American Strategic Investment Co. · NYSE:NYC
American Strategic Investment — New York City REIT — Investor Presentation (August 2020)
31 slides from American Strategic Investment's investor presentation, Aug 13, 2020
Slide 1: New York City REIT NYSE Listing Investor Presentation
0 NEW YORK CITY REIT NYSE Listing Investor Presentation 123 William Street - New York, NY
Slide 2: Listing Details
1 Listing Details On or about August 18 th , 2020 Anticipated Listing Date NYSE: NYC Exchange: Symbol Anticipated quarterly common stock dividend of $0.10 per share (3) Dividend 25% of NYC’s common stock will be listed and freely tradable upon listing • Every 120 days, an additional 25% of shares wi
Slide 3: Investment Highlights
2 Investment Highlights High Quality New York City Focused Portfolio x NYC will be the leading “pure - play” publicly traded REIT focused on New York City real estate x NYC’s $863 million portfolio is diversified across eight office and retail condominium assets located primarily in Manhattan – High
Slide 4: Best-in-Class Portfolio
3 Best - in - Class Portfolio Metric ($ and SF in mm) Q2’20 Real Estate Investments, at Cost $862.9 Number of Properties 8 Total Square Feet 1.2 Annualized Straight - line Rent $61.1 Occupancy 88.6% Weighted Average Lease Term Remaining 6.6 1) See Definitions in the appendix for a full description.
Slide 5: Leading New York City Market Position
4 Leading New York City Market Position NYC will be the leading “pure - play” publicly traded REIT focused on New York City real estate Total Portfolio SF (mm) (1) 4 New York City Office and Retail Exposure (2) New York City Office Exposure (2) Other Exposure Observatory Source: Company and peer met
Slide 6: Well-Positioned Compared to its Peers
5 68% 63% 58% 51% 51% NYC VNO SLG ESRT PGRE Well - Positioned Compared to its Peers 5 Note: Company and peer metrics as of June 30, 2020. U.S. Bureau of Labor Statistics as of July 2, 2020. 1) CAGR from Q4'14 to Q2’20. NYC based on SLR. ESRT and PGRE based on annualized rent. SLG based on contractua
Slide 7: Growth of Manhattan Rent and Leasing Activity Since 2010
6 $48 $53 $59 $63 $67 $72 $73 $73 $73 $80 24.2 27.9 22.3 24.9 29.9 28.1 22.9 28.4 32.4 31.6 5 10 15 20 25 30 35 35 40 45 50 55 60 65 70 75 80 85 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Growth of Manhattan Rent and Leasing Activity Since 2010 Manhattan Asking Rent ($ / SF) SF Leased (in mil
Slide 8: Resiliency of the New York City Market
7 Resiliency of the New York City Market 7 A dedicated strategy towards New York City real estate crafted with market expertise, provides an opportunity to capitalize on the positive traits that differentiates New York City x New York City’s workforce output nearly $1.8 trillion of GDP in 2019, outp
Slide 9: Scalable Operating Platform
8 8 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q2'20 421 W. 54th Street 400 E. 67th Street 200 Riverside Blvd. 9 Times Square 123 William Street 1140 Avenue of the Americas 8713 Fifth Avenue 196 Orchard Street Scalable Operating Platform Management remains focused on executing the Company’s acquisition and
Slide 10: Second Quarter Cash Rent Collection
9 85% 10% 4% 1% Q2'20 Cash Rent Paid Approved Agreement Agreement Negotiation Other Second Quarter Cash Rent Collection (4) Second Quarter Cash Rent Status April May June Total Portfolio _ Q2'20 Cash Rent Collected 86% 86% 83% 85% _ Approved Agreement 9% 9% 10% 10% _ Agreement Negotiation 4% 4% 4% 4
Slide 11: Conservative Capital Structure
10 Conservative Capital Structure ▪ Well - Positioned for Future Growth: The Company’s balance sheet and the listing should provide NYC with liquid currency and a lower cost of capital, both of which can help the Company take advantage of what the Company believes is a short - term market dislocatio
Slide 12: Real Estate Portfolio Highlights
11 11 Real Estate Portfolio Highlights
Slide 13: Property Summary
12 12 Property Summary Note: Data as of June 30, 2020. 1) Company is currently undergoing negotiations to sell asset. Portfolio Real Estate Assets, at cost ($ mm) Occupancy Remaining Lease Term (in years) % of Annualized Straight - Line Rent % of Portfolio Square Feet 123 William Street $288.6 90% 6
Slide 14: Top 10 Tenants
13 13 Note: Data as of June 30, 2020 unless otherwise noted. 1) Weighted based on annualized straight - line rent as of June 30, 2020. 2) Ratings information as of July 10, 2020. Weighted based on annualized straight - line rent. NYC’s top 10 tenants are 49% actual Investment Grade (“IG”) rated and
Slide 15: Case Study: 9 Times Square
