American Strategic Investment Co. Announces Third Quarter 2026 Results
NEW YORK--( BUSINESS WIRE)--American Strategic Investment Co. (NYSE: NYC) (“ASIC” or the “Company”), a company that owns a portfolio of commercial real estate located within the five boroughs of New York City, announced today its financial and operating results for the third quarter ended September 30, 2026.
Third Quarter 2026 Highlights
CEO Comments
“The Company’s results this quarter build on the progress we made over the last two quarters, as our capital prioritization strategy continues to contribute to our results,” said Nicholas Schorsch, Jr., CEO of ASIC. “The portfolio’s high quality, largely investment grade tenant base continues to support stable performance this year. We remain focused on completing our remaining asset dispositions and directing capital toward the opportunities we believe will create the most durable value for our shareholders, such as the execution of the lease with the State of New York after the end of the quarter that increases pro-forma occupancy at 123 William Street to approximately 75% and portfolio occupancy to approximately 78%.”
Financial Results
Three Months Ended September 30,
(In thousands, except per share data)
2026
2025
Revenue from tenants
$
7,118
$
12,269
Net income (loss) attributable to common stockholders
$
(6,724
)
$
35,755
Net income (loss) per common share — diluted (1)
$
(2.14
)
$
13.60
EBITDA
$
2,195
$
46,116
Adjusted EBITDA
$
961
$
1,946
(1)
Real Estate Portfolio
The Company’s portfolio consisted of five properties comprised of 0.7 million rentable square feet (excluding our 1140 Avenue of the Americas property, which is in a consensual foreclosure process) as of September 30, 2026. Portfolio metrics include:
Capital Structure and Liquidity Resources
As of September 30, 2026, the Company had $5.3 million of cash and cash equivalents (5). The Company’s net debt (6) to gross asset value (7) was 58.6%, with net debt of $245.7 million.
All of the Company’s debt was fixed-rate as of September 30, 2026. The Company’s total combined debt had a weighted-average interest rate of 4.56% (8).
Advisor Payments Made with Common Stock Issuances in Lieu of Cash
In furtherance of the Company's ongoing strategy to prioritize and preserve operating capital, in August 2026 the Company’s external advisor (the “Advisor”) elected to receive shares of the Company’s Class A common stock in lieu of $1,122,149 in advisory fees accrued and payable through August 2026 under the Company’s second amended and restated advisory agreement with the Advisor (the “Advisory Agreement”). The election was approved by the Compensation Committee of the Company’s Board of Directors. Additionally, on October 23, 2026, the Company issued 244,480 shares in lieu of $1,410,651 in cash for asset management and property management services accrued and payable through October 2026. The Company has previously issued shares of its Class A common stock in lieu of cash to the Advisor and the Company’s property manager as part of its ongoing efforts to manage operating expenses and conserve liquidity.
Subsequent Events
New York State Lease Signed at 123 William Street
On November 3, 2026 the Company completed a new 11-year lease at its property at 123 William Street. The State of New York, an existing tenant, signed the lease which expanded their presence in the building to 70,629 square feet.
400 E. 67th Street/200 Riverside Blvd. Foreclosure Litigation
For a discussion of the foreclosure litigation initiated as a result of alleged defaults under the loan agreement governing the indebtedness secured by the 400 E. 67th Street and 200 Riverside Blvd. properties, see Note 5 — Mortgage Notes Payable, Net — Debt Covenant Non-Compliance, Cash Sweep Events, Notices of Defaults and of Acceleration and Foreclosure Litigation to the Company’s condensed consolidated financial statements included in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
Notes Payable to Related Parties
Pursuant to the terms of a promissory note executed during the fourth quarter between the Company and the Advisor, the Company borrowed $0.3 million from the Advisor for working capital needs. The promissory note bore interest at an annual rate of 8.15% and would have been callable on or after January 21, 2027. Amounts repaid under the promissory note may not be reborrowed. During the fourth quarter of 2026, the Company repaid all amounts outstanding under this promissory note with the Advisor with cash on hand including interest, which was immaterial.
