Mortgage Rates Continue to Decrease
'The 30-year fixed-rate mortgage dropped to its lowest level since April,' said Sam Khater, Freddie Mac's Chief Economist. 'The decline in rates increases prospective homebuyers' purchasing power and our research shows that buyers can save thousands by getting quotes from a few different lenders.'
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The 30-year FRM averaged 6.63% as of August 7, 2025, down from last week when it averaged 6.72%. A year ago at this time, the 30-year FRM averaged 6.47%.
The 15-year FRM averaged 5.75%, down from last week when it averaged 5.85%. A year ago at this time, the 15-year FRM averaged 5.63%.
The PMMS ® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit. For more information, view our Frequently Asked Questions.
Freddie Mac's mission is to make home possible for families across the nation. We promote liquidity, stability and affordability in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | X | LinkedIn | Facebook | Instagram | YouTube
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National Post
20 minutes ago
- National Post
Dentalcorp Reports Second Quarter 2025 Results
Article content Revenue of $435.2 million, an increase of 8.9% from the second quarter of 2024, with Same Practice Revenue Growth ('SPRG') 1 of 3.3%. Adjusted EBITDA 1 of $81.2 million, an increase of 9.9% compared to the same period in 2024; Adjusted EBITDA Margin 1 of 18.7%, an increase of 20 basis points over the same period in 2024. Adjusted Free Cash Flow 1 and Adjusted Free Cash Flow per Share 1 of $45.6 million and $0.23, an increase of 12.0% and 9.5%, respectively, over the same period in 2024; Adjusted Net Income 1 of $30.7 million. Net debt / PF Adjusted EBITDA after rent Ratio 1 of 3.65x, a decrease of 0.46x compared to the same period in 2024. Acquired 8 new practice locations which are expected to generate $3.8 million in PF Adjusted EBITDA after rent 1 at 6.3x ($12.1 million and 7.1x, respectively, for the six months ended June 30, 2025) expanding Dentalcorp's national footprint to 575 locations. Achieved a 91.8% recurring patient visit rate 1, reflecting predictable and continued patient demand across the network. Article content Third Quarter 2025 Outlook Article content Revenue and SPRG 1 for the third quarter of 2025 are estimated to increase by 10.0% to 12.0% (to between $412.9M and $420.4M) and between 3.0% to 5.0%, from the third quarter of 2024, respectively. Adjusted EBITDA Margin 1 for the third quarter of 2025 is estimated to increase by 20 basis points from the third quarter of 2024, to 18.6%, and Adjusted EBITDA 1 is estimated to increase to between $76.8M and $78.2M. Subsequent to the quarter, closed $5.5 million of PF Adjusted EBITDA after rent 1 representing 7 practices, and when combined with signed LOIs and acquisitions completed as of June 30, 2025, is greater than our 2025 full-year acquisition target of $25 million of PF Adjusted EBITDA after rent 1. Article content (¹) Article content Non-IFRS financial measure, non-IFRS ratio, or supplementary financial measure. For comprehensive definitions and quantitative reconciliations, please refer to the 'Non-IFRS and Other Financial Measures' section within this news release. Article content TORONTO — dentalcorp Holdings Ltd. ('Dentalcorp' or the 'Company') (TSX: DNTL), Canada's largest and one of North America's fastest growing networks of dental practices, today announced its financial and operating results for the second quarter ended June 30, 2025, reaffirmed the full year 2025 guidance previously provided in the Company's news release dated March 21, 2025, and announced its outlook for the third quarter of 2025. All financial figures are in Canadian dollars unless otherwise indicated. Article content 'Our teams across the country delivered another quarter of strong results, with revenue and Adjusted EBITDA growth of approximately 9% and 10%, respectively, over the second quarter of 2024, and setting new highs for both metrics. We continued to realize operating leverage across the business, with second quarter Adjusted EBITDA Margin expanding 20 basis points over the second quarter of 2024 to 18.7%, marking our fifth consecutive quarter of year-over-year Adjusted EBITDA Margin expansion,' said Graham Rosenberg, CEO and Chairman of Dentalcorp. Article content 'We generated a record $45.6 million in Adjusted Free Cash Flow in the second quarter of 2025, representing an increase of approximately 12% over the second quarter of 2024,' Rosenberg continued. 'This led to continued deleveraging, with our Net Debt / PF Adjusted EBITDA after rent Ratio decreasing to 3.65x, a reduction of 0.46x from the second quarter of 2024, marking our seventh consecutive quarter of deleveraging,' Rosenberg said. Article content 'Following a strong second quarter of 2025, we are carrying this momentum into the third quarter, anticipating SPRG of 3.0% to 5.0%, revenue growth of 10.0% to 12.0%, and Adjusted EBITDA Margin expansion of 20 basis points over the third quarter of 2024, to 18.6%,' said Nate Tchaplia, President and Chief Financial Officer. 