American Strategic Investment Co (NYC) 2023 Q2 法說會逐字稿

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

早安，歡迎參加美國戰略投資公司第二季財報電話會議。 （操作員指示）我現在想將會議轉交給資深副總裁 [Curtis Parker]。前進。

Thank you. Good morning, everyone, and thank you for joining us for our second 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。大家早安，感謝您參加我們的 2023 年第二季財報電話會議。該活動正在我們網站的投資者關係部分進行網路直播。今天與我一起參加電話討論本季業績的有美國戰略投資公司首席執行官邁克爾·威爾 (Michael Weil) 和首席財務官克里斯·馬斯特森 (Chris Masterson)。

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 31st, 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.

以下資訊包含前瞻性陳述，這些陳述存在風險和不確定性。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有重大差異。我們建議大家參閱我們向 SEC 提交的文件，包括截至 2022 年 12 月 31 日的年度提交的 10-K 表格、於 2023 年 3 月 16 日提交的所有後續 SEC 文件，以更詳細地討論可能導致這些差異。

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截至本次電話會議之日作出。正如我們在美國證券交易委員會提交的文件中所述，除法律要求外，該公司不承擔任何更新或修改這些前瞻性陳述的意圖或義務。

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. 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.

此外，在今天的電話會議中，我們將討論非公認會計準則財務指標，我們認為這些指標有助於評估公司的財務表現。這些措施不應被孤立地考慮，也不應取代我們根據公認會計準則編制的財務表現。這些指標與最直接可比較的 GAAP 指標的調整可在我們的收益報告中找到，該報告發佈在我們的網站 www.americanstrategicinvestment.com 上。另請參閱我們的收益報告，以了解有關我們認為的隱含投資等級租戶的更多詳細信息，我們將在今天的電話會議中使用該術語。

I will now turn the call over to Michael Weil, Chief Executive Officer. Please go ahead, Mike.

我現在將把電話轉給執行長 Michael Weil。請繼續，麥克。

Thanks, Curtis. Good morning and thank you all for joining us today. The second quarter was extremely productive as our ongoing focus on leasing activity throughout our portfolio continued to produce positive results. We signed four new leases during the second quarter that totaled over 26,000 square feet that will generate $1.5 million of straight-line rent.

謝謝，柯蒂斯。早安，感謝大家今天加入我們。第二季度非常富有成效，因為我們對整個投資組合中租賃活動的持續關注繼續產生了積極的成果。我們在第二季簽署了四份新租約，總面積超過 26,000 平方英尺，將產生 150 萬美元的直線租金。

As a result, we grew in-place occupancy to 85.1% from 84% at the end of the prior quarter, a 110-basis point increase in just three months. Our portfolio weighted average remaining lease term was 6.8 years as over 40% of our leases extend beyond the year 2030, which we believe increases the stability of the real estate we own. Our top 10 tenants, 79% are what we consider to be investment grade, showing the quality of our tenant roster.

結果，我們的就地入住率從上一季末的 84% 增加到 85.1%，短短三個月內就增加了 110 個基點。我們的投資組合加權平均剩餘租賃期限為 6.8 年，超過 40% 的租賃期限延續到 2030 年之後，我們相信這提高了我們擁有的房地產的穩定性。在我們的前 10 名租戶中，79% 屬於我們認為的投資等級，這顯示了我們租戶名冊的品質。

These tenants had a remaining lease term of 9.1 years, providing further stability in our portfolio. We executed two leases during the second quarter that I'd like to highlight because we believe they illustrate the strength of our leasing platform. The first is a lease expansion with an existing tenant at 9 Times Square. The expansion doubled this tenant occupancy in the building to over 17,500 feet.

