Name: American Strategic Investment Co. Q3 2025 Earnings Call
Start: 2025-11-19T23:00:00.000Z

Executive Summary

Q3 revenue was $12.27M, roughly flat sequentially (+0.4% QoQ) but down 20.6% YoY on prior-year asset sale; GAAP net income turned positive at $35.75M driven by a $44.27M non-cash gain tied to the consensual foreclosure of 1140 Avenue of the Americas .
Operating metrics improved sequentially: Adjusted EBITDA rose to $1.95M (vs. $0.38M in Q2) and Cash NOI increased to $5.33M (vs. $4.20M in Q2); WALT extended to 6.2 years, though occupancy dipped to 80.9% (from 82.0%) .
Balance sheet de-risking: removal of 1140 Avenue assets/liabilities and expected elimination of a $99.0M July 2026 liability; weighted-average interest rate fell to 5.3% and total debt to $251M, from 6.4% and $350M in Q2 .
Key watch items: new loan default and acceleration notice on 400 E. 67th/200 Riverside ($50M principal, default rate +4% over 4.516%); ongoing NYSE continued listing deficiency process (market cap/equity below $50M thresholds) .

What Went Well and What Went Wrong

Lease execution extended WALT to 6.2 years; CEO emphasized proactive cost-rightsizing and value creation: “steps we’ve taken… position the Company to generate significant shareholder value” .
Sequential operating improvement: Adjusted EBITDA rose to $1.95M and Cash NOI to $5.33M; interest coverage improved to 0.7x; weighted-average interest rate dropped to 5.3% post-asset removal .
Balance sheet actions: consensual foreclosure at 1140 Avenue expected to close in Q4 2025, eliminating ~$99.0M liability; auditor change to CBIZ to reduce professional fees .

YoY deterioration: revenue down 20.6% to $12.27M (sale of 9 Times Square), Adjusted EBITDA down to $1.95M from $4.17M, Cash NOI to $5.33M from $6.97M; occupancy fell to 80.9% .
New credit stress: lender issued default/acceleration notice on 400 E. 67th/200 Riverside; amounts due at a default rate (max lawful or +4% over 4.516%), including $50.0M principal; outcome uncertain .
Listing risk persists: NYSE notice of noncompliance (avg market cap ~$34.3M; equity ~$35.5M as of Q2) triggers 18-month remediation plan; potential suspension/delisting if plan rejected or milestones missed .

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$15.45	$12.31	$12.22	$12.27
Net Income (Loss) ($USD Millions)	$(34.48)	$(8.59)	$(41.66)	$35.75
Basic/Diluted EPS ($USD)	$(13.52)	$(3.39)	$(16.39)	$13.60
Adjusted EBITDA ($USD Millions)	$4.17	$(0.83)	$0.38	$1.95
Cash NOI ($USD Millions)	$6.97	$4.23	$4.20	$5.33

Segment/Portfolio Mix (Q3 2025):

Diversification by Property Type (Annualized SL Rent): Office 73%, Retail 25%, Other 2% .
Top Ten Tenants (Annualized SL Rent): 66% of total; 69% investment grade or implied investment grade; WALT 7.1 years (e.g., Planned Parenthood $3.34M; Equinox $2.90M; NYC Dept. of Youth & Community Development $2.22M; CVS $2.16M) .

KPI	Q1 2025	Q2 2025	Q3 2025
Occupancy (Leased %)	82.0%	82.0%	80.9%
WALT (years)	5.4	6.0	6.2
Net Debt to GAV (%)	57.9%	63.6%	58.6%
Weighted-Avg Interest Rate (%)	4.4%	6.4%	5.3%
Weighted-Avg Debt Maturity (years)	2.3	1.8	3.8
Interest Coverage (x)	(0.2)x	—	0.7x
Total Consolidated Debt ($USD Millions)	$350.0	$350.0	$251.0
Net Debt ($USD Millions)	$342.9	$344.7	$247.6
Cash and Cash Equivalents ($USD Millions)	$7.08	$5.31	$3.36
Total Assets ($USD Millions)	$499.38	$463.99	$448.07

