American Strategic (NYC) Earnings Transcript

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DATE

Tuesday, April 14, 2026 at 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Nicholas Schorsch
• Chief Financial Officer — Michael LeSanto
• Managing Director — Curtis Parker

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TAKEAWAYS

• Revenue -- $43.3 million for the full year and $6.5 million for the quarter, with both declines attributed primarily to property dispositions.
• GAAP Net Loss -- $21.2 million for the year and $6.7 million for the quarter, with the annual loss reduced compared to the prior year due to a gain from asset disposition.
• Adjusted EBITDA -- $300 thousand for the full year and $1.2 million for the quarter, reflecting the reduced operating base.
• Cash NOI -- $16 million for the year and $1.8 million for the quarter, as reported in the financial summary.
• Portfolio Size and Composition -- $382.6 million real estate portfolio at 700 thousand square feet, comprised of five New York City assets with 80.3% occupancy at year-end.
• Tenant Quality -- Top 10 tenants account for 69% investment grade or implied investment grade rent, with a 6.9-year weighted average remaining lease term.
• Lease Expirations -- 5% of 2026 scheduled expirations by annualized straight-line rent and 57% of leases extending past 2030.
• Strategic Dispositions -- Sale of 1140 Avenue of the Americas and a consensual foreclosure led to a $46.6 million gain reported in operations; further sales of two properties are under evaluation.
• Debt Profile -- 100% fixed-rate or swapped-to-fixed-rate debt, with $249.7 million in net debt, a 4.5% weighted average interest rate, and a 1.5-year average remaining term; net leverage stands at 47.5%.
• Leasing Activity -- Thirteen new and replacement leases totaling 117 thousand square feet executed during the year, focused on well-capitalized financial, medical, and government tenants.

SUMMARY

The call highlights a repositioned, smaller real estate portfolio with ongoing strategies to further streamline assets and enhance future earnings potential. Management indicates efforts to lease available space, renew expiring leases, and proactively address debt maturities to support operational flexibility. Plans are underway to potentially divest 123 William Street and 196 Orchard, with expected cash redeployment into higher-yielding assets. The company underscores stability from long-term leases with high-credit tenants and a predominantly fixed-rate debt structure. No qualitative statements or guidance regarding future financial performance were provided during the call.

• CEO Schorsch said, "We remain committed to operating and unlocking value at our current assets with a focus on tenant retention, property improvements and cost efficiency, while simultaneously pruning our exposure to non-core assets."
• The gain from the 1140 Avenue of the Americas disposition directly contributed to the year-over-year reduction in reported net loss.
• Net leverage level and short average debt maturity may influence future capital allocation and refinancing considerations.
• The Annual Meeting of Shareholders will be formally announced in an upcoming notice.

INDUSTRY GLOSSARY

• Implied investment-grade tenants: Lessees assessed by the company as having credit characteristics similar to officially rated investment-grade entities, including government agencies and large corporate tenants, for purposes of portfolio stability evaluation.
• Cash NOI: Net operating income excluding non-cash adjustments, used to measure operating property-level cash flows within real estate portfolios.

Full Conference Call Transcript

Curtis Parker: Thank you, operator. Good morning, everyone, and thank you for joining us for American Strategic Investment Co.'s fourth quarter and year-end earnings call. This event is also being webcast in the Investor Relations section of our website. Joining me today on the call to discuss this quarter's results are Nicholas Schorsch, American Strategic Investment Co.'s Chief Executive Officer; and Michael LeSanto, the Chief Financial Officer. 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 our fourth quarter 2025 earnings release for various factors that could cause actual results to differ materially from forward-looking statements made during our call today. 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, 2025, to be filed on April 15, 2026, for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during this call are only made as of the date of this call.

As stated in our SEC filings, American Strategic Investment Co. disclaims any intent or obligation to update or revise these forward-looking statements, except as required to do so by law. Please note that all fourth quarter 2025 financial information is unaudited. Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial and operating 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.

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 Nicholas Schorsch, Chief Executive Officer. Please go ahead, Nicholas.