這些租戶的剩餘租期為 9.1 年，為我們的投資組合提供了進一步的穩定性。我們在第二季執行了兩項租賃，我想強調一下，因為我們相信它們體現了我們租賃平台的實力。第一個是對時代廣場 9 號現有租戶的租賃擴展。此次擴建使大樓的租戶佔用面積增加了一倍，達到 17,500 英尺以上。

Accordingly, we doubled the annual straight-line rent from this tenant by $500,000 to $1 million. There are six years of lease term on the expansion, which matches the expiration date of the original lease. Second at 8713 Fifth Avenue in Brooklyn. We executed a 10-year lease renewal with one of the largest healthcare systems in the Northeast.

因此，我們將該租戶的年租金直線增加了一倍，增加了 50 萬美元，達到 100 萬美元。擴建的租賃期限為六年，與原始租賃的到期日期一致。第二個位於布魯克林第五大道 8713 號。我們與東北部最大的醫療系統之一續約了 10 年的租約。

From a financial standpoint, this transaction maintained the current annual straight-line rent and required no leasing commission. We'll maintain our proactive leasing approach as our portfolio management expertise and strong tenant relationships have led to increased occupancy for two quarters in a row and our highest occupancy rate since the fourth quarter of 2020. Our asset management approach contributes to the long-term strength of our $834 million, 1.2 million square foot portfolio of New York City real estate.

從財務角度來看，本次交易維持目前的年直線租金，且無需租賃佣金。我們將保持積極主動的租賃方式，因為我們的投資組合管理專業知識和強大的租戶關係已導致入住率連續兩個季度增加，並達到2020 年第四季度以來的最高入住率。我們的資產管理方法有助於長期發展我們的紐約市房地產投資組合價值 8.34 億美元、面積 120 萬平方英尺。

Our portfolio consists of eight office and retail condominiums, all located in New York City, primarily in Manhattan. We've built a pure play New York City portfolio featuring a number of large investment-grade tenants, including Weill Cornell Medical (sic - "Medicine"), CVS, and government agencies. Across our portfolio, 37% of our tenant base operates in resilient industries, including government agencies and financial firms.

我們的投資組合包括八棟辦公和零售公寓，全部位於紐約市，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，包括威爾康奈爾醫療公司（原文如此 - “醫學”）、CVS 和政府機構。在我們的投資組合中，37% 的租戶群從事彈性產業，包括政府機構和金融公司。

Touching on the quarterly results, the efforts of our asset and property management teams resulted in adjusted EBITDA more than doubling and cash NOI growth of 7.7% compared to the prior year. The increases were achieved through a reduction in G&A and operating expenses, coupled with our ongoing leasing success. Compared to the first quarter, adjusted EBITDA grew by almost 47% and core FFO increased by $0.54 per share.

談到季度業績，我們的資產和物業管理團隊的努力導致調整後的 EBITDA 比上年增長了一倍多，現金 NOI 增長 7.7%。這些成長是透過減少一般管理費用和營運費用以及我們持續的租賃成功來實現的。與第一季相比，調整後 EBITDA 成長近 47%，核心 FFO 每股成長 0.54 美元。

On the balance sheet, our debt was 100% fixed rate including debt that is swapped to fixed rate with an attractive weighted average effective interest rate of 4.4% and a weighted average maturity of 3.7 years. Our financing is very attractive in the current lending environment. And we're pleased that we have no maturities this year and limited maturities through 2025, insulating us from the refinancing risk that other New York City building owners have been experiencing.

在資產負債表上，我們的債務為100%固定利率，包括轉換為固定利率的債務，加權平均實際利率為4.4%，加權平均期限為3.7年，具有吸引力。在當前的貸款環境下，我們的融資非常有吸引力。我們很高興今年沒有到期，並且到 2025 年到期的期限有限，這使我們免受紐約市其他建築業主所經歷的再融資風險。

Our net leverage was a modest 41%. We're committed to strengthening our existing portfolio of real estate assets as we explore additional income-generating investments. In recent years, we've taken advantage of opportunities to invest in the long-term future of our portfolio. And we believe that expanding the scope of our assets is the next step forward for the company.

