American Strategic Investment Co (NYC) 2024 Q1 法說會逐字稿

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

早安，歡迎參加美國戰略投資公司第一季財報電話會議。（操作員指示）我現在想將會議轉交給資深副總裁 Curtis Parker。請繼續。

Thank you. Good morning, everyone, and thank you for joining us for our first quarter 2024 earnings call. This event is also being webcast in the Investor Relations section of our website. Joining me today on the call to discuss the quarter's results are, Michael Anderson, American Strategic Investment company's Chief Executive Officer; and Michael Santo, the Chief Financial Officer.

謝謝。大家早安，感謝您參加我們的 2024 年第一季財報電話會議。該活動也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會議討論本季業績的是美國戰略投資公司執行長 Michael Anderson；和首席財務官邁克爾桑托。

The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. Please review the forward-looking and cautionary statements section at the end of the first quarter 2024 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today.

以下資訊包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，這些陳述存在風險和不確定性。請查看 2024 年第一季財報發布結束時的前瞻性和警示性聲明部分，以了解可能導致實際結果與我們今天電話會議中做出的前瞻性聲明有重大差異的各種因素。

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, 2023, filed on April 1, 2024, and all subsequent SEC filings for a more detailed discussion of the risk factors that could cause these differences.

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2023 年12 月31 日的年度提交的10-K 表格、於2024 年4 月1 日提交的表格以及所有後續向SEC 提交的文件，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在本次電話會議當日作出。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隱含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該術語。

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

我現在將把電話轉給執行長邁克爾安德森 (Michael Anderson)。請繼續，邁克爾。

Thanks, Curtis. Good morning and thank you all for joining us. This morning we announced very positive results for the first quarter, including growth in adjusted EBITDA compared to the first quarter of 2023. We achieved this growth through a reduction in G&A and operating expenses, coupled with our ongoing leasing success. We also delivered a 320 basis point increase in occupancy to 87.2% compared to the same quarter in 2023.

謝謝，柯蒂斯。早安，感謝大家加入我們。今天早上，我們宣布了第一季非常積極的業績，包括調整後 EBITDA 與 2023 年第一季相比的成長。我們透過減少一般管理費用和營運費用以及持續的租賃成功實現了這一增長。與 2023 年同季相比，我們的入住率也成長了 320 個基點，達到 87.2%。

Additionally, as we previously announced, we have started the process of diversifying the portfolio to better position the company to grow in the future. As part of this broader monetization effort we have started to market for sale our property at 9 Times Square and will shortly begin the same process at 123 William Street and 196 Orchard Street. We believe that this approach will accelerate the evolution of our business.

此外，正如我們之前宣布的那樣，我們已經開始了投資組合多元化的進程，以便更好地定位公司未來的發展。作為更廣泛的貨幣化努力的一部分，我們已開始推銷我們在時代廣場 9 號的房產，並將很快在威廉街 123 號和果園街 196 號開始同樣的流程。我們相信這種方法將加速我們業務的發展。

Prior to launching the marketing of 9 Times Square, we extended the maturity of our existing debt at that property to October 2024 with the opportunity to extend through year end in order to facilitate the sale of the property. As completed, we believe that the strategic disposition of this property, along with 123 Williams Street and 196 Orchard Street will meaningfully reduce leverage on our balance sheet and generate significant cash proceeds.

在啟動時代廣場 9 號的行銷之前，我們將該物業的現有債務期限延長至 2024 年 10 月，並有機會延長至年底，以促進該物業的出售。完成後，我們相信對該物業以及威廉姆斯街 123 號和果園街 196 號的戰略處置將有意義地降低我們資產負債表上的槓桿並產生大量現金收益。

We intend to use proceeds from any dispositions to diversify our portfolio into higher yielding assets, a strategy we announced last year. We are excited to be moving forward on this initiative and look forward to the opportunities that lie ahead.

我們打算利用任何處置所得的收益，將我們的投資組合多元化，投資於收益率更高的資產，這是我們去年宣布的策略。我們很高興能夠推進這項舉措，並期待未來的機會。

While we look to the future, we are conscious that we must also maintain our focus on our current assets. As of March 31, 2024, our portfolio weighted average remaining lease term was 6.3 years as over 40% of our leases extend beyond the year 2030 based on the Annualized Straight-line Rent. Which we believe enhances the stability of the real estate we own.

在展望未來的同時，我們意識到我們也必須繼續專注於現有資產。截至 2024 年 3 月 31 日，我們的投資組合加權平均剩餘租賃期限為 6.3 年，根據年化直線租金，我們超過 40% 的租賃期限延續到 2030 年之後。我們相信這增強了我們擁有的房地產的穩定性。

Of our top 10 tenants, 80% are investment grade or implied investment grade, showing the quality of our tenant roster. These tenants had a remaining lease term of 8.2 years, providing further stability to our portfolio. We believe our continued proactive asset management approach contributes to the marketability of our $726 million, 1.2 million square foot portfolio of New York City real estate.

