American Strategic Investment Co (NYC) 2023 Q1 法說會逐字稿

Good morning, and welcome to the American Strategic Investment Company's first-quarter 2023 earnings call. (Operator Instructions) I would now like to turn the conference over to [Curtis Parker], Senior Vice President. Please go ahead.

早上好，歡迎來到美國戰略投資公司 2023 年第一季度財報電話會議。 （操作員說明）我現在想將會議轉交給高級副總裁 [Curtis Parker]。請繼續。

Thank you. Good morning, everyone, and thank you for joining us for our first-quarter 2023 earnings call. This event is being webcast in the Investor Relations section of our website. Joining me today on the call to discuss the quarter's results are Michael Weil, American Strategic Investment Company's Chief Executive Officer, and Chris Masterson, the Chief Financial Officer.

謝謝。大家早上好，感謝您加入我們的 2023 年第一季度財報電話會議。該活動正在我們網站的投資者關係部分進行網絡直播。 American Strategic Investment Company 首席執行官 Michael Weil 和首席財務官 Chris Masterson 今天與我一起參加電話會議討論本季度業績。

The following information contains forward-looking statements, which are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements. We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31, 2022, filed on March 16, 2023, in all subsequent SEC filings for a more detailed discussion of the risk factors that could cause these differences.

以下信息包含前瞻性陳述，這些陳述受風險和不確定性的影響。如果這些風險或不確定性中的一項或多項成為現實，實際結果可能與前瞻性陳述中明示或暗示的結果存在重大差異。我們請大家參考我們向美國證券交易委員會提交的文件，包括 2023 年 3 月 16 日提交的截至 2022 年 12 月 31 日止年度的 10-K 表格，以及所有隨後向美國證券交易委員會提交的文件，以便更詳細地討論可能導致的風險因素這些差異。

Any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, the company disclaims any intent or obligation to update or revise these forward-looking statements except as required by law.

本次電話會議期間提供的任何前瞻性陳述僅在本次電話會議之日作出。正如我們在提交給美國證券交易委員會的文件中所述，除法律要求外，公司不承擔更新或修改這些前瞻性陳述的任何意圖或義務。

Also, during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website at www.americanstrategicinvestment.com.

此外，在今天的電話會議中，我們將討論非 GAAP 財務指標，我們認為這有助於評估公司的財務業績。這些措施不應孤立地考慮或替代我們根據公認會計原則編制的財務業績。我們的收益發布中提供了這些衡量指標與最直接可比的 GAAP 衡量指標的對賬，發佈在我們的網站 www.americanstrategincinvestment.com 上。

Please also refer to our earnings release for more detailed information about what we consider to be implied investment-grade tenants, a term we will use throughout today's call. I will now turn the call over to Michael Weil, Chief Executive Officer. Please go ahead, Mike.

另請參閱我們的收益發布，了解有關我們認為隱含的投資級租戶的更多詳細信息，我們將在今天的電話會議中使用這個術語。我現在將把電話轉給首席執行官 Michael Weil。請繼續，邁克。

Thanks, Curtis. Good morning and thank you all for joining us today. We continued to focus on leasing activity during the first quarter, while completing our change in corporate structure and a rights offering to existing shareholders.

謝謝，柯蒂斯。早上好，感謝大家今天加入我們。我們在第一季度繼續專注於租賃活動，同時完成了公司結構的變更和向現有股東的配股。

As we discussed previously, the company is expanding the scope of the assets and businesses we may own and operate, diversifying our revenue streams and opening up opportunities that extend beyond owning just real estate in the five boroughs of New York City. We believe diversifying our portfolio will create an exciting opportunity to drive growth and add benefit beyond what traditional New York real estate can deliver. By expanding the nature and type of assets we can acquire and own, over time will reduce our exposure to a single asset class.