我們的淨槓桿率為 41%。我們致力於加強現有的房地產資產組合，同時探索更多創收投資。近年來，我們利用機會對投資組合的長期未來進行投資。我們相信，擴大我們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 second quarter results. Chris?

接下來，我將把它交給克里斯·馬斯特森（Chris Masterson）檢查第二季度的業績。克里斯？

Thanks, Mike. Second Quarter 2023 revenue was $15.8 million compared to $16.2 million in the second quarter of 2022 and up incrementally from $15.5 million for the first quarter 2023 as newly commenced leases began to pay rent. The company's second quarter GAAP net loss attributed to shareholders was $10.9 million compared to a net loss of $13 million in the second quarter of 2020. For the second quarter, (technical difficulty) 219% to $3 million compared to $0.9 million in 2022.

謝謝，麥克。 2023 年第二季的收入為 1,580 萬美元，而 2022 年第二季的收入為 1,620 萬美元，隨著新開始的租賃開始支付租金，較 2023 年第一季的 1,550 萬美元有所增加。該公司第二季歸屬於股東的GAAP 淨虧損為1,090 萬美元，而2020 年第二季的淨虧損為1,300 萬美元。第二季（技術難度）為300 萬美元，較2022 年的90 萬美元增長219%。

Cash net operating income increased by $0.6 million or 7.7% to $7.5 million from $6.9 million in the second quarter of 2022. Our FFO attributable to common stockholders was a negative $4 million. Core FFO improved to negative $1.7 million or negative $0.74 per share. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release and quarterly supplemental and on our website.

現金淨營業收入從 2022 年第二季的 690 萬美元增加了 60 萬美元，即 7.7%，達到 750 萬美元。歸屬於普通股股東的 FFO 為負 400 萬美元。核心 FFO 改善至負 170 萬美元，即每股負 0.74 美元。與往常一樣，公認會計準則淨利潤與非公認會計準則指標的對帳可以在我們的收益發布和季度補充以及我們的網站上找到。

At quarter end, we had a relatively conservative balance sheet based on our net leverage of 41%, a weighted average interest rate of 4.4% and almost four years of weighted average debt maturity. We have limited debt maturities through 2025 and none this year. As we have previously discussed, all of our debt is fixed rate or swapped to fixed rate after we locked in interest rates while they're broadly at historic lows.

截至季末，我們的資產負債表相對保守，淨槓桿比率為 41%，加權平均利率為 4.4%，加權平均負債期限近四年。到 2025 年，我們的債務期限有限，今年沒有。正如我們之前所討論的，我們所有的債務都是固定利率，或者在我們鎖定利率後轉換為固定利率，而利率普遍處於歷史低點。

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

我會將電話轉回給麥克，讓他做一些結束語。

Thanks, Chris. We executed on our leasing pipeline last quarter, driving occupancy up 1.1% to 85.1% and adding $1.5 million in annualized straight-line rent. Our new leasing and lower operating expenses resulted in quarter-over-quarter growth in adjusted EBITDA and cash NOI. We believe the long-term lease extensions and expansions we signed this quarter signal our tenant commitments to the properties we own in New York City and we remain focused on maximizing the value of these properties through our continued proactive asset management strategy.

謝謝，克里斯。上季我們執行了租賃計劃，使入住率增加了 1.1%，達到 85.1%，年化直線租金增加了 150 萬美元。我們的新租賃和較低的營運費用導致調整後 EBITDA 和現金 NOI 環比增長。我們相信，我們本季簽署的長期租約延期和擴建標誌著我們的租戶對我們在紐約市擁有的房產的承諾，我們仍然致力於透過持續積極的資產管理策略來最大化這些房產的價值。

In May, we announced that upon the completion of a proposed merger between Global Net Lease and The Necessity Retail REIT, Christian and I would resign our positions as CFO and CEO. of ASIC. As such, this may be the last time that Chris and I get to discuss the company's results with you. We'd like to thank you for your insight, support, and ownership of ASIC over the years, and we take great comfort leaving the company in the hands of Michael Anderson and Joe Marnikovic, who we've recommended to the Board for the positions of CEO and CFO, respectively.