在我們的前 10 名租戶中，80% 為投資等級或隱含投資等級，顯示了我們租戶名冊的品質。這些租戶的剩餘租期為 8.2 年，為我們的投資組合提供了進一步的穩定性。我們相信，我們持續積極的資產管理方法有助於我們 7.26 億美元、120 萬平方英尺的紐約市房地產投資組合的適銷性。

At the end of the first quarter, our portfolio consisted of seven office and retail assets, all located in New York City, primarily in Manhattan. Our New York City centric portfolio features a number of large investment grade tenants. We continue to focus our leasing efforts on securing tenants in resilient industries such as well-capitalized, financial service companies and medical institutions. Our core office properties are located in desirable submarkets with close proximity to major transportation hubs.

截至第一季末，我們的投資組合包括七個辦公室和零售資產，全部位於紐約市，主要位於曼哈頓。我們以紐約市為中心的投資組合擁有許多大型投資等級租戶。我們繼續將租賃工作的重點放在確保資本充足的金融服務公司和醫療機構等有彈性產業的租戶上。我們的核心辦公物業位於理想的子市場，靠近主要交通樞紐。

Our first quarter results once again demonstrated the effectiveness of our consistent focus on portfolio management. We believe our long-standing dedication to retaining existing tenants working to make our properties attractive to new tenants and managing our expenses have positioned us well to create value for shareholders as we look to sell some of our Manhattan properties, reduce leverage and seek new higher yielding investment opportunities.

我們第一季的業績再次證明了我們一貫關注投資組合管理的有效性。我們相信，我們長期以來致力於留住現有租戶，努力使我們的物業對新租戶有吸引力，並管理我們的費用，這使我們能夠在我們尋求出售曼哈頓的一些物業、降低槓桿率並尋求新的更高水準的同時，為股東創造價值。

With that, I'll turn it over to Michael Santo, to go over the first quarter results. Mike?

接下來，我將把它交給邁克爾·桑托（Michael Santo），讓他檢查第一季的業績。麥克風？

Thank you, Michael. First quarter 2024 revenue was relatively flat as we produced $15.5 million in both the first quarter of 2024 and 2023. The company's GAAP net loss attributable to common stockholders was $7.6 million in the first quarter of 2024 compared to a net loss of $11.8 million in the first quarter of 2023, representing a year-over-year improvement of $4.2 million.

謝謝你，麥可。2024 年第一季的營收相對持平，2024 年第一季和 2023 年第一季的營收均為 1,550 萬美元。該公司 2024 年第一季歸屬於普通股股東的 GAAP 淨虧損為 760 萬美元，而 2023 年第一季淨虧損為 1,180 萬美元，較去年同期改善 420 萬美元。

For the first quarter of 2024, adjusted EBITDA was $2.9 million compared to $2.5 million in 2023. Cash net operating income increased by $0.1 million or 1% over $7 million compared to nearly $7 million in the first quarter of 2023. The growth was achieved through a reduction in G&A and operating expenses, coupled with our ongoing leasing success. 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.

2024 年第一季度，調整後 EBITDA 為 290 萬美元，而 2023 年為 250 萬美元。現金淨營業收入比 2023 年第一季的近 700 萬美元增加了 10 萬美元，增幅超過 700 萬美元，增幅為 1%。這一增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 on our net leverage of approximately 47%, a weighted average interest rate of 4.4% and 3.4 years of weighted average debt maturity. Subsequent to quarter end, we announced an amendment to a loan on our property at 9 Times Square.

截至季末，我們的資產負債表相對保守，淨槓桿比率約為 47%，加權平均利率為 4.4%，加權平均債務期限為 3.4 年。季度末後，我們宣布對時代廣場 9 號房產的貸款進行修訂。

Among other provisions, the amendment extended the maturity date of a loan to October 31, 2024, with the option of an additional extension to January 31, 2025, in order to facilitate efforts to sell the property. 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 were broadly at historic lows.

除其他條款外，修正案將貸款到期日延長至 2024 年 10 月 31 日，並可選擇進一步延長至 2025 年 1 月 31 日，以促進出售房產。正如我們之前所討論的，我們所有的債務都是固定利率，或者在利率普遍處於歷史低點時鎖定利率後轉換為固定利率。

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

現在我將把電話轉回給邁克爾，讓他做一些結束語。

Thanks, Mike, and thank you all for joining us today. The occupancy and cash NOI growth that we accomplished this quarter can be attributed to our ongoing commitment to portfolio management as we begin the divestment process for certain of our assets in Manhattan.

