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New York City REIT (NYC)

Participants
Louisa Quarto Executive Vice President
Mike Weil Chief Executive Officer
Chris Masterson Chief Financial Officer
Bryan Maher B. Riley Securities
Call transcript
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Operator

Good day. Thank you for standing by and welcome to the New York City REIT Inc.

Second Quarter Earnings Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there’ll be a question-and-answer session. advised conference be being Please Instructions] that is today’s recorded. [Operator hand I’d over now Instructions] the like NYC. [Operator from to conference Quarto to Louisa you. Thank ahead. go Please

Louisa Quarto

Thank NYC’s event is for webcast thank in second you, Relations everyone, www.newyorkcityreit.com. being XXXX us section Investor of quarter This for NYC’s at operator. you call. earnings the morning, website Good joining and

of statements. Financial information Officer, for the discuss our results those XXXX expressed discussion Mike from Weil, made the are more forward-looking all conference me call. statements Joining or filed and Masterson, are you for filed provided XX, call filings risks quarter’s including the Chris the forward-looking during XX, this of on subject risk today following materialize, of these ended that materially only March on XX-K SEC a one and date forward-looking filings the results risks Officer. NYC’s We year subsequent SEC which as by of statements, could Any uncertainties. Form actual implied Chief December are cause and Chief or differ uncertainties contains factors differences. or call detailed Executive The of the these to this to may all XXXX to NYC’s more refer Should the

Michael today’s prepared for be in results most we these As to measures in earnings is will stated or we release revise detailed as These more over should GAAP. considered measures which financial turn obligation to statements useful implied forward-looking a isolation GAAP refer with today’s be evaluating performance. earnings in Weil, financial consider what our for Also, directly term substitute a investment not we reconciliation call, in measure now call or our A information our financial release. accordance measures, Please believe SEC the can also these use update company’s comparable I’ll as will of be our except ahead, Please in during Officer. to the filings, go Chief call. to by NYC or about disclaims any available discuss to intent the Mike. throughout tenants, Executive grade required non-GAAP law. we

Mike Weil

morning for joining us Good thank and Louisa. Thanks, you today.

With REIT a execute improvement our ever strategy, increasing stores, $X and FFO. New their to to York for locals and and City local renewed and office on widely quarter collection asset brought available, has highlighted nearly Warmer buildings, city continue restaurants city’s in business leaders management to increase vitality. workers. to for cash back of continues proactive their a tourists million vaccines the voice office sequential rent return in weather by giving the core number an support strong

to trend While will return. return we moment businesses their the line fully will where time clear pre-COVID very pinpoint existence, the a that full there is in can’t be

We New York day the will City soon. assumption that operate continue be with to REIT that

reconfigure of potential We build space tenants leases and office trends to with needs. to and the time lock existing out or in work emerging advantage to City have new and reimagine our taken York address New floors, long-term tenant tenants

quarter, quarter. For portfolio, improvement the the increase a across XXX-basis strong rent we XX% point of XX% cash from the fourth original collection from second quarter, at recorded last point a rent and XXX-basis

helping to team drive management rent engaged collection. with has asset Our remained tenants, our

in construction peers, reports Transwestern landlords are in the bullish expecting particular turn third economy. city’s restaurants, supports of generates office that demand quarter. sectors from New pent-up our York has City Chicago, is of City VTS, the in asking holding Like New remain that office York and seen CEOs rents, four Boston, and emerge for especially pre-pandemic nearing levels XX% pedestrian Washington D.C. firm demand City now space Demand by the office New where I demand for Square in San traffic recent on others measured adults. of show is to these pre-COVID, York on notes into it and Francisco A As the like retailers, bring was vibrant insight back to services, for building that the vaccines all office New in reached Times Seattle, providing about workers employer’s reading in that and York all report which and City and have plans infrastructure of demand general, is that offices, outpacing XX%

long-term York remain as the our For fundamental New estate. belief reasons, York confident of space, the well City of highly real as New City necessity retail in we these strength in and office

Our portfolio includes and entirely eight primarily City York New in office Manhattan. located and retail condominium assets, in

that a investment built City portfolio large, CVS, including have TD number and grade features government City pure-play New National agencies. of York Bank a Bank, tenants We

June of investment and nine were term rated grade investment average top had lease As or implied XX, XX of over tenants NYC’s XX% grade remaining years. an

at term Across flow Williams at Occupancy new we to have building-level years. all square weighted XX.X%, XX.X% quarter, leases of the XX% further lease XXX of average where end increased occupancy million drive almost X.X X.X rent million, drive straight-line and plenty we four of cash remaining from still as helped these occupancy gains us of this has portfolio Our first foot up a our $X by potential to lease annualized Street, up gain. future the affording assets of but $XXX.X upside million, properties.

