American Strategic Investment (NYSE:NYC) reported a narrower first-quarter net loss as management said it remains focused on reducing recurring expenses, managing the balance sheet and evaluating selective asset sales across its New York City real estate portfolio.
On the company’s first-quarter 2026 earnings call, Chief Executive Officer Nick Schorsch Jr. said the quarter centered on “continuous proactive management” of the business, with particular attention to cost efficiency and balance sheet management. The company continues to focus on tenant retention, property improvements and pruning exposure to non-core assets, he said.
Revenue Falls After Property Foreclosure
Chief Financial Officer Michael LeSanto said first-quarter 2026 revenue was $7.3 million, down from $12.3 million in the first quarter of 2025. The decline was principally tied to the disposition of 1140 Avenue of the Americas through a consensual foreclosure with the lenders for that property in late 2025.
The company posted a GAAP net loss attributable to common stockholders of $7.8 million for the quarter. That compared with a net loss of $8.6 million in the prior-year period. LeSanto said the latest quarterly result was impacted by a $2.3 million non-cash gain and a $5 million decrease in tenant revenue related to the foreclosure at 1140 Avenue of the Americas.
In the first quarter of 2025, the company’s net loss was impacted by an impairment recorded in connection with the sale of 9 Times Square, LeSanto said.
Adjusted EBITDA was negative $1.1 million in the first quarter of 2026, compared with negative $0.8 million in the first quarter of 2025. Cash net operating income was $2.8 million, down from $4.2 million a year earlier.
Portfolio Stability Remains a Focus
Schorsch said the company’s New York City real estate portfolio totals approximately $388 million and encompasses roughly 743,000 square feet across five properties, most of which are located in Manhattan. He said the company’s office and retail spaces attract a tenant base that includes several major investment-grade companies.
Management highlighted several leasing metrics intended to show portfolio stability. Near-term lease expirations represented 6% of annualized straight-line rent, while 60% of leases now extend beyond 2030, up from 57% in the prior quarter. Schorsch also said the company’s top 10 tenants are 69% investment grade or implied investment grade.
“We believe that this extended term, coupled with a high-quality tenant base … provides significant portfolio stability,” Schorsch said.
Schorsch added that the company is emphasizing resilient sectors and properties located near convenient transit options, which he said supports occupancy and tenant retention efforts.
Company Evaluates Asset Sales and Debt Options
American Strategic Investment’s management said it continues to assess opportunities to improve the portfolio and position the company for future investment prospects. Schorsch said dispositions completed over the last year have positioned the company to better pursue investment opportunities that support sustained portfolio development.
As part of its current review, the company is evaluating approaches for properties located at 123 William Street and 196 Orchard to maximize long-term portfolio value. Schorsch said management remains focused on filling vacant units, exploring alternatives for refinancing upcoming debt maturities, renewing agreements with existing tenants and monitoring costs.
“Our ongoing efforts are aimed at improving operational adaptability, including selective asset sales,” Schorsch said.
The company also reminded investors that its first-quarter financial information is unaudited and that reconciliations of non-GAAP measures, including adjusted EBITDA and cash net operating income, are available in its earnings release and supplemental materials.
Schorsch closed the call by inviting shareholders to attend the company’s annual stockholders meeting online on June 2 at 2:00 p.m. Eastern time.
About American Strategic Investment (NYSE:NYC)
American Strategic Investment Co (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.
