American Strategic Investment Posts $6.7 Million Loss as New York Office Portfolio Remains 74% Leased

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American Strategic Investment Co. reported a $6.7 million third-quarter loss Friday as the owner of a small New York City commercial property portfolio continued selling assets and conserving cash. Tenant revenue fell to $7.1 million from $12.3 million a year earlier, a comparison affected substantially by the sale of 1140 Avenue of the Americas in 2025.

The November 13 earnings release puts the company’s financial pressure alongside a significant new lease. New York State expanded its tenancy at 123 William Street after the quarter ended, providing a measure of occupancy stability even as the company works through property-level financing and disposition issues.

Smaller portfolio, thinner operating income

Cash net operating income declined to $3.5 million from $5.3 million. Adjusted EBITDA, a company-defined measure that excludes certain costs and accounting items, fell to approximately $961,000 from $1.9 million. Neither measure replaces the reported GAAP net loss.

The comparison with last year’s $35.8 million profit requires particular care: the 2025 quarter benefited from a noncash gain tied to the disposition of 1140 Avenue of the Americas. Treating the change in net income as a direct measure of deteriorating leasing performance would exaggerate what the earnings comparison establishes.

At September 30, the company counted five properties and approximately 700,000 rentable square feet in its operating portfolio, excluding 1140 Avenue of the Americas, which it says is in a consensual foreclosure process. That portfolio was 74% leased, with a six-year weighted-average remaining lease term. Government and public-administration tenants accounted for 28% of annualized straight-line rent.

Debt and cash remain central

The company reported $5.3 million in cash and cash equivalents and $245.7 million in net debt. All reported debt carried fixed rates, with a 4.56% weighted-average rate. The fixed-rate structure limits immediate exposure to floating borrowing costs, but it does not remove refinancing, maturity or property-level default risks.

The release also points investors to foreclosure litigation involving the 400 East 67th Street and 200 Riverside Boulevard properties. The underlying quarterly filing should be consulted for the legal posture and alleged loan defaults; the existence of litigation alone does not establish a final judicial outcome.

To preserve operating cash, the company has issued common shares to its external adviser and property manager instead of making certain cash payments. It reported an October 23 issuance of 244,480 shares in lieu of approximately $1.41 million in accrued fees. Such arrangements conserve liquidity while increasing the number of shares outstanding.

State lease offers some support

On November 3, New York State signed an 11-year lease at 123 William Street, expanding its footprint to 70,629 square feet and extending the term to 2037. Management said the transaction would lift pro forma occupancy at that building to about 75% and across the portfolio to roughly 78%. Those are forward-looking, post-quarter occupancy figures, distinct from the 74% leased figure reported at September 30.

Chief Executive Nicholas Schorsch Jr. said the company remains focused on remaining asset dispositions and capital allocation. The immediate questions are whether additional sales can improve liquidity, how foreclosure-related matters progress and whether the expanded state tenancy produces sustained cash flow. Investors should watch subsequent filings for debt maturities, property dispositions and updated leasing results rather than assuming the November lease resolves the broader balance-sheet pressure.

Related WRE coverage: RMR Group’s quarterly loss and managed-asset decline.