[Management View]
American Strategic Investment maintained an 82% occupancy rate in fiscal Q2 2025. Management emphasized efforts to reduce near-term lease expirations and extend portfolio lease terms, with successful lease renewals during the quarter. The strategy focuses on asset sales to reduce leverage and pivot toward higher-return opportunities.

[Outlook]
The company plans to continue marketing 123 William Street and 196 Orchard for sale, with proceeds intended for debt retirement and reinvestment in higher-yield assets. Management views this repositioning as fundamental to maximizing shareholder returns.

[Financial Performance]
Revenue for Q2 2025 was $12.2 million, down from $15.8 million in Q2 2024 due to the sale of 9 Times Square. GAAP net loss attributable to common stockholders was $41.7 million, primarily due to an impairment related to a property sale. Adjusted EBITDA was $400,000, down from $4.5 million in Q2 2024.

[Q&A Highlights]
Question 1: Can you provide more details on the foreclosure proceedings for 1140 Avenue of the Americas? What are the potential impacts on the portfolio?

Answer: The lender for 1140 Avenue of the Americas commenced foreclosure proceedings during the quarter. We are closely monitoring the situation and will provide updates as they become available. The potential impact on the portfolio will depend on the outcome of these proceedings, but we are prepared to manage any challenges that arise.

Question 2: What is the rationale behind the sale of 123 William Street and 196 Orchard? How will the proceeds be utilized?

Answer: The sale of 123 William Street and 196 Orchard is part of our strategy to unlock substantial capital and reduce our debt burden. Assuming favorable terms, the proceeds will be used to retire debt and reinvest in higher-yielding assets, enhancing long-term portfolio value.

Question 3: How has the tenant quality evolved, and what measures are being taken to ensure portfolio stability?

Answer: As of fiscal Q2 2025, 77% of our top 10 tenants are investment grade or implied investment grade, supporting portfolio stability. We are focused on tenant retention, property improvements, and cost efficiency to maintain a high-quality tenant base.

Question 4: Can you elaborate on the lease renewals and their impact on the weighted average remaining lease term?

Answer: During the quarter, we executed two lease renewals, extending the weighted average remaining lease term of the portfolio to six years. This has reduced near-term lease expirations to 7% of annualized straight-line rent, down from 12% at the prior quarter's end.

[Sentiment Analysis]
The tone of the management was cautiously optimistic, emphasizing strategic asset sales and portfolio stability. Analysts appeared concerned about the foreclosure proceedings but acknowledged the potential benefits of the asset sales.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|---------------------------|---------------|---------------|
| Revenue | $12.2 million | $15.8 million |
| GAAP Net Loss | $41.7 million | $91.9 million |
| Adjusted EBITDA | $400,000 | $4.5 million |
| Cash Net Operating Income | $4.2 million | $7.4 million |
| Occupancy Rate | 82% | 82% |

[Risks and Concerns]
The lender for 1140 Avenue of the Americas commenced foreclosure proceedings, posing a significant risk to the portfolio. The GAAP net loss attributable to common stockholders was primarily due to an impairment related to a property sale.

[Final Takeaway]
American Strategic Investment is focused on strategic asset sales to unlock capital and reduce debt, aiming to enhance long-term portfolio value. While the foreclosure proceedings for 1140 Avenue of the Americas present a risk, management is committed to maintaining portfolio stability through tenant retention and lease renewals. The company's repositioning strategy is fundamental to maximizing shareholder returns, with regular updates promised on progress.