Metric	Period	Previous Guidance	Current Guidance	Change
1140 Avenue of the Americas disposition	Q4 2025	N/A	Cooperative consensual foreclosure anticipated to close in Q4 2025; recognized $44.27M gain; expected elimination of $99.0M liability maturing July 2026	New event; de-leveraging
Asset sales (123 William St., 196 Orchard)	Ongoing	N/A	Continuing to market; proceeds intended for debt retirement and reinvestment into higher-yielding assets	Ongoing process
Auditor	FY 2025	Prior firm	Engaged CBIZ CPAs to reduce professional fees	Cost reduction initiative

Note: No formal quantitative guidance (revenue, margin, OpEx, tax rate) was issued in Q3 materials .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Portfolio optimization/divestitures	Focus on opportunistic divestiture; WALT expansion via renewals (Q1) ; continued emphasis on recycling proceeds (Q2)	Foreclosure at 1140 Ave; marketing 123 William & 196 Orchard for sale	Accelerating de-risking / asset rotation
Leasing and WALT	WALT 5.4 years; occupancy +120bps QoQ (Q1)	WALT 6.0 years (Q2)	WALT 6.2 years; occupancy 80.9% (Q3)
Tenant quality	Top 10: 77% IG/implied IG (Q2)	—	Top 10: 69% IG/implied IG (Q3)
Balance sheet & rates	WA interest rate 4.4%, debt $350M (Q1)	6.4%, debt $350M (Q2)	5.3%, debt $251M (post 1140 removal) (Q3)
NYSE listing compliance	—	Received continued listing deficiency notice (Aug)	Monitoring remediation plan
Credit events	—	—	Default/acceleration notice on 400 E. 67th/200 Riverside loan; $50M principal; default rate mechanics disclosed

CEO: “The consensual foreclosure… to remove restrictive covenants and reduce ongoing expenses strengthens the foundation of our business for both the short and the long term… we believe… steps… position the Company to generate significant shareholder value” .
CFO: Engaged CBIZ CPAs to reduce professional fees; no dispute with prior firm; goal to streamline G&A and cost structure .
Strategy: Prioritize lease renewals, tenant retention, and selling select assets to retire debt and reinvest in higher-yielding opportunities .

The transcript contained prepared remarks and call conclusion without a captured analyst Q&A segment or guidance clarifications; key commentary focused on leasing, asset dispositions, auditor change, and balance sheet management .

S&P Global consensus for NYC appears unavailable for Q3 EPS and revenue; our request returned historical actuals only for prior quarters and no active consensus coverage. As such, estimate comparisons are not applicable this quarter (S&P Global) [GetEstimates*].

Metric	Consensus (Q3 2025)	Actual (Q3 2025)	Surprise
Revenue ($USD Millions)	N/A*	$12.27	N/A*
EPS ($USD)	N/A*	$13.60	N/A*

*Consensus data unavailable via S&P Global; values retrieved from S&P Global.

Sequential operating improvement and extended WALT suggest stabilization, but occupancy softness and YoY declines in Cash NOI/Adjusted EBITDA underscore ongoing leasing and rate headwinds .
Balance sheet derisking is a central catalyst: the 1140 Ave transaction reduces debt burden/interest costs and eliminates a large near-term liability; watch for Q4 closing confirmation .
New credit event at 400 E. 67th/200 Riverside introduces downside risk; closely monitor lender negotiations and potential cash implications from default rate interest accruals .
Listing compliance remains a structural overhang; the NYSE plan and quarterly monitoring can influence sentiment and liquidity; successful remediation would be a positive catalyst .
Asset sale execution (123 William, 196 Orchard) and reinvestment discipline are key to medium-term value creation and leverage reduction .
Near-term trading: headlines around foreclosure closing/default resolution and any listing updates likely drive volatility; lacking formal guidance, focus on leasing updates and debt maturities profile .
Medium-term thesis: improved asset mix, tenant quality, and debt profile could support gradual operating recovery if leasing progresses and credit risks are contained; execution remains critical .