American Strategic Loss Widens to $6.7M as Revenue Halves

American Strategic Investment Co. (NYSE: NYC) reported a third-quarter 2026 net loss attributable to common stockholders of $6.7 million, or $2.14 per diluted share, the company announced on 13 November 2026, swinging from $35.8 million of net income in the same quarter a year earlier. Revenue from tenants fell to $7.1 million from $12.3 million. The New York City-focused landlord attributed the decline primarily to its prior-year disposition of 1140 Avenue of the Americas, which also produced the non-cash gain that flattered 2025's result.

Context — Why the Q3 2026 Swing Matters Now

The year-over-year comparison is distorted by a single asset. The company said the third quarter of 2025 included a non-cash gain tied to the disposition of 1140 Avenue of the Americas, which is what turned that period's bottom line positive. Strip that out and the two quarters look far more alike on an operating basis.

That property now sits in a consensual foreclosure process, and the company excludes it from its five-property portfolio count of roughly 0.7 million rentable square feet. The remaining buildings are the basis for every operating metric the company reported.

Cash net operating income, or Cash NOI, fell to $3.5 million from $5.3 million. Adjusted EBITDA dropped to $1.0 million from $1.9 million. Both declines track the smaller revenue base rather than a collapse in margins.

The company's capital structure gives the quarter its real weight. Net debt stood at $245.7 million against a gross asset value that the company defines using total assets, accumulated depreciation and a contract asset adjustment. Net debt to gross asset value was 58.6%.

All of that debt carried fixed rates at a 4.56% weighted-average interest rate, so the company has no near-term floating-rate reset exposure. The report does not disclose the maturity ladder for those mortgages.

Data — What the Numbers Show

The headline figures moved sharply in both directions depending on the line item.

Metric	Q3 2026	Q3 2025
Revenue from tenants	$7.1M	$12.3M
Net income (loss)	$(6.7)M	$35.8M
Diluted EPS	$(2.14)	$13.60
Adjusted EBITDA	$1.0M	$1.9M
Cash NOI	$3.5M	$5.3M

Interest expense was flat at $4.1 million in both periods, and interest tied to the property in receivership fell to $2.3 million from $3.2 million. Depreciation and amortization eased to $2.5 million from $3.1 million.

The portfolio was 74.0% leased with a 6.0-year weighted-average remaining lease term, down slightly from 6.1 years at the end of the second quarter. Roughly 69% of annualized straight-line rent from the top ten tenants came from investment grade or implied investment grade tenants, with a 6.7-year weighted-average remaining lease term on that group, up from 6.4 years a quarter earlier.

By industry, the rent roll split into 28% government and public administration, 15% retail, 12% non-profit, 11% fitness and 34% other. The company held $5.3 million of cash and cash equivalents, against a covenant requiring minimum liquid assets of $5.0 million.

Analysis — What It Means for NYC Office Exposure

The quarter reads as a shrinking landlord managing a slow wind-down of legacy assets rather than a growth story. Revenue halved, but so did the asset base, and the company's own framing points to finishing remaining dispositions and redirecting capital.

One structural detail stands out for anyone tracking office credit. A landlord issuing equity to its external advisor in lieu of cash fees is a liquidity signal. In August 2026 the advisor elected to take Class A common stock instead of $1,122,149 in accrued advisory fees, and on 23 October 2026 the company issued 244,480 shares in place of $1,410,651 in cash for asset and property management services.

Share count tells the same story. Common shares outstanding rose to 3,324,398 from 2,692,941 at 31 December 2025. Diluted weighted-average shares in the quarter were 3,137,318 versus 2,629,703 a year earlier, so per-share figures absorb ongoing issuance.

The counter-argument sits in the tenant mix. Nearly seven in ten dollars of top-ten-tenant rent comes from investment grade or implied investment grade names, and the government and public administration bucket is the single largest industry exposure at 28%. That is a more defensive rent roll than a typical Manhattan office landlord carries.

The risk is concentration and litigation. Foreclosure litigation is active on the loans secured by 400 E. 67th Street and 200 Riverside Blvd., and the balance sheet carries $99.0 million of debt plus $16.5 million of accrued interest associated with a property in receivership.

Outlook — What to Watch Next

The clearest catalyst already landed. On 3 November 2026 the company completed a new 11-year lease at 123 William Street with the State of New York, an existing tenant, expanding the state's footprint to 70,629 square feet. The company said the deal raises pro-forma occupancy at that building to roughly 75% and portfolio occupancy to about 78%.

Investors should watch the pace of the remaining dispositions the company says it is focused on completing. The report gives no timeline or pricing for those sales.

Watch the foreclosure proceedings tied to 400 E. 67th Street and 200 Riverside Blvd., which the company details in Note 5 of its Form 10-Q. A resolution would clarify how much of the $99.0 million receivership debt ultimately lands on the balance sheet.

Watch the share count. Continued stock-for-fee arrangements with the advisor and property manager will keep diluting per-share metrics unless cash flow recovers.

Frequently Asked Questions

Why did American Strategic Investment's revenue fall so much in Q3 2026?

The company attributed the drop to the prior-year disposition of 1140 Avenue of the Americas, which contributed revenue in the third quarter of 2025 but not in 2026. That same sale generated the large non-cash gain that made 2025's quarter profitable. The remaining portfolio of five properties generated $7.1 million in the latest period.

What does the State of New York lease mean for ASIC?

Signed on 3 November 2026, the 11-year lease extends the state's existing occupancy at 123 William Street to 2037 and adds roughly 30,000 square feet across two more floors, bringing the tenant to 70,629 square feet. The company said this lifts pro-forma occupancy at that building to about 75% and portfolio-wide occupancy to roughly 78%.

How is ASIC managing its liquidity?

It held $5.3 million of cash against a $5.0 million minimum-liquid-asset covenant. To conserve cash, its external advisor and property manager have repeatedly accepted Class A shares instead of fees, including $1,122,149 in August 2026 and $1,410,651 in October 2026. The company also repaid a $0.3 million related-party note during the fourth quarter.

Bottom Line

A shrinking portfolio, rising share count and active foreclosure litigation outweigh the occupancy gain from the new state lease.

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