the year negotiate where to have We of are key term lease GSA several about tenants, remaining, we including a renewals. engaged with

by annualized LOI. including definitive after million is if terms quarter reached on leases $X.X a by portfolio rent of the and Our signed additional leasing an pipeline, agreement one expected the is and end straight-line LOI, occupancy increase two to X%

and be management who year have to an willing able landlord portfolio. sought our last we the be owner Over in to of the is and creative

tenants a York, over with great that York was into of at City and that segment XXXX and escalating opportunity market This also rent the one investment retail the which of and estate to to in-place lease share opened lease exchange Avenue negotiated providing worked Square, restructure their to our years. tenant, New two formerly a strategy the a with third growing this at of floors lease where recovery Innovate with Times space path by diversify launched Americas, puts recovery Love example, in minimal we with Better took real credits rent I initial over a our the For for New We in percentage tenant in Work agreements leased we tenants. coworking way quarter. by on in NYC, the We’ve a X extending time. earlier with

kitchen to the Flame, of and America’s a the discussed longest-standing Avenue agreement while recover XXXX and As defer keep one COVID. to we Red work were tenants, last quarter, of rent from come they able to to with acceptable open their abate we mutually

excited are see success We as their restaurants to normal resume operations.

unpaid from We will who rent of have our rent remain bills. payments tenants aggressive in collection

sign been six These of whom actively and years million. of occupied of its are a straight-line leased, Knotel. some space second Knotel end Through quarter. annualized of leases of XX,XXX quarter, space we have tenants, rent-paying feet previously signed formerly the up the the Knotel including to combined rent half occupied lease previously lease by former nearly of leases Knotel, XXXX term square seeking feet replaced before average have with were with to over and weighted We by Of has sub-tenants January bankruptcy. tenants that creditworthy, formerly XX,XXX occupied square Knotel $X.X of after remaining the one lease the

lease add at and We a those media Square, prior with in absorbing for technology of years X,XXX for former leading Times XX company significant X quarters, have mentioned we an to with leases XX% companies Knotel’s can additional feet others square and space. a

the recovery for public global private tech tech irreplaceable space, to have serve that of big have office about said that believe next announcements I’ve demand bets firms importance York returning the we in aggressive The the that of is their belief. placed hub, before, city As that workers an office the the city made to is New city. the support the major that and employers

stable, believe quality market second we long-term, results. over Chris occupied, the real New the foremost Masterson it I’ll over high Chris? but estate. remain non-trophy to go will the Over City to turn for York owning quarter that

Chris Masterson

Thanks, Mike.

compared stockholders first of loss $XX.X GAAP The revenue $XX.X quarter million to XXXX. first company’s quarter in was XXXX million, the was net $XX.X the loss to common XXXX. of compared a million quarter Second million attributable in first net quarter $XX to

quarter. stockholders $X.X Core $X.XX to first For FFO second $X.X million, common last quarter. compared negative the quarter of million of our share per attributable was FFO the to $X.X was a of to per million or $X last in quarter, $X.XX to a negative share compared million, loss XXXX, loss compared

Form and which peers. call balance We for and favorably our $XXX.X no to income quarter to until prudent of effective average found six years. reconciliation a release, nearly ended at of with a second As net XXXX be debt that, non-GAAP debt back XX-Q. X.X% With maintains turn the supplemental leverage a with remaining million some term earnings rate maturities interest compares measures always, net weighted-average sheet, weighted in I’ll can NYC XX.X%, at a of the our net closing conservative of Mike debt remarks. with and to also GAAP

Mike Weil

Stock freely conversion, anticipate we will to Exchange. thereby common the all phased liquidity final shares, B A New Class conversion Tomorrow, completing our on Chris. tradable shares the York this Thanks, After Class be common of shares plan. NYC

REIT and tenants, shareholders return forward provide all in and X buildings Street during completion for drive float existing Knotel for are institutional our the workers scale. at of working the stock NYC’s continued We’ve plan additional it York to of City Times retail Our at second new the will market. replace the to and quarter, Williams forward the with looking and New preparing to leases negotiating XXX Square, and the

efforts financials, rent long-term New the Core demonstrated the term with our in FFO reflected improvements to and take to prior lease value, is portfolio We expirations time occupancy quarter. collection, deliver lease the York remaining in will these some results weighted-average to well stability. our long near-term be that limited we that City provide and relative fully portfolio through and While believe positioned have

there in the performance a is our to continued and listing expect our business our since value relative year tremendous We a ago. portfolio

with Our stockholders. of are and aligning the our and $X individually collectively million company, Directors advisor, NYC the interest of shares nearly of worth shareholders XX top management, all own among Board

and are of that own maintain line of questions. unlock are for at the that, leasing open the the and we We to additional office will imminent the the We benefit high-quality greatly half please and to aggressive the portfolio operator, of an positioned from beyond approach With year scale. proud value. for well return workers believe assets second

Operator

Thank from Securities. Maher from B. Instructions] the Bryan you. [Operator of line Your question comes Riley first

Your line is now open.

