NYC

American Strategic Investment Co. - 10-Q Summary (Q1 2026)

Business Context and Reporting Period

This report covers the quarterly period ended March 31, 2026. American Strategic Investment Co. is an externally managed real estate company owning a portfolio of commercial properties primarily in Manhattan, New York City. As of the reporting date, the Company owned five properties totaling approximately 0.7 million rentable square feet with an overall occupancy rate of 76.4%. The portfolio excludes the 1140 Avenue of the Americas property, which is in a consensual foreclosure process and under court-appointed receivership.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Decline: Revenue decreased by $5.0 million (40%) compared to Q1 2025, primarily due to the disposition of the 1140 Avenue of the Americas property in late 2025.
• Operating Expenses: Total operating expenses decreased by $5.7 million, driven by lower property operating costs and depreciation following the property disposition.
• Gain on Disposition: The Company recognized a $2.3 million gain on disposition of real estate investments in Q1 2026, representing the right to debt extinguishment on accrued default interest for the 1140 Avenue of the Americas property. No such gain was recorded in Q1 2025.
• Interest Expense: Interest expense associated with the property in receivership increased to $2.3 million in Q1 2026 due to the appointment of a receiver and accrued default interest.
• Occupancy: Portfolio occupancy decreased to 76.4% from 82.0% in the prior year, largely due to a decline at 123 William Street.

Outlook, Risks, and Management Commentary

Going Concern: Management has concluded that substantial doubt exists regarding the Company's ability to continue as a going concern for one year from the issuance date. This is due to recurring operating losses, current liabilities exceeding current assets, and events of default on loans encumbering two properties.

Liquidity and Debt:

• Defaults: The Company is in default on mortgages for 1140 Avenue of the Americas (in receivership) and 400 E. 67th Street/200 Riverside Blvd. (accelerated debt). A cash sweep event is active for 8713 Fifth Avenue.
• Refinancing Needs: The $140 million mortgage on 123 William Street matures in March 2027. Management plans to pursue refinancing or disposition of this property.
• Related Party Support: The Advisor has indicated a willingness to lend funds for liquidity needs. The Company recently borrowed $1.1 million from the Advisor in Q1 2026.

Market Risks: The Company faces challenges from the New York City office market recovery, high vacancy rates, and inflation. Additionally, the Company received notice from the NYSE in August 2025 regarding non-compliance with listing standards (market cap and stockholders' equity below $50 million) and is subject to a business plan to regain compliance.

Internal Controls: The Company identified a material weakness in internal controls over financial reporting as of December 31, 2025, which remained unremediated as of March 31, 2026, citing issues with segregation of duties and review of journal entries.

Investor Verification Checklist

• Going Concern Status: Verify the feasibility of management's plans to refinance the 123 William Street debt and resolve defaults on other properties.
• NYSE Listing Compliance: Monitor the Company's progress in meeting the NYSE business plan requirements to avoid delisting.
• Debt Acceleration Risks: Assess the likelihood of foreclosure or loss of control over the 400 E. 67th Street/200 Riverside Blvd. properties given the accelerated debt status.
• Related Party Dependence: Evaluate the sustainability of operations given the reliance on the Advisor for liquidity and management services.
• Internal Control Remediation: Review future filings for evidence of remediation regarding the material weakness in financial reporting controls.