Form: 8-K

Current report

August 9, 2024

Documents


EXHIBIT 99.2






American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (unaudited)




American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)
Table of Contents
ItemPage
Non-GAAP Definitions3
Key Metrics5
Consolidated Balance Sheets6
Consolidated Statements of Operations7
Non-GAAP Measures8
Debt Overview10
Future Minimum Lease Rents11
Top Ten Tenants12
Diversification by Property Type13
Diversification by Tenant Industry14
Lease Expirations15

Forward-looking Statements:
The statements in this supplemental package that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. The words “may,” “will,” “seeks,” “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include (a) the anticipated benefits of the Company’s election to terminate its status as a real estate investment trust, (b) whether the Company will be able to successfully acquire new assets or businesses, (c) the potential adverse effects of the geopolitical instability due to the ongoing military conflict between Russia and Ukraine and Israel and Hamas, including related sanctions and other penalties imposed by the U.S. and European Union, and the related impact on the Company, the Company’s tenants, and the global economy and financial markets, (d) the potential adverse effects of inflationary conditions and higher interest rate environment, (e) that any potential future acquisition or disposition is subject to market conditions and capital availability and may not be completed on favorable terms, or at all, and (f) the Company may not be able to continue to meet the New York Stock Exchange's (“NYSE”) continued listing requirements and rules, and the NYSE may delist the Company's common stock, which could negatively affect the Company, the price of the Company's common stock and the Company's shareholders' ability to sell the Company's common stock, as well as those risks and uncertainties set forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed on April 1, 2024 and all other filings with the Securities and Exchange Commission after that date including but not limited to the subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law.
2

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)
Non-GAAP Financial Measures
This section discusses the non-GAAP financial measures we use to evaluate our performance, including, Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Net Operating Income (“NOI”) and Cash Net Operating Income (“Cash NOI”) and Cash Paid for Interest. While NOI is a property-level measure, a description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income, is provided below.
In December 2022 we announced that that we changed our business strategy and terminated our election to be taxed as a REIT effective January 1, 2023, however, our business and operations operations have not materially changed in the first quarter of 2023. Therefore, we did not change any of the non-GAAP metrics that we have historically used to evaluate performance.
Caution on Use of Non-GAAP Measures
EBITDA, Adjusted EBITDA, NOI, Cash NOI and Cash Paid for Interest are non-GAAP metrics and should not be construed to be more relevant or accurate than other metrics calculated and presented in accordance with GAAP, including net loss, in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than non-GAAP metrics.
We consider EBITDA, Adjusted EBITDA, NOI and Cash NOI useful indicators of our performance. Because these metrics’ calculations exclude such factors as depreciation and amortization of real estate assets, interest expense, impairment charges, equity-based compensation, gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), these metrics’ presentations facilitate comparisons of operating performance between periods and between other companies that use these measures.
As a result, we believe that the use of these non-GAAP metrics together with the required GAAP presentations, provide a more complete understanding of our performance, including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, these non-GAAP metrics are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends and capital expenditures. Investors are cautioned that these non-GAAP metrics should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest.
We believe that EBITDA and Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for acquisition and transaction-related expenses, fees related to the listing related costs and expenses, other non-cash items such as the vesting and conversion of the Class B Units, equity-based compensation expense and including our pro-rata share from unconsolidated joint ventures, is an appropriate measure of our ability to incur and service debt. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other companies may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other companies.
NOI is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other companies that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to pay dividends.
Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other companies. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other companies present Cash NOI.
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American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)
Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.
4

