New York City REIT's Q1 2025: Discrepancies in Occupancy Growth, Financial Performance, and Strategic Direction

Occupancy growth and leasing pipeline, financial performance and reinvestment strategy, expected timeframe for property sales and contracts, occupancy growth and leasing pipeline, financial performance and strategic divestiture are the key contradictions discussed in New York City REIT's latest 2025Q1 earnings call.



Occupancy Growth and Leasing Pipeline:
- American Strategic Investment Company (ASIC) reported 120 basis points of occupancy growth to 82% as of the first quarter of 2025.
- The growth is attributed to the company's focus on leasing available space and extending leases with existing tenants, with an active leasing pipeline across several properties.

Portfolio Diversification and Asset Sales:
- ASIC is actively marketing two properties, 123 William Street and 196 Orchard, for sale to diversify its holdings and strengthen its balance sheet.
- The company plans to use the net proceeds from these sales to retire debt and invest in higher-yielding assets to increase long-term value.

Financial Performance and Impact of Asset Sales:
- First quarter 2025 revenue was $12.3 million, compared to $15.5 million in the first quarter of 2024, primarily due to the sale of 9 Times Square in the fourth quarter of 2024.
- Adjusted EBITDA for the first quarter of 2025 was negative $0.8 million, down from $2.9 million in the first quarter of 2024, reflecting the impact of asset sales on financial performance.

Portfolio Stability and Tenant Quality:
- The portfolio's weighted average remaining lease term was 5.4 years at quarter end, with 51% of leases extending beyond 2030.
- High occupancy, stable lease terms, and a strong tenant base featuring top 10 tenants, which are 77% investment grade or implied investment grade, contribute to portfolio stability.