5 月，我們宣布，在 Global Net Lease 和 The Necessity Retail REIT 擬議合併完成後，我和 Christian 將辭去財務長和執行長的職務。 ASIC 的。因此，這可能是克里斯和我最後一次與大家討論公司的表現。我們要感謝您多年來對 ASIC 的洞察力、支持和所有權，我們對將公司交給 Michael Anderson 和 Joe Marnikovic 感到非常欣慰，我們已向董事會推薦他們擔任這些職位分別擔任首席執行官和首席財務官。

Michael and Joe have both been long-time employees of our advisor, AR Global. Michael started with us in 2013 and has risen to become AR Global's General Counsel. Joe joined us in 2017 and currently serves as a AR Global'S CFO. I believe I speak for Michael, Joe, and the Board when I say that we're excited about the opportunities ahead of us. Thank you for joining us today.

Michael 和 Joe 都是我們顧問 AR Global 的長期員工。 Michael 於 2013 年加入我們，現已晉升為 AR Global 的總法律顧問。 Joe 於 2017 年加入我們，目前擔任 AR Global 的財務長。當我說我們對面前的機會感到興奮時，我相信我是代表麥可、喬和董事會發言的。感謝您今天加入我們。

Operator, please open the line for questions.

接線員，請開通提問線。

(Operator Instructions) Bryan Maher, B. Riley Securities.

（操作員指示）Bryan Maher，B. Riley Securities。

Thank you and good morning. And I guess we're going to miss these calls with you, Michael on NYC.

謝謝你，早安。我想我們會想念在紐約與你通話的邁克爾。

Well, Brian, it's been a pleasure and we always appreciate your participation. So, thank you.

嗯，布萊恩，很高興，我們總是感謝您的參與。所以謝謝。

Okay, Moving on to a couple of questions I had this morning. Given the stress that's going on with WeWork, is there anything there that can, in your view, kind of help or hurt NYC, I know that you have a modest shared working platform, but any thoughts on whether or not people might abandon WeWork and maybe take up some of your space where you have vacancy --?

好的，繼續討論我今天早上提出的幾個問題。考慮到 WeWork 面臨的壓力，在您看來，有什麼可以對紐約市有所幫助或傷害嗎？我知道你們有一個適度的共享工作平台，但對於人們是否會放棄 WeWork 的任何想法也許會佔用你的一些空缺空間——？

Yes. I think that that is a possibility that not only (technical difficulty) WeWork is a bit of a phenomenon in my eyes and always has been. WeWork build themselves as something new and different, and they tried to convince everybody that they were some kind of technology company when really they were a traditional real estate short-term leasing platform like we've seen Regis operate for decades.

是的。我認為這種可能性不僅存在（技術難度），WeWork 在我眼中也是一種現象，而且一直都是如此。 WeWork 將自己打造成一種新穎且與眾不同的東西，他們試圖讓每個人相信他們是某種科技公司，而實際上他們是一個傳統的房地產短期租賃平台，就像我們已經看到瑞吉斯經營了幾十年一樣。

So the name WeWork, I think means more than what their business really ever was. And we will continue to see short-term need for space and these types of platforms, whether it's what we operate in our building at 1140 Avenue of the America or throughout New York and the rest of the country will continue to have demand and provide space for people.

因此，我認為 WeWork 這個名字的意義不僅僅在於他們的業務本身。我們將繼續看到對空間和此類平台的短期需求，無論是我們在美國大道 1140 號大樓內運營的平台，還是整個紐約和全國其他地區，都將繼續有需求並提供空間為人們。

Okay. And then as it relates to -- there are some changes in New York City office dynamics with return to office mandates, et cetera. Are you seeing anything as a result of that as it relates to office cap rates or transaction activity?

