American Strategic Investment Co. · NYSE:NYC
American Strategic Investment — New York City REIT — Q4 2021 Earnings Presentation
32 slides from American Strategic Investment's earnings presentation, Mar 17, 2022
Slide 1: New York City REIT Fourth Quarter Investor Presentation
0 NEW YORK CITY REIT Fourth Quarter Investor Presentation 9 Times Square - New York, NY _
Slide 2: Fourth Quarter 2021 Highlights
1 Fourth Quarter 2021 Highlights 1) See appendix for a full description of capitalized terms and Non - GAAP reconciliations. 2) Refer to slide 13 – Top 10 Tenant Investment Grade Profile. 3) Refer to slide 20 – Capital Structure and Q4’21 Financial Results for further information regarding our capit
Slide 3: 2021 – Year in Review
2 In 2021, NYC’s Board of Directors, led by Elizabeth Tuppeny, and in conjunction with the Advisor, continued to execute on the Co mpany’s strategic initiatives and operational momentum by mitigating adverse impacts from COVID - 19 by focusing on proactive asset manage ment, increasing Cash Rent (1)
Slide 4: Exceptional Investor Returns Since 2021
3 Exceptional Investor Returns Since 2021 3 Since 2021 and through geopolitical and economic headwinds, NYC’s investors have benefited from an exceptional Total Return of 55% which compares exceptionally well to several peer and index benchmarks, including New York City office peers and the S&P 500
Slide 5: 2022 Estimated NAV per Share
4 4 2022 Estimated NAV per Share 4 NYC’s estimate of 2022 property - level income results in an estimated NAV per share of $21.94 - $27.92, indicating significant upside potential for NYC shareholders (1) Note: Based on Company prepared projections and as of December 31, 2021. Refer to slide 5 - Not
Slide 6: Notes to the Estimated NAV per Share
5 5 Notes to the Estimated NAV per Share 2) Calculated based on estimated reimbursements and Cash Rent collections, excluding free rent, for all existing in - place leases fo r fiscal year 2022. Includes new leases and lease extension assumptions that the Company reasonably expects to complete for t
Slide 7: Manhattan Focused Portfolio
6 Manhattan Focused Portfolio Metric ($ and SF in mm) Q4’21 Real Estate Investments, at Cost $852.7 Number of Properties 8 Total Square Feet 1.2 Annualized Straight - line Rent $58.5 Occupancy 82.9% Weighted Average Lease Term Remaining 6.9 Years 1) Ratings information is as of December 31, 2021. We
Slide 8: New York City Continuing Its Return to Normalcy
7 New York City Continuing Its Return to Normalcy 7 Positive COVID - 19 cases were down 99% from the peak in early January 2022 and as a result of diminishing cases. Leaders in both government and business have been focused on rolling back mandates and healthcare restrictions in an effort to return
Slide 9: Leading New York City Market Position
8 Leading New York City Market Position NYC’s portfolio of eight mixed - use offices and retail condominiums is the leading “pure - play” publicly traded REIT focused on New York City real estate Total Portfolio SF (mm) (1) 8 New York City Office and Retail Exposure (2) New York City Office Exposure
Slide 10: Well-Positioned Portfolio Compared to Peers
9 Well - Positioned Portfolio Compared to Peers 9 Sources: Company filings; U.S. Bureau of Labor Statistics as of December 31, 2021. Note: Company and peer metrics as of Decem ber 31, 2021 unless otherwise indicated. 1) Based on annualized straight - line rent as of December 31, 2021. NYC’s top 10 t
Slide 11: Conservative Capital Structure
10 Conservative Capital Structure ▪ Conservative Capital Structure: NYC’s capital structure is composed of fixed rate, long - term mortgage debt with a weighted average debt maturity of five years x NYC features conservative Net Leverage and limited near - term debt maturities ▪ Higher Growth Leads
Slide 12: Real Estate Portfolio Highlights
11 11 Real Estate Portfolio Highlights
Slide 13: Detailed Property Summary
12 12 Detailed Property Summary Note: Data as of December 31, 2021. Portfolio Real Estate Assets, at cost ($ mm) Occupancy Remaining Lease Term (in years) % of Annualized Straight - Line Rent % of Portfolio Square Feet 123 William Street $288.9 91% 6.3 39% 47% _ 9 Times Square $185.9 61% 7.3 13% 14%
Slide 14: Cash Rent Collection and Portfolio Data
