New York REIT Liquidating LLC fka NYRT

[Enterprising Investor]

New York REIT Announces Results for Third Quarter 2016 (11/09/16)

NEW YORK, Nov. 9, 2016 /PRNewswire/ -- New York REIT, Inc. (NYSE: NYRT) ("NYRT" or the "Company"), a publicly traded real estate investment trust that acquires income-producing commercial real estate, including office and retail properties, in New York City, announced today its financial and operating results for the third quarter ended September 30, 2016.

Select Third Quarter Highlights and Subsequent Events

Strategic Process

The Board of Directors ("Board") has approved a plan of liquidation, subject to stockholder approval.

The Company is currently seeking to obtain new financing of approximately $760 million in order to repay the existing credit facility in full, to provide additional liquidity for the Company to exercise its option to purchase the balance of the equity interest in Worldwide Plaza and to provide increased flexibility to pursue the plan of liquidation.

The Company expanded the size of the Board from six to nine directors and elected James Hoffmann, Gregory Hughes, and Craig T. Bouchard as new members of the Board.

The Company has scheduled its annual meeting for December 19, 2016.

Portfolio Activity

Signed three new leases and one lease extension for a total of 16,188 square feet during the third quarter.

Executed a new lease at 256 West 38th Street with Job Path totaling 8,610 square feet and a 12-year term and a new lease at 416 Washington Street with Yoga Vida totaling 3,833 square feet and a 10-year term.

Extended the lease for Demiurge at 306 East 61st Street totaling 3,733 square feet for a 5-year term.

Results for the Third Quarter Ended September 30, 2016

Net Loss: Recorded net loss attributable to stockholders of $45.3 million for the third quarter 2016, which includes an impairment charge of $27.9 million, deductions of $16.3 million for depreciation and amortization and $11.6 million for transaction expenses. See the attached tables and supplemental package attached hereto as Exhibit 99.2 for a reconciliation of all non-GAAP financial measures contained herein.

Core FFO: Generated third quarter 2016 Core FFO of $15.8 million (or $0.09 per fully diluted share), compared to $17.7 million (or $0.11 per fully diluted share) in the third quarter 2015.
AFFO: Realized third quarter 2016 AFFO of $5.3 million (or $0.03 per fully diluted share), compared to $18.4 million (or $0.11 per fully diluted share) in the third quarter 2015.

Cash NOI: Generated third quarter 2016 Cash NOI of $27.7 million, compared to $32.1 million in the third quarter 2015.
Same Store Cash NOI: Recorded third quarter 2016 Same Store Cash NOI, excluding the Viceroy Hotel, of $26.9 million compared to $30.1 million in the third quarter 2015.

Occupancy: Total ending occupancy was 93.4% as of September 30, 2016, compared to 95.2% as of December 31, 2015.

Michael Happel, Chief Executive Officer and President of NYRT, said "The Company remains focused on its strategic process and will seek a stockholder vote on the proposed plan of liquidation while also maintaining the flexibility to pursue a corporate sale or merger if our Board determines that is more attractive than the plan of liquidation."

Nicholas Radesca, Interim Chief Financial Officer of NYRT, commented "Operating results during the third quarter were solid with portfolio occupancy increasing modestly from 93.0% as of June 30, 2016 to 93.4% as of September 30, 2016. Core FFO was $0.09 per fully diluted share in the third quarter of 2016 compared to $0.10 per fully diluted share in the second quarter of 2016. The decrease was primarily attributable to higher general and administrative expenses relating to legal, accounting and public relations fees related to corporate and shareholder matters."

Portfolio Activity and Occupancy

Occupancy

The overall portfolio occupancy was 93.4% as of September 30, 2016, with a weighted-average remaining lease term of 9.0 years. This compares to occupancy of 93.0% and a weighted-average remaining lease term of 9.3 years as of the end of the second quarter 2016 and occupancy of 97.2% and a weighted average remaining lease term of 9.2 years as of September 30, 2015.

Operating Results

Net loss attributable to stockholders was $45.3 million for the third quarter 2016 compared to $13.1 million in the third quarter of 2015, an increase of $32.3 million, primarily due to higher transaction-related expenses relating to the Company's strategic transaction process and the recognition of an impairment charge on the Viceroy hotel.

Core FFO was $15.8 million in the third quarter of 2016 compared to $17.7 million in the third quarter of 2015, a decrease of $1.9 million, primarily attributable to our five non-core asset sales along with lower revenue at 1440 Broadway due primarily to decreased occupancy.

Core FFO in the third quarter of 2016 was down approximately $1.4 million compared to Core FFO of $17.3 million in the second quarter of 2016, primarily due to higher general and administrative expenses mostly related to legal, accounting and public relations fees related to corporate and shareholder matters.
Same Store Cash NOI, excluding the Viceroy Hotel, was $26.9 million in the third quarter of 2016 compared to $30.1 million in the third quarter of 2015, a $3.2 million year-over-year decrease, primarily due to lower occupancy at 1440 Broadway and a lease modification at our 50 Varick Street property which resulted in temporary rent deferral but no rent forgiveness. The amendment was done partly as a result of elevator renovation work being done at the property.

Same Store Cash NOI, excluding the Viceroy Hotel, of $26.9 million in the third quarter of 2016 compared to $29.3 million in the second quarter of 2016, an 8.2% decrease primarily attributable to the lease modification at 50 Varick Street.

Financial Strength and Liquidity

NYRT's combined total debt to enterprise value was 45% as of September 30, 2016. Enterprise value of $2.8 billion is based on the September 30, 2016 closing share price of $9.15, 168.6 million fully diluted shares outstanding and the quarter end total combined debt of $1.3 billion, which includes NYRT's pro rata share of unconsolidated debt.

As of September 30, 2016, combined interest coverage was 2.5x based on Adjusted EBITDA. The weighted average interest rate on NYRT's combined outstanding debt of $1.3 billion was 3.7% with an average remaining term of 3.6 years (3.7 years including extensions).

Dividends

During the third quarter 2016, NYRT paid monthly dividends of $0.038 per common share, representing an annualized dividend of $0.46 per share. In October 2016, NYRT announced that, in light of the plan of liquidation, which is subject to stockholder approval, the Board had determined that the Company will not pay a regular dividend for the month of November 2016 and does not currently expect to pay a regular monthly dividend for the month of December 2016. If the plan of liquidation is approved by the Company's stockholders, the Company will thereafter make periodic liquidating distributions, subject to satisfying its liabilities and obligations, in lieu of regular monthly dividends. If the plan of liquidation is not approved by the Company's stockholders, the Board will re-evaluate the Company's dividend policy.

Supplemental Schedules

NYRT has filed supplemental information packages with the Securities and Exchange Commission ("SEC") to provide additional disclosure and financial information for the benefit of NYRT's various stakeholders, including reconciliations of all non-GAAP measures contained in this press release. The supplemental package can be found under "Investors — Quarterly Supplemental" section of NYRT's website at www.nyrt.com and on the SEC website at www.sec.gov.

Conference Call

NYRT will not be hosting a conference call to review financial and operating results for the third quarter 2016.

About NYRT

NYRT is a publicly traded real estate investment trust listed on the NYSE that acquires income-producing commercial real estate, including office and retail properties, in New York City. Additional information about NYRT can be found on its website at www.nyrt.com. NYRT may disseminate important information regarding it and its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.

http://www.prnewswire.com/news-releases/new-york-reit-announces-results-for-third-quarter-2016-300359621.html