American Strategic Investment Co (NYC) 2024 Q3 法說會逐字稿

Good morning and welcome to the American Strategic Investment Company's third-quarter earnings call. My name is Karen and I'll be your operator today. (Operator instructions)

早安，歡迎參加美國戰略投資公司第三季財報電話會議。我叫凱倫，今天我將成為您的接線生。（操作員說明）

I'd like to turn the conference over to Curtis Parker, Senior Vice President. Please go ahead.

我想將會議交給高級副總裁柯蒂斯·帕克 (Curtis Parker)。請繼續。

Thank you. Good morning everyone and thank you for joining us for our third 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 Mike Lesanto, the Chief Financial Officer.

謝謝。大家早安，感謝您參加我們的 2024 年第三季財報電話會議。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；和財務長 Mike Lesanto。

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 third 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意義內的前瞻性陳述，這些陳述存在風險和不確定性。請查看 2024 年第三季收益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，包括於2024 年4 月1 日提交的截至2023 年12 月31 日止年度的10-K 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的風險因素。

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. Also during today's call, we will discuss non-GAAP financial measures which we believe will be useful in evaluating the company's financial performance.

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。此外，在今天的電話會議中，我們還將討論非公認會計準則財務指標，我們認為這些指標將有助於評估公司的財務表現。

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.americanstrategicinvestments.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 use throughout today's call.

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.americanstrategicinvestments.com 上。另請參閱我們的收益報告，以了解更多關於我們認為隱含的信息，投資級租戶是我們在今天的電話會議中使用的術語。

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. Our positive results for the third quarter included additional incremental cash NOI growth compared to the third quarter of 2023. We achieved this growth through ongoing leasing success and occupancy gains.

謝謝，柯蒂斯。早安，感謝大家加入我們。我們第三季的正面業績包括與 2023 年第三季相比額外增加的現金 NOI 成長。我們透過持續的租賃成功和入住率成長實現了這一成長。

Specifically, we delivered a 70 basis point expansion in occupancy to 85.8% compared to the same quarter in 2023. Beyond the strong operating execution, as previously announced, we've entered into a definitive agreement to sell our property at 9 Times Square for $63.5 million, which is expected to close in the fourth quarter of 2024.

具體而言，與 2023 年同季相比，我們的入住率成長了 70 個基點，達到 85.8%。正如先前宣布的那樣，除了強大的營運執行力之外，我們還達成了一項最終協議，以 6,350 萬美元的價格出售我們位於時代廣場 9 號的房產，預計將於 2024 年第四季度完成。

The sale of this property would reduce leverage on our balance sheet and generate net proceeds of approximately $13.5 million, strengthening our cash position. We incurred a non-cash impairment of $1.9 million for this property in this quarter's results.

出售該房產將減少我們資產負債表上的槓桿，並產生約 1,350 萬美元的淨收益，從而增強我們的現金狀況。在本季的業績中，我們對該房產產生了 190 萬美元的非現金減損。

Importantly, and as we previously shared, we successfully extended our debt on this asset through year-end as we work to close this transaction. To further strengthen our balance sheet, we are actively marketing 123 William Street and 196 Orchard for sale. We believe these properties are well positioned to generate significant returns.

重要的是，正如我們之前分享的那樣，隨著我們努力完成這項交易，我們成功地將這項資產的債務延長到年底。為了進一步加強我們的資產負債表，我們正在積極推銷威廉街 123 號和果園 196 號。我們相信這些物業處於有利位置，能夠產生可觀的回報。

Proceeds from any sale will be used to diversify our portfolio into higher-yielding assets as discussed last year. We are excited about this initiative and its potential to increase long-term value. While we are committed to creating long-term value in our portfolio, our focus remains on our current assets.

正如去年所討論的那樣，任何出售的收益都將用於將我們的投資組合多元化到更高收益的資產。我們對這項舉措及其增加長期價值的潛力感到興奮。雖然我們致力於在投資組合中創造長期價值，但我們的重點仍然是我們的流動資產。

Our portfolio's weighted average remaining lease term was 5.9 years as of September 30, 2024, with 45% of our leases extending beyond 2030 based on annualized straight-line rent. We believe that this, coupled with a high-quality tenant base featuring top 10 tenants who are 81% investment grade or implied investment grade provides significant portfolio stability.

截至 2024 年 9 月 30 日，我們投資組合的加權平均剩餘租賃期為 5.9 年，其中 45% 的租賃根據年化直線租金延長至 2030 年之後。我們相信，再加上以投資等級或隱含投資等級為 81% 的前 10 位租戶為代表的高品質租戶群，可提供顯著的投資組合穩定性。

We believe our proactive asset management strategy has enhanced our $490 million, 1.2 million square foot New York City real estate portfolio. Located primarily in Manhattan, our seven office and retail properties benefit from a strong tenant base, including several large investment grade firms. By focusing on resilient industries and transit oriented locations, we believe we've positioned ourselves for long-term success.