謝謝麥克，也謝謝大家今天加入我們。我們本季實現的入住率和現金 NOI 成長可歸因於我們在開始剝離曼哈頓某些資產的過程中對投資組合管理的持續承諾。

The reduction in leverage and significant cash proceeds that these sales are expected to generate if sales are completed, or expected to fuel the diversification of our portfolio into new and higher yielding assets. We believe that now is the right time to execute on the strategy and look forward to keeping you updated on a successful execution of this strategy.

如果銷售完成，這些銷售預計將產生槓桿率的降低和大量現金收益，或預計將推動我們的投資組合多元化，轉向新的和更高收益的資產。我們相信現在是執行該策略的最佳時機，並期待向您通報該策略的成功執行情況。

Operator, please open the line for questions.

接線員，請開通提問線。

Bryan Maher.

布萊恩·馬赫。

Thank you and good morning. Hopefully (multiple speakers) I could barely hear the operator there.

謝謝你，早安。希望（多個揚聲器）我幾乎聽不到操作員的聲音。

Yeah. A couple of questions this morning. I know you talked about slightly in use of (inaudible). Okay, so you're going to pay down debt with some of these asset sales and I suspect to redeploy some, do you expect that the redeployed capital would stay in the greater New York area? Or do you anticipate going out to other regions? And I know in the past you've talked about other asset types, but can you give us a little more color on what you're thinking.

是的。今天早上有幾個問題。我知道你有提到使用（聽不清楚）。好的，所以您將透過其中一些資產出售來償還債務，我懷疑要重新部署一些資產，您預計重新部署的資本會留在大紐約地區嗎？或是您預計會去其他地區嗎？我知道您過去曾討論過其他資產類型，但您能給我們更多關於您的想法的資訊嗎？

Sure. And nice to speak with you this morning Bryan. We are certainly looking everywhere and certainly not tied to the New York region. Were our focus is on real estate and real estate adjacent assets from looking at opportunities outside of New York include real estate acquisitions along with operating business acquisitions that we were not able to invest in under the [priority]. Sometime (technical difficulty) I would say that the focus is probably outside of New York, but looking for the right opportunities with the right yield for this company.

當然。很高興今天早上與你交談，布萊恩。我們當然正在到處尋找，當然不限於紐約地區。我們的重點是否是透過尋找紐約以外的機會來關注房地產和房地產鄰近資產，包括房地產收購以及我們無法在以下情況下投資的經營業務收購[優先事項]。有時（技術困難）我會說重點可能在紐約之外，但為這家公司尋找合適的機會和合適的收益。

Okay. Can you talk about why those three specific assets right now, I mean, has the market opened up? Is there demand? is it cap rate? What is this A about, right now and B about those three assets in particular.

好的。你能談談為什麼現在這三種特定資產，我的意思是，市場已經開放了嗎？有需求嗎？是上限利率嗎？目前，A 是關於什麼的，B 特別是關於這三項資產的。

Sure. We think that there are similar types of buyers for the asset at 9 Times Square as well as that 123 William Street, we have had some unsolicited interest in recent months on 9 Times Square and think that are -- there will be similar interest at 123 William Street as we take the property to market. And then we do think that there is a strong market for assets like 196 Orchard, which are net leased condo assets, that we think there are lot of buyers out there looking to deploy capital in that sort of investment.

當然。我們認為，時代廣場 9 號和威廉街 123 號的資產有類似類型的買家，近幾個月來，我們對時代廣場 9 號產生了一些主動興趣，並認為 123 號也會有類似的興趣威廉街，我們將房產推向市場。然後，我們確實認為像 196 Orchard 這樣的資產有一個強勁的市場，這些資產是淨租賃公寓資產，我們認為有很多買家希望在此類投資中部署資金。

And is there a cap rate range that you're comfortable sharing on any or all those?

您是否願意分享其中任何一個或所有這些的上限利率範圍？

You know, I don't know that we're prepared to share a range at this point. But as we get closer to entering into deals and certainly as we get further down the investment disposition process, I think we can share with you at that point.

你知道，我不知道我們現在是否準備好分享一個範圍。但隨著我們越來越接近達成交易，當然隨著我們進一步推進投資處置流程，我認為我們可以在那時與您分享。

Okay. Maybe shifting gears to 1140 Avenue of the Americas, I mean that's a nice property up to or that you know with your team, it's in a great location. What is the hang-up there kind of getting the occupancy back nicely up into the 80s?

