American Strategic Investment Co. (NYSE: NYC) reported third‑quarter 2025 results that included a net gain of $35.8 million, driven largely by a $44.3 million non‑cash gain from the consensual foreclosure of 1140 Avenue of the Americas. The gain offsets a decline in operating performance, with revenue falling to $12.3 million from $15.4 million in the same quarter of 2024, a 20.5% year‑over‑year drop.
Revenue erosion was largely a consequence of the sale of 9 Times Square in Q4 2024, which removed a $3.2 million annual revenue stream from the portfolio. The foreclosure of 1140 Avenue of the Americas also eliminated a $99 million liability, improving the company’s balance‑sheet profile but not contributing to recurring cash flow.
Core operating metrics reflected a contraction: Adjusted EBITDA slid to $1.9 million from $4.1 million in Q3 2024, while Cash Net Operating Income (NOI) fell to $5.3 million from $7.0 million. The decline in EBITDA is attributable to lower rental income and higher operating expenses associated with the portfolio’s aging assets, while the NOI drop reflects reduced rental income after the asset disposals.
Management guided for fourth‑quarter revenue to remain in the low $12 million range, indicating an expectation of stability after the asset sales. The company also reiterated its focus on deleveraging, with plans to market 123 William Street and 196 Orchard for sale to retire debt and reinvest in higher‑yielding assets.
The earnings release prompted a modest 3% rise in the company’s stock price, closing at $8.00, reflecting investor optimism about the strategic asset disposals and cost‑control measures. Analysts noted the one‑time gain but cautioned that underlying operational performance remains weak, underscoring the need for continued balance‑sheet improvement.
CEO Nicholas Schorsch Jr. said the quarter’s results “demonstrate decisive steps to enhance asset value and right‑size costs,” while CFO Michael LeSanto highlighted that the revenue decline was “primarily due to the sale of 9 Times Square” and that the company is actively reducing professional fees by changing audit partners.
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