American Strategic Investment Co.

What they do

The company owns commercial real estate in the five boroughs of New York City, mainly Manhattan, consisting of office properties and accompanying retail spaces, amenities, and parking garages. As of June 30, 2026, it owned five properties totaling approximately 0.7 million rentable square feet, excluding one property in consensual foreclosure. The company is externally managed by an advisor under common control with AR Global and conducts business through a operating partnership. It terminated its REIT election effective January 1, 2023.

Revenue drivers

• Office and retail leases — Revenue is derived from leasing office, retail, and amenity spaces to tenants. Second quarter 2026 revenue from tenants was $7.3 million, down from $12.2 million in the prior-year quarter, primarily due to the disposition of 1140 Avenue of the Americas.
• Parking garages — The portfolio includes parking garages that do not accompany office spaces, contributing to rental revenue, though no specific revenue split is disclosed.

Recent performance

For the second quarter of 2026, the company reported revenue of $7.3 million, compared to $12.2 million in the second quarter of 2025. Net loss attributable to common stockholders was $8.3 million, an improvement from a net loss of $41.7 million in the prior-year quarter. Adjusted EBITDA was $2.4 million versus $0.4 million in the second quarter of 2025. Annual net income for 2025 was a loss of $21.2 million, with diluted EPS of -$8.32. As of June 30, 2026, the portfolio was 74.8% leased with a weighted-average remaining lease term of 6.1 years.

Strategy

Management has stated a focus on completing remaining asset dispositions and directing capital toward opportunities believed to create durable shareholder value. The company has issued shares of Class A common stock to its external advisor in lieu of cash advisory fees to conserve liquidity. It disposed of the 1140 Avenue of the Americas property in 2025 through a cooperative consensual foreclosure, recognizing a gain of $47.9 million and removing the related assets and liabilities from the balance sheet. The company terminated its REIT election to expand investment scope beyond REIT-qualifying assets.

Risks

• New York City office market downturn — Challenging leasing conditions and high vacancy in the NYC office market continue to pressure occupancy and rental rates.
• Mortgage debt defaults and foreclosure — Two mortgages encumbering three properties totaling $60.0 million are in default or cash trap events, with the 1140 Avenue of the Americas lender having initiated foreclosure and another property subject to accelerated debt.
• Liquidity constraints — The company had only $2.4 million of cash and cash equivalents as of June 30, 2026, and has relied on issuing stock to the advisor to preserve cash.
• Delisting risk — The company had been out of compliance with NYSE continued listing requirements, though it was notified on July 22, 2026 that it is back in compliance with minimum market capitalization and stockholders' equity requirements.

Outlook

Management expects the New York City office market recovery to remain challenged, with ongoing impacts on leasing and occupancy. The company intends to continue executing asset dispositions and will direct capital to opportunities expected to generate durable value. It will be subject to normal NYSE continued listing monitoring after regaining compliance.