好的。然後，正如它所涉及的那樣，紐約市的辦公室動態隨著重返辦公室的要求等發生了一些變化。您是否看到與辦公室資本化率或交易活動相關的任何結果？

No, not yet. I think that we are going through the tunnel right now, not us as a company, but New York as a market. I think a number of landlords are facing debt maturities. And we're starting to hear the rumblings of either forced sales or defaults with lenders. And it reminds me back to 2009, I think the bank's position in a number of cases, especially for assets that are performing fairly well is we'll go back to the kind of the delay the outcome. I don't think the banks are going to be very aggressive in foreclosing on properties.

還沒有。我認為我們現在正在經歷隧道，不是我們作為一家公司，而是紐約作為一個市場。我認為許多房東都面臨債務到期的問題。我們開始聽到強制出售或貸款人違約的傳言。這讓我想起了2009年，我認為銀行在許多情況下的立場，特別是對於表現相當好的資產，我們會回到那種延遲結果的情況。我不認為銀行會非常積極地取消房產贖回權。

Now related back to ASIC, and as Chris mentioned in his comments, our greatest benefit is we have about four years of average remaining debt maturity and we have fixed rate debt. So we're well positioned. You saw this quarter that we were really able to start putting some new tenants in expanding and extending some existing tenants.

現在回到 ASIC，正如 Chris 在他的評論中提到的，我們最大的好處是我們有大約四年的平均剩餘債務期限，而且我們有固定利率債務。所以我們處於有利位置。您看到本季我們確實能夠開始引入一些新租戶來擴展和擴展一些現有租戶。

Chris Chao and the asset management team are active in the market. And frankly, we all know summertime in New York is probably the toughest period of the year outside of the Christmas and New Year holidays to really drive leasing. So we really happy to increase occupancy over a full point in the quarter and looking forward to continuing that in the next two quarters.

Chris Chao和資產管理團隊活躍於市場。坦白說，我們都知道紐約的夏季可能是一年中除聖誕節和新年假期之外真正推動租賃最困難的時期。因此，我們非常高興在本季度將入住率提高了一個百分點，並期待在接下來的兩個季度繼續保持這一勢頭。

Maybe following on that a little bit. Where are you thinking that ASIC is going to see opportunities? I know you expanded the picture as to what you would acquire and where you would acquire it. But as you look at the landscape now, is that more parking? Is it more hospitality? Is the next thing the company owns outside in New York, can you give us any color there?

也許可以繼續關註一下。您認為 ASIC 會在哪裡看到機會？我知道你擴展了你將獲得什麼以及在哪裡獲得它的想法。但當你看看現在的景觀時，是不是有更多的停車位？是不是更熱情好客了？該公司在紐約以外擁有的下一個項目是，您能給我們透露那裡的情況嗎？

I can't give you a lot of color right now because we haven't announced anything and nor have we made any decisions. But we continue to look at some interesting opportunities in the operating business side. And as we continue to grow occupancy and increase NOI, we'll continue to position the company to be able to make those types of investment decisions. They very well may be outside of New York City as I think that will diversify the portfolio.

我現在不能給你太多的信息，因為我們還沒有宣布任何事情，也沒有做出任何決定。但我們繼續在經營業務方面尋找一些有趣的機會。隨著我們不斷提高入住率和增加 NOI，我們將繼續使公司能夠做出此類投資決策。他們很可能位於紐約市以外，因為我認為這將使投資組合多樣化。

We have the strong foundation of the properties that we own and the performance continues to pick up and improve. So stay tuned. I think that's something that Michael and Joe are going to be able to really drive, that is one of Joe's core background experiences in the operating business side as well.

