Good morning, and welcome to the American Strategic Investment Company’s Third Quarter Earnings Call. [Operator Instructions] Thank you. I would now turn today’s call over to Curtis Parker, Senior Vice President. Please go ahead.

Thank you. Good morning, everyone and thank you for joining us for our third quarter 2023 earnings call. This event is also being webcast in the Investor Relations section of our website. Joining me today on the call to discuss the quarter’s results are Michael Anderson, American Strategic Investment Company’s Chief Executive officer and Joe Marnikovic, the Chief Financial Officer. The following information contains forward-looking statements, which are subject to risks and uncertainties. Should one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements. We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31, 2022, filed on March 16, 2023, and all subsequent SEC filings for a more detailed discussion of the risk factors that could cause these differences. Any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, the company disclaims any intent or obligation to update or revise these forward-looking statements, except as required by law. Also, during today’s call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the company’s financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available in our earnings release, which is posted on our website at www.americanstrategicinvestment.com. Please also refer to our earnings release for more detailed information about what we consider to be implied investment-grade tenants, a term we will use throughout today’s call. I will now turn the call over to Michael Anderson, Chief Executive Officer. Please go ahead, Mike.

Thanks, Curtis. Good morning and thank you all for joining us today. Joe and I are very happy to be hosting our first American Strategic Investment Co. earnings call this morning to discuss the third quarter results. Across our portfolio, we continue to realize the benefits of our ongoing leasing and tenant retention initiatives. Through the end of the third quarter, we have completed 10 new leases this year that have contributed to a 2.4% increase in occupancy to 85.1% across our portfolio, up from 82.7% at the end of 2022. In addition to the leases we have completed, we have a forward leasing pipeline totaling almost 60,000 square feet rent. If all leases are executed on their contemplated terms would generate $2.5 million in straight-line rent. This forward leasing pipeline will also increase portfolio occupancy to 86.3% net of terminations, representing a 3.6% increase in occupancy since December 31, 2022. Our successful leasing volume, combined with ongoing expense management resulted in year-over-year increases in revenue, NOI and adjusted EBITDA and improvements over the second quarter of 2023. We are beginning to see the benefit of our long-term focus on leasing through improved leasing spreads across the company and believe this will continue into 2024. Our portfolio weighted average remaining lease term was 6.6 years as over 40% of our leases extend beyond the year 2030 based on annualized straight-line rent, which we believe enhances the stability of the real estate we have. Of our top 10 tenants, 79% are investment grade or implied investment grade, showing the quality of our tenant roster. These tenants had a remaining lease term of 8.9 years, providing further stability in our portfolio. Our continued proactive asset management approach contributes to the long-term strength of our $828 million, 1.2 million square foot portfolio of…

Thank you, Michael. Third quarter 2023 revenue was $16 million, compared to $15.9 million in the third quarter of 2022. The company’s third quarter GAAP net loss attributable to common stockholders was $9.4 million, compared to a net loss of $11.1 million in the third quarter of 2022, representing a year-over-year improvement of $1.7 million. GAAP net loss also improved compared to the second quarter of 2023, which was $10.9 million. For the third quarter of 2023, adjusted EBITDA increased by $0.5 million or 18% to $3.4 million, compared to $2.9 million in 2022 and up 14% compared to second quarter 2023’s adjusted EBITDA of $3 million. Cash net operating income increased by $0.3 million or 4.9% to $6.5 million compared to $6.2 million in the third quarter of 2022. While we are no longer a REIT, our portfolio remains unchanged, and we will, therefore, continue to provide comparable FFO metrics for the time being. Our FFO attributable to common stockholders was a negative $2.5 million, compared to a negative $4.1 million in the third quarter of 2022 and negative $4 million in the second quarter of this year. Core FFO improved to negative $1.1 million or negative $0.48 per share, compared to negative $1.12 in the third quarter of 2022 and negative $0.74 in the second quarter of 2023. As always, a reconciliation of GAAP net income to non-GAAP measures can be found in our earnings release and quarterly supplemental and on our website. At quarter end, we had a relatively conservative balance sheet based on our net leverage of 42%, a weighted average interest rate of 4.4% and 3.4 years of weighted average debt maturity, not maturing this year. As we’ve previously discussed, all of our debt is fixed rate or swapped to fixed rate after we locked in interest rates while they were broadly at historic lows. I’ll now turn the call back to Michael for some closing remarks.

