American Strategic Investment Co. Eyes Portfolio Rebalancing
Strategic property disposals and leaner operations position the company for a more agile and high-yield future.
November 20, 2025
Repositioning the Portfolio for Long-Term Growth
American Strategic Investment Co. is tightening its real estate strategy—and its balance sheet. The firm’s third quarter update offers a clear view of where things are headed: fewer properties, better lease terms, and more focus on long-term value.
The company owns six properties in New York City, mostly in Manhattan. That number is likely to shrink. One building, 1140 Avenue of the Americas, is already in contract for a cooperative consensual foreclosure. Two more— 123 William Street and 196 Orchard —are actively being marketed for sale. These moves aren’t just about cutting loose underperforming assets. The goal is to reduce debt and redeploy capital into higher-yielding real estate.
That rebalancing is already showing up in the numbers. The weighted average lease term increased to 6.2 years this quarter, compared to 5.9 in Q2. More than half of all leases now run through at least 2030, and the tenant base remains strong— 69% of the top 10 are rated investment grade or have an equivalent credit profile. For a portfolio focused on offices and retail near transit-heavy areas, that kind of lease duration helps build stability.
Quarterly Performance Highlights
Financial results reflect the current transition. Revenue came in at $12.3 million, down from $15.4 million a year ago, largely due to the sale of 9 Times Square in late 2024. Even so, net income landed at $35.8 million this quarter, driven by a one-time $44.3 million gain from the pending foreclosure of 1140 Avenue of the Americas. That’s a shift from Q3 2024, when the company reported a $34.5 million loss tied to an impairment from the Times Square sale.
Adjusted EBITDA came in at $1.9 million, while cash NOI reached $5.3 million —both down year-over-year. Still, these figures sit in the context of a portfolio that’s being actively reshaped. The expectation is that trimmed expenses and better-performing assets will set the stage for more consistent cash flow.
Streamlining Operations
Part of that cost discipline includes a change in audit partners. The company appointed CBIZ CPAs as its new independent auditor for fiscal year 2025. The move came through a competitive bidding process aimed at lowering professional fees and aligning with broader efforts to cut general and administrative expenses.
Looking Ahead
Looking forward, the company is focused on three priorities:
- Closing the 1140 Avenue of the Americas transaction
- Selling 123 William Street and 196 Orchard
- Leasing available space across the portfolio
Proceeds from asset sales are expected to go toward debt reduction and reinvestment.
American Strategic is working toward a leaner structure with a clear goal: building a real estate portfolio that’s more flexible, better positioned for returns, and responsive to shifting market conditions.
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