'During the second quarter of 2025, we acquired 8 new practices that are expected to generate $3.8 million in PF Adjusted EBITDA after rent, at an average multiple of 6.3x. We are pleased to note that as of today, we have closed on, or signed LOIs for, acquisitions representing PF Adjusted EBITDA after rent in excess of our 2025 acquisition target of $25 million,' Tchaplia continued. Article content 'With regards to the federal government's Canadian Dental Care Plan ('CDCP'), we have treated over 125,000 CDCP patients with 95% of our practices currently accepting CDCP patients. Second quarter 2025 SPRG was impacted by visit deferrals, as the newly eligible 18-64 cohort began to receive treatment in July. Looking ahead, we anticipate minimal CDCP-related visit deferrals for the balance of the year as the program is now fully deployed,' Tchaplia concluded. Article content 'We remain on track to meet or exceed our full year 2025 guidance, where we expect to see SPRG of 3.0% to 5.0%, an accelerated pace of M&A with acquisitions representing $25 million+ of PF Adjusted EBITDA after rent, Pre-tax Adjusted Free Cash flow per Share growth of 15%+, and another year of Adjusted EBITDA Margin expansion of 20+ basis points,' said Rosenberg. Article content (a) Non-IFRS financial measure, non-IFRS ratio or supplementary financial measure. See the 'Non-IFRS and Other Financial Measures and Ratios' section of this release for definitions and quantitative reconciliations. Article content Conference Call Notification Article content The Company will hold a conference call to provide a business update on Friday, August 8, 2025, at 8:30 a.m. ET. A question-and-answer session will follow the business update. Article content Non-IFRS and Other Financial Measures and Ratios Article content As appropriate, we supplement our results of operations determined in accordance with IFRS with certain non-IFRS and other financial measures and ratios as we believe these non-IFRS and other financial measures are useful to investors, lenders and others in assessing our performance and highlighting trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Our management also uses non-IFRS measures for purposes of comparing to prior periods; preparing annual operating budgets; developing future projections and earnings growth prospects; measuring the profitability of ongoing operations; analyzing our financial condition, business performance and trends, including the operating performance of the business after taking into consideration the acquisitions of dental practices; and determining components of employee compensation. As such, these measures are provided as additional information to complement IFRS measures by providing further understanding of our results of operations from management's perspective, including how we evaluate our financial performance and how we manage our capital structure. We also believe that securities analysts, investors and other interested parties frequently use these non-IFRS and other financial measures and industry metrics in the evaluation of issuers. Article content These non-IFRS and other financial measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, may include or exclude certain items as compared to similar IFRS measures and may not be comparable to similarly-titled measures reported by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For further information on non-IFRS and other financial measures and ratios, including the most directly comparable IFRS measures, composition of the measures, a description of how we use these measures, an explanation of how these measures are useful to investors and applicable reconciliations, refer to the 'Non-IFRS and Other Financial Measures', 'Non-IFRS Financial Measures', 'Non-IFRS Ratios' and 'Certain Supplementary Financial Measures' sections of management's discussion and analysis of operations for the three and six months ended June 30, 2025, which is available on the Company's profile on SEDAR+ at Article content 'EBITDA' means, for the applicable period, net income (loss) and comprehensive income (loss) plus (a) net finance costs, (b) income tax expense (recovery), and (c) depreciation and amortization. Management does not use EBITDA as a financial performance metric, but we present EBITDA to assist investors in understanding the mathematical development of Adjusted EBITDA and Same Practice EBITDA Growth. The most comparable IFRS measure to EBITDA is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content Adjusted EBITDA Article content 'Adjusted EBITDA' is calculated by adding to EBITDA certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) net impact of unrealized foreign exchange gains or losses on non-cash balances; (b) share-based compensation; (c) external acquisition expenses; (d) change in fair value of financial instruments at fair value through profit or loss; (e) other corporate costs; (f) (gain) loss on disposal of dental practices; (g) loss on disposal and impairment of property and equipment and intangible assets; (h) loss on settlement of other receivables; (i) impairment of right-of-use assets; (j) post-employment benefits; and (k) short-term benefits. Adjusted EBITDA is a supplemental measure used by management and other users of our financial statements to assess the financial performance of our business without regard to the effects of interest, depreciation and amortization costs, expenses that are not considered reflective of underlying business performance, and other expenses that are expected to be one-time or non-recurring. We use Adjusted EBITDA to facilitate a comparison of our operating performance on a consistent basis from period to period and to provide for a more complete understanding