ASIC Q2 2026 earnings: Revenue falls while adjusted EBITDA rises

American Strategic Investment Co. (NYSE: NYC), or ASIC, reported Q2 2026 revenue of $7.315 million, down 40.1% from $12.222 million, and a diluted loss per share of $3.04, compared with a loss of $16.39 per share a year earlier. The GAAP loss narrowed substantially, while adjusted EBITDA increased despite lower cash NOI and a smaller property portfolio.

Core Earnings Data

Revenue declined primarily because 1140 Avenue of the Americas was disposed of in the prior year. Property operating expenses also fell with the smaller revenue base, decreasing to $4.303 million from $7.987 million.

The much narrower net loss mainly reflected the absence of the $30.558 million real estate impairment recorded in Q2 2025. The current quarter also included a $2.280 million gain on disposition, although that was offset by $2.280 million of interest expense associated with a property in receivership.

EBITDA, adjusted EBITDA, NOI and cash NOI are non-GAAP measures. Their improvement or decline should be considered alongside the company’s GAAP loss and liquidity position.

Portfolio Performance

ASIC owned five properties comprising approximately 0.7 million rentable square feet at June 30, 2026, excluding 1140 Avenue of the Americas, which was in a consensual foreclosure process. The portfolio was 74.8% leased, leaving approximately one-quarter of the available space unleased.

The weighted-average remaining lease term was 6.1 years, unchanged from the end of the fourth quarter. Among the top 10 tenants, 69% of annualized straight-line rent came from investment-grade or implied investment-grade tenants, with a weighted-average remaining lease term of 6.4 years.

Tenant exposure based on annualized straight-line rent consisted of 29% government and public administration, 15% retail, 13% nonprofit, 11% fitness and 32% other industries.

Stock-Paid Fees Supported Adjusted EBITDA and Preserved Cash

Adjusted EBITDA rose even though revenue, NOI and cash NOI all declined. A major factor in the reconciliation was the addition of $4.066 million of asset and property management fees paid in common stock rather than cash.

ASIC separately disclosed that its external advisor accepted shares in place of approximately $1.910 million and $2.107 million of advisory fees accrued through April and June, respectively. This approach conserved operating cash but increased the number of shares outstanding.

Common shares outstanding rose from 2.693 million at December 31, 2025, to 3.164 million at June 30, 2026, an increase of approximately 17.5%. The divergence between higher adjusted EBITDA and lower cash NOI therefore reflects both the metric’s treatment of stock-paid expenses and weaker property-level income.

Liquidity and Balance Sheet

ASIC ended the quarter with $2.422 million of cash and cash equivalents, up from $1.297 million at year-end. Restricted cash declined to $5.517 million from $6.750 million, leaving combined cash and restricted cash of $7.939 million.

The company noted that certain mortgage covenants require at least $5.0 million of liquid assets, defined to include cash, cash equivalents and restricted cash. Its reported net debt was $248.6 million, equal to 59.6% of gross asset value. All reported debt was fixed-rate at June 30, with a weighted-average interest rate of 4.56%.

The balance sheet also included $99.0 million of debt associated with a property in receivership and $14.182 million of related accrued interest. Total stockholders’ equity declined to $52.902 million from $64.756 million at the end of 2025.

Cash paid for interest was $7.775 million during the quarter, compared with $8.360 million a year earlier. That amount remained well above quarterly cash NOI of $3.143 million, although the measures are not directly equivalent.

As a subsequent event, ASIC said the NYSE notified it on July 22, 2026, that it had regained compliance with minimum market-capitalization and stockholders’ equity requirements. The company remains subject to normal continued-listing monitoring.

Management’s View

CEO and Chairman Nicholas Schorsch Jr. attributed the increase in adjusted EBITDA to the company’s capital-prioritization strategy and its largely investment-grade tenant base. Management remains focused on completing its remaining asset dispositions and redirecting capital toward other opportunities it believes can create durable shareholder value.

Recent Insider Transactions

The provided insider records show four indirect purchase transactions by Nicholas S. Schorsch during the latest six-month period, with a combined reported value of $219,655. Two additional transactions were stock awards rather than purchases and should be viewed separately.

These records describe the transaction type and value but do not establish the insider’s view of the company’s prospects.

Risks Investors Need to Watch

• Reduced operating scale: The prior-year property disposition lowered revenue, while cash NOI declined by 26.9% in the quarter. Additional planned dispositions could further change the company’s revenue and property-income base.
• Occupancy pressure: The portfolio was only 74.8% leased. Persistently vacant space can constrain rental revenue and property-level profitability.
• Limited liquidity relative to debt: Cash and cash equivalents were $2.422 million against reported net debt of $248.6 million, making liquidity preservation and interest obligations important considerations.
• Receivership and foreclosure exposure: The portfolio excluded a property in consensual foreclosure, while the balance sheet carried $99.0 million of debt and $14.182 million of accrued interest associated with a property in receivership.
• Share dilution: Paying advisory and management fees with stock preserves cash but increases the outstanding share count. Shares outstanding rose approximately 17.5% during the first half of 2026.

Summary

ASIC’s Q2 2026 results showed a smaller post-disposition revenue base and lower property-level income, but the GAAP loss narrowed sharply because the prior-year impairment did not repeat. Adjusted EBITDA improved with substantial support from stock-paid fee adjustments, while cash NOI declined and liquidity remained limited relative to debt. Portfolio occupancy, remaining asset dispositions, receivership exposure and the balance between conserving cash and issuing additional shares are the principal areas to monitor.