正如我們之前所討論的，該公司正在擴大我們可能擁有和經營的資產和業務的範圍，使我們的收入來源多樣化，並開闢機會，而不僅僅是在紐約市五個行政區擁有房地產。我們相信，多元化我們的投資組合將創造一個令人興奮的機會，以推動增長並增加傳統紐約房地產無法提供的收益。通過擴大我們可以獲得和擁有的資產的性質和類型，隨著時間的推移，我們將減少對單一資產類別的敞口。

We are also now a C corporation and no longer a real estate investment trust from a tax perspective. Accordingly, we have begun transitioning our reporting to focus on earnings per share, but we'll continue reporting FFO metrics as well during this change to provide clarity when comparing to prior periods. Expanding our investment strategy is an exciting step for American Strategic Investment Co., and we're looking forward to pursuing additional income-generating opportunities down the road.

我們現在也是 C 類公司，從稅收角度來看不再是房地產投資信託。因此，我們已經開始將我們的報告轉變為關注每股收益，但我們也將在此變化期間繼續報告 FFO 指標，以便在與前期相比時提供清晰度。擴大我們的投資戰略對 American Strategic Investment Co. 來說是令人興奮的一步，我們期待著在未來尋求更多的創收機會。

In our existing portfolio during the first quarter, we completed five new leases totaling almost 20,000 square feet that will add an additional $1.1 million of straight-line rent. Occupancy in the portfolio increased to 84% from 82.7% at the end of the fourth quarter with these leases in place. Our portfolio weighted average remaining lease term is seven years, which we believe reflects the high quality of our assets and the long-range demand for New York City real estate, where over 40% of our leases extend beyond the year 2030.

在第一季度我們現有的投資組合中，我們完成了五項新租約，總面積近 20,000 平方英尺，這將增加 110 萬美元的直線租金。在這些租賃到位的情況下，投資組合的入住率從第四季度末的 82.7% 增加到 84%。我們的投資組合加權平均剩餘租期為七年，我們認為這反映了我們資產的高質量和對紐約市房地產的長期需求，我們超過 40% 的租約會延續到 2030 年以後。

Of our top 10 tenants, nearly 80% are what we consider to be investment grade, showing the quality of our tenant roster. These tenants have a remaining lease term of 9.4 years, providing long-term stability in our portfolio. We have built a leasing pipeline that is expected to increase occupancy by an additional 1.3%, bringing our occupancy up to 85.3%.

在我們的前 10 大租戶中，近 80% 是我們認為的投資級租戶，顯示了我們租戶名冊的質量。這些租戶的剩餘租期為 9.4 年，為我們的投資組合提供了長期穩定性。我們已經建立了一條租賃渠道，預計入住率將增加 1.3%，使我們的入住率達到 85.3%。

This will also increase straight-line rent by $500,000 once the lease terms start at 123 William Street and at 8713 Fifth Avenue, which will begin on June 1, 2023. We're also actively marketing the space we have available, particularly at 9 Times Square and 1140 Avenue of the Americas, a leasing opportunity that totals 130,000 square feet.

一旦 123 William Street 和 8713 Fifth Avenue 的租賃期從 2023 年 6 月 1 日開始，這也將使直線租金增加 500,000 美元。我們還在積極營銷我們可用的空間，特別是在 9 Times Square 和 1140 Avenue of the Americas，一個總面積為 130,000 平方英尺的租賃機會。

Based on our fundamental belief in the necessity of New York City office and retail space, we remain highly confident in the long-term strength of our $843-million, 1.2-million-square-foot portfolio of New York City real estate. Our portfolio consists of eight office and retail condominiums located entirely in New York City and primarily in Manhattan. We've built a pure play New York City portfolio featuring a number of large investment-grade tenants including while Weill Cornell Medical, CVS and government agencies. Across our portfolio, 39% of our tenant base operates in industries with the lowest unemployment rates, including government agencies and financial firms.

基於我們對紐約市辦公和零售空間必要性的基本信念，我們對我們 8.43 億美元、120 萬平方英尺的紐約市房地產投資組合的長期實力充滿信心。我們的投資組合包括八個辦公和零售公寓，完全位於紐約市，主要位於曼哈頓。我們已經建立了一個純粹的紐約市投資組合，其中包括許多大型投資級租戶，包括 Weill Cornell Medical、CVS 和政府機構。在我們的投資組合中，39% 的租戶來自失業率最低的行業，包括政府機構和金融公司。

The activities of our asset and property management teams resulted in 22% growth of cash NOI compared to the first quarter in 2022 through controlling costs and lowering G&A and operating expenses. G&A expenses are subject to an annual cap. As a result, first-quarter G&A expenses increased compared to the fourth quarter of 2022 as this annual cap was reached part of the way through the quarter, limiting the costs to the company. Combined with our fixed rate debt and prudent net leverage, we believe that our existing assets and management of these assets provides a strong foundation for our expanded strategy.