of factors and trends affecting our business. The most comparable IFRS measure to Adjusted EBITDA is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Change in fair value of financial instruments at fair value through profit or loss includes i) change in fair value of derivative instruments, ii) change in fair value of contingent consideration, iii) change in fair value of preferred shares and iv) change in fair value of other financial liability. Change in fair value of derivative instruments represents the change in present value of the estimated future cash flows based on observable yield curves at each reporting date. Change in fair value of contingent consideration represents the change in fair value recognized related to obligations under earn-out arrangements measured on acquisition, and at each subsequent reporting date. Change in fair value of preferred shares represents the change in fair value of the Company's investment in the Management Preferred Shares measured at each reporting date. Change in fair value of other financial liability represents the change in fair value of certain put and call options issued over the Associate Dentists' profit rights for the Company's De novo practices measured at each reporting periods. All of above are classified as financial assets at FVTPL, and are revalued at each reporting date and recognized in the condensed interim consolidated statements of income (loss) and comprehensive income (loss). (c) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (d) Represents the (gain) loss on disposal of dental practices that were disposed of during the reporting period. (e) Represents the loss on disposal and impairment of property and equipment and intangible assets which primarily occurred upon the closure of certain dental practice locations and the subsequent disposal of leasehold improvements and equipment that could not be transferred to other dental practices. (f) Represents post-employment benefits provided to the Company's former President. (g) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. Article content Adjusted Free Cash Flow Article content 'Adjusted free cash flow' is calculated by adding or subtracting from cash flow from operating activities: (a) external acquisition expenses; (b) other corporate costs; (c) post-employment benefits; (d) short-term benefits; (e) repayment of principal on leases; (f) maintenance capital expenditure; and (g) changes in working capital. We use Adjusted free cash flow to facilitate a comparison of our operating performance on a consistent basis from period to period, to provide for a more complete understanding of factors and trends affecting our business, and to determine components of employee compensation. The most comparable IFRS measure to Adjusted free cash flow is cash flow from operating activities, for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (c) Represents post-employment benefits provided to the Company's former President. (d) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. (e) Represents capital expenditures for general maintenance and safety compliance of dental practices for the reporting period. (f) Represents the change in non-cash working capital items for the reporting period. Article content 'Adjusted free cash flow per Share' means Adjusted free cash flow Article content divided Article content by the total number of Multiple Voting Shares and Subordinate Voting Shares on a fully diluted basis. Adjusted free cash flow per Share is utilized to determine components of employee compensation. Article content Pre-tax Adjusted Free Cash Flow Article content 'Pre-tax Adjusted free cash flow' in respect of a period means Adjusted free cash flow less cash income tax (recovery) expense. We use Pre-tax Adjusted free cash flow to facilitate a comparison of our operating performance on a consistent basis from period to period, to provide for a more complete understanding of factors and trends affecting our business, and to determine components of employee compensation. The most comparable IFRS measure to Pre-tax Adjusted free cash flow is cash flow from operating activities. Article content divided by Article content the total number of Multiple Voting Shares and Subordinate Voting Shares Article content Article content on a fully diluted basis. Pre-tax Adjusted free cash flow per Share is utilized to determine components of employee compensation. Article content Adjusted Net Income Article content 'Adjusted net income' is calculated by adding to Net income (loss) and comprehensive income (loss) certain expenses, costs, charges or benefits incurred in such period which in management's view are either not indicative of underlying business performance or impact the ability to assess the operating performance of our business, including: (a) amortization of intangible assets; (b) share-based compensation; (c) change in fair value of financial instruments at fair value through profit or loss; (d) external acquisition expenses; (e) other corporate costs; (f) (gain) loss on disposal of dental practices; (g) loss on disposal and impairment of property and equipment and intangible assets; (h) loss on settlement of other receivables; (i) impairment of right-of-use assets; (j) loss on modification of borrowings; (k) post-employment benefits; (l) short-term benefits; and (m) the tax impact of the above. We use Adjusted net income to facilitate a comparison of our