American Strategic Investment Co.'s Q3 2025 Earnings Call: Contradictions Emerge on Property Disposition Strategy, Financial Impact, Occupancy Goals, and Strategic Focus

Date of Call: None provided

Financials Results

• Revenue: $12.3M in Q3 2025, compared to $15.4M in Q3 2024

Guidance:

• Expect consensual foreclosure of 1140 Avenue of the Americas to close in Q4 2025, eliminating a $99M liability.
• Continuing to market 123 William Street and 196 Orchard for sale; net proceeds expected to retire debt and reinvest in higher‑yielding assets.
• Ongoing focus on leasing available space, tenant retention, property improvements and tight expense controls.
• Will report full year 2025 results in coming months.

Business Commentary:

• Portfolio Stability and Lease Renewals:
• The weighted average remaining lease term of the portfolio increased to 6.2 years at quarter end, up from 5.9 years at the end of Q2.

• This increase was driven by the execution of a meaningful lease renewal at 196 Orchard and has led to 8% near-term lease expirations.

• Tenant Quality and Retention:

• 56% of the company's leases now extend beyond 2030, with 69% of tenants being investment-grade or implied investment-grade.
• The focus on retaining high-quality tenants, particularly those in resilient industries near transit-oriented locations, has contributed to stable occupancy and reduced near-term lease expiration risk.

• Strategic Asset Disposition:
• The company is marketing 123 William Street and 196 Orchard for sale, with plans to use the proceeds to retire debt and reinvest in higher-yielding assets.

• This strategy is aimed at enhancing long-term portfolio value, diversifying holdings, and strengthening the balance sheet.

• Reduction in Professional Fees:

• The company proactively reduced its professional fees by changing its audit partners to CBIZ CPAs.
• This decision was the result of a competitive bid process and the company's focus on streamlining its cost structure and reducing general and administrative expenses.

Sentiment Analysis:

Overall Tone: Neutral

• Revenue declined to $12.3M from $15.4M year-over-year and adjusted EBITDA fell to $1.9M from $4.1M, but GAAP net gain was $35.8M (driven by a $44.3M noncash foreclosure gain) and management emphasized balance-sheet actions (foreclosure, asset sales) and expense reductions.

Contradiction Point 1

Property Disposition Strategy

It involves changes in the company's strategy regarding the disposition of certain properties, which impacts the company's portfolio composition and overall financial strategy.

Strategic initiatives and plans for the remainder of the year? - Nicholas Schorsch (American Strategic Investment Co.)

20251120-2025 Q3: We are pursuing strategic asset dispositions, including the sale of 1140 Avenue of the Americas, which we expect to close in the current quarter, to generate cash for higher-yielding assets. - Nicholas Schorsch Jr.(CEO)

What were the third-quarter financial results and key financial metrics? - Michael LeSanto (American Strategic Investment Co.)

2025Q2: We are evaluating an early exit from one of our office properties, which we consider noncore to our portfolio. - Michael LeSanto(CFO)

Contradiction Point 2

Financial Impact of Property Sales

It involves the financial impact of property sales, which are critical for understanding the company's financial performance and future projections.

What were the third-quarter financial results and key financial metrics? - Michael LeSanto (American Strategic Investment Co.)

20251120-2025 Q3: Revenue was $12.3 million, down from $15.4 million in the previous year due to the sale of 9 Times Square. - Michael LeSanto(CFO)

Can you provide an overview of third-quarter financial results? - Michael Lacanto (American Strategic Investment Company)

2025Q3: Third quarter 2025 revenue was $12.3 million. - Michael Lacanto(CFO)

Contradiction Point 3

Occupancy Strategy and Goals

It involves the company's strategy and goals related to occupancy levels in its properties, which is a crucial factor for financial performance and tenant retention.

Can management provide an overview of the company's third-quarter strategy and results? - Nicholas Schorsch (American Strategic Investment Co.)

20251120-2025 Q3: We are positioning our portfolio for occupancy growth and tenant retention. - Nicholas Schorsch Jr.(CEO)

Can you provide an overview of the company's recent strategic initiatives and how they align with long-term goals? - Curtis Parker (American Strategic Investment (NYC))

2025Q2: We achieved approximately 95% occupied as of September 30, 2025, a 200 basis point improvement on a year-to-date basis. - Michael LeSanto(CFO)

Contradiction Point 4

Financial Performance and Strategic Shifts

It reflects differing perspectives on the company's financial performance and strategic shifts, which are critical for investor understanding and decision-making.

What were the third-quarter financial results and key financial metrics? - Michael LeSanto

20251120-2025 Q3: Revenue was $12.3 million, down from $15.4 million in the previous year due to the sale of 9 Times Square. - Michael LeSanto(CFO)

What is the purpose of the call and who are the speakers? - Curtis Parker

2025Q1: As for the strategy, to be very clear, we are not changing the strategy. We are not going to follow the market to the bottom, not going to become a market maker, we are not going to become a market taker. - Nicholas Schorsch Jr.(CEO)

Contradiction Point 5

Property Dispositions and Strategic Focus

It involves changes in strategic focus and property disposal, which are crucial for understanding the company's long-term growth and profitability plans.

What are the strategic initiatives and plans for the remainder of the year? - Nicholas Schorsch Jr.

20251120-2025 Q3: The company owns six properties, with one property expected to be disposed of during the current quarter. - Nicholas Schorsch Jr.(CEO)

What is the purpose of this call? - Curtis Parker

2025Q1: As for the strategy, to be very clear, we are not changing the strategy. We are not going to follow the market to the bottom, not going to become a market maker, we are not going to become a market taker. - Nicholas Schorsch Jr.(CEO)