First Quarter 2023 and Subsequent Event Highlights
Revenue was
Net loss attributable to common stockholders was
Cash net operating income ('NOI') increased 23% or
Adjusted EBITDA was
Funds from Operations ('FFO') was negative
Core Funds from Operations ('Core FFO') was negative
Collected 100% of cash rent due in first quarter 20231, up from 98% in the first quarter 2022
79% of annualized straight-line rent from Top 10 tenants2 is derived from investment grade or implied investment grade3 rated tenants with a weighted-average remaining lease term of 9.4 years as of
Portfolio occupancy of 84% as of
Executed occupancy of 85.3%
Approximately 20,000 square feet of new leasing and lease renewals commenced with weighted-average lease term of 12.7 years
Portfolio debt is 100% fixed rate with no maturities through the end of 2023, 4.4% weighted-average interest rate and 3.9 years of weighted-average debt maturity
CEO Comments
'The ongoing expansion of the scope of assets and businesses that
Real Estate Portfolio
The Company's portfolio consisted of eight properties comprised of 1.2 million rentable square feet as of
84.0% leased
7 years remaining weighted-average lease term
79% of annualized straight-line rent5 from top 10 tenants derived from investment grade or implied investment grade tenants with 9.4 years of weighted-average remaining lease term
Diversified portfolio, comprised of 26% financial services tenants, 13% government and public administration tenants, 12% retail tenants, 10% non-profit and 39% all other industries, based on annualized straight-line rent
Capital Structure and Liquidity Resources
As of
All of the Company's debt was fixed-rate as of
Supplemental Schedules
The Company will file supplemental information packages with the
Important Notice
The statements in this press release that are not historical facts may be forward-looking statements. 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 (i) the global COVID-19 pandemic, including actions taken to contain or treat COVID-19, (ii) the geopolitical instability due to the ongoing military conflict between
Non-GAAP Financial Measures
This release discusses the non-GAAP financial measures we use to evaluate our performance, including Funds from Operations ('FFO'), Core Funds from Operations ('Core FFO'), 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. While NOI is a property-level measure, Core FFO is based on our total performance and therefore reflects the impact of other items not specifically associated with NOI such as, interest expense, general and administrative expenses and operating fees to related parties. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income, is provided above.
In
Caution on Use of Non-GAAP Measures
FFO, Core FFO, 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 measures.
Other companies may not define FFO in accordance with the current
We consider FFO and Core FFO useful indicators of our performance. Because FFO and Core FFO calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), FFO and Core FFO presentations facilitate comparisons of operating performance between periods and between other companies that use these measures.
As a result, we believe that the use of FFO and Core FFO, 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, FFO and Core FFO are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends. Investors are cautioned that FFO and Core FFO 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.
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