我們擁有的資產擁有堅實的基礎，業績持續回升和改善。所以請繼續關注。我認為這是麥可和喬能夠真正推動的事情，這也是喬在經營業務方面的核心背景經驗之一。

And Michael, as you know, has been with the company for over 10 years and has been very involved in more than just the general counsel seat. So their experience is going to be a smooth transition from Chris and me, and they will continue to evaluate those opportunities.

如您所知，邁克爾已在公司工作了 10 多年，並且不僅擔任總法律顧問，還積極參與其他事務。因此，他們的經歷將是克里斯和我的平穩過渡，他們將繼續評估這些機會。

Thanks. And just last from me, and I don't know if Ori or Chris Chao are on the line, but with your leasing pipeline that you're seeing out there, can you give us any color as to where you think occupancy might gravitate towards over there two to four quarters?

謝謝。最後我想說的是，我不知道 Ori 或 Chris Chao 是否在線，但是根據您看到的租賃渠道，您能否告訴我們您認為入住率可能會傾向於哪些方面？那邊有兩到四個季度嗎？

Well, I'm going to jump in. I know you asked that of Chris Chao and he is on the line. But as you know, we haven't given guidance. So I don't want to put Chris in the position of saying something that maybe we shouldn't say on a call like this. But I think that you've seen over the last couple of quarters, a pretty steady uptick in occupancy, and it's going to be a slow but steady climb back to where we were pre-COVID.

好吧，我要插話了。我知道你問了 Chris Chao，他正在通話中。但如你所知，我們還沒有給予指導。所以我不想讓克里斯說一些我們不應該在這樣的電話會議上說的話。但我認為，在過去的幾個季度中，您已經看到入住率相當穩定的上升，並且將緩慢但穩定地回升到新冠疫情爆發前的水平。

And the buildings, the three main buildings in the portfolio, 123 William Street continues to operate at a very high occupancy level. Our continued focus from an asset management standpoint is 1140 Avenue of America and 9 Times Square where we have put a lot of our focus. And Chris is driving the brokerage teams at those buildings.

威廉街 123 號的建築（投資組合中的三座主要建築）繼續以非常高的入住率運作。從資產管理的角度來看，我們持續關注的是美國大道 1140 號和時代廣場 9 號，我們在這兩個地方投入了大量精力。克里斯負責管理這些大樓的經紀團隊。

We are seeing some tours, activity is picking up. I think September will be an important month for driving that activity. And we certainly believe that this is a portfolio that over time will be above 90% occupancy.

我們看到一些旅行團，活動正在增加。我認為九月將是推動這項活動的重要月份。我們當然相信，隨著時間的推移，這個投資組合的入住率將超過 90%。

Great. Thanks. That's all for me and good luck with the new merged RTL and G&L.

偉大的。謝謝。這就是我的全部內容，祝新合併的 RTL 和 G&L 好運。

Thank you, Bryan.

謝謝你，布萊恩。

There are no further questions at this time. I would now like to turn the call back over to the management team for closing remarks.

目前沒有其他問題。我現在想將電話轉回管理團隊進行總結發言。

All right. Well, again, Chris and I wanted to thank everybody. As we said in our comments, we are very excited for the transition to Michael and Joe. We've got a great team embedded in the ASIC platform and we'll continue to drive through and back to our pre-COVID levels as well as bringing some pretty exciting opportunities to the company and shareholders.

好的。克里斯和我想再次感謝大家。正如我們在評論中所說，我們對向邁克爾和喬的過渡感到非常興奮。我們在 ASIC 平台上擁有一支優秀的團隊，我們將繼續推動並回到新冠疫情前的水平，並為公司和股東帶來一些非常令人興奮的機會。

So thank you all again for your time. And Michael and Joe, we wish you the best of luck. And we're excited to see what the direction that you take the company in. Thank you, everybody.

再次感謝大家抽出寶貴的時間。麥可和喬，我們祝你們好運。我們很高興看到你們帶領公司走向何方。謝謝大家。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。