Footnotes/Definitions
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(8)
About American Strategic Investment Co.
American Strategic Investment Co. (NYSE: NYC) owns a portfolio of commercial real estate located within the five boroughs of New York City. Additional information about ASIC can be found on its website at www.americanstrategicinvestment.com.
Supplemental Schedules
The Company will file a supplemental information package with the Securities and Exchange Commission (the “SEC”) to provide additional disclosure and financial information. Once posted, the supplemental information package can be found under the “Financial Results” tab in the Investor Relations section of ASIC’s website at www.americanstrategicinvestment.com and on the SEC’s website at www.sec.gov.
Important Notice
The statements in this press release that are not historical facts may be forward-looking statements, including, without limitation, statements regarding the Company’s ability to return to compliance with the New York Stock Exchange’s (“NYSE”) continued listing standards. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. The words “may,” “will,” “seeks,” “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include (a) the anticipated benefits of the Company’s election to terminate its status as a real estate investment trust, (b) whether the Company will be able to successfully acquire new assets or businesses, (c) the potential adverse effects of the geopolitical instability due to the ongoing military conflicts between Russia and Ukraine, Israel and Hamas and the U.S. and Israel against Iran, including related sanctions and other penalties imposed by the U.S. and European Union, and the related impact on the Company, the Company’s tenants, and the global economy and financial markets, (d) inflationary conditions and higher interest rate environment, (e) economic uncertainties about the ultimate impact of tariffs imposed by, or imposed on, the United States and its trading relationships, and (f) that any potential future acquisition or disposition is subject to market conditions and capital availability and may not be identified or be completed on favorable terms, or at all, as well as those risks and uncertainties set forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed on April 15, 2026 with the United States Securities and Exchange Commission (“SEC”) and all other filings with the SEC after that date, including but not limited to the subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent report. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law.
American Strategic Investment Co.
Condensed Consolidated Balance Sheets
(In thousands. except share and per share data)
September 30,
2026
December 31,
2025
ASSETS
(Unaudited)
Real estate investments, at cost:
Land
$
114,099
$
114,099
Buildings and improvements
269,294
268,474
Acquired intangible assets
4,372
5,389
Total real estate investments, at cost
387,765
387,962
Less accumulated depreciation and amortization
(86,576
)
(80,579
)
Total real estate investments, net
301,189
307,383
Cash and cash equivalents
5,323
1,297
Restricted cash
6,161
6,750
Contract asset
115,486
108,648
Prepaid expenses and other assets
2,914
3,169
Straight-line rent receivable
14,962
15,421
Deferred leasing costs, net
2,357
2,492
Total assets
$
448,392
$
445,160
LIABILITIES AND STOCKHOLDERS’ EQUITY
Mortgage notes payable, net
$
250,079
$
249,565
Debt associated with property in receivership
99,000
99,000
Accrued interest associated with property in receivership
16,486
9,648
Accounts payable, accrued expenses and other liabilities (including amounts due to/(from) related parties of $1,454 and $(280) at September 30, 2026 and December 31, 2025, respectively)
28,668
18,739
Notes payable to related parties
3,920
650
Below-market lease liabilities, net
570
708
Deferred revenue
2,417
2,094
Total liabilities
401,140
380,404
Common stock, $0.01 par value, 300,000,000 shares authorized, 3,324,398 and 2,692,941 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively
33
27
Additional paid-in capital
737,081
731,793
Distributions in excess of accumulated earnings
(689,862
)
(667,064
)
Total equity
47,252
64,756
Total liabilities and equity
$
448,392
$
445,160
American Strategic Investment Co.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)
Three Months Ended September 30,
2026
2025
Revenue from tenants
$
7,118
$
12,269
Operating expenses:
Asset and property management fees to related parties
1,656
1,929
Property operating
3,723
6,640
Equity-based compensation
48
90
General and administrative
1,804
1,754
Depreciation and amortization
2,490
3,086
Total operating expenses
9,721
13,499
Operating loss before gain on disposition of real estate investments
(2,603
)
(1,230
)
Gain on disposition of real estate investments
2,305
44,268
Operating (loss) income
(298
)
43,038
Other income (expense):
Interest expense
(4,124
)
(4,124
)
Interest expense associated with property in receivership
(2,305
)
(3,151
)
Other income (expense)
3
(8
)
Total other expense
(6,426
)
(7,283
)
Net income (loss) before income tax
(6,724
)
35,755
Income tax expense
—
—
Net income (loss) and Net income (loss) attributable to common stockholders
$
(6,724
)
$
35,755
Net income (loss) per share attributable to common stockholders — Basic
$
(2.14
)
$
13.60
Weighted-average shares outstanding — Basic
3,137,318
2,554,502
Net income (loss) per share attributable to common stockholders — Diluted
$
(2.14
)
$
13.60
Weighted-average shares outstanding — Diluted
3,137,318
2,629,703
American Strategic Investment Co.