Thanks, Joe, and thank you all for joining us on our first ASIC earnings call. The adjusted EBITDA and cash NOI growth we accomplished this quarter can be attributed to our ongoing commitment to portfolio management and our focus on maximizing the value of the properties that we have. As we look to 2024 and the year of positive performance, we continue to focus on the proactive asset management of our portfolio that has grown our occupancy by 2.4% this year, while also looking towards the growth of ASIC through expanded investment opportunities that we believe will be accretive. Operator, please open the line for questions.

Thank you. [Operator Instructions] Our first question comes from Bryan Maher with B. Riley Securities. Please go ahead.

Great. Thank you. And welcome, Michael and Joseph. Look forward to working with you on this name. Just a few for me this morning. I think, Michael, you talked about the forward leasing pipeline and the incremental $2.5 million of SLR. Can you give us any indication as to what the timing of that is? I mean, is it lumpy all going to come in at once? Or do you expect that to happen over the next two or three quarters?

Bryan, thanks for joining us this morning. I’m happy to be speaking with you and with our investors for the first time this quarter. As it relates to the forward leasing pipeline, I believe that is made up of five separate transactions, all of which are in active negotiations for definitive leases and license agreements. So we would expect those to be executed likely this year and start to see those come online over the following months.

Okay. And then it doesn’t seem like you really did anything in the third quarter. Is that a fair characterization? Or did you actually have some tenancy, small – may it be come in and come out or was just no movement in the third quarter.

I believe it was a quiet quarter in terms of new leases. We had one new lease signed. It was a former subtenant that went direct in a new space at one of our properties, 123 William Street and then another license agreement was signed during the quarter. But we do – we saw a lot of uptick in traffic and interest in the quarter, which is what has led to the current leasing pipeline.

Okay. And then from a modeling standpoint, and I think, Joseph, you touched upon this, eventually converting over to an EPS and adjusted EPS number or maybe adding that, do you have any thoughts on the timing of when we might see that additional disclosure?

If we do – when we do, Brian, if it would be in 2024 that we did mention that even though we’re no longer a REIT that we will still – we still feel the core FFO metrics are important for the valuation of the company and certainly for the rest of 2023. We’ll maintain those metrics.

Okay. And just two more for me. G&A came in, I think it was around $2 million. We have been looking for like $2.5 million. Is $2 million the new run rate? Or was there some anomaly there in the quarter?

We did experience some savings there, Brian, and it’s really related to the changeover in REIT to a C-Corp, where the potential tax impact from converting to a C-Corp appears to have less bearings on earnings than initially thought.

Okay. And just last for me, maybe for Michael. You did not speak much about in your prepared comments, the potential to buy assets outside of New York or maybe in a different sector. Has there been any change in thought process there? Or what are the thoughts on what you buy and where you buy it, should you make acquisitions?

Sure, Brian. We do actively monitor acquisition opportunities. We are looking at some opportunities within our own portfolio in terms of leasing and growth there. And I think that that’s going to continue to be our immediate focus. But as we continue to grow and maximize value within the assets already owned, and we will begin looking at other acquisition opportunities, and we’ll be able to share more as those opportunities present themselves.

Okay, thank you. That’s all for me.

There are no further questions at this time. I will now turn the call back over to Michael Anderson for any closing remarks.

Thank you, operator. We appreciate everyone joining us today. One item that was not included in our opening remarks, we are actively monitoring, as I imagine, many of you are, the WeWork bankruptcy. For everyone’s implementation, we have no exposure to WeWork. So we’re very pleased that, that will not impact any of our assets. And with that said, we appreciate you joining us today and hope you all have a great day. Thank you.

This concludes today’s conference call. You may now disconnect.