American Strategic Investment Co. (NYSE:NYC), currently trading at a significant discount to book value with a Price/Book ratio of 0.25, recently witnessed insider buying activity by Nicholas S. Schorsch and related entities. The transactions, reported on December 23 and 24, involved the purchase of 1,626 shares of Class A common stock, valued at approximately $14,032. The shares were acquired at a weighted average price range of $8.55 to $8.71 per share. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimates.
Nicholas S. Schorsch, a significant stakeholder, executed these transactions through entities under his control, including Bellevue Capital Partners (WA:CPAP), LLC. The purchases have increased the total shares owned by Schorsch and his affiliates to 919,994. Want deeper insights into insider trading patterns and comprehensive financial analysis? InvestingPro subscribers get access to detailed insider trading data and 10+ additional ProTips for NYC.
These transactions highlight continued interest in American Strategic Investment Co., previously known as New York City REIT, Inc., by its insiders. While the company maintains adequate liquidity with a current ratio of 1.5, it operates with a significant debt burden, as revealed by InvestingPro data. The company operates in the real estate investment trusts sector, with its headquarters in Newport, Rhode Island.
In other recent news, American Strategic Investment Co. reported an increase in cash net operating income and an uptick in occupancy rates to 85.8% during its third-quarter earnings for 2024. However, the company also disclosed a GAAP net loss of $34.5 million, primarily attributed to noncash impairments, and a drop in revenue to $15.4 million from $16 million in the same quarter of 2023. In a noteworthy development, American Strategic Investment Co. has finalized the sale of its 9 Times Square property for a gross purchase price of $63.5 million, a move seen as part of the company's strategic plan to optimize its portfolio. The company is also actively marketing properties at 123 William Street and 196 Orchard for sale. These recent developments reflect American Strategic Investment's focus on long-term value creation through strategic portfolio management and asset divestiture, with plans to invest the proceeds from these sales in higher-yielding assets outside of New York City.
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