Document

This supplemental package of New York City REIT, Inc. (the “Company” or “NYC”) includes “forward looking statements.” These forward-looking statements involve substantial risks and uncertainties that could cause the outcome to be materially different. In addition, words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “would,” or similar expressions indicate a forward-looking statement, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those contemplated by such forward-looking statements, including those set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of NYC’s most recent Annual Report on Form 10-K and NYC’s most recent Form 10-Q, as such Risk Factors may be updated from time to time in subsequent reports. Further, forward-looking statements speak only as of the date they are made, and NYC undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by law.

The majority of the concessions granted to our tenants as a result of the COVID-19 pandemic are rent deferrals or temporary rent abatements with the original lease term unchanged and collection of deferred rent deemed probable. As a result of relief granted by the FASB and the SEC related to lease modification accounting, rental revenue used to calculate Net Income, NAREIT FFO and Core FFO have not been, and we do not expect it to be, significantly impacted by these types of deferrals.

This section discusses the non-GAAP financial measures we use to evaluate our performance, including Funds from Operations (“FFO”), Core Funds from Operations (“Core FFO”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Net Operating Income (“NOI”) and Cash Net Operating Income (“Cash NOI”). While NOI is a property-level measure, Core FFO is based on our total performance and therefore reflects the impact of other items not specifically associated with NOI such as, interest expense, general and administrative expenses and operating fees to related parties. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net income, is provided below. Adjustments for unconsolidated partnerships and joint ventures are calculated to exclude the proportionate share of the non-controlling interest to arrive at FFO, Core FFO and NOI attributable to stockholders.

FFO, Core FFO, Adjusted EBITDA, NOI and Cash NOI 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 measures.

Other REITs may not define FFO in accordance with the current National Association of Real Estate Investment Trusts (“NAREIT”), an industry trade group, definition (as we do), or may interpret the current NAREIT definition differently than we do, or may calculate Core FFO differently than we do. Consequently, our presentation of FFO and Core FFO may not be comparable to other similarly titled measures presented by other REITs.

We consider FFO and Core FFO useful indicators of our performance. Because FFO and Core FFO calculations exclude such factors as depreciation and amortization of real estate assets and gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), FFO and Core FFO presentations facilitate comparisons of operating performance between periods and between other REITs in our peer group.

As a result, we believe that the use of FFO and Core FFO, 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, FFO and Core FFO are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends. Investors are cautioned that FFO and Core FFO 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.

We calculate FFO, a non-GAAP measure, consistent with the standards established over time by the Board of Governors of NAREIT, as restated in a White Paper and approved by the Board of Governors of NAREIT effective in December 2018 (the “White Paper”). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from sales of certain real estate assets, gain and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for consolidated partially-owned entities (including our Operating Partnership) and equity in earnings of unconsolidated affiliates are made to arrive at our proportionate share of FFO attributable to our stockholders. Our FFO calculation complies with NAREIT’s definition.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, and straight-line amortization of intangibles, which implies that the value of a real estate asset diminishes predictably over time. We believe that, because real estate values historically rise and fall with market conditions, including inflation, interest rates, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation and certain other items may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, we believe that the use of FFO, which excludes the impact of real estate related depreciation and amortization, among other things, provides a more complete understanding of our performance to investors and to management, and when compared year over year, reflects the impact on our operations from trends in occupancy rates, rental rates, rent collection rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income.

Beginning in the third quarter 2020, following the listing of our Class A common stock on the NYSE, we began presenting Core FFO as a non-GAAP metric. We believe that Core FFO is utilized by other publicly-traded REITs although Core FFO presented by us may not be comparable to Core FFO reported by other REITs that define Core FFO differently. In calculating Core FFO, we start with FFO, then we exclude the impact of discrete non-operating transactions and other events which we do not consider representative of the comparable operating results of our real estate operating portfolio, which is our core business platform. Specific examples of discrete non-operating items include acquisition and transaction related costs for dead deals, debt extinguishment costs, listing related costs and expenses (including the vesting and conversion of Class B units and cash expenses and fees which are non-recurring in nature incurred in connection with the listing and related transactions), and non-cash equity-based compensation. We add back non-cash write-offs of deferred financing costs and prepayment penalties incurred with the early extinguishment of debt which are included in net income but are considered financing cash flows when paid in the statement of cash flows. We consider these write-offs and prepayment penalties to be capital transactions and not indicative of operations. By excluding expensed acquisition and transaction dead deal costs as well as non-operating costs, we believe Core FFO provides useful supplemental information that is comparable for each type of real estate investment and is consistent with management’s analysis of the investing and operating performance of our properties. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

We believe that Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for acquisition and transaction-related expenses, listing-related costs and expenses, other non-cash items such as the vesting and conversion of the Class B Units, equity-based compensation expense and including our pro-rata share from unconsolidated joint ventures, is an appropriate measure of our ability to incur and service debt. 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 REITs may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other REITs.

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, rent collection 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 REITs 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 REITs. 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 REITs 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.