與 2022 年第一季度相比，我們的資產和物業管理團隊的活動通過控製成本以及降低 G&A 和運營費用，使現金 NOI 增長了 22%。 G&A 費用受年度上限限制。因此，與 2022 年第四季度相比，第一季度的 G&A 費用有所增加，因為在本季度的部分時間達到了這一年度上限，從而限制了公司的成本。結合我們的固定利率債務和審慎的淨槓桿，我們相信我們的現有資產和這些資產的管理為我們的擴展戰略提供了堅實的基礎。

We're entering into an exciting period for American Strategic Investment Co. as we continue to strengthen our existing portfolio of real estate assets while exploring additional income-generating investments. Over the last few years, we've taken advantage of opportunities to invest in the long-term future of our portfolio and expanding the scope of the assets we own is the next step forward for the company.

American Strategic Investment Co. 正在進入一個激動人心的時期，因為我們將繼續加強現有的房地產資產組合，同時探索更多的創收投資。在過去的幾年裡，我們利用機會投資於我們投資組合的長期未來，擴大我們擁有的資產範圍是公司的下一步。

With that, I'll turn it over to Chris Masterson to go over the first-quarter results. Chris?

有了這個，我將把它交給克里斯馬斯特森來檢查第一季度的結果。克里斯？

Thanks, Mike. First-quarter 2023 revenue was $15.5 million compared to $15.6 million in the first quarter of 2022. The company's first-quarter GAAP net loss attributable to common stockholders was $11.8 million compared to a net loss of $11.7 million in the first quarter of 2022.

謝謝，邁克。 2023 年第一季度收入為 1550 萬美元，而 2022 年第一季度為 1560 萬美元。該公司第一季度歸屬於普通股股東的 GAAP 淨虧損為 1180 萬美元，而 2022 年第一季度為淨虧損 1170 萬美元。

For the first quarter of 2023, adjusted EBITDA was $2 million compared to $2.1 million in 2020. Cash net operating income increased by $1.3 million or 21.9% to $7 million from $5.7 million in the first quarter of 2022. Our FFO attributable to common stockholders was a negative $4.8 million. Core FFO was negative $2.6 million or negative $1.28 per share. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release and quarterly supplemental.

2023 年第一季度，調整後的 EBITDA 為 200 萬美元，而 2020 年為 210 萬美元。現金淨營業收入從 2022 年第一季度的 570 萬美元增加 130 萬美元或 21.9% 至 700 萬美元。歸屬於普通股股東的 FFO 為負 480 萬美元。核心 FFO 為負 260 萬美元或每股負 1.28 美元。與往常一樣，可以在我們的收益發布和季度補充中找到 GAAP 淨收入與非 GAAP 指標的對賬。

At quarter end, we had a relatively conservative balance sheet based on our net leverage of 40.7%, a weighted average interest rate of 4.4% and almost four years of weighted average debt maturity. We don't have any debt maturity this year and have only minimal maturities until 2026. As we have previously discussed, all of our debt is fixed rate after we locked in interest rates while they were broadly at historic lows.

在季度末，基於我們 40.7% 的淨槓桿率、4.4% 的加權平均利率和近四年的加權平均債務期限，我們的資產負債表相對保守。我們今年沒有任何債務到期，只有最低期限到 2026 年。正如我們之前所討論的，在我們鎖定利率後，我們所有的債務都是固定利率，而利率普遍處於歷史低位。

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

我會把電話轉回給邁克，聽取一些結束語。

Thanks, Chris. Now that we've completed our transformation to American Strategic Investment Company, we're focused on continuing to build the company for the future. We signed new leases during the quarter and have a leasing pipeline that would further grow occupancy by 1.3% as well as add $500,000 of additional annualized straight-line rent once leases commence. We are looking forward to the opportunities ahead of us with our solid portfolio as a foundation.

