On November 9, 2023, American Strategic Investment Co. (NYSE: NYC), a commercial real estate company focused on properties within New York City's five boroughs, released its financial results for the third quarter ended September 30, 2023. The company reported a slight increase in revenue and improvements in net loss and Core FFO, reflecting progress in operational efficiency and leasing activities.
Financial Highlights
The company's revenue edged up to $16.0 million in Q3 2023, a minor increase from $15.9 million in the same quarter of the previous year. The net loss attributable to common stockholders showed notable improvement, decreasing to $9.4 million from $11.1 million in Q3 2022. This was also an improvement from the $10.9 million net loss reported in the second quarter of 2023.
Cash Net Operating Income (NOI) grew by 4.9% to $6.5 million, compared to $6.2 million in the third quarter of 2022. Adjusted EBITDA saw an 18% increase to $3.4 million from $2.9 million in the same quarter of the previous year. Funds from Operations (FFO) also improved, showing a loss of $2.5 million compared to a loss of $4.1 million in Q3 2022. Core FFO was reported at negative $1.1 million, or negative $0.48 per share, an improvement from negative $1.9 million, or negative $1.12 per share, in Q3 2022.
Operational Efficiency and Portfolio Health
CEO Michael Anderson commented on the results, stating,
The Company made progress in our effort to increase value, as we benefited from the positive results that our ongoing leasing and tenant retention activities have yielded, including a 2.4% growth in portfolio occupancy year to date,"and highlighted the 18% increase in Adjusted EBITDA and 4.9% growth in Cash NOI.
The company's real estate portfolio consisted of eight properties with 1.2 million rentable square feet, 85.1% leased, and a weighted-average lease term of 6.6 years. The top 10 tenants, based on annualized straight-line rent, were predominantly investment grade or implied investment grade rated, with a weighted-average remaining lease term of 8.9 years.
On the capital structure front, American Strategic Investment Co. reported $5.1 million in cash and cash equivalents, with net debt to gross asset value at 41.7%. The company's debt was 100% fixed-rate, with no maturities through the end of 2023 and a weighted-average interest rate of 4.4%.
Looking Forward
The company will host a webcast and conference call to discuss the financial and operating results in more detail. Investors and interested parties can access the call through the company's website or by dialing in directly.
While the company's efforts to improve its operational efficiency and leasing success are evident in the improved financial metrics, the slight increase in revenue and the continued negative Core FFO indicate that there are still challenges to overcome. The stable occupancy rates and the strength of the tenant base, however, provide a solid foundation for future growth.
For more detailed financial information and disclosures, investors are encouraged to review the supplemental information packages filed with the Securities and Exchange Commission (SEC) and available on the company's website.
As American Strategic Investment Co. continues to navigate the complexities of the New York City real estate market, it remains focused on enhancing shareholder value through strategic asset management and prudent financial oversight.
Explore the complete 8-K earnings release (here) from American Strategic Investment Co for further details.