13 13 Note: Cash Rent collection data as of February 28, 2022. Total rent collected during the period includes both Cash Rent due a nd payments made by tenants pursuant to rent deferral agreements or otherwise. Eliminating the impact of deferred rent paid, we col lected the same percentage of Cash R
Slide 15: Proactive Asset Management and 2021 Leasing Highlights
14 14 33% 45% 58% 69% In 2021, NYC’s Advisor completed 17 new leases that totaled over 200,000 square feet and $7.4 million of straight - line rent (1) and four lease renewals with high - quality rent - paying tenants. NYC’s Advisor also developed a 14,300 square foot forward Leasing Pipeline (2) th
Slide 16: Case Study: Proactive Property Management
15 15 Case Study: Proactive Property Management 15 ▪ NYC’s proactive asset management approach identified Knotel’s operational issues early in the COVID - 19 pandemic, positioning NYC’s legal and asset management teams to immediately address Knotel’s bankruptcy: x Shortly after termination in Januar
Slide 17: Case Study: Knotel Proactive Management
16 16 Case Study: Knotel Proactive Management In January 2021, Knotel filed for bankruptcy and subsequently terminated all space leased from NYC (1) – NYC’s proactive approach identified Knotel’s operational issues early in the COVID - 19 pandemic and well positioned our legal and asset management t
Slide 18: Financial Highlights
NYC Financial Highlights
Slide 19: Continued Cash Rent Collection Success
18 Continued Cash Rent Collection Success 18 Percentage of Cash Rent Due and Collected For Each Period Note: Collection data as of March 1, 2022. Total rent collected during the period includes both Cash Rent due and payments ma de by tenants pursuant to rent deferral agreements or otherwise. Exclud
Slide 20: Percentage Rent Approved Agreements Overview
19 Percentage Rent Approved Agreements Overview x In 2021, NYC executed two percentage rent deals with two key retail tenants. Since execution, both tenant’s operations have performed exceptionally well and as a result, have returned to near or complete original Cash Rent collection levels sooner t
Slide 21: Capital Structure and Q4'21 Financial Results
20 20 Capital Structure and Q4’21 Financial Results Note: As of December 31, 2021, we had cash and cash equivalents of $11.7 million (excluding restricted cash). We are, however , r equired to maintain a minimum net worth in excess of $175.0 million and minimum liquid assets of $10.0 million under o
Slide 22: Management and Board of Directors
21 21 Management and Board of Directors
Slide 23: Experienced Management Team
22 22 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 24: Board of Directors
23 23 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 25: Appendix
thi NYC Appendix
Slide 26: Definitions
25 25 Definitions Adjusted EBITDA : We believe that Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for acquisition and transaction - related expenses, listing - related costs and expenses, other non - cash items such as the vesting and co
Slide 27: Reconciliation of Non-GAAP Metrics: Cash NOI
26 26 Reconciliation of Non - GAAP Metrics: Cash NOI For the Three Months Ended (in thousands) December 31, 2021 September 30, 2021 December 31, 2020 Net Loss (in accordance with GAAP) $ (3,755) $ (11,124) (16,600) Depreciation & Amortization 7,657 7,851 7,677 Interest Expense 4,811 4,803 4,225 Inco
Slide 28: Reconciliation of Non-GAAP Metric: FFO
27 27 Reconciliation of Non - GAAP Metric: FFO (in thousands) Three Months Ended December 31, 2021 Three Months Ended December 31, 2020 Net Loss (in accordance with GAAP) (1)(2) $ (3,755) $ (16,600) Depreciation and amortization 7,657 7,677 Impairment of real estate investments 1,039 — FFO (As defin
Slide 29: Legal Notices
thi NYC Legal Notices
Slide 30: Important Additional Information and Where to Find It
29 29 Important Additional Information and Where to Find It 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
Slide 31: Limitations on, and risks related to, the Estimated NAV per Share
30 30 Limitations on, and risks related to, the Estimated NAV per Share The Company’s estimated net asset value per share (“NAV”) as of December 31, 2021 contained herein was calculated by applying tw o different capitalization rates to property - level income projected for 2022 by the advisor to ar
Slide 32: Forward Looking Statements
31 31 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 forwar