我們相信，我們積極主動的資產管理策略增強了我們 4.9 億美元、120 萬平方英尺的紐約市房地產投資組合。我們的七個辦公室和零售物業主要位於曼哈頓，受益於強大的租戶基礎，其中包括幾家大型投資級公司。透過專注於有彈性的行業和以交通為導向的地點，我們相信我們已經為自己做好了長期成功的準備。

We are further encouraged by third quarter data showing positive net absorption in the New York City office market, reversing a long running trend and halting vacancy rates. In our own portfolio, we continue to see strong interest from potential lessees for our remaining available space.

第三季的數據顯示紐約市辦公室市場出現正面的淨吸收量，扭轉了長期趨勢並遏制了空置率，這進一步鼓舞了我們。在我們自己的投資組合中，我們繼續看到潛在承租人對我們剩餘的可用空間表現出濃厚的興趣。

Our third quarter results highlight the effectiveness of our consistent portfolio management approach. By prioritizing tenant retention, property enhancements and cost control, we believe we've built a solid foundation for maximizing shareholder value. As we divest certain Manhattan assets to reduce leverage and pursue higher yielding opportunities, we are confident in our ability to deliver on this strategy and unlock additional value.

我們第三季的業績凸顯了我們一貫的投資組合管理方法的有效性。透過優先考慮保留租戶、物業升級和成本控制，我們相信我們已經為股東價值最大化奠定了堅實的基礎。當我們剝離曼哈頓的某些資產以降低槓桿率並尋求更高收益的機會時，我們對實現這一策略並釋放額外價值的能力充滿信心。

With that, I'll turn it over to Mike Lesanto to go over the third quarter results. Mike?

接下來，我將把它交給邁克·萊桑托（Mike Lesanto）檢查第三季度的業績。麥克風？

Thank you, Michael. Third quarter 2024 revenue was $15.4 million compared to $16 million in the third quarter of 2023. The company's GAAP net loss attributable to common stockholders was $34.5 million in the third quarter of 2024 compared to a net loss of $9.4 million in the third quarter of 2023 due primarily to non-cash impairments, one of which Michael discussed earlier.

謝謝你，麥可。2024 年第三季的營收為 1,540 萬美元，而 2023 年第三季的營收為 1,600 萬美元。2024 年第三季度，該公司歸屬於普通股股東的GAAP 淨虧損為3,450 萬美元，而2023 年第三季的淨虧損為940 萬美元，主要歸因於非現金減值，麥可之前討論過其中之一。

For the third quarter of 2024, adjusted EBITDA was $3.1 million compared to $3.4 million in the third quarter of 2023. Cash net operating income grew by $0.3 million to $6.8 million from $6.5 million in the third quarter of 2023. The growth was achieved through ongoing leasing success along with the reduction in G&A and operating expenses. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release and quarterly supplemental on our website.

2024 年第三季度，調整後 EBITDA 為 310 萬美元，而 2023 年第三季為 340 萬美元。現金淨營業收入從 2023 年第三季的 650 萬美元成長了 30 萬美元，達到 680 萬美元。這一增長是透過持續的租賃成功以及一般管理費用和營運費用的減少而實現的。像往常一樣，GAAP 淨利潤與非 GAAP 指標的對帳可以在我們網站上的收益發布和季度補充中找到。

At quarter end, our balance sheet included net leverage of approximately 60%, a weighted average interest rate of 4.9% and 2.5 years of weighted average debt maturity.

截至季末，我們的資產負債表包括約 60% 的淨槓桿率、4.9% 的加權平均利率和 2.5 年的加權平均債務到期日。

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。

Thank you, Mike, and thank you all for joining us today. Our strong quarterly performance driven by increased occupancy and growing cash NOI is a direct result of our strategic portfolio management. As we begin divesting certain Manhattan assets, we anticipate generating significant cash proceeds and reducing our leverage. These funds will be crucial in expanding our portfolio into new higher yielding opportunities. We believe this is a strategic move to enhance shareholder value and are committed to keeping you updated on our progress.

謝謝你，麥克，也謝謝大家今天加入我們。入住率增加和現金 NOI 成長推動了我們強勁的季度業績，這是我們策略性投資組合管理的直接結果。當我們開始剝離曼哈頓的某些資產時，我們預計會產生大量現金收益並降低我們的槓桿率。這些資金對於將我們的投資組合擴展到新的更高收益機會至關重要。我們相信這是提高股東價值的策略舉措，並致力於讓您了解我們的最新進展。

Operator, please open the line for questions.

接線員，請開通提問線。

(Operator Instructions)

（操作員說明）

Bryan Maher, B. Riley Securities.

布萊恩·馬赫 (Bryan Maher)，B. 萊利證券。

Hi, Bryan. Good morning.

嗨，布萊恩。早安.

On the properties that you're marketing for sale, can you tell me kind of how you're going about doing that? Do your brokers engaged? What type of buyers are looking at these properties? And how would you gauge the level of interest in 123 and Orchard?

