material non-cash impairment ($30.56M) weighed on results; while lower than Q2 2024, it continues to signal valuation pressure in the portfolio .
• Credit/liquidity risk elevated: foreclosure proceedings initiated at 1140 Avenue of the Americas, net debt/gross asset value rose to 63.6%, and the weighted-average interest rate stepped up to 6.4% from 4.4% in Q1 .

Financial Results

Values retrieved from S&P Global.*

Segment/Portfolio Mix (Q2 2025 Annualized Straight-Line Rent)

KPIs Snapshot

Guidance Changes

No quantitative revenue/EPS/NOI guidance was provided.

Earnings Call Themes & Trends

Management Commentary

• “We remain focused on operating and creating value at our current assets, with a focus on tenant retention… [and] opportunistically divest certain of our Manhattan assets and recycle the proceeds into higher-yielding assets to enhance our long-term portfolio value.” — CEO Nicholas Schorsch, Jr. .
• “Second quarter revenue was $12.2 million… GAAP net loss… $41.7 million… Adjusted EBITDA was $0.4 million… Cash net operating income was $4.2 million…” — CFO Michael LeSanto .
• “During the second quarter, the lender for 1140 Avenue Of The Americas commenced foreclosure proceedings with respect to the property.” — CFO Michael LeSanto .
• “Our ongoing sale process… is designed to unlock substantial capital while reducing our debt burden… [and] reinvest in higher yielding assets to enhance our long term portfolio value.” — CEO Nicholas Schorsch, Jr. .

Q&A Highlights

• The call featured prepared remarks; management disclosed the commencement of foreclosure proceedings at 1140 Avenue of the Americas and reiterated the asset sale strategy for 123 William and 196 Orchard .
• No formal quantitative guidance was provided; management emphasized deleveraging and portfolio repositioning as priorities .

Estimates Context

• Wall Street consensus from S&P Global was not available for Q2 2025 EPS or revenue (no published consensus), so no beat/miss determination can be made at this time.*
• Given the lack of coverage, estimates may need to be initiated or re-established if/when the company completes asset sales and clarifies its go-forward earnings power.*

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Operating base is stable but smaller: recurring rent base post-asset sales is supporting ~82% occupancy; however, Cash NOI and Adjusted EBITDA remain under pressure at current scale .
• Balance sheet risk rising: weighted-average interest rate climbed to 6.4% and cash paid for interest rose to $7.77M in Q2, reducing coverage and financial flexibility .
• Asset-level stress is visible: lender initiated foreclosure at 1140 Avenue of the Americas; asset sale execution and timing are critical to de-risk .
• Strategic pivot remains the catalyst: successful sales of 123 William and 196 Orchard could reduce leverage and fund higher-yield assets, potentially improving NOI durability and returns .
• Listing risk adds urgency: NYSE non-compliance notice (post-Q2) increases headline volatility and the need to demonstrate a credible plan within prescribed timelines .
• Near-term trading lens: headline sensitivity to updates on foreclosure, asset sale milestones, and the NYSE plan may dominate; absence of consensus estimates reduces traditional “beat/miss” catalysts .
• Medium-term thesis: Execution on deleveraging and portfolio rotation, plus leasing to extend term and lift occupancy, are the key drivers for restoring earnings power and equity value .

Additional Data and References:

• Q2 2025 8-K release and supplemental: financials, non-GAAP reconciliations, portfolio metrics .
• Q2 2025 earnings call transcript: strategy, leasing, foreclosure disclosure .
• Prior quarters for trend context: Q1 2025 8-K and supplement ; Q4 2024 8-K and supplement .
• Other relevant release: NYSE continued listing notice (post-Q2) .