好的。也許轉向美洲大道 1140 號，我的意思是，這是一處不錯的房產，或者您和您的團隊都知道，它的位置非常好。要讓入住率恢復到 80 年代的水平，有什麼困難嗎？

yeah. I think we are seeing a lot of interest in foot traffic at that property. We have some larger floors and full floors that are available. But we have seen some increase leasing interest have a tenant that just recently took possession of partial floor in that building. And so that property is certainly a high focus for us as we work on this leasing initiative. And I think we're still seeing some interest from financial institutions and financial services groups, which tend to be the right tenant base for that asset.

是的。我認為我們看到人們對該房產的人流量很感興趣。我們有一些較大的樓層和完整的樓層可供選擇。但我們看到最近剛擁有該大樓部分樓層的租戶的租賃興趣增加。因此，在我們開展這項租賃計劃時，房地產無疑是我們的高度關注點。我認為我們仍然看到金融機構和金融服務集團的一些興趣，它們往往是該資產的合適租戶基礎。

Okay. Just two more quick ones. Why not Brooklyn. I mean, when I look at the portfolio, we've been covering the company for a couple of years. It always seemed like kind of a fish out of water, is there some reasons for hanging onto that particular asset?

好的。再快點就還有兩個。為什麼不是布魯克林。我的意思是，當我查看投資組合時，我們已經報道該公司好幾年了。它看起來總是像一條離開水的魚，是否有一些理由保留該特定資產？

We don't think the time is right on broken at this point. We have leased that building up entirely and we now have done some renewal and re-leasing work there in recent years. And so we think that that certainly is a property that we will look to dispose of. It doesn't necessarily fit our go-forward business plan, but just not the right time for disposing in that market, we don't think.

我們認為目前還不是打破的最佳時機。我們已經完全租賃了該建築，近年來我們已經在那裡進行了一些更新和重新租賃工作。因此，我們認為這肯定是我們希望處置的財產。我們認為，這不一定符合我們未來的業務計劃，但也不是在該市場進行處置的合適時機。

Okay. And last for me, and I don't know if you're going to be able to answer that or not. But obviously, we also saw the [Bellevue tender]. I think it was earlier this week, a little bit of an [elephant] in the room another big slug of shares coming out and lower liquidity in the stock. Can you share any thoughts on what's going on there? I mean, it almost feels like an eventual take-private.

好的。最後一個問題，我不知道你是否能夠回答這個問題。但顯然，我們也看到了[貝爾維尤招標]。我認為本週早些時候，房間裡有一隻[大象]又一大股股票出現，股票的流動性降低了。您能分享一下關於那裡發生的事情的任何想法嗎？我的意思是，這幾乎感覺像是最終的私有化。

Yeah, I think to the extent that we can speak of it, we believe that it just as another indication of support from Bellevue in the company and in particular in the long-term vision for the company and the growth plan that we have outlined to the market. And so the Board will undergo its process to make its recommendations as it's required to, but we see it as a sign that there is continued support for the company and the direction of company is going.

是的，我認為在我們可以談論的範圍內，我們相信這只是貝爾維尤對公司支持的另一個跡象，特別是公司的長期願景和我們概述的成長計畫市場。因此，董事會將按照要求進行程序以提出建議，但我們認為這是一個跡象，表明公司將繼續得到支持，公司的發展方向也在繼續。

Right. I mean, look, for sure as we've written if you looked at the book value of this company and if you can get anywhere near, where those assets are being traded for relative to book value, I mean or even some haircut the book value in a decent way, you and the stock is grossly undervalued, but it's just been a weird couple of quarters, couple of years. So anyway, thank you for taking my questions.

正確的。我的意思是，看，當然，正如我們所寫的，如果你查看這家公司的賬面價值，如果你能接近這些資產相對於賬面價值的交易價格，我的意思是，甚至對賬面進行一些削減以一種體面的方式價值，你和股票被嚴重低估，但這只是奇怪的幾個季度，幾年。不管怎樣，謝謝你回答我的問題。

Absolutely. Thanks, Bryan.

絕對地。謝謝，布萊恩。

And with that, I'll hand the floor over to management for closing remarks.

接下來，我將把發言權交給管理階層進行總結發言。

Thank you, operator, and thank you all for joining us. As we outlined earlier, we're excited about the direction of the company. We're very pleased with our expense control efforts that we've put into place and starting to see the results of those, and we will look forward to continuing to share updates as we make progress to our revised business plan that we've outlined today. Thanks.

謝謝您，運營商，也謝謝大家加入我們。正如我們之前概述的，我們對公司的發展方向感到興奮。我們對我們所採取的費用控制努力感到非常滿意，並開始看到這些努力的結果，我們將期待在我們概述的修訂業務計劃取得進展時繼續分享最新信息今天。謝謝。

Ladies and gentlemen, that concludes today's call, and thank you for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，感謝您的加入。您現在可以斷開連線。