American Strategic Investment Co. · NYSE:NYC
American Strategic Investment — New York City REIT — Q4 2020 Earnings Presentation
31 slides from American Strategic Investment's earnings presentation, Mar 16, 2021
Slide 1: New York City REIT Fourth Quarter Investor Presentation
0 NEW YORK CITY REIT Fourth Quarter Investor Presentation 123 William Street - New York, NY
Slide 2: Fourth Quarter Highlights
1 Fourth Quarter Highlights High Quality New York City Focused Portfolio x $861 million portfolio of eight high - quality office and retail condominium assets located primarily in Manhattan x High portfolio Occupancy (1) of 87% (2) with a weighted average Remaining Lease Term (1) of 7.2 years x NYC’
Slide 3: Best-in-Class Portfolio
2 Best - in - Class Portfolio Metric ($ and SF in mm) Q4’20 Real Estate Investments, at Cost $860.6 Number of Properties 8 Total Square Feet 1.2 Annualized Straight - line Rent $54.3 (1) Occupancy 87.0% Weighted Average Lease Term Remaining 7.2 1) Refer to slide 16 for further information regarding
Slide 4: Aggressive New York City Comeback
3 Aggressive New York City Comeback 3 New York City Continues to Actively Manage the COVID - 19 Pandemic x New York State and New York City continue to lead in the fight against COVID - 19 by quickly mitigating positive COVID - 19 case increases and hot zones more effectively than other densely popu
Slide 5: Tech Bets on New York City's Future
4 Tech Bets on New York City’s Future NYC management is highly confident in the long - term market trends as the world’s largest technology companies continue to bet on New York City being a tech hub 4 “In all scenarios I expect us to need physical spaces to get people together, absolutely. We have
Slide 6: Leading CEOs on Returning to the Office
5 Leading CEOs on Returning to the Office 5 “In - office collaboration will be just as important to Google’s future as it’s been to our past” - Sundar Pichai, CEO “I think we sort of moved into that phase where people actually struggle mentally, people are -- they’re not enjoying it” - Chuck Robbins
Slide 7: Leading New York City Market Position
6 Leading New York City Market Position NYC is the leading “pure - play” publicly traded REIT focused on New York City real estate Total Portfolio SF (mm) (1) 6 New York City Office and Retail Exposure (2) New York City Office Exposure (2) Other Exposure Observatory Source: Company and peer metrics
Slide 8: Well-Positioned Portfolio Compared to Peers
7 Well - Positioned Portfolio Compared to Peers 7 Sources: Company filings; U.S. Bureau of Labor Statistics as of February 5, 2021. Note: Company and peer metrics as of Decemb er 31, 2020 unless otherwise indicated. 1) CAGR from Q4'14 to Q4’20. NYC based on SLR. ESRT and PGRE based on annualized ren
Slide 9: Conservative Capital Structure
8 Conservative Capital Structure ▪ Well - Positioned for Future Growth: The Company’s capital structure and recent listing positions the Company to take advantage of attractive acquisition opportunities ▪ Higher Growth Leads to Higher Multiples: Public markets generally reward higher growth companie
Slide 10: Real Estate Portfolio Highlights
9 9 Real Estate Portfolio Highlights
Slide 11: Detailed Property Summary
10 10 Detailed Property Summary Note: Data as of December 31, 2020. 1) Includes leased space occupied by Knotel, Inc. In January 2021, Knotel filed for bankruptcy and all leases were terminated ef fec tive January 31, 2021. If Knotel was not included in this calculation as of December 31, 2020, occu
Slide 12: Top 10 Tenants
11 11 Note: Data as of December 31, 2020 unless otherwise noted. 1) Weighted based on annualized straight - line rent as of December 31, 2020. 2) Ratings information as of March 1, 2021. Weighted based on annualized straight - line rent. NYC’s top 10 tenants are 53% actual In vestment Grade (“IG”) r
Slide 13: Proactive Portfolio Management
12 12 Asset management has proactively executed lease extensions with near - term maturing tenants, mutually beneficial lease amendments and new leases with creditworthy tenants Proactive Portfolio Management Prior Lease New Lease Moody’s Credit Rating Aa2 Aa2 Square Feet 40,307 45,313 Lease Expirat
Slide 14: Knotel Value Opportunity
13 Knotel’s bankruptcy provides a unique opportunity for NYC to create significant value at 123 William St and 9 Times Square by aggressively leasing prime “turn - key” space to creditworthy tenants Knotel Value Opportunity 13 In January 2021, Knotel filed for bankruptcy and subsequently terminated
Slide 15: Scalable Operating Platform
14 14 Q4'14 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q4'20 421 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 Dating back to 2014, management has a strong history of driving lon
Slide 16: Case Study: Knotel Proactive Management
15 15 Case Study: Knotel Proactive Management x 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
Slide 17: Financial Highlights
16 Financial Highlights
Slide 18: Fourth Quarter Cash Rent Collection
17 82% 7% 10% 1% Q4'20 Cash Rent Paid Approved Agreement Agreement Negotiation Other Significant Fourth Quarter Cash Rent Collection Fourth Quarter Cash Rent Status October November December Total Portfolio _ Q4'20 Cash Rent Collected 81% 82% 83% 82% _ Approved Agreement (1) 9% 7% 6% 7% _ Agreement
Slide 19: Capital Structure and Q4'20 Results
18 18 Capital Structure and Q4'20 Results Note: As of December 31, 2020, we had cash and cash equivalents of $31.0 million. We are, however, required to maintain a min imu m net worth in excess of $175.0 million and minimum liquid assets of $10.0 million under our loan secured by our 9 Times Squa re
Slide 20: Q4'20 Core FFO Impact
19 19 Q4’20 Core FFO Impact 78% of quarterly Core FFO decline was not driven by Q4'20 balances; these were related to past due balances from prior periods related to COVID - 19 headwinds which are not expected to have a long - term impact on NYC's operations Q3’2020 - Core FFO (1) $ 514 ( - ) Accoun
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: Appendix
hkNYC NEWYORK GTY RET Appendix
Slide 25: Definitions
24 24 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 26: Definitions
25 25 Definitions Investment Grade : As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade . Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or
Slide 27: Reconciliation of Non-GAAP Metrics: Cash NOI
26 26 Reconciliation of Non - GAAP Metrics: Cash NOI (in thousands) Three Months Ended December 31, 2020 Three Months Ended December 31, 2019 Net Loss (in accordance with GAAP) $ (16,600) $ (6,670) Other income (8) (161) General & Administrative 1,844 1,417 Asset and property management fees to rela
Slide 28: Reconciliation of Non-GAAP Metric: FFO
27 27 Reconciliation of Non - GAAP Metric: FFO (in thousands) Three Months Ended December 31, 2020 Three Months Ended September 30, 2020 Three Months Ended December 31, 2019 Net Loss (in accordance with GAAP) $ (16,600) (12,288) (6,670) Depreciation and amortization 7,677 8,639 8,390 FFO (As defined
Slide 29: Legal Notices
hkNYC NEWYORK GTY 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 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 forwar