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Key Metrics
As of and for the three months ended June 30, 2024
Amounts in thousands, except per share data, ratios and percentages
Financial Results (Amounts in thousands, except per share data)
Revenue from tenants$15,754 
Net loss attributable to common stockholders$(91,851)
Basic and diluted net loss per share attributable to common stockholders$(36.48)
Cash NOI (1)
$7,416 
Adjusted EBITDA (1)
$4,479 
Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages)
Gross asset value (2)
$705,499 
Net debt (3) (4)
$394,278 
Total consolidated debt (4)
$399,500 
Total assets$598,916 
Cash and cash equivalents (5)
$5,222 
Common shares outstanding as of June 30, 2024
2,643 
Net debt to gross asset value55.9 %
Net debt to annualized adjusted EBITDA (1) (annualized based on quarterly results)
22.0 x
Weighted-average interest rate cost (6)
4.9 %
Weighted-average debt maturity (years) (7)
2.7 
Interest Coverage Ratio (8)
0.9 x
Real Estate Portfolio
Number of properties7 
Number of tenants77 
Square footage (millions)1.2 
Leased85.9 %
Weighted-average remaining lease term (years) (9)
6.3
______
(1)These Non-GAAP metrics are reconciled below.
(2)Defined as total assets of $598.9 million plus accumulated depreciation and amortization of $106.6 million as of June 30, 2024.
(3)Represents total debt outstanding of $399.5 million, less cash and cash equivalents of $5.2 million.
(4)Excludes the effect of deferred financing costs, net.
(5)Under the terms of one of the Company’s mortgage loans, the Company is required to maintain minimum liquid assets (i.e. cash and cash equivalents and restricted cash) of $10.0 million and a minimum net worth in excess of $175.0 million.
(6)The weighted average interest rate cost is based on the outstanding principal balance of the debt.
(7)The weighted average debt maturity is based on the outstanding principal balance of the debt.
(8)The interest coverage ratio is calculated by dividing adjusted EBITDA for the applicable quarter by cash paid for interest (calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net). Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations. Adjusted EBITDA and cash paid for interest are non-GAAP metrics and are reconciled below.
(9)Based on annualized straight-line rent as of June 30, 2024.
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American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024


