Sign in

You're signed outSign in or to get full access.

AS

American Strategic Investment Co. (NYC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue declined to $14.9M (vs $15.4M Q4’23 and $15.4M Q3’24) as the company completed the sale of 9 Times Square; net loss narrowed sharply to $(6.7)M (EPS $(2.60)) from $(73.9)M (EPS $(32.27)) YoY, reflecting the absence of large impairment charges seen in prior periods .
  • Cash NOI was resilient at $6.4M (vs $6.3M in Q4’23) despite lower revenue, but Adjusted EBITDA fell sequentially to $1.3M from $3.1M in Q3 and $4.5M in Q2, driven by lower revenue post-asset sale and higher G&A ($2.69M vs $1.76M in Q3) .
  • Balance sheet positioned defensively: 100% fixed-rate debt, 4.4% weighted-average interest rate and 3.6-year weighted-average maturity; net debt to gross asset value 56.9% at year-end .
  • Strategic catalysts: sale of 9 Times Square closed; 123 William Street and 196 Orchard re-marketed; CEO transition announced March 7 with Nick Schorsch Jr. appointed CEO—execution on dispositions and leasing pipeline are likely stock drivers near term .

What Went Well and What Went Wrong

  • What Went Well
    • Disposition execution: closed sale of 9 Times Square for $63.5M, improving leverage and adding ~$13.5M of net cash proceeds; relaunching processes for 123 William and 196 Orchard to advance diversification strategy .
    • Cash NOI growth YoY: Q4 Cash NOI of $6.4M vs $6.3M in Q4’23; full-year Cash NOI also grew to $27.6M (vs $27.3M in 2023) .
    • Debt profile de-risked: 100% fixed-rate debt, lower weighted-average interest rate (4.4%) and longer maturity (3.6 years) at year-end versus prior quarters .
  • What Went Wrong
    • Sequential earnings pressure: Adjusted EBITDA dropped to $1.25M in Q4 from $3.10M in Q3 and $4.48M in Q2; G&A rose to $2.69M (vs $1.76M Q3), while revenue decreased post-asset sale .
    • Occupancy step down: leased/occupancy fell to 80.8% at FY-end (85.8% in Q3; 85.9% in Q2), reflecting portfolio changes and vacancies .
    • No quantitative guidance provided: investors lack explicit near-term revenue/EBITDA/occupancy targets; listing compliance and macro risks continue to be cited in filings .

Financial Results

Quarterly comparison (oldest → newest):

MetricQ2 2024Q3 2024Q4 2024
Revenue ($M)$15.754 $15.447 $14.889
Net Loss ($M)$(91.851) $(34.482) $(6.650)
Diluted EPS ($)$(36.48) $(13.52) $(2.60)
Net Loss Margin (%)(583.4%) (calc. from )(223.2%) (calc. from )(44.7%) (calc. from )
Adjusted EBITDA ($M)$4.479 $3.095 $1.250
Cash NOI ($M)$7.416 $6.761 $6.393

Q4 year-over-year:

MetricQ4 2023Q4 2024YoY Change
Revenue ($M)$15.380 $14.889 $(0.491) (calc. from )
Net Loss ($M)$(73.876) $(6.650) +$67.226 (calc. from )
Diluted EPS ($)$(32.27) $(2.60) +$29.67 (calc. from )
Cash NOI ($M)$6.302 $6.393 +$0.091 (calc. from )

Segment/property-type mix (by annualized straight-line rent):

Property TypeQ2 2024Q3 2024Q4 2024
Office73% 73% 72%
Retail24% 24% 27%
Other3% 3% 1%

Key performance indicators:

KPIQ2 2024Q3 2024Q4 2024
Properties (#)7 7 6
Leased/Occupancy (%)85.9% 85.8% 80.8%
WALT (years)6.3 5.9 6.3
Net Debt / GAV (%)55.9% 60.1% 56.9%
Wtd. Avg. Interest Rate4.9% 4.9% 4.4%
Wtd. Avg. Debt Maturity (yrs)2.7 2.5 3.6
Adjusted EBITDA ($M)$4.479 $3.095 $1.250
Cash NOI ($M)$7.416 $6.761 $6.393
Cash Paid for Interest ($M)$4.824 $4.906 $4.286
Top 10 Tenants IG/Implied IG (%)81% 81% 77%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quantitative financial guidance (revenue, EPS, EBITDA, margins, OpEx, tax)FY/Q4 2024Not providedNot provided—
Strategic/dispositionsFY/Q4 20249 Times Square definitive sale; marketing 123 William & 196 Orchard 9 Times Square sale completed; re-marketing 123 William & 196 Orchard Execution progressed

No formal quantitative guidance was issued in the documents reviewed .

