American Strategic Investment Co. Reports $41.7 Million Net Loss in Q2 2025, Improved from Last Year

American Strategic Investment Co. reported a net loss of $41.7 million for the second quarter of 2025, a significant improvement compared to a net loss of $91.9 million in the same period last year. Revenue from tenants decreased to $12.2 million, down from $15.8 million, primarily due to the sale of the 9 Times Square property in December 2024. Total operating expenses also saw a notable decline, falling to $46.0 million from $102.4 million, largely driven by a reduction in impairment charges related to real estate investments, which dropped from $84.7 million to $30.6 million.

For the first half of 2025, the company reported a net loss of $50.3 million, compared to a loss of $99.5 million in the prior year. Revenue from tenants for this period was $24.5 million, down from $31.2 million, again reflecting the impact of the 9 Times Square sale. Operating expenses decreased to $62.9 million from $120.8 million, with significant reductions in impairment charges and depreciation expenses contributing to the improved financial performance.

Operationally, American Strategic Investment Co. continues to face challenges in the New York City commercial real estate market, particularly in leasing and occupancy rates. As of June 30, 2025, the company reported an overall occupancy rate of 82.0%, down from 85.9% a year earlier. The occupancy at key properties such as 1140 Avenue of the Americas and 400 E. 67th Street has been particularly affected, with rates of 74.1% and 44.3%, respectively. The company has been actively working to mitigate these challenges by focusing on leasing new tenants and managing existing leases.

The company is currently navigating significant liquidity constraints, with cash and cash equivalents totaling $5.3 million as of June 30, 2025, down from $9.8 million at the end of 2024. Restricted cash also decreased to $7.5 million, reflecting cash sweeps related to mortgage defaults. As of the same date, American Strategic Investment Co. had mortgage notes payable of $348.2 million, with two mortgages in default and three under cash trap events. The company is implementing a plan to address these liquidity issues, which includes potential asset sales and restructuring management fees to be paid in shares rather than cash.

Looking ahead, American Strategic Investment Co. aims to continue divesting underperforming assets and entering new leases to improve cash flow. However, the company acknowledges the uncertainty surrounding the New York City real estate market and the ongoing impacts of the COVID-19 pandemic on tenant demand and rental rates. The management remains cautious about predicting future outcomes but is focused on stabilizing operations and enhancing liquidity.