operating performance on a consistent basis from period to period and to provide for a more complete understanding of factors and trends affecting our business. The most comparable IFRS measure to Adjusted net income is Net income (loss) and comprehensive income (loss), for which a reconciliation is provided below. Article content (a) Represents professional fees and other expenses paid to third parties that are incurred in connection with individual practice acquisitions and are not related to the underlying business operations of the Company. (b) Change in fair value of financial instruments at fair value through profit or loss includes i) change in fair value of derivative instruments, ii) change in fair value of contingent consideration, iii) change in fair value of preferred shares and iv) change in fair value of other financial liability. Change in fair value of derivative instruments represents the change in present value of the estimated future cash flows based on observable yield curves at each reporting date. Change in fair value of contingent consideration represents the change in fair value recognized related to obligations under earn-out arrangements measured on acquisition, and at each subsequent reporting date. Change in fair value of preferred shares represents the change in fair value of the Company's investment in the Management Preferred Shares measured at each reporting date. Change in fair value of other financial liability represents the change in fair value of certain put and call options issued over the Associate Dentists' profit rights for the Company's De novo practices measured at each reporting periods. All of above are classified as financial assets at FVTPL, and are revalued at each reporting date and recognized in the condensed interim consolidated statements of income (loss) and comprehensive income (loss). (c) Represents costs associated with the implementation of new corporate technology systems, the undertaking of vendor consolidations, termination benefits and restructuring activities, and professional fees related to the settlement of the management loan program and issuance of preferred shares, executive search arrangements, other non-recurring capital market initiatives and the implementation of the CDCP. Also included are costs associated with the purchase of profit rights held by Associate dentists in the cash flows of our dental practices and losses of dental practices that were disposed of during the period. (d) Represents the (gain) loss on disposal of dental practices that were disposed of during the reporting period. (e) Represents the loss on disposal and impairment of property and equipment and intangible assets which primarily occurred upon the closure of certain dental practice locations and the subsequent disposal of leasehold improvements and equipment that could not be transferred to other dental practices. (f) Represents the loss on modification of the Company's outstanding credit facilities upon entering into an amended and restated credit agreement. (g) Represents post-employment benefits provided to the Company's former President. (h) Represents short-term benefits paid to the CEO in contemplation of the CEO continuing to facilitate the leadership changes announced in June 2024. Article content PF Adjusted EBITDA Article content 'PF Adjusted EBITDA' in respect of a period means Adjusted EBITDA for that period plus the Company's estimate of the additional Adjusted EBITDA that it would have recorded if it had acquired each of the dental practices that it acquired during that period on the first day of that period, calculated in accordance with the methodology described in the reconciliation table in 'Reconciliation of Non-IFRS Measures'. Both creditors and the Company use PF Adjusted EBITDA to assess our borrowing capacity, which management believes, given the highly acquisitive nature of our business, is more reflective of our operating performance. We also use PF Adjusted EBITDA to determine components of employee compensation. The most comparable IFRS measure to PF Adjusted EBITDA is Net loss and comprehensive loss. Article content (a) Represents the additional Adjusted EBITDA that we estimate would have been recorded if the Company's dental practice acquisitions had occurred on the first day of the applicable reporting period. These estimates are based on the amount of Practice-Level EBITDA budgeted by us to be earned by the relevant practices at the time of their acquisition by us. There can be no assurance that if we had acquired these practices on the first day of the applicable reporting period, they would have actually generated such budgeted Practice-Level EBITDA, nor is this estimate indicative of future results. Article content PF Adjusted EBITDA after rent Article content 'PF Adjusted EBITDA after rent' in respect of a period means PF Adjusted EBITDA less interest and principal repayments on leases and lease interest and principal repayments on acquisitions. Both creditors and the Company use PF Adjusted EBITDA after rent to assess our borrowing capacity, which management believes, given the highly acquisitive nature of our business, is more reflective of our operating performance. The most comparable IFRS measure to PF Adjusted EBITDA after rent is Net loss and comprehensive loss. Article content PF Revenue Article content 'PF Revenue' in respect of a period means revenue for that period plus the