American Strategic Investment Co.

Good morning. Welcome to the New York City REIT third quarter earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question, please press star then one on your telephone keypad. And if you'd like to withdraw your question, please press star one again. And I'd like to turn the conference over to Curtis Parker, Senior Vice President. Please go ahead. Thank you.

Good morning, everyone, and thank you for joining us for NYC's third quarter 2022 earnings call. This event is being webcast in the investor relations section of NYC's website. Joining me today on the call to discuss the quarter's results are Michael Weil, NYC's chief executive officer, and Chris Masterson, NYC's chief financial officer. The following information contains forward-looking statements, which are subject to the risks and uncertainties. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements. We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31, 2021, filed on March 18, 2022, and all subsequent SEC filings for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, NYC disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law. Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website at www.NewYorkCityREIT.com. Please also refer to our earnings release for more information about what we consider to be implied investment-grade tenants, a term we will use throughout today's call. I will now turn the call over to Michael Weil, Chief Executive Officer. Please go ahead, Mike.

Thanks, Curtis. Good morning, and thank you all for joining us today. The third quarter was very positive for us, especially with respect to leasing. During the quarter, we commenced five new leases across almost 49,000 square feet with a weighted average remaining lease term of 6.3 years. During the first nine months of 2022, we signed seven new leases that increased portfolio occupancy by 160 basis points, including a 790 basis points increase at nine times square. Compared to last quarter, our portfolio occupancy held steady at 85% with a weighted average remaining lease term of 7.3 years. These gains illustrate the benefits of our proactive asset and property management strategy, the significant relationships we've built with tenants and brokers over the years, and the hard work of our dedicated management team. We also believe this reflects well on the high quality of our assets and the long-range demand for New York City real estate. where nearly 40% of our leases extend beyond the year 2030. Of our top 10 tenants, 79% are investment grade, an increase of 8% from last quarter, showing the quality of our tenant roster. These tenants have a remaining lease term of 9.9 years, providing long-term stability in our portfolio. Based on our fundamental belief in the necessity of New York City office and retail space, We remain highly confident in the long-term strength of our $851 million, 1.2 million square foot portfolio of New York City real estate. Our portfolio consists of eight office and retail condominium assets located entirely in New York City and primarily in Manhattan. We've built a pure play New York City portfolio featuring a number of large investment grade tenants, including City National Bank, CBS, TD Bank, and government agencies. Across our portfolio, 39% of our tenant base operates in industries with the lowest unemployment rates, including government agencies and financial firms. The Manhattan market continues to show progress on the leasing front, where all but one of our properties is located. According to Avison Young's third quarter Manhattan office market report, new leasing activity has outpaced last year's total, while office usage across various sectors continues to increase, as companies continue to adopt mandatory in-office policies. Ridership across MTA subways and buses have increased by 33% and 37%, respectively, from their pre-pandemic levels. And weekly occupancy rates from buildings tracked by CASEL systems reached 44% in October, a post-pandemic high. In our portfolio, physical occupancy was approximately 49%, in the month of October. All of these factors support our view that the outlook for Manhattan real estate is very strong and that the asset management efforts we continue to expand will create long-term value. As we head into the holiday season, we expect to see office and retail traffic increase in Manhattan. Our portfolio is well positioned to capitalize on this progress. Our leasing pipeline is expected to increase occupancy by an additional 0.5% and straight line rent by 0.3 million dollars once the leases go into effect. As we have discussed in previous quarters, we've continued to be successful in leasing up spaces at nine times square, where occupancy improved by 3% over last quarter and has increased by 8% year to date. In the third quarter, we once again collected nearly all of the original cash rent due across the portfolio. Year over year, total portfolio original cash rent collection improved from 92% to 99%, and we collected all of the original cash rent from our top 10 tenants in the third quarter. We believe the rent collection success we've achieved is due in part to the creditworthiness of our tenants and the work our team has done to ensure that rent payments are made and to replace prior tenants with new rent-paying tenants where necessary. We expect to continue to benefit from our recent leasing momentum and the positive rebound in the New York City rental market. We think we have a conservative balance sheet based on the fact that our net leverage was 40.3% and had a weighted average interest rate of 4.4% with 4.4 years of weighted average debt maturity. In fact, we don't have any debt maturities this year or next and minimal maturities until 2026. All of our debt is fixed rate. As we have previously discussed, we locked in interest rates while they were broadly at historic lows, a strategy that has been validated as interest rates are rising. We believe that there's significant potential for our pure play New York City portfolio to create meaningful value for years to come. To that point, we believe NYC's independent board members, advisor, and its affiliates remained well aligned with shareholders as they continued growing their significant collective holdings of NYC. As of November 1st, NYC's independent board members owned over 80,000 shares of NYC. And separately, New York City's advisor and affiliates owned approximately 3 million shares of NYC. As we move ahead, it's our intent to continue to build value for all stakeholders. With that, I'll turn it over to Chris Masterson to go over the third quarter results. Chris?