NYC

American Strategic Investment (NYC) is a sub-$25M-equity, externally-managed owner of just five NYC office properties (0.7M sq ft), and the numbers describe a company in a liquidity vise, not a REIT you buy for yield — it terminated its REIT election back in 2023. The 'improved' FY2025 net loss of -$21.2M (from -$141M) is misleading: it is manufactured almost entirely by a one-time $47.9M gain on the cooperative consensual foreclosure of the 1140 Avenue of the Americas property, not by operations. Strip that out and the underlying business still bled cash — operating cash flow was -$7.75M and cash & equivalents collapsed 86.7% to just $1.30M. A company with $380M of liabilities, 5.87x liabilities/equity, and roughly $1.3M of cash has effectively no margin for error.

The filing language confirms the distress is active, not theoretical. Two mortgages encumbering three properties ($60.0M principal) are in default and/or cash-trap events; the 400 E. 67th Street / 200 Riverside Blvd. lenders have accelerated the outstanding debt. PwC's last audit carried an emphasis-of-matter paragraph on 'significant liquidity constraints,' and PwC was then dismissed in October 2025 in favor of CBIZ CPAs as part of cost-cutting — an auditor change amid a liquidity crisis is a governance yellow flag. The company is externally managed by AR Global affiliates and is paying its Advisor and Property Manager in stock 'in lieu of cash' to preserve operating cash, diluting holders (shares +2.2%) precisely because cash is scarce. The MD&A also flags an ongoing challenge complying with mortgage debt covenants against a still-weak post-COVID Manhattan office leasing backdrop.