New York City REIT Inc. (NYC) Misses Q1 EPS by $1.34, Revenues Miss

New York City REIT Inc. (NYSE: NYC) reported Q1 EPS of ($1.06), $1.34 worse than the analyst estimate of $0.28. Revenue for the quarter came in at $15.2 million versus the consensus estimate of $16.29 million.

First Quarter 2021 and Subsequent Event Highlights

• Revenue was $15.2 million as compared to $17.5 million for the first quarter 2020 and up from $9.9 million in fourth quarter 2020
• Net loss attributable to common stockholders was $13.5 million as compared to $6.8 million for the first quarter 2020 and $16.6 million in the quarter ended December 31, 2020
• Cash net operating income (“NOI”) was $5.6 million compared to $8.4 million for the first quarter 2020 and up from $4.1 million in prior quarter
• Funds from Operations (“FFO”) of $(5.0) million, compared to $0.7 million for the first quarter 2020 and up from $(8.9) million in fourth quarter, 2020
• Core Funds from Operations (“Core FFO”) of $(2.9) million compared to $0.8 million in the prior year first quarter, up from $(6.8) million last quarter
• Collected 85% of original cash rent due in first quarter 2021, including 89% among the top 10 tenants, growing from 82% in the fourth quarter, 20201,2
• Top 10 tenants are 73% investment grade or implied investment grade3 rated and have a weighted-average remaining lease term of 9.5 years
• Portfolio occupancy4 of 82.8% as of March 31, 2021 with weighted-average lease term5 of 6.9 years
• Executed two new leases totaling 6,800 square feet and two replacement leases encompassing 23,400 square feet that total $1.5 million in annualized straight line rent, partially offsetting lease terminations during the quarter
• Forward leasing pipeline6 of over 28,000 square feet that would increase occupancy to 85%, if signed non-binding letters of intent (“LOI’s”) lead to definitive agreements, which is not assured, and assuming no other terminations or expirations
• Conservative balance sheet with net leverage7 of 37.6%, no debt maturities in the next three years and a weighted average debt maturity of 5.9 years

“As New York City continues to move toward a full reopening, we are well-positioned to execute on our proactive asset management strategy by collecting substantial cash rent and aggressively leasing available space,” said Michael Weil, CEO of NYC. “We executed new or renewed leases or have signed LOIs to lease more than 58,000 square feet for the first quarter, including replacement leases for part of the space formerly leased to Knotel with terms in line with or better than the prior leases and with more robust tenants. We continue to be encouraged by the steps local, state and national leadership have taken to encourage vaccination efforts and position the city for reopening. We look forward to the return to offices and retail businesses, as workers, restaurants and the cultural institutions that contribute to making New York City a great place to live and work return to normal operation and begin to thrive once more.”

For earnings history and earnings-related data on New York City REIT Inc. (NYC) click here.

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