Company's estimate of the additional revenue that it would have recorded if it had acquired each of the dental practices that it acquired during that period on the first day of that period. Given the highly acquisitive nature of our business, management believes PF Revenue is more reflective of our operating performance. We use PF Revenue to determine components of employee compensation. Article content Article content The most comparable IFRS measure to PF Revenue is revenue. Article content Net debt / PF Adjusted EBITDA after rent Ratio Article content 'Net debt / PF Adjusted EBITDA after rent Ratio' means non-current borrowings divided by PF Adjusted EBITDA after rent. We use Net debt / PF Adjusted EBITDA after rent Ratio to assess our borrowing capacity. Article content Same Practice Revenue Growth Article content 'Same Practice Revenue Growth' in respect of a period means the percentage change in revenue derived from Established Practices in that period as compared to revenue from the same dental practices in the corresponding period in the immediately prior year. Article content About Forward-Looking Information Article content This release includes forward-looking information and forward-looking statements within the meaning of applicable Canadian securities legislation, including the Article content Securities Act (Ontario) Article content . Forward-looking information includes, but is not limited to, statements about the Company's objectives, strategies to achieve those objectives, our financial outlook, and the Company's beliefs, plans, expectations, anticipations, estimates, or intentions. Forward-looking information includes words like could, expect, may, anticipate, assume, believe, intend, estimate, plan, project, guidance, outlook, target, and similar expressions suggesting future outcomes or events. Article content Our forward-looking information includes, but is not limited to, statements regarding the declaration of future dividends; and the information and statements under 'Third Quarter 2025 Outlook' relating to our goals for the third quarter of 2025 for Revenue, Same Practice Revenue Growth, Adjusted EBITDA Margin, PF Adjusted EBITDA after rent attributable to practices acquired in 2025 and our medium-term expectations regarding Same Practice Revenue Growth and Net Debt / PF Adjusted EBITDA after rent Ratio. Such forward-looking information relating to these metrics are not projections; they are goals based on the Company's current strategies and may be considered forward-looking information under applicable securities laws and subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management. Article content The purpose of disclosing such forward-looking information is to provide investors with more information concerning the financial results that the Company currently believes are achievable based on the assumptions below. Readers are cautioned that the information may not be appropriate for other purposes. While these targets are based on underlying assumptions that management believes are reasonable in the circumstances, readers are cautioned that actual results may vary materially from those described above. Article content Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in actions, events, conditions, results, performance or achievements to be different or materially different from those projected in the forward-looking statements. Forward-looking information is based on many factors and assumptions including, but not limited to, the impact of, and the enrollment of patients in, the CDCP; expectations regarding the Company's business, operations and capital structure; that the Company's acquisition program continues as it has historically, including the Company maintaining its ability to continue to make and integrate acquisitions at attractive valuations including a reduction in acquisition purchase multiples as compared to prior periods; the prevailing business environment; the Company's financial and operating results and financial condition; the Company's need for funds to finance ongoing operations or growth conditions; the Company's ability to realize pricing increases, materially driven by Provincial fee guides; a continued increase in patient visit volumes through patient recall and insourcing initiatives that drive the expansion of service offerings and frequency of visits to contribute to optimal patient care; the impact of the investments the Company has made in its corporate infrastructure and teams, and the upgrades to its core information technology systems; the Company's ability to mitigate anticipated supply chain disruptions, geopolitical risks, inflationary pressures and labour shortages, and generate cash flow; no changes in the competitive environment or legal or regulatory developments affecting our business; and visits by patients to our Practices at or above the same rate as current visits. Article content Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of known and unknown risk factors, many of which are beyond the control of the Company, and could cause actual results to differ materially from the forward-looking statements. Such risks include, but are not limited to, the Company's potential inability to successfully execute its growth strategy and complete additional acquisitions; its dependence on the integration and success of its acquired dental practices; its dependence on the parties with which the Company