Consolidated Balance Sheets
Amounts in thousands, except share and per share data
June 30,
2024		December 31,
2023
ASSETS(Unaudited)
Real estate investments, at cost:
Land$156,109 $188,935 
Buildings and improvements399,794 479,265 
Acquired intangible assets37,056 56,929 
Total real estate investments, at cost592,959 725,129 
Less accumulated depreciation and amortization(106,583)(144,956)
Total real estate investments, net486,376 580,173 
Cash and cash equivalents5,222 5,292 
Restricted cash7,907 7,516 
Operating lease right-of-use asset54,626 54,737 
Prepaid expenses and other assets 5,642 6,150 
Derivative asset, at fair value— 400 
Straight-line rent receivable30,631 30,752 
Deferred leasing costs, net8,512 9,152 
Total assets$598,916 $694,172 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Mortgage notes payable, net$396,465 $395,702 
Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of $136 and $20 at June 30, 2024 and December 31, 2023, respectively)15,811 12,975 
Notes payable to related parties150 — 
Operating lease liability54,625 54,657 
Below-market lease liabilities, net1,636 2,061 
Deferred revenue3,450 3,983 
Total liabilities472,137 469,378 
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding at June 30, 2024 and December 31, 2023— — 
Common stock, $0.01 par value, 300,000,000 shares authorized, 2,642,764 and 2,334,340 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively26 23 
Additional paid-in capital731,491 729,644 
Accumulated other comprehensive income— 406 
Distributions in excess of accumulated earnings(604,738)(505,279)
Total stockholders’ equity126,779 224,794 
Total liabilities and equity$598,916 $694,172 
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American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Consolidated Statements of Operations
Amounts in thousands, except share and per share data
 Three Months Ended
June 30,
2024		March 31,
2024		December 31, 2023September 30,
2023
Revenue from tenants$15,754 $15,481 $15,380 $16,015 
 Expenses:
Asset and property management fees to related parties1,927 1,903 1,926 1,882 
Property operating 8,461 8,382 8,230 8,792 
Impairment of real estate investments84,724 — 66,053 362 
Equity-based compensation186 54 151 1,208 
General and administrative 1,964 2,801 1,824 1,932 
Depreciation and amortization5,151 5,261 6,332 6,499 
Total expenses102,413 18,401 84,516 20,675 
Operating loss(86,659)(2,920)(69,136)(4,660)
Other income (expense):
Interest expense(5,201)(4,697)(4,749)(4,739)
Other income9 9 9 9 
Total other expense, net(5,192)(4,688)(4,740)(4,730)
Net loss before income taxes(91,851)(7,608)(73,876)(9,390)
Net loss and Net loss attributable to common stockholders$(91,851)$(7,608)$(73,876)$(9,390)
Basic and Diluted Net Loss Per Share:
Net loss per share attributable to common stockholders — Basic and Diluted$(36.48)$(3.28)$(32.27)$(4.10)
Weighted average shares outstanding —Basic and Diluted2,518,176 2,322,594 2,289,094 2,288,683 
Diluted2,518,176 2,322,594 2,289,094 2,289,094 
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American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Non-GAAP Measures
Amounts in thousands
 Three Months Ended
June 30,
2024		March 31,
2024		December 31, 2023September 30, 2023
EBITDA:
Net loss and Net loss attributable to common stockholders$(91,851)$(7,608)$(73,878)$(9,390)
Depreciation and amortization5,151 5,261 6,332 6,499 
Interest expense5,201 4,697 4,749 4,739 
EBITDA(81,499)2,350 (62,797)1,848 
Impairment of real estate investments84,724 — 66,053 362 
Equity-based compensation186 54 151 1,208 
Management Fees paid in stock to Advisor in lieu of cash1,077 533 — — 
Other income(9)(9)(9)(8)
Adjusted EBITDA4,479 2,928 3,398 3,410 
Asset and property management fees to related parties paid in cash850 1,371 1,926 1,882 
General and administrative1,964 2,801 1,824 1,931 
NOI7,293 7,100 7,148 7,223 
Accretion of below- and amortization of above-market lease liabilities and assets, net(57)(55)(25)(36)
Straight-line rent (revenue as a lessor)153 (30)(848)(703)
Straight-line ground rent (expense as lessee)27 27 28 27 
Cash NOI$7,416 $7,042 $6,303 $6,511 
Cash Paid for Interest:
Interest expense$5,201 $4,697 $4,749 $4,739 
Amortization of deferred financing costs(377)(386)(386)(386)
Total cash paid for interest$4,824 $4,311 $4,363 $4,353 
8

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Debt Overview
As of June 30, 2024
Year of MaturityNumber of Encumbered Properties
Weighted-Average Debt Maturity (Years) (1)
Weighted-Average Interest Rate (1) (2)
Total Outstanding Balance (3)
(In thousands)
2024 (remainder)1 0.3 8.1 %$49,500 
2025— — — %— 
20261 2.0 4.2 %99,000 
20271 2.7 4.7 %140,000 
20283 3.9 4.7 %60,000 
20291 5.1 3.9 %51,000 
Thereafter— — — %— 
Total Debt7 2.7 4.9 %$399,500 
______
(1)Weighted based on the outstanding principal balance of the debt.
(2)All of the Company’s debt is fixed rate as of June 30, 2024.
(3)Excludes the effect of deferred financing costs, net. Current balances as of June 30, 2024 are shown in the year the debt matures.
9

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Future Minimum Lease Rents
As of June 30, 2024
Amounts in thousands
Future Minimum Base Rent Payments (1)
2024 (remainder)$27,543 
202549,964 
202644,916 
202741,463 
202836,959 
202933,529 
Thereafter148,119 
Total$382,493 
_________________
(1)Represents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items.
10