Bryan Maher

the on leases Good morning, questions quarter? and Can you signed of me. the type you for those us color two a Couple what post little Basically of more LOI give tenants Chris. are? bit that

Mike Weil

Chris, the line, you? aren’t you’re on

Chris Masterson

am. I Hi, Bryan, Yes, you? how are

Bryan Maher

thank Good, Hi. you.

Chris Masterson

tenants two to kind One in relocated media Street. three. The are that it quarter XXst West really some post of actually company Yes. we office is that signed a XXX

management longer gone floor. investment earlier. at us addressed tech replaced They out a executed who an now The term with term lease. top now that XXX subtenant a the directly other which which And shorter is Americas. They of XXXX a new agreement, is Williams, had are the a of a we’ve we were previously a Avenue tenant last has is XX license prior tenant with on company firm

leases buildings. So of three our in three

Bryan Maher

space easier Times Times bit Knotel like Great. there be? than Square. it’s little then that any some versus a seems And reason might to why release Is XXX particular X similar you’re the it seems It like having Square. at X been Williams

Chris Masterson

captive declared Knotel The tenants that in XXX place deals tenants bankruptcy. when we’ve were executed, Williams those

a actually similar just at build-out a said, So opened tenants quarter we’ve in floor, we given communication their to ability That we lines were locations had signings. prior had I we both that I end to The and that in equally least facilitate floor. full lease guess are Knotel being their tenants, for think already recent executed was tenant those and of kind able build. track with post quicker of

interest. of XX% actually building. of with we’ve Knotel that’s been several prospects future trading at the remaining sheets So floors lot other, there’s And for as the been space that term a

So momentum. of definitely there’s a been lot

Bryan Maher

your it’s Great. you can your Michael vision give get? that that? is space. us guess little or What big coworking Innovate a I could mean, And I NYC, color on how on, called maybe

Mike Weil

opportunity an business So, in in rent We Bryan, pretty a that jump I’ll on stream was saw that. straightforward operate. to to continue a

think existing we’ll So agreements to space. on General this that we to contribution were And we Innovate a the fully the the Manager demand to from operate evaluate remained it able it NOI NYC. place. portfolio retain can and to I back of in for Many There’s where was working get there.

coworking to use that operational, the city marketing Manager working great in open a has NYC General the And certainly it well. longer the fully job permanent term expect. the We’re as remain. need But users done to Innovate complete for Chris will with technology get with

I we’re cost done better a and us actually existing. – to was additional what before, because think doing was no than at being job the they really space

Bryan Maher

Right. And on collections, there. progress maybe lot last your for made a good me you’ve rent of

say Now share? back any take end, you’re you that a And give update where little on rent might or Knotel bit? think are is can year to willing you collection by with there or

Mike Weil

Yes.

we’ve And has the that area think the garages. investor deck a remains we Slide biggest in XX. details two numbers I did on challenge So the collection the been parking in put that published rent

believe will ending not provider outcome. don’t have a the disclose that we hand. too I alternative job relationship not has positive having with pursuing a done only want in We’re great I aggressively but in with to performing, that. that the that Chris is much

that will me believe have throughout be again, be hope fourth quarters. continue will working deferral, wrong, this would year. Rent And solution will deferrals calendar resolved do that to in that where do if there’ll full with did We of a job correct pay. but I be collection outcome by I improve And and back rent have good and recovery done would I’m So to finding very a I October owned. Equinox, resolved. third ending. Chris lease has reasonable some the that extension, Chris past believe a some be a we

Chris Masterson

correct, That’s correct. Mike. That’s

Mike Weil

have Bryan, really, very the New is for I’m end in as York tenants a resilient. relationships, And again, the the been portfolio. part, do quarter expect and So you with pleased to our I normalized City that very of grinded know, our type of communication time together. or the most this we’re going And with in fourth quarter, by ability and very seeing collection to work be third rent out

Bryan Maher

Great. for me. Thanks. all That’s

Mike Weil

Okay. Bryan. Thanks,

Operator

questions the conference queue. like would I to back turn the now to see no further I in Weil. Mike

Mike Weil

the saw Chris portfolio going. everybody. focus you the to you quarter. second about very continue back I myself accomplishments New frankly Chris the levels to COVID. are appreciate taking and York listen Great. pretty time Thank always City pleased were REIT team pre update. some Masterson, on up we the We to And with Chao, the the to lifting we that this excited direction we’re in that

again, So thank you to and soon. everybody we’ll talk

Operator

This today’s for participating. you Thank conference call. concludes

disconnect. may You now