Gyrodyne Reports Increased Net Assets in Liquidation and Strategic Developments for Remaining Properties

Gyrodyne, LLC reported its financial results for the six months ending June 30, 2026, revealing net assets in liquidation of approximately $27.06 million, an increase from $25.86 million at the end of the previous fiscal period. This translates to estimated liquidating distributions of about $12.30 per common share, up from $11.76 per share as of December 31, 2025. The increase in net assets is attributed to several factors, including employee-restructuring savings of approximately $620,000, a favorable variance in actual expenses of about $230,000, and an increase in forecasted revenue due to new leases totaling around $140,000.

The company continues to pursue entitlements for its two remaining properties, Flowerfield and Cortlandt Manor, with the aim of maximizing their value before liquidation. Gyrodyne has incurred approximately $144,000 in land entitlement costs during the reporting period and estimates an additional $995,000 will be needed through the end of the liquidation process, currently projected to conclude by December 31, 2028. The company is actively marketing these properties and anticipates receiving subdivision approval for Flowerfield in early 2027 and for Cortlandt Manor by mid-2027.

Operationally, Gyrodyne executed one new lease and five renewals during the first half of 2026, generating annual revenue of approximately $198,000. However, the company also faced challenges, including a default from one of its three largest tenants, which accounted for about 10% of rental income. Management is working to resolve this issue and believes it is likely to be rectified without eviction.

In terms of strategic developments, Gyrodyne has entered into a Purchase and Sale Agreement with B2K Smithtown LLC for a portion of the Flowerfield property, with a potential sale price ranging from $24 million to $28.74 million, contingent upon receiving necessary approvals. The company is also exploring modifications to its existing loan facilities to strengthen its financial position through the liquidation process. As of June 30, 2026, Gyrodyne had cash and cash equivalents totaling approximately $3.77 million, which will be utilized to fund ongoing operations and entitlement efforts.

Looking ahead, Gyrodyne remains focused on enhancing the value of its properties while navigating the complexities of the liquidation process. The company acknowledges the inherent uncertainties in its projections and the potential impact of external factors, including market conditions and regulatory approvals, on its timeline and financial outcomes.