謝謝，克里斯。既然我們已經完成了向美國戰略投資公司的轉型，我們將專注於繼續為未來建設公司。我們在本季度簽署了新的租約，並擁有一條租賃管道，可進一步增加 1.3% 的入住率，並在租賃開始後增加 500,000 美元的額外年化直線租金。我們期待著以我們堅實的產品組合為基礎的機會。

Thank you for joining us today. And operator, please open the lines for questions.

感謝您今天加入我們。接線員，請打開問題線路。

(Operator Instructions) Bryan Maher, B. Riley.

（操作員說明）Bryan Maher，B. Riley。

Thank you. Good morning, Michael and Chris.

謝謝。早上好，邁克爾和克里斯。

Hi, Bryan.

嗨，布萊恩。

Couple of questions. Look, you guys have boots on the ground in New York. We're re-reading all the stuff we read about New York City. Do you see any opportunities in that market? I know that you're expanding outside the market, but anything in that market that interests you? And if so, how would you finance it?

幾個問題。看，你們在紐約實地有靴子。我們正在重讀我們讀過的關於紐約市的所有資料。你看到那個市場有什麼機會嗎？我知道您正在向市場之外擴張，但您對那個市場中的任何事物感興趣？如果是這樣，您將如何融資？

Surprisingly, Bryan, the market has been pretty quiet. I think that many landlords like ourselves think that this is a period to focus on assets at hand. And as we were able to talk about in the previous comments, leasing activity has been strong in our portfolio. And we've been able to -- we executed five new leases. We've taken care of some renewals and we're really solidifying the portfolio.

令人驚訝的是，布賴恩，市場一直很平靜。我想很多房東都和我們一樣，認為這是一個關注手頭資產的時期。正如我們在之前的評論中所談到的那樣，我們的投資組合中的租賃活動一直很強勁。而且我們已經能夠 - 我們執行了五個新租約。我們已經處理了一些更新，我們確實在鞏固產品組合。

The other part that comes to the top here is that in our situation, we don't have debt maturities. So, this is a period where we're shoring up the foundation, making the portfolio stronger and better, growing NOI and revenue as different things occur for different property owners. I do think there's a potential that inability to refinance will come to play as an opportunity.

這裡最重要的另一部分是，在我們的情況下，我們沒有到期債務。因此，這是我們鞏固基礎、使投資組合更強大、更好、隨著不同業主發生不同情況而增加 NOI 和收入的時期。我確實認為，無法再融資可能會成為一個機會。

The lending market remains open for stable assets. And given the opportunity, we will continue to look at targets. As I've said, this company really focuses in the kind of $50 million to $250 million asset range -- those are buildings that continue to have stable occupancy and continue to serve an important role in New York City business.

借貸市場仍然對穩定資產開放。如果有機會，我們將繼續研究目標。正如我所說，這家公司真正專注於 5000 萬至 2.5 億美元的資產範圍——這些建築物繼續擁有穩定的入住率，並繼續在紐約市業務中發揮重要作用。

As far as how we would finance it, that would be part of the equation on our -- how aggressive we were in going after assets. The portfolio, as it sits today, is only about 40% levered. So, there are some opportunities to do some things with the existing assets that would allow us some flexibility in pursuing a target asset. So, there -- as we see different things come into the market, we'll have different ways of evaluating them. And if they fit in what the company can absorb, we will certainly be participants in the process.

至於我們將如何為其融資，那將是我們在追求資產方面的積極性的一部分。該投資組合目前的槓桿率僅為 40% 左右。因此，有一些機會可以對現有資產做一些事情，這將使我們在追求目標資產方面具有一定的靈活性。所以，在那裡 - 當我們看到不同的東西進入市場時，我們將有不同的方式來評估它們。如果他們適合公司可以吸收的內容，我們當然會參與這個過程。

Okay. And then kind of staying on that line of topic for a minute. You've got a couple of assets in the portfolio running pretty high occupancy, 100% occupancy, in certain cases and some pretty low-rate, fixed-rate debt. If you were to consider selling any of the 100% occupied properties to maybe recycle capital into something that you could then re-lease up -- maybe something that's running 60%, 70%, 80% occupancy that you could lease up and create value.