Earnings Call Themes & Trends

TopicQ2 2024 (previous)Q3 2024 (previous)Q4 2024 (current)Trend
Asset sales/diversification9 Times Square sale agreement; marketing 123 William & 196 Orchard Sale pending closing; marketing ongoing Sale of 9 Times Square completed; marketing relaunched Advancing/executing
Reinvestment strategyExploring higher-yielding assets incl. New England hospitality/ops businesses Similar focus reiterated “Expanded asset diversification strategy” and exploring income-generating investments Consistent, more explicit
Occupancy/leasing85.9%; leasing success 85.8%; pipeline commentary 80.8%; building pipeline to increase occupancy Mixed (lower occupancy post sale)
Balance sheet/debt4.9% WAC; 2.7-yr maturity; mix fixed/variable 4.9% WAC; 2.5-yr maturity; mostly fixed 100% fixed; 4.4% WAC; 3.6-yr maturity Improved rate/maturity
Leadership——CEO transition to Nick Schorsch Jr. announced Change in leadership

Management Commentary

  • “In the fourth quarter we completed the sale of 9 Times Square and relaunched the marketing process for 123 William Street and 196 Orchard Street as we continue our expanded asset diversification strategy… we grew Cash Net Operating Income in both the fourth quarter and for the full year 2024… We remain focused on aggressively leasing our portfolio to high quality tenants in 2025.” — Michael Anderson, CEO .
  • “Revenue for the fourth quarter of 2024 was $14.9 million… Net loss for the quarter was $6.7 million… Adjusted EBITDA… was $1.3 million… [We have] 100% fixed rate debt and prudent net leverage of 56.9%. We ended the fourth quarter with net debt of $340.2 million at a weighted average effective interest rate of 4.4% and a weighted average remaining debt term of 3.6 years.” — Michael LeSanto, CFO .
  • “On March 7, we announced that I would be resigning my position as CEO… I take great comfort leaving the company in the hands of Nick Schorsch Jr.… We are excited about the opportunities ahead… to unlock future value for our shareholders.” — Michael Anderson, CEO .

Q&A Highlights

  • There was no Q&A session on the Q4 call; prepared remarks focused on the 9 Times Square sale, portfolio strategy, and leadership transition .
  • Prior quarters’ Q&A emphasized:
    • Dispositions and buyer interest for 123 William & 196 Orchard; expectation/timing to be under contract; deposit details for 9 Times Square .
    • Redeployment strategy into higher-yielding, potentially New England hospitality/operating assets, enabled by non-REIT structure .
    • Leasing momentum and return-to-office tailwinds underpinning interest and potential footprint expansions by tenants .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 revenue/EPS/EBITDA was not retrievable at this time due to access limits; as a result, we cannot assess formal beats/misses versus consensus in this report. Values retrieved from S&P Global were unavailable for inclusion due to API rate limits.

Key Takeaways for Investors

  • Disposition execution and portfolio reshaping are the dominant near-term catalysts; the completed 9 Times Square sale and active marketing of 123 William/196 Orchard are central to deleveraging and diversification plans .
  • Cash NOI proved resilient YoY despite revenue headwinds; however, Adjusted EBITDA declined sequentially on lower revenue and higher G&A, highlighting the importance of re-leasing and cost discipline in 2025 .
  • Balance sheet risk is mitigated by 100% fixed-rate debt, lower average rate (4.4%), and extended maturities (3.6 years), providing visibility amid higher-rate macro conditions .
  • Occupancy fell to 80.8% at year-end, creating execution risk but also operating leverage if leasing pipeline converts; management is prioritizing high-quality, investment-grade tenants .
  • Leadership transition to Nick Schorsch Jr. puts a premium on continuity of asset sale execution and reinvestment discipline; monitoring early communications and capital allocation will be important .
  • Absent quantitative guidance, track quarterly trends in Cash NOI, Adjusted EBITDA, occupancy, and net leverage; any announced sale agreements for 123 William/196 Orchard or sizable new leases would be material stock catalysts .