關於您正在行銷出售的房產，您能告訴我您打算如何做到這一點嗎？你們的經紀人有參與嗎？哪些類型的買家正在關注這些房產？您如何衡量人們對 123 和 Orchard 的興趣程度？

Sure. Thanks, Bryan. We do have brokers engaged on both of those properties. We're seeing different types of buyers on those two properties. 196 is attracting interest from more family office type investors to fully occupied retail condo whereas 123 is attracting more institutional interest.

當然。謝謝，布萊恩。我們確實有從事這兩個房產的經紀人。我們在這兩處房產上看到了不同類型的買家。 196 吸引了更多家族辦公室類型投資者對已入住的零售公寓的興趣，而 123 則吸引了更多機構的興趣。

We are seeing some traction. We think interest rates will help, particularly with 196 Orchard. And we've got some interest in leasing that we're optimistic will be executed in the coming months on 123 that we think will drive value there and remain confident that we'll transact on both those assets.

我們看到了一些牽引力。我們認為利率會有所幫助，尤其是 196 Orchard。我們對租賃有一些興趣，我們對未來幾個月在 123 上執行感到樂觀，我們認為這將推動那裡的價值，並對我們對這兩項資產進行交易仍然充滿信心。

Okay. And to date, you have been a little coy on how you plan to redeploy those dollars? Are you in a position to give us any more color on where those proceeds might be reinvested?

好的。到目前為止，您對於計劃如何重新部署這些美元一直有點含糊其辭？您能否給我們更多關於這些收益可能再投資的地方的資訊？

Yes, we're still beginning, I would say, to look at opportunities, given that we've got the transaction on 9 Time Square closing in this quarter, but we see a lot of interesting opportunity in core iconic real estate outside of the New York City market really looking in kind of New England area with kind of hospitality, operating business mix where we would control the real estate and also the operations of the businesses and think that we can drive value there, given that we've let go of the REIT status, it gives us some more flexibility in how we own and operate those assets in the underlying operations of the businesses, whereas we were hamstrung by REIT restrictions and what we could do with the operations of those sorts of assets previously.

是的，我想說，我們仍在開始尋找機會，因為我們已經在本季度完成了 9 時代廣場的交易，但我們在核心標誌性房地產領域看到了很多有趣的機會。英格蘭地區的那種熱情好客、經營業務組合，我們將控制房地產以及企業的運營，並認為我們可以在那裡推動價值，因為我們已經放手了房地產投資信託基金的地位，它為我們在業務的基礎運營中如何擁有和經營這些資產提供了更大的靈活性，而我們之前受到房地產投資信託基金限制以及我們可以如何處理此類資產的營運的限制。

Okay. And then just last, I mean, I think you touched upon improvements in leasing trends in New York City. Can you give us a little more detail there. What are the types of tenants? What's their motivation? Is it return to office? Is it something else? Anything would be helpful. Thanks.

好的。最後，我的意思是，我認為您談到了紐約市租賃趨勢的改善。您能給我們更多細節嗎？租戶有哪些類型？他們的動機是什麼？是回辦公室了嗎？難道是別的什麼？任何事情都會有幫助的。謝謝。

Sure. Yes, we're certainly seeing return to office being the norm. I think put graphic in the markets where we own office properties has increased markedly year-over-year. I think we're also seeing a lot of groups that may have taken smaller space on a shorter-term basis during COVID given opportunistic leasing and work from home that are now returning to office with a full workforce.

當然。是的，我們確實看到重返辦公室已成為常態。我認為我們擁有辦公物業的市場中的圖形同比顯著增加。我認為，我們也看到，在新冠疫情期間，由於機會性租賃和在家工作，許多團體可能在短期內佔用了較小的空間，但現在他們正帶著滿員員工回到辦公室。

And so they're looking to expand their footprint. So we're seeing a lot of subtenants looking to convert into direct leases and a lot of new tenants looking into the markets that we're operating and owning assets in. And it's largely driven by that return to office mandate.

因此，他們希望擴大自己的足跡。因此，我們看到許多轉租人希望轉換為直接租賃，並且許多新租戶正在考慮我們正在經營和擁有資產的市場。這在很大程度上是由重返辦公室的任務所推動的。

Okay. Thank you. That's all for me.

好的。謝謝。這就是我的全部。

Thanks, Bryan.

謝謝，布萊恩。

I do not see any further questions in the queue. I'm going to turn the call back over to Curtis for closing remarks.

我在隊列中沒有看到任何其他問題。我將把電話轉回給柯蒂斯，讓他作結束語。

Thanks, operator. I'd like to take this. Thank you all for joining us this morning. We're excited about the quarter and excited about the closing of 9 Time Square this quarter and look forward to sharing updates as we consummate that transaction and begin to deploy those proceeds elsewhere, more on sharing those updates.

謝謝，接線生。我想拿這個。感謝大家今天早上加入我們。我們對本季感到興奮，並對本季 9 Time Square 的關閉感到興奮，並期待在我們完成交易並開始將這些收益部署到其他地方時分享最新消息，並更多地分享這些更新。

Thank you all for joining. This concludes today's call. You may now disconnect.

感謝大家的加入。今天的電話會議到此結束。您現在可以斷開連線。