American Strategic Investment Co. reported a net loss of $8.6 million for the first quarter of 2025, compared to a net loss of $7.6 million in the same period of 2024. Revenue from tenants decreased to $12.3 million, down from $15.5 million, primarily due to the sale of the 9 Times Square property in December 2024, which accounted for a $3.2 million reduction in revenue. Operating expenses also saw a decline, totaling $16.8 million compared to $18.4 million in the previous year, largely due to lower depreciation and amortization expenses following the asset sale.
The company's total assets decreased to $499.4 million as of March 31, 2025, down from $507.1 million at the end of 2024. This decline was attributed to a reduction in cash and cash equivalents, which fell to $7.1 million from $9.8 million. The company’s total liabilities increased slightly to $422.3 million, primarily due to ongoing mortgage obligations. The equity of the company also decreased to $77.1 million from $85.6 million, reflecting the net loss for the quarter.
Operationally, American Strategic Investment Co. faced challenges in maintaining occupancy rates, which dropped to 82.0% from 87.2% year-over-year. The occupancy at the 400 E. 67th Street property fell significantly to 44.3% from 100%, following a tenant's departure. The company has been actively seeking new tenants and has implemented market incentives to improve occupancy rates. As of March 31, 2025, the company owned six properties with a total of 1.0 million rentable square feet.
The company is currently navigating liquidity challenges, exacerbated by the ongoing impacts of the COVID-19 pandemic on the New York City real estate market. As of the end of the first quarter, two of its mortgages, totaling $149 million, were in default, and three others were under cash trap events, restricting access to excess cash flows. In response to these challenges, the company has suspended its dividend policy and is exploring asset sales to improve liquidity.
Looking ahead, American Strategic Investment Co. remains cautious about its financial outlook, emphasizing the need to monitor market conditions closely. The company is focused on increasing occupancy and managing its debt obligations while addressing the liquidity constraints that have arisen from the pandemic's lasting effects on the commercial real estate sector.
About American Strategic Investment Co.
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