Nicholas S. Schorsch, through various entities he controls, has recently made significant transactions in the stock of American Strategic Investment Co. (NYSE:NYC). On July 16, 2024, Schorsch, via Bellevue Capital Partners, LLC, acquired 125,000 shares at a price of $11.0 per share, totaling $1.38 million. Additionally, on July 18, another 864 shares were purchased at $8.147 each, adding approximately $7,039 to the investment.
The transactions were made public through a Form 4 filing with the Securities and Exchange Commission. Schorsch, who is affiliated with multiple entities, including Bellevue Capital Partners, LLC, AR Global Investments, LLC, American Realty Capital III, LLC, New York City Special Ltd. Partnership, LLC, and New York City Advisors, LLC, has a complex relationship with the issuer. He is considered a ten percent owner and has indirect ownership through these entities.
The recent acquisitions have increased Schorsch's holdings, demonstrating his continued investment in the company's Class A common stock. The direct and indirect holdings are detailed in footnotes associated with the SEC filing, which outline Schorsch's role and the structure of the interconnected entities he manages.
Investors often monitor such transactions by insiders and significant shareholders for insights into the company's performance and the confidence that key individuals have in the company's future prospects. The stock of American Strategic Investment Co. is publicly traded and can be followed under the ticker symbol NYC.
In other recent news, American Strategic Investment Co. has entered into a preliminary agreement to sell its 9 Times Square (NYSE:SQ) property for $63.5 million. This is part of the company's strategy to acquire and diversify into higher-yielding assets. The sale of the Midtown Manhattan property is anticipated to yield approximately $13.5 million in net proceeds for the company. In addition to this, the company is marketing several New York City properties for sale, aiming to reduce balance sheet leverage and generate significant cash for reinvestment.
American Strategic Investment Co. has also reported favorable Q1 2024 results, with an increase in adjusted EBITDA and a 320 basis point rise in occupancy to 87.2%. However, despite these improvements, the company reported a GAAP net loss of $7.6 million, albeit improved from the $11.8 million loss in Q1 2023. Revenue remained stable at $15.5 million.
These recent developments are part of the company's efforts to diversify its portfolio and position itself for future growth. The strategic disposition of select properties is expected to further reduce leverage and generate cash. The company is also open to investing outside of New York and is considering various real estate and adjacent opportunities.
InvestingPro Insights
Nicholas S. Schorsch's recent transactions in American Strategic Investment Co. (NYSE:NYC) suggest a bullish stance on the company's stock. To provide further context to these transactions, let's delve into some key metrics and insights from InvestingPro.
The company currently operates with a significant debt burden, which might raise concerns about its ability to make interest payments on debt. This is a critical aspect for investors to consider, especially when evaluating the company's financial health and Schorsch's confidence in its ability to manage this debt.
Despite the challenges, there are positive indicators in the company's financials. American Strategic Investment Co. has a low Price / Book multiple of 0.09 as of the last twelve months leading up to Q1 2024, which could signal that the stock is undervalued relative to its assets. Additionally, the company has experienced a strong return over the last three months, with a price total return of 34.86%.
However, it's important to note that the company is not expected to be profitable this year, and the stock has taken a big hit over the last week, with a 1-week price total return of -22.24%. Investors should weigh these factors alongside the insider transactions to form a comprehensive view of the company's potential.
For those interested in a deeper analysis, there are 17 additional InvestingPro Tips available, which can provide more nuanced perspectives on the company's financial position and stock performance. These insights can be accessed through InvestingPro's service at https://www.investing.com/pro/NYC. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, adding valuable tools to your investment strategy.
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