American Strategic Investment Co. Q3 FY2025 earnings call

• Focused on continuous proactive management, reducing recurring expenses and managing balance sheet.
• Executed a meaningful lease renewal at 196 Orchard, extending the weighted average remaining lease term of the portfolio to 6.2 years at quarter end (up from 5.9 years in Q2 2025); 8% of annualized straight-line rent are near-term lease expirations and 56% of leases extend beyond 2030 (up from 54% last quarter), with a high-quality tenant base featuring 69% investment grade or implied investment grade tenants.
• Own 6 properties, with 1 property (1140 Avenue of the Americas) to be disposed; marketing 123 William Street and 196 Orchard for sale; expect to use net proceeds from sales to retire debt and reinvest in higher-yielding assets.
• Entered into an agreement for the strategic disposition of 1140 Avenue of the Americas via cooperative consensual foreclosure, anticipated to close in Q4 2025, which will eliminate a $99 million liability maturing in July 2026.
• Changed audit partners to CBIZ CPAs to proactively reduce professional fees and streamline cost structure, with no dispute or conflict with prior firm.

In the third quarter of 2025, revenue was $12.3 million compared to $15.4 million in the third quarter of 2024, primarily due to the sale of 9 Times Square in Q4 2024. The GAAP net gain attributable to common stockholders was $35.8 million in Q3 2025, impacted by a $44.3 million noncash gain from the foreclosure at 1140 Avenue of the Americas, whereas there was a net loss of $34.5 million in Q3 2024 due to an impairment from the sale of 9 Times Square. Adjusted EBITDA was $1.9 million in Q3 2025 compared to $4.1 million in Q3 2024. Cash net operating income was $5.3 million in Q3 2025 compared to $7 million in Q3 2024. The company owns 6 properties, with 1 property (1140 Avenue of the Americas) expected to be disposed during the current quarter. Excluding this property, the $390 million approximately 743,000-square-foot New York City real estate portfolio is primarily in Manhattan, with office and retail properties having a strong tenant base including large investment-grade firms.

• Plan to use net proceeds from selling 123 William Street, 196 Orchard, and 1140 Avenue of the Americas to retire debt and reinvest in higher-yielding assets.
• Focus on leasing up available space, renewing leases, and maintaining tight controls on expenses across the board.

• Risks associated with forward-looking statements, where actual results may differ due to various factors as outlined in SEC filings.
• Market conditions affecting the successful sale of properties 123 William Street, 196 Orchard, and 1140 Avenue of the Americas.
• Potential challenges in tenant retention and occupancy growth despite having a strong tenant base.
• Risks related to balance sheet management and the impact of property disposition on the overall financial position.