好的。然後在這一主題上停留一分鐘。在某些情況下，您的投資組合中有一些資產佔用率很高，100% 佔用率，還有一些利率很低的固定利率債務。如果你考慮出售任何 100% 佔用的房產，可能將資本回收到你可以再出租的東西上——也許是佔用率達到 60%、70%、80% 的東西，你可以出租並創造價值.

Are any of those properties, do they have assumable debt that could be really attractive to a buyer?

這些房產中的任何一個，它們是否有可能真正吸引買家的可承擔債務？

Certainly, that is something that we have looked at. And yes, some of them do have assumable debt that is what I consider previous vintage debt. It is more attractive. I don't know that the buyer pool is very deep right now for people other than those that are looking for distressed sellers. And as I agree with you, the scenario that you just laid out, we would not be a distressed seller, we would be a opportunity seller.

當然，這是我們已經研究過的東西。是的，他們中的一些人確實有可承擔的債務，我認為這是以前的老式債務。它更具吸引力。我不知道除了那些正在尋找陷入困境的賣家之外的人，現在的買家池是不是很深。正如我同意你的看法，你剛剛提出的情景，我們不會成為一個陷入困境的賣家，我們將成為一個機會賣家。

And I don't know that that pool -- as we had several conversations with the institutional brokerage market, it's just not very deep right now. And I think we -- because the occupancy is at or near 100%, and we do have the benefit of the fixed rate debt, we certainly don't want to be viewed as a distress seller because we're not.

而且我不知道那個池——因為我們與機構經紀市場進行了幾次對話，它現在還不是很深。我認為我們——因為入住率達到或接近 100%，而且我們確實受益於固定利率債務，我們當然不想被視為困境賣家，因為我們不是。

Okay. And maybe last for me, and maybe this is a little outside your sphere, but it might be helpful to kind of think through the market. My son and a bunch of his friends who all live in New York City, they're faced with rent renewals and just insane increases in rent. And if you want to try and find something else, it's virtually impossible to find something that these 20-somethings can afford -- one bedroom, two bedrooms, whatever.

好的。也許對我來說最後一次，也許這有點超出你的範圍，但考慮一下市場可能會有所幫助。我的兒子和他的一群朋友都住在紐約市，他們面臨著續租和瘋狂上漲的租金。如果你想嘗試尋找其他東西，幾乎不可能找到這些 20 多歲的年輕人買得起的東西——一間臥室，兩間臥室，等等。

We hear about a lot of empty office space, Class B stuff in New York City but also, hurdles about converting that to residential. How do you view that market? Is that anything that you could do at Times Square -- your 9 Times Square property or is there an opportunity for you or anybody else to tap into that scenario where I know an older office is not ideal to convert to residential and maybe a little difficult. But the something's better than nothing for these 20-somethings.

我們聽說紐約市有很多空置的辦公空間，B 級的東西，但也有將其轉換為住宅的障礙。你如何看待這個市場？這是你可以在時代廣場做的任何事情嗎——你在時代廣場 9 號的房產，或者你或其他任何人是否有機會利用這種情況，我知道舊辦公室不適合轉換為住宅，而且可能有點困難.但對於這些 20 多歲的年輕人來說，有總比沒有好。

I won't address the aspect of the 20-somethings, but I will address the conversion that we've all been watching of some office to residential. And I would tell you that I think the jury is out on that undertaking. It's incredibly expensive and the challenges of converting traditional office -- and if you take your specific example, I won't call it low-income out housing but reasonable housing.

我不會解決 20 多歲的問題，但我會解決我們一直關注的一些辦公室到住宅的轉變。我會告訴你，我認為陪審團不同意這項承諾。它非常昂貴，而且改造傳統辦公室的挑戰——如果你舉個具體的例子，我不會稱之為低收入住房，而是合理的住房。

I don't know that there's a justified return on that type of undertaking. The engineering, the construction, the just the time -- you have to empty your building, you have to get approvals for your work. You're two to three years before you can start the conversion. And then you have the very significant construction costs, architecture, et cetera.