has contractual arrangements and obligations; changes in relevant laws, governmental regulations and policy and the costs incurred in the course of complying with such changes; risks relating to the current economic environment, including the impact of any tariffs and retaliatory tariffs on the economy; risk associated with disease outbreaks; competition in the dental industry; increases in operating costs; litigation and regulatory risk; and the risk of a failure in internal controls and other factors described under 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2024. Accordingly, we warn readers to exercise caution when considering statements containing forward-looking information and caution them that it would be unreasonable to rely on such statements as creating legal rights regarding the Company's future results or plans. We are under no obligation (and we expressly disclaim any such obligation) to update or alter any statements containing forward-looking information or the factors or assumptions underlying them, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws. All of the forward-looking information in this release is qualified by the cautionary statements herein. Article content About Dentalcorp Article content Article content Article content Article content Article content Contacts Article content For investor inquiries, please contact: Article content Investor Relations Article content Article content Nick Xiang Article content Article content Vice President, Corporate Finance Article content Article content Article content Article content (416) 558-8338 x 866 Article content Media Article content Article content Sebastien Bouchard Article content Article content Article content
Globe and Mail
20 minutes ago
- Globe and Mail
American Strategic Investment Co. Announces Second Quarter 2025 Results
American Strategic Investment Co. (NYSE: NYC) ('ASIC' or the 'Company'), a company that owns a portfolio of commercial real estate located within the five boroughs of New York City, announced today its financial and operating results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights Revenue was $12.2 million compared to $15.8 million in the second quarter of 2024, primarily related to the sale of 9 Times Square in the prior year Net loss attributable to common stockholders was $41.7 million, compared to $91.9 million in the second quarter of 2024 Cash net operating income ('NOI') was $4.2 million, compared to $7.4 million in the second quarter of 2024 Adjusted EBITDA was $0.4 million, compared to $4.5 million in the second quarter of 2024 Portfolio occupancy was flat at 82.0%, compared to the first quarter of 2025 Weighted-average remaining lease term (1) grew to 6.0 years from 5.4 years at the end of the first quarter due to two long-term lease extensions at 123 William and 1140 Avenue of the Americas 77% of annualized straight-line rent from top 10 tenants (2) is derived from investment grade or implied investment grade (3) rated tenants with a weighted-average remaining lease term of 7.5 years as of June 30, 2025 Portfolio comprised of fixed and variable rate debt at a 6.4% weighted-average interest rate CEO Comments Nicholas Schorsch, Jr., Chief Executive Officer of ASIC commented, 'We remain focused on operating and creating value at our current assets, with a focus on tenant retention, as demonstrated by our lease renewal progress during the quarter which extended our weighted-average remaining lease term. More broadly, we continue to prioritize our initiative to opportunistically divest certain of our Manhattan assets and recycle the proceeds into higher-yielding assets to enhance our long-term portfolio value.' Financial Results (1) All per share data based on 2,541,402 and 2,518,176 diluted weighted-average shares outstanding for the three months ended June 30, 2025 and 2024, respectively. Real Estate Portfolio The Company's portfolio consisted of six properties comprised of 1.0 million rentable square feet as of June 30, 2025. Portfolio metrics include: 82.0% leased 6.0 years remaining weighted-average lease term 77% of annualized straight-line rent (4) from top 10 tenants derived from investment grade or implied investment grade tenants with 7.5 years of weighted-average remaining lease term Diversified portfolio, comprised of 24% financial services tenants, 17% government and public administration tenants, 12% retail tenants, 11% non-profit and 42% all other industries, based on annualized straight-line rent Capital Structure and Liquidity Resources As of June 30, 2025, the Company had $5.3 million of cash and cash equivalents (5). The Company's net debt (6) to gross asset value (7) was 63.6%, with net debt of $344.7 million. All of the Company's debt was fixed-rate as of June 30, 2025. The Company's total combined debt had a weighted-average interest rate of 6.4% (8). Footnotes/Definitions (1) The weighted-average remaining lease term (years) is weighted by annualized straight-line rent as of June 30, 2025. (2) Top 10 tenants based on annualized straight-line rent as of June 30, 2025. (3) As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant's obligation under the lease) or by using a proprietary Moody's analytical tool, which generates an implied rating by measuring a company's probability of default. The term 'parent" for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of June 30, 2025. Based on annualized straight-line rent, top 10 tenants are 55% actual investment grade rated and 22% implied investment grade rated. (4) Annualized straight-line rent is calculated using the most recent available lease terms as of June 30, 2025. (5) Under one of our mortgage loans, we are required to maintain minimum liquid assets (i.e. cash and cash equivalents and restricted cash) of $10.0 million. (6) Total debt of $350.0 million less cash and cash equivalents of $5.3 million as of June 30, 2025. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents. (7) Defined as the carrying value of total assets of $464.0 million plus accumulated depreciation and amortization of $78.1 million as of June 30, 2025. (8) Weighted based on the outstanding principal balance of the debt. Webcast and Conference Call ASIC will host a webcast and call on August 8, 2025 at 11:00 a.m. ET to discuss its financial and operating results. This webcast will be broadcast live over the Internet and can be accessed by all interested parties through the ASIC website, in the 'Investor Relations' section. Dial-in instructions for the conference call and the replay are outlined below. To listen to the live call, please go to ASIC's 'Investor Relations' section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the ASIC website at Live Call Dial-In (Toll Free): 1-877-269-7751 International Dial-In: 1-201-389-0908 Conference Replay* Domestic Dial-In (Toll Free): 1-844-512-2921 International Dial-In: 1-412-317-6671 Conference Number: 13754142 *Available from August 8, 2025 through September 19, 2025. About American Strategic Investment Co. American Strategic Investment Co. (NYSE: NYC) owns a portfolio of commercial real estate located within the five boroughs of New York City. Additional information about ASIC can be found on its website at Supplemental Schedules The Company will file supplemental information packages with the Securities and Exchange Commission (the 'SEC') to provide additional disclosure and financial information. Once posted, the supplemental package can be found under the 'Presentations' tab in the Investor Relations section of ASIC's website at and on the SEC website at Important Notice The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. The words 'may,' 'will,' 'seeks,' 'anticipates,' 'believes,' 'expects,' 'estimates,' 'projects,' 'plans,' 'intends,' 'should' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company's control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include (a) the anticipated benefits of the Company's election to terminate its status as a real estate investment trust, (b) whether the Company will be able to successfully acquire new assets or businesses, (c) the potential adverse effects of the geopolitical instability due to the ongoing military conflicts between Russia and Ukraine and Israel and Hamas, including related sanctions and other penalties imposed by the U.S. and European Union, and the related impact on the Company, the Company's tenants, and the global economy and financial markets, (d) inflationary conditions and higher interest rate environment, (e) economic uncertainties about the ultimate impact of tariffs imposed by, or imposed on, the United States and its trading relationships, (f) that any potential future acquisition or disposition is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all, and (g) that we may not be able to continue to meet the New York Stock Exchange's ('NYSE') continued listing requirements and rules, and the NYSE may delist the Company's common stock, which could negatively affect the Company, the price of the Company's common stock and shareholders' ability to sell the Company's common stock, as well as those risks and uncertainties set forth in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 19, 2025 with the United States Securities and Exchange Commission ('SEC') and all other filings with the SEC after that date, including but not limited to the subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as such risks, uncertainties and other important factors may be updated from time to time in the Company's subsequent report. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law. June 30, 2025 December 31, 2024 ASSETS (Unaudited) Real estate investments, at cost: Land $ 114,099 $ 129,517 Buildings and improvements 318,272 341,314 Acquired intangible assets 7,761 19,063 Total real estate investments, at cost 440,132 489,894 Less accumulated depreciation and amortization (78,102 ) (91,135 ) Total real estate investments, net 362,030 398,759 Cash and cash equivalents 5,313 9,776 Restricted cash 7,525 9,159 Operating lease right-of-use asset 54,401 54,514 Prepaid expenses and other assets 5,868 5,233 Derivative asset, at fair value — — Straight-line rent receivable 22,592 23,060 Deferred leasing costs, net 6,265 6,565 Assets held for sale — — Total assets $ 463,994 $ 507,066 LIABILITIES AND STOCKHOLDERS' EQUITY Mortgage notes payable, net $ 348,223 $ 347,384 Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of $53 and $317 at June 30, 2025 and December 31, 2024, respectively) 22,305 15,302 Notes payable to related parties — — Operating lease liability 54,555 54,592 Below-market lease liabilities, net 821 1,161 Deferred revenue 2,572 3,041 Distributions payable — — Total liabilities 428,476 421,480 Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding at June 30, 2025 and December 31, 2024 — — Common stock, $0.01 par value, 300,000,000 shares authorized, 2,634,355 and 2,634,355 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 27 27 Additional paid-in capital 731,613 731,429 Accumulated other comprehensive income — — Distributions in excess of accumulated earnings (696,122 ) (645,870 ) Total stockholders' equity 35,518 85,586 Non-controlling interests — — Total equity 35,518 85,586 Total liabilities and equity $ 463,994 $ 507,066 American Strategic Investment Co. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Ended June 30, 2025 2024 Revenue from tenants $ 12,222 $ 15,754 Operating expenses: Asset and property management fees to related parties 1,682 1,927 Property operating 7,987 8,461 Impairments of real estate investments 30,558 84,724 Equity-based compensation 92 186 General and administrative 2,172 1,964 Depreciation and amortization 3,545 5,151 Total operating expenses 46,036 102,413 Operating loss (33,814 ) (86,659 ) Other income (expense): Interest expense (7,850 ) (5,201 ) Other income 4 9 Total other expense (7,846 ) (5,192 ) Net loss before income tax (41,660 ) (91,851 ) Income tax expense — — Net loss and Net loss attributable to common stockholders $ (41,660 ) $ (91,851 ) Net loss per share attributable to common stockholders — Basic and Diluted $ (16.39 ) $ (36.48 ) Weighted-average shares outstanding — Basic and Diluted 2,541,402 2,518,176 American Strategic Investment Co. Quarterly Reconciliation of Non-GAAP Measures (Unaudited) (In thousands) Three Months Ended June 30, 2025 June 30, 2024 Net loss and Net loss attributable to common stockholders $ (41,660 ) $ (91,851 ) Interest expense 7,850 5,151 Depreciation and amortization 3,545 5,201 EBITDA (30,265 ) (81,499 ) Impairment of real estate investments 30,558 84,724 Equity-based compensation 92 186 Other (income) loss (4 ) (9 ) Asset and property management fees paid in common stock to related parties in lieu of cash — 1,077 Adjusted EBITDA 381 4,479 Asset and property management fees to related parties payable in cash 1,682 850 General and administrative 2,172 1,964 NOI 4,235 7,293 Accretion of below- and amortization of above-market lease liabilities and assets, net (138 ) (57 ) Straight-line rent (revenue as a lessor) 102 153 Straight-line ground rent (expense as lessee) (3 ) 27 Cash NOI 4,196 7,416 Cash Paid for Interest: Interest expense 7,850 5,201 Amortization of deferred financing costs (76 ) (377 ) Total cash paid for interest $ 7,774 $ 4,824 Non-GAAP Financial Measures This release discusses the non-GAAP financial measures we use to evaluate our performance, including Earnings before Interest, Taxes, Depreciation and Amortization ('EBITDA'), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ('Adjusted EBITDA'), Net Operating Income ('NOI') and Cash Net Operating Income ('Cash NOI') and Cash Paid for Interest. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net loss, is provided above. In December 2022 we announced that we changed our business strategy and terminated our election to be taxed as a REIT effective January 1, 2023, however, our business and operations have not materially changed in the second quarter of 2025. Therefore, we did not change any of the non-GAAP metrics that we have historically used to evaluate performance. Caution on Use of Non-GAAP Measures EBITDA, Adjusted EBITDA, NOI, Cash NOI and Cash Paid for Interest should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP metrics. As a result, we believe that the use of these non-GAAP metrics, together with the required GAAP presentations, provide a more complete understanding of our performance, including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, these non-GAAP metrics are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends. Investors are cautioned that these non-GAAP metrics should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest. We believe that EBITDA and Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for (i) impairment charges, (ii) interest income or other income or expense, (iii) gains or losses on debt extinguishment, (iv) equity-based compensation expense, (v) acquisition and transaction costs, (vi) gains or losses from the sale of real estate investments and (vii) expenses paid with issuances of common stock in lieu of cash is an appropriate measure of our ability to incur and service debt. We consider EBITDA and Adjusted EBITDA useful indicators of our performance. Because these metrics' calculations exclude such factors as depreciation and amortization of real estate assets, interest expense, and equity-based compensation (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), these metrics; presentations facilitate comparisons of operating performance between periods and between other companies that use these measures. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other companies may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other companies. NOI is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that are more closely related to a property's results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other companies that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to pay dividends. Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other companies. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other companies present Cash NOI. Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.
Globe and Mail
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