14 14 56% 52% 52% 64% 84% 90% 84% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 30% 40% 50% 60% 70% 80% 90% Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q2'20 Occupancy Weighted Average Remaining Lease Term Case Study: 9 Times Square Substantial Lease - Up of 9 Times Square years Since Q4'14, Annualized Straight -
Slide 16: Case Study: City National Bank
15 15 Case Study: City National Bank x NYC recently executed an attractive, early 10 year lease extension with City National Bank (“CNB”), one of the Company’s anchor tenants located at 1140 Avenue of the Americas – In 2015, City National Bank was acquired by the Royal Bank of Canada, a leading glob
Slide 17: Financial Highlights
th NYC NEWYORK CITY RET Financial Highlights
Slide 18: Capital Structure and Q2'20 Results
17 17 Capital Structure and Q2'20 Results 1) See Definitions in the appendix for a full description. 2) See appendix for Non - GAAP reconciliations. 3) At closing, there will be zero availability under the revolver until such time as the Company seeds the borrowing base with q ual ified collateral a
Slide 19: Estimated NAV Per Share of $49.23 Adjusted for Reverse Split
18 Estimated NAV Per Share of $49.23 Adjusted for Reverse Split (1) Duff & Phelps, an independent third - party valuation firm, performed appraisals on each real estate asset in NYC’s portfolio, helping to determine the Company’s estimated Net Asset Value of $49.23 (1) • Once listed, NYC will no lon
Slide 20: Potential Impact of Index Inclusions
19 Potential Impact of Index Inclusions An index inclusion should provide incremental liquidity and also potentially increase demand for shares after listing ▪ Index inclusions can provide significant inflows from institutional funds – Inflows provide additional demand for shares – Key index investo
Slide 21: Management and Board of Directors
20 20 Management and Board of Directors
Slide 22: Experienced Management Team
21 21 Experienced Management Team Michael Weil Chief Executive Officer, President and Chairman of the Board of Directors ▪ Founding partner of AR Global ▪ Formerly, Mr. Weil served as Executive Vice President of AR Capital, where he supervised the origination of investment opport uni ties for all AR
Slide 23: Board of Directors
22 22 Board of Directors Michael Weil | Director and Executive Chairman ▪ Founding partner of AR Global ▪ Formerly, Mr. Weil served as Executive Vice President of AR Capital, where he supervised the origination of investment opportunities for all AR Capital - sponsored investment programs ▪ Prior to
Slide 24: Fully Aligned Management Structure
23 23 Fully Aligned Management Structure Fixed Base Management Fee $6.0 million annually Incremental Base Management Fee 1.25% of the net proceeds from any equity issuances Variable Management Fee 15% of quarterly Core Earnings over $0.1458 per share (2) , plus 10% of quarterly Core Earnings over $0
Slide 25: Appendix
thNYC NEWYORK CITY RET Appendix
Slide 26: Definitions
25 25 Definitions Annualized Straight - Line Rent : Straight - line rent which is annualized and calculated using most recent available lease terms as of the period end indicated . Approved Agreement : Represents Deferral Agreements as well as amendments granting the tenant a rent credit for some po
Slide 27: Reconciliation of Non-GAAP Metrics: Cash NOI
26 26 Reconciliation of Non - GAAP Metrics: Cash NOI (in thousands) Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Net Loss (in accordance with GAAP) $ (5,286) $ (5,827) Other income (641) (311) General & Administrative 2,521 1,862 Asset and property management fees to related par
Slide 28: Reconciliation of Non-GAAP Metric: FFO
27 27 Reconciliation of Non - GAAP Metric: FFO (in thousands) Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Net Loss (in accordance with GAAP) $ (5,286) $ (5,827) Depreciation and amortization 7,912 7,553 FFO (As defined by NAREIT) $ 2,626 $ 1,726 Funds From Operations (FFO) Reco
Slide 29: Legal Notices
thNYC NEWYORK CITY RET Legal Notices
Slide 30: Important Information
29 29 Important Information References in this presentation to the “Company,” “we,” “us” and “our” refer to New York City REIT, Inc. (“NYC”) and its cons oli dated subsidiaries. This presentation contains estimates and information concerning the Company’s industry and the Company’s peer companies th
Slide 31: Forward Looking Statements
30 Forward Looking Statements Certain statements made in this presentation are “forward - looking statements” (as defined in Section 21E of the Exchange Act), w hich reflect the expectations of the Company regarding future events. You can identify forward - looking statements by the use of forward l
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