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Top Ten Tenants
As of June 30, 2024
Amounts in thousands, except percentages
Tenant / Lease GuarantorProperty TypeTenant Industry
Annualized SL Rent (1)
SL Rent Percent
Remaining Lease Term (2)
Investment Grade (3)
City National BankOffice / RetailFinancial Services$4,356 7 %9.0 Yes
Planned Parenthood Federation of America, Inc.OfficeNon-Profit3,388 6 %7.0 Yes
EquinoxRetailFitness2,897 5 %14.4 No
Cornell UniversityOfficeHealthcare Services2,476 4 %— Yes
The City of New York - Dept. of Youth & Community DevelopmentOfficeGovernment/Public Administration2,215 4 %13.5 Yes
CVSRetailRetail2,161 4 %10.2 Yes
USA General Services AdministrationOfficeGovernment/Public Administration2,029 3 %3.0 Yes
I Love NY GiftsRetailRetail1,932 3 %11.9 No
NYS LicensingOfficeGovernment/Public Administration1,833 3 %3.1 Yes
MarshallsRetailRetail1,641 3 %4.3 Yes
Subtotal    24,928 42 %7.9 
Remaining portfolio33,719 58 %
Total Portfolio    $58,647 100 %
__________________
(1)Calculated using the most recent available lease terms as of June 30, 2024.
(2)Based on straight-line rent as of June 30, 2024.
(3)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 not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. The term "parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of June 30, 2024. Top 10 tenants are 61% actual investment grade rated and 20% implied investment grade rated.
11

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Diversification by Property Type
As of June 30, 2024
Amounts in thousands, except percentages
Total Portfolio
Property Type
Annualized SL Rent (1)
SL Rent PercentSquare FeetSqFt. Percent
Office$42,976 73 %811 82 %
Retail 14,334 24 %168 17 %
Other 1,337 3 %14 1 %
Total $58,647 100 %993 100 %
____________
(1)Calculated using the most recent available lease terms as of June 30, 2024.
12

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Diversification by Tenant Industry
As of June 30, 2024
Amounts in thousands, except percentages
Total Portfolio
Industry Type
Annualized SL Rent (1)
SL Rent PercentSquare FeetSq. ft. Percent
Financial Services$13,920 24 %179 18 %
Government / Public Administration 7,700 13 %173 17 %
Retail 7,035 12 %53 5 %
Non-profit 5,136 9 %114 11 %
Office Space4,660 8 %104 12 %
Services3,948 7 %70 7 %
Healthcare Services3,138 5 %43 4 %
Fitness2,897 5 %30 3 %
Professional Services2,834 5 %54 5 %
Technology2,568 4 %46 5 %
Other (2)
4,811 8 %127 13 %
Total $58,647 100 %993 100 %
____________
(1)Calculated using the most recent available lease terms as of June 30, 2024.
(2)Other includes nine industry types as of June 30, 2024.
13

American Strategic Investment Co.
Supplemental Information
Quarter ended June 30, 2024 (Unaudited)

Lease Expirations
As of June 30, 2024
Year of ExpirationNumber of Leases Expiring
Annualized SL Rent [1]
Annualized SL Rent PercentLeased Rentable Square FeetPercent of Rentable Square Feet Expiring
(In thousands)(In thousands)
2024 (Remaining)12$7,597 13.1 %125 13.6 %
2025156,156 10.5 %118 11.8 %
202692,801 4.8 %56 5.6 %
2027136,314 10.8 %135 13.5 %
202893,463 5.9 %59 5.9 %
202983,508 6.0 %63 6.2 %
203042,310 3.9 %42 4.2 %
203196,538 11.1 %118 11.7 %
20323781 1.3 %14 1.4 %
203384,967 8.5 %47 4.6 %
203443,425 5.8 %30 3.0 %
20353640 1.1 %4 0.4 %
203642,298 3.9 %17 1.7 %
203744,048 6.9 %128 12.7 %
203832,897 4.9 %30 3.0 %
20392558 1.0 %— — %
Thereafter (>2039)1346 0.5 %7 0.6 %
Total111$58,647 100 %993 100 %
_______________
(1)Calculated using the most recent available lease terms as of June 30, 2024. Includes tenant concessions, such as free rent, as applicable.
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