New York REIT Announces Operating Results for Second Quarter 2016

8/9/16

New York REIT, Inc. (NYSE: NYRT), 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 second quarter ended June 30, 2016.

Select Second Quarter Highlights and Subsequent Events

  • The Company announced the termination of the Master Combination Agreement with The JBG Companies, which, among other things, eliminates the $55 million "topping fee."
  • The Company's Board of Directors approved beginning the process of selling assets with net proceeds to be distributed to the Company's stockholders subject to, among other things, the limitations set forth in the existing credit facility and any requirements of applicable law.
  • The Company will seek financing which will enable the Company to prepay its existing credit facility in full and also provide capital for the exercise of the Worldwide Plaza option.
  • Interested parties to be released from standstill agreements.
  • Signed one new lease and one lease extension for 19,394 square feet.
    • Executed a lease at 229 West 36th Street with Nordstrom totaling 12,612 square feet and a 5-year term.
    • Extended the lease for Bunny Williams at 361 West 61st Street totaling 6,782 square feet, at a per square foot cash rent increase of 29%.

Results for the Second Quarter Ended June 30, 2016

  • Net Loss: Recorded net loss attributable to stockholders of $11.5 million for the second quarter 2016, which includes deductions of $16.6 million for depreciation and amortization and $6.3 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 second quarter 2016 Core FFO of $17.3 million (or $0.10 per fully diluted share), compared to $20.9 million (or $0.12 per fully diluted share) in the second quarter 2015.
  • AFFO: Realized second quarter 2016 AFFO of $12.7 million (or $0.08 per fully diluted share), compared to $20.4 million (or $0.12 per fully diluted share) in the second quarter 2015.
  • Cash NOI: Generated second quarter 2016 Cash NOI of $30.4 million, compared to $32.3 million in the second quarter 2015.
  • Same Store Cash NOI: Recorded second quarter 2016 Same Store Cash NOI, excluding the Viceroy Hotel, of $29.3 million compared to $29.8 million in the second quarter 2015, a 1.7% year-over-year decrease, primarily due to lower portfolio occupancy.
  • Annualized Adjusted Cash NOI: Generated Annualized Adjusted Cash NOI (excluding the impact of free rent) of $124.1 million in the second quarter 2016.
  • Occupancy: Total ending occupancy was 93.0% as of June 30, 2016, compared to 95.2% as ofDecember 31, 2015 and 97.2% as of June 30, 2015.

Michael Happel, Chief Executive Officer and President of NYRT, said "We are pleased with a solid quarter, posting same store cash NOI that was up 7% from the first quarter and 16% from the first quarter, excluding the Viceroy. From an operating perspective, two of our priorities continue to be leasing the remaining vacant space at 1440 Broadway and driving improved operating results at the Viceroy despite softness in the New York Cityhotel market. From a more strategic perspective, we are focused on maximizing shareholder value by selling assets and insuring we are capitalized to exercise the Worldwide Plaza option."

Nicholas Radesca, Interim Chief Financial Officer of NYRT, commented "Our core portfolio of New York Cityassets continues to exhibit strong results. Our revenues were up from the first quarter primarily driven by newly recognized lease revenue at the Ford Foundation and CVS, free rent burn-off at Worldwide Plaza, as well as markedly improved performance at the Viceroy."

Portfolio Activity and Occupancy

Occupancy

The overall portfolio occupancy was 93.0% as of June 30, 2016, with a weighted-average remaining lease term of 9.3 years. This compares to occupancy of 95.1% and a weighted-average remaining lease term of 9.3 years as of the end of the first quarter 2016 and occupancy of 97.2% and a weighted average remaining lease term of 9.5 years as of June 30, 2015.

Financial Strength and Liquidity

NYRT's combined total debt to enterprise value was 45% as of June 30, 2016. Enterprise value of $2.8 billion is based on the June 30, 2016 closing share price of $9.25, 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 June 30, 2016, combined interest coverage was 2.7x 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 3.8 years (3.9 years including extensions).

Dividends

During the second quarter 2016, NYRT continued to pay monthly dividends of $0.038 per common share, representing an annualized dividend of $0.46 per share. In addition, NYRT announced dividends for July andAugust 2016. Dividends are payable on August 15, 2016, to stockholders of record at the close of business onAugust 8, 2016. The July dividend was paid on July 15, 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.