American Strategic Investment Q2 2025 slides: $41.7M loss amid Manhattan property impairments

American Strategic Investment Co (NYSE:NYC) revealed a significant net loss of $41.7 million in its second quarter 2025 investor presentation, primarily driven by a $30.6 million impairment charge on its real estate investments. Despite these challenges, the Manhattan-focused real estate investment company maintained a stable 82% portfolio occupancy and highlighted its ongoing strategic shift toward portfolio diversification.

Executive Summary

American Strategic Investment’s Q2 2025 results show continued pressure on its Manhattan real estate portfolio, with revenue from tenants reaching $12.2 million and Cash NOI declining to $4.2 million from $7.4 million in the same quarter last year. The company emphasized its high-quality tenant base, with 77% of its top 10 tenants maintaining investment-grade ratings and a weighted-average remaining lease term of 7.5 years.

As shown in the following comprehensive overview of the company’s second quarter highlights:

The presentation highlighted three key strategic areas: maintaining a high-quality Manhattan portfolio, active portfolio management, and a conservative debt profile. The company’s portfolio consists of six mixed-use office and retail condominium buildings primarily located in Manhattan, with total real estate investments valued at $432.4 million at cost.

Portfolio Performance

American Strategic Investment’s portfolio metrics show a balanced tenant mix across various industries, with financial services (24%), government/public administration (17%), and office space (12%) comprising the largest segments. The company’s lease expiration schedule remains favorable, with over 53% of leases expiring after 2030, providing long-term stability.

The following slide details the company’s portfolio metrics, tenant industry diversity, and lease expiration schedule:

The company’s top 10 tenants represent 50.9% of portfolio straight-line rent and 42.4% of portfolio square footage. These tenants include well-known entities such as City National Bank, Planned Parenthood Federation of America, Equinox, and various government agencies, with a weighted-average remaining lease term of 7.5 years.

The tenant profile breakdown provides further insight into the quality and diversity of the company’s rental income:

Strategic Initiatives

American Strategic Investment continues to pursue its strategic disposition plan, marketing both 123 William Street and 196 Orchard Street for sale. Management believes these properties are well-positioned to generate significant proceeds that could be deployed toward higher-yielding investments beyond Manhattan real estate, furthering the company’s diversification strategy.

The following slide outlines the company’s strategic disposition initiatives:

During the quarter, the company executed two lease renewals at 123 William and 1140 Avenue of the Americas, which extended the weighted-average remaining lease term of the portfolio from 5.4 years in Q1 2025 to 6.0 years in Q2 2025. This active portfolio management approach aligns with the company’s broader strategy of enhancing portfolio stability while pursuing strategic dispositions.

The company’s detailed property summary provides a comprehensive view of its real estate assets:

Detailed Financial Analysis

American Strategic Investment’s financial results for Q2 2025 reflect significant challenges, with a net loss of $41.7 million primarily due to a $30.6 million impairment of real estate investments. The company reported Adjusted EBITDA of $0.4 million and Cash NOI of $4.2 million, down from $7.4 million in Q2 2024.

The capital structure and financial results are detailed in the following slide:

The company maintains a 100% fixed-rate debt structure with a weighted-average interest rate of 6.4% and a weighted-average debt maturity of 1.8 years. This conservative approach to debt management provides stability in the current interest rate environment, though the company’s net leverage increased to 63.8% from 58.9% reported in Q1 2025.

American Strategic Investment has no debt maturities in 2025, with $99 million coming due in 2026, followed by $140 million in 2027. This debt maturity schedule provides the company with time to execute its strategic disposition plan and potentially reduce leverage through property sales.

Forward-Looking Statements

Management continues to focus on its strategy of divesting select Manhattan assets to reduce leverage and diversify the portfolio. The proceeds from these dispositions are intended to be deployed toward higher-yielding investments beyond Manhattan real estate, which could potentially improve the company’s financial performance and shareholder returns.

The company’s advisor and affiliates own approximately 1.5 million shares, demonstrating their alignment with shareholders and commitment to the company’s long-term success. This insider ownership provides some reassurance to investors amid the challenging financial results.

American Strategic Investment’s stock (NYSE:NYC) closed at $13.05 on August 7, 2025, up 1.79% for the day. The stock has traded between $7.89 and $16.30 over the past 52 weeks, showing significant volatility as the company navigates its strategic transition.

As the company continues to execute its strategic initiatives in a challenging Manhattan real estate market, investors will be closely monitoring the progress of property dispositions and the subsequent deployment of capital into potentially higher-yielding investments beyond its current geographic focus.

Full presentation:

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