我不知道這種類型的工作是否有合理的回報。工程、施工，只是時間——你必須清空你的大樓，你必須獲得工作批准。您需要兩到三年才能開始轉換。然後你有非常重要的建築成本、建築等等。

So, I don't know -- to me if we're talking about a two- to three-year window, I think it's a better outcome to say we're already at 65% back to office. That's what the data shows; it's tracked every day. Organizations like [Rene] reported New York City is about 65% back to office, and that's just as we're coming to summer.

所以，我不知道——對我來說，如果我們談論的是兩到三年的窗口期，我認為最好的結果是說我們已經有 65% 的人重返辦公室。這就是數據所顯示的；它每天都被跟踪。 [Rene] 等組織報告稱，紐約市約有 65% 的人重返辦公室，而這正是我們即將進入夏季的時候。

My belief is after Labor Day, when kids go back to school, I believe you're going to see a much different tenor from employers regarding back to office. I don't know that it will be five days a week; I don't know that it needs to be, but I do believe that it will be mandated that people are spending the majority of their work week in the office, something over than 50% of their time, and definitely something more than 65% back to office as we sit today.

我的信念是在勞動節之後，當孩子們回到學校時，我相信你會看到雇主對重返辦公室的看法大不相同。我不知道會是一周五天；我不知道是否需要這樣做，但我確實相信人們每周大部分時間都在辦公室度過，超過 50% 的時間，而且肯定超過 65%我們今天坐下來回到辦公室。

So, when that happens, people are going to realize again that they need their office space and the market activity -- I think renewals will benefit. You could see some downsizing. Now, I think that's a positive for us because our tenants are not hundreds of thousands of square feet in trophy assets. Our tenants are in 8,000 or 10,000 square feet. They're not going to downsize in any material way, but we may get the benefit of somebody that was 25,000 feet saying, You know what? I could be a full-floor user at 9 Times Square with a 12,000 square foot lease, and that's a great new tenant for us on a long-term basis.

因此，當這種情況發生時，人們將再次意識到他們需要辦公空間和市場活動——我認為續約將受益。你可以看到一些裁員。現在，我認為這對我們來說是積極的，因為我們的租戶沒有數十萬平方英尺的獎杯資產。我們的租戶佔地 8,000 或 10,000 平方英尺。他們不會以任何實質性方式縮小規模，但我們可能會從 25,000 英尺高空的人那裡受益，你知道嗎？我可以租用 12,000 平方英尺租用 9 Times Square 的整層樓用戶，從長遠來看，這對我們來說是一個很好的新租戶。

So, I think that where we sit today at 85% occupancy in a anticipated rising occupancy environment is a more predictable future than conversion from office to the residential.

因此，我認為，在預期的入住率上升環境中，我們今天所坐的 85% 的入住率比從辦公室轉換為住宅更可預測的未來。

Great. That's helpful. Thanks, Michael.

偉大的。這很有幫助。謝謝，邁克爾。

All right. Thank you, Bryan.

好的。謝謝你，布萊恩。

And this ends our question-and-answer period. I will now turn the call back over to our CEO, Michael Weil, for some closing remarks.

我們的問答期到此結束。我現在將把電話轉回給我們的首席執行官 Michael Weil，聽取一些結束語。

All right. Well, thank you, everybody. And Bryan, thank you for the questions because I think specifically your last question really let us or let me talk about what I see as the vision for the New York real estate market. It's still an important part of the company. But as you all recall, the transition to American Strategic Investment, that would be one part of our go-forward business. It gives us opportunities to evaluate and make decisions that will drive shareholder value in the near term and also, the long term. So, thank you very much, and we look forward to talking again soon.

好的。嗯，謝謝大家。布萊恩，謝謝你提出的問題，因為我認為你的最後一個問題真的讓我們或讓我談談我對紐約房地產市場的願景。它仍然是公司的重要組成部分。但正如你們都記得的那樣，向美國戰略投資的過渡將是我們未來業務的一部分。它為我們提供了評估和做出決策的機會，這些決策將在近期和長期推動股東價值。所以，非常感謝你，我們期待很快再次交談。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。