Nicholas Schorsch: Thanks, Curtis. Good morning, and thank you for joining us. Today, we will discuss our results for the fourth quarter and full year 2025. We remain committed to operating and unlocking value at our current assets with a focus on tenant retention, property improvements and cost efficiency, while simultaneously pruning our exposure to non-core assets. For the year, we executed 13 new and replacement leases totaling 117 thousand square feet. We continue to focus our leasing efforts on securing tenants in resilient industries, such as well-capitalized financial service companies, medical institutions and government agencies.

At year-end, our $382.6 million, 700 thousand square foot portfolio consisted of 5 real estate assets throughout New York City, primarily in Manhattan, with office properties located in submarkets in close proximity to major transportation hubs. The portfolio had occupancy of 80.3% and a weighted average remaining lease term of 6.1 years as of December 31, 2025. Our New York City-centric portfolio features a mix of large investment-grade tenants, of whom the top 10 tenants are 69% investment grade or implied investment grade rated based on straight-line rent with a weighted average remaining lease term of 6.9 years. Investment-grade tenants in our portfolio include CVS, Marshalls and government agencies.

Our calendar year 2026 lease expirations are 5% of annualized straight-line rent and 57% of our leases now extend beyond 2030, up from 56% last quarter. We believe that this term, coupled with a high-quality, largely investment-grade tenant base provides significant portfolio stability. As discussed on last quarter's call, we completed the disposition of our 1140 Avenue of the Americas office property during the fourth quarter. We also pursued a cooperative consensual foreclosure with the lender. And in connection with that transaction, we removed the related assets and liabilities from our balance sheet and recognized a gain of $46.6 million that is reflected in the statements of operations for the year.

We remain committed to strengthening our existing portfolio of real estate assets as we explore additional income-generating investments. We believe with the completion of past sales and the reinvigorated effort to sell 2 additional properties, we will be better positioned to take advantage of opportunities to invest in the long-term future of our portfolio. It is our intention to build a portfolio that we believe will be accretive to shareholders. With that, I will turn it over to Michael LeSanto to go over the fourth quarter and full year 2025 results. Michael?

Michael LeSanto: Thank you, Nicholas. Revenue was $43.3 million for the year ended December 31, 2025, compared to $61.6 million in 2024. The year-over-year change is primarily related to the disposition of properties, notably the dispositions of 9 Times Square in the late fourth quarter of 2024, and the 1140 Avenue of the Americas in fourth quarter 2025. Revenue for the fourth quarter 2025 was $6.5 million compared to $14.9 million in the fourth quarter of 2024. The company's full year GAAP net loss attributable to common stockholders was $21.2 million compared to a net loss of $140.6 million in 2024.

Net loss for the quarter was $6.7 million, in line with the $6.7 million we recorded in the fourth quarter of 2024. Adjusted EBITDA for 2025 was $300 thousand and $1.2 million for the fourth quarter. Cash NOI for the full year was $16 million and $1.8 million in the fourth quarter. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release, supplemental and Form 10-K. The company's balance sheet includes 100% fixed rate debt and prudent net leverage of 47.5%. We ended the fourth quarter with net debt of $249.7 million at a weighted average effective interest rate of 4.5% and a weighted average remaining debt term of 1.5 years.

Importantly, 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. With that, I will turn the call back to Nicholas for some closing remarks.

Nicholas Schorsch: Thanks, Michael. We continue to focus on enhancing operational flexibility through efforts such as targeted dispositions. We are also assessing strategies for our properties at 123 William Street and 196 Orchard to generate the greatest long-term value for our portfolio, including potentially selling the properties. If sold, these sales would generate additional cash that we believe can be deployed into higher-yielding assets, creating future value for the portfolio. Simultaneously, our team is focused on leasing up available space, evaluating options for replacing maturing debt, renewing leases with existing tenants and maintaining tight controls on expenses. One final note.

Please be on the lookout for a notice about our Annual Meeting of Shareholders, which will be distributed to you in the coming months. Thank you for joining us today.

Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you again for your participation.

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