NEW YORK CITY REIT
2021 Year in Review - January Investor Presentation
9 Times Square - New York, NY
2021 - Year in Review
NYC's Board of Directors, led by Elizabeth Tuppeny, in conjunction with the advisor, executed on several initiatives
throughout the COVID-19 pandemic in 2020 and 2021 by utilizing the full resources of the advisor's platform. Together, the
Board and the advisor mitigated adverse impacts from the COVID-19 pandemic by focusing on proactive asset management, increasing original Cash Rent(1)(2) collection rates and completing new leasing activity. As a result, NYC shareholders benefited from a 37% Total Return(1)(3) in 2021. NYC estimates that its NAV per share as of December 31, 2021 ranged from $22.12- $28.10(4)
Proactive Asset and Property Management | Successful Navigation Throughout COVID-19 | ||
▪ In Q1'21, Knotel, a former top 10 tenant, filed for bankruptcy | ▪ | Since Q4'20 and through Q4'21, NYC increased its | |
and terminated all their leased space with NYC | original Cash Rent collection rate by 12% to 94% | ||
✓ NYC entered into new leases replacing 58% of the square | ✓ Q4'21 portfolio original Cash Rent collection of 94% | ||
feet and 53% of the Annualized Straight-line Rent(1) | ✓ 97% of original Cash Rent collection from NYC's top 10 | ||
formerly derived from Knotel | |||
tenants in Q4'21 | |||
▪ In Q4'21, NYC executed a termination agreement with Icon Parking | |||
▪ Diligently and proactively communicated with tenants to help | |||
and Quik Park, two non-compliant tenants, and immediately | |||
them navigate the COVID-19 pandemic and mitigate adverse | |||
backfilled the space with a new operator | |||
economic impacts | |||
✓ The new operator, City Parking, began paying in full the new | |||
✓ NYC collected 100% of the deferred rent due in Q3'21 and | |||
original Cash Rent due under the license agreement in | |||
Q4'21 that was subject to an Approved Agreement(1) | |||
November 2021 | |||
2021 | |||
Impactful Leasing Activity | Highlights | Strong 2021 Shareholder Return(3)(4) |
▪ Through Q3'21, NYC completed 12 new leases in 2021, totaling over 86,000 square feet and $4.3 million of Annualized Straight-lineRent
- NYC has added credit-worthy,rent-paying tenants to its portfolio in 2021, including a fortune 50 technology company and a publicly traded, Aa1 implied Investment Grade(1) rated e-commerce technology company
- Forward Leasing Pipeline(1) of 21,700 SF for Q3'21 that included one lease executed shortly after the third quarter and two executed LOIs
▪ NYC outperformed the S&P 500 by over 6% and a group of New York City focused REIT peers by over 24%(3)
- NYC 2021 Total Return of 37%
- New York City focused REIT peer performance of 12%
- NYC's estimate of 2022 property-levelincome results in an estimated NAV per share of $22.12 - $28.10, indicating further significant upside potential for NYC shareholders(4)
✓ The Leasing Pipeline is expected to increase portfolio | ✓ 2022 estimated NAV per share represents a $11 - $17 per |
Occupancy(1) to 87% and Occupancy at 9 Times Square by 5% | share premium on the January 7, 2022 closing price |
- See appendix for a full description of capitalized terms.
- Refer to slide 3 - Continued Cash Rent Collection Success for additional information.
- Refer to slide 2 - Exceptional Investor Returns in 2021 for additional information.
- Refer to slide 4 - 2022 Estimated NAV per Share for additional information and slide 13 of the Appendix for additional information relating to limitations on, and risks related to, the estimated NAV per share.
1
Exceptional Investor Returns in 2021
NYC investors benefited from an exceptional Total Return in 2021 of 37% as compared to
several peer and index benchmarks, including New York City office peers and the S&P 500 Index
Symbol / Index | Name | Type | 2021 | Out |
Total Return | Performance | |||
NYC | New York City REIT Inc. | Office REIT | 36.8% | |
ROOF | US Real Estate Small Cap ETF | Small-Cap Real Estate ETF | 32.8% | 4.0% |
SLG | SL Green Realty Corp. | Office REIT | 32.3% | 4.5% |
S&P 500 | S&P 500 Index | S&P 500 Index | 30.6% | 6.2% |
S&P 600 | S&P Small-Cap 600 Index | S&P 600 Index | 28.2% | 8.6% |
IJR | iShares Core S&P Small-Cap ETF | Small-Cap Index ETF | 27.8% | 9.0% |
CUZ | Cousins Properties Inc. | Office REIT | 26.6% | 10.2% |
OPI | Office Properties Income Trust. | Office REIT | 20.2% | 16.6% |
VNO | Vornado Realty Trust | Office REIT | 19.9% | 16.9% |
RUT 2000 | Russell 2000 Index | FTSE Russell Small-Cap Index | 16.5% | 20.3% |
ESRT | Empire State Realty Trust Inc. | Office REIT | -0.2% | 37.0% |
PGRE | Paramount Group Inc. | Office REIT | -2.6% | 39.4% |
EQC | Equity Commonwealth | Office REIT | -3.9% | 40.6% |
New York City Office Peer Group(1) Performance | 12.3% | 24.4% | ||
Office REIT Peer Group(2) Performance | 13.2% | 23.6% | ||
Index Group(3) Performance | 27.2% | 9.6% |
NYC's Total Return of 37% outperformed the S&P 500 by
over 6% and a group of New York City focused REIT peers by over 24%
Source: S&P Capital IQ. Total Return calculated over the period beginning on January 1, 2021 through December 31, 2021. Total Return is calculated by taking the ending share price less the beginning share price plus dividends paid divided by the beginning share price, shown as a percentage.
