Amalgamated Financial secures new NYC headquarters lease

Published 09/04/2025, 14:22
Amalgamated Financial secures new NYC headquarters lease

Amalgamated Financial Corp. (NASDAQ:AMAL), a $794 million market cap financial institution with a "GREAT" InvestingPro Financial Health score, has entered into a significant lease agreement, securing a new location for its headquarters at 99 Park Avenue, New York. The 15-year lease, effective from April 4, 2025, will see the state commercial bank's subsidiary, Amalgamated Bank , occupy approximately 94,045 rentable square feet. The company, which has maintained strong profitability with a return on equity of 16% in the last twelve months, continues to demonstrate its commitment to operational expansion.

The lease agreement entails a two-phase commencement. The office space is set to be available by the later of April 1, 2026, or upon the substantial completion of necessary construction works. A similar condition applies to the ground floor premises, which includes a private lobby.

Following a 16-month base rent abatement period, the annual base rent for the office premises will start at $6,205,207.50. This amount is scheduled to increase by roughly nine percent on the fifth anniversary and by an additional eight percent on the tenth anniversary of rent commencement. The ground floor premises will begin at $142,830.00 per annum with similar escalations.

Amalgamated Financial Corp. has also secured a five-year renewal option post the initial lease term. The detailed terms of the lease were disclosed in a Form 8-K filed with the SEC, based on a press release statement. The transaction reflects the company's commitment to its presence in New York City and marks a significant investment in its operational infrastructure. Trading at a P/E ratio of 8.2x and currently showing signs of being undervalued according to InvestingPro Fair Value analysis, the company appears well-positioned for future growth. For deeper insights into AMAL's valuation and growth prospects, investors can access comprehensive Pro Research Reports, available exclusively on InvestingPro, covering over 1,400 US stocks.

In other recent news, Amalgamated Financial Corp. has introduced a new Bonus Deferral Plan for its executives, allowing them to defer up to 100% of their annual bonuses in the form of deferred stock units. These units will convert to shares upon certain conditions, such as a change of control or financial emergency. In a separate development, Amalgamated Financial Corp. announced a new $40 million share repurchase program, replacing the previous plan with $18.7 million remaining. The buyback initiative, which lacks an expiration date, has been positively received by Keefe, Bruyette & Woods, who maintained an Outperform rating on the bank.

Meanwhile, Piper Sandler has downgraded Amalgamated Bank's rating from Overweight to Neutral, citing concerns about recent policy announcements from the Trump Administration and related litigation. This revision reflects uncertainties surrounding government funding for environmental initiatives, which could impact Amalgamated Bank's operations. Additionally, Amalgamated Bank has completed financing for Oklahoma's first C-PACE project, supporting a sustainable office building in Oklahoma City. This project underscores the bank's commitment to environmentally conscious construction and financing.

Lastly, Amalgamated Financial Corp. has amended its employment agreement with CEO Priscilla Sims Brown, extending her term and setting her base salary at $1,080,000 with an annual bonus target. These recent developments highlight the bank's strategic initiatives and responses to external policy changes, which are closely watched by investors.

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