Quarterly Reconciliation of Non-GAAP Measures (Unaudited)
(In thousands)
Three Months Ended
September 30, 2026
September 30, 2025
Net income (loss) and Net income (loss) attributable to common stockholders
$
(6,724
)
$
35,755
Interest expense
4,124
4,124
Interest expense associated with property in receivership
2,305
3,151
Depreciation and amortization
2,490
3,086
EBITDA
2,195
46,116
Gain on disposition of real estate investments
(2,305
)
(44,268
)
Equity-based compensation
48
90
Other (income) loss
(3
)
8
Asset and property management fees paid in common stock to related parties in lieu of cash
1,026
—
Adjusted EBITDA
961
1,946
Asset and property management fees to related parties payable in cash
630
1,929
General and administrative
1,804
1,754
NOI
3,395
5,629
Accretion of below- and amortization of above-market lease liabilities and assets, net
(20
)
(161
)
Straight-line rent (revenue as a lessor)
132
102
Straight-line ground rent (expense as lessee)
—
(242
)
Cash NOI
3,507
5,328
Cash Paid for Interest:
Interest expense
4,124
4,124
Amortization of deferred financing costs
171
510
Total cash paid for interest
$
4,295
$
4,634
Non-GAAP Financial Measures
This release discusses the non-GAAP financial measures we use to evaluate our performance, including Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Net Operating Income (“NOI”) and Cash Net Operating Income (“Cash NOI”) and Cash Paid for Interest. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net loss, is provided above.
In December 2022 we announced that we changed our business strategy and terminated our election to be taxed as a REIT effective January 1, 2023, however, our business and operations have not materially changed in the third quarter of 2026. Therefore, we did not change any of the non-GAAP metrics that we have historically used to evaluate performance.
Caution on Use of Non-GAAP Measures
EBITDA, Adjusted EBITDA, NOI, Cash NOI and Cash Paid for Interest should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP metrics.
As a result, we believe that the use of these non-GAAP metrics, together with the required GAAP presentations, provide a more complete understanding of our performance, including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, these non-GAAP metrics are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends. Investors are cautioned that these non-GAAP metrics should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest.
We believe that EBITDA and Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for (i) impairment charges, (ii) interest income or other income or expense, (iii) gains or losses on debt extinguishment, (iv) equity-based compensation expense, (v) acquisition and transaction costs, (vi) gains or losses from the sale of real estate investments and (vii) expenses paid with issuances of common stock in lieu of cash is an appropriate measure of our ability to incur and service debt. We consider EBITDA and Adjusted EBITDA useful indicators of our performance. Because these metrics’ calculations exclude such factors as depreciation and amortization of real estate assets, interest expense, and equity-based compensation (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), these metrics; presentations facilitate comparisons of operating performance between periods and between other companies that use these measures. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other companies may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other companies.
NOI is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other companies that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to pay dividends.
Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other companies. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other companies present Cash NOI.
Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.