- Peer group includes SLG, VNO, ESRT and PGRE.
- Peer group includes SLG, CUZ, OPI, VNO, ESRT, PGRE and EQC.
- Index group includes ROOF, S&P 500, S&P 600, IJR and RUT 2000.
2
Continued Cash Rent Collection Success
NYC's portfolio mix of Investment Grade and government agency tenants with core commercial business
continues to provide dependable rental income, resulting in a year over year original Cash Rent collection rate
increase of 12%, including the collection of 97% of the original Cash Rent due from the Company's top 10 tenants in Q4'21
Original Cash Rent Collection Detail | ||||||
94% | ||||||
91% | 92% | October | November | December | ||
87% | 92% | 98% | 93% | |||
collected | collected | collected | ||||
82% | ||||||
✓ Collected 97% of original Cash Rent due | ||||||
from NYC's top 10 tenants | ||||||
✓ November collection includes amounts | ||||||
received from a new garage operator put | ||||||
in-place during the quarter | ||||||
▪ NYC has yet to receive these amounts | ||||||
for the December collection period | ||||||
but fully expects to do so in January | ||||||
Q4'2020 | Q1'2021 | Q2'2021 | Q3'2021 | Q4'2021 |
Note: Collection data as of January 7, 2022. Total rent collected during the period includes both original Cash Rent due and payments made by tenants pursuant to rent deferral agreements or otherwise. Excludes fourth quarter Cash Rent received or Deferral Agreements executed after January 7, 2022 that would apply to fourth quarter Cash Rent or any Deferral Agreement that would apply to fourth quarter Cash Rent. Eliminating the impact of deferred rent paid, we collected the same percentage of original Cash Rent due. This information may not be indicative of any future period and remains subject to changes based ongoing collection efforts and negotiation of additional agreements. The impact of the COVID-19 pandemic on our rental revenue for the fourth quarter of 2021 and thereafter cannot be determined at present. The ultimate impact on our future results of operations and liquidity will depend on the overall length and severity of the COVID-19 pandemic, which management is unable to predict.
3
2022 Estimated NAV per Share
NYC's estimate of 2022 property-level income results in an estimated NAV per
share of $22.12 - $28.10, indicating significant upside potential for NYC shareholders(1)
Estimated Net Asset Value ("NAV") Valuation($ in mm, except for per share amounts and share count) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation at Estimated | (4) | Cap Rates | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total 2022 estimated property-level revenue | (2) | $ | 65.0 | $ | 65.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Total 2022 estimated property-level operating expenses | (3) | 32.9 | 32.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 estimated property-level income | (4) | $ | 32.0 | $ | 32.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
New York City market capitalization rate | 4.25% | 4.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Market value of NYC's portfolio | (5) | $ | 754.0 | $ | 674.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
plus: Cash and cash equivalents | (6) | 23.2 | 23.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
plus: Other assets | (7) | 19.0 | 19.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Fair value of debt outstanding | (8) | 414.2 | 414.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: Other liabilities | (9) | 8.9 | 8.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 Estimated Net Asset Value | $ | 373.1 | $ | 293.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Shares Outstanding (as of December 31, 2021) | 13.3 | 13.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated NAV per share | $28.10 | $22.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 7, 2022 closing price of common stock | $10.76 | $10.76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Highlights
- Estimated NAV per share of $22.12 - $28.10 as of December 31, 2021
- NYC's estimated NAV per share represents a $11 - $17 per share premium on the January 7, 2022 closing price of $10.76 per share
The advisor expects NYC's portfolio mix of Investment Grade and government agency tenants
and their core commercial businesses to continue to provide dependable rental income, as shown by NYC's
resilient and growing high Cash Rent collection rate, and result in increased property-level income and valuations
Note: Refer to slide 5 - Notes to the Estimated NAV per Share for information on footnotes two through nine.
- Refer to slides 13 of the Appendix for additional information relating to the limitations on, and risks related to, the estimated NAV per share and important disclosure notes used herein. Balance sheet accounts such as cash and cash equivalents, other assets, fair value of debt outstanding and other liabilities used herein as of the last reporting period of September 30, 2021. Although the Company does not believe that any activity affecting the Company's assets and liabilities between September 30, 2021 and December 31, 2021 would have a material impact on estimated NAV per share, there can be no assurance that the estimated NAV per share would be materially the same if the book value of these particular items as of December 31, 2021 was used in calculating the estimated NAV.
4
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New York City REIT Inc. published this content on 10 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2022 17:07:07 UTC.