Financial Results (Amounts in thousands, except per share data)
Revenue from tenants	$	15,848
Net loss attributable to common stockholders	$	(11,124)
Basic and diluted net loss per share attributable to common stockholders	$	(0.85)
Cash NOI [1]	$	5,742
Adjusted EBITDA [1]	$	4,073
Core FFO attributable to common stockholders [1]	$	(739)

Balance Sheet and Capitalization (Amounts in thousands, except ratios and percentages)
Gross asset value [2]	$	992,360
Net debt [3] [4]	$	381,831
Total consolidated debt [4]	$	405,000
Total assets	$	832,143
Cash and cash equivalents [5]	$	23,169

Common shares outstanding as of September 30, 2021	13,278

Net debt to gross asset value	38.5		%
Net debt to annualized adjusted EBITDA [1] (annualized based on quarterly results)	23.4		x

Weighted-average interest rate cost [6]	4.4		%
Weighted-average debt maturity (years) [7]	5.3
Interest Coverage Ratio [8]	0.9		x

Real Estate Portfolio
Number of properties	8
Number of tenants	80

Square footage (millions)	1.2
Leased	85.3		%
Weighted-average remaining lease term (years) [9]	6.8

[8] The interest coverage ratio is calculated by dividing adjusted EBITDA for the applicable quarter by cash paid for interest (calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net). Management believes that Interest Coverage Ratio is a useful supplemental measure of our ability to service our debt obligations. Adjusted EBITDA and cash paid for interest are Non-GAAP metrics and are reconciled below.


	September 30, 2021		December 31, 2020
ASSETS	(Unaudited)
Real estate investments, at cost:
Land	$	193,357	$	193,658
Buildings and improvements	570,355		568,861
Acquired intangible assets	97,375		98,118
Total real estate investments, at cost	861,087		860,637
Less accumulated depreciation and amortization	(160,217)		(139,666)
Total real estate investments, net	700,870		720,971
Cash and cash equivalents	23,169		30,999
Restricted cash	11,611		8,995
Operating lease right-of-use asset	55,219		55,375
Prepaid expenses and other assets (includes amounts due from related parties of $0 and $435 at September 30, 2021 and December 31, 2020, respectively)	7,398		12,953
Straight-line rent receivable	24,817		22,050
Deferred leasing costs, net	9,059		10,503
Total assets	$	832,143	$	861,846

LIABILITIES AND STOCKHOLDERS’ EQUITY
Mortgage notes payable, net	$	397,731	$	396,574
Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of $33 and $0 at September 30, 2021 and December 31, 2020, respectively)	6,535		6,916
Operating lease liability	54,783		54,820
Below-market lease liabilities, net	12,362		14,006
Derivative liability, at fair value	2,330		3,405
Deferred revenue	4,784		4,558

Total liabilities	478,525		480,279

Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding at September 30, 2021 and December 31, 2020	—		—
Common stock, $0.01 par value, 300,000,000 shares authorized, 13,277,738 and 12,802,690 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	133		129
Additional paid-in capital	691,344		686,715
Accumulated other comprehensive loss	(2,330)		(3,404)
Distributions in excess of accumulated earnings	(345,584)		(305,882)
Total stockholders’ equity	343,563		377,558
Non-controlling interests	10,055		4,009
Total equity	353,618		381,567
Total liabilities and equity	$	832,143	$	861,846


	Three Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Revenue from tenants	$	15,848	$	14,977	$	15,186	$	9,860

Expenses:
Asset and property management fees to related parties	1,862		1,847		1,907		1,856
Property operating	8,029		8,323		8,736		8,750
Impairment of real estate investments	413		—		—		—



Equity-based compensation	2,121		2,120		2,115		2,116
General and administrative	1,884		1,984		2,732		1,844
Depreciation and amortization	7,851		7,023		8,526		7,677
Total expenses	22,160		21,297		24,016		22,243
Operating loss	(6,312)		(6,320)		(8,830)		(12,383)
Other income (expense):
Interest expense	(4,803)		(4,763)		(4,713)		(4,225)
Other income	5		31		8		8
Total other expense, net	(4,798)		(4,732)		(4,705)		(4,217)
Net loss	(11,110)		(11,052)		(13,535)		(16,600)
Income tax expense	(14)		—		—		—
Net loss attributable to common stockholders	$	(11,124)	$	(11,052)	$	(13,535)	$	(16,600)

Basic and Diluted Net Loss Per Share:
Net loss per share attributable to common stockholders — Basic and Diluted	$	(0.85)	$	(0.87)	$	(1.06)	$	(1.30)
Weighted average shares outstanding —Basic and Diluted	13,093,486		12,799,703		12,780,027		12,797,174


	Three Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
EBITDA:
Net loss	$	(11,124)	$	(11,052)	$	(13,535)	$	(16,600)
Depreciation and amortization	7,851		7,023		8,526		7,677
Interest expense	4,803		4,763		4,713		4,225
Income tax expense	14		—		—		—
EBITDA	1,544		734		(296)		(4,698)
Impairment of real estate investments	413		—		—		—



Equity-based compensation	2,121		2,120		2,115		2,116
Other income	(5)		(31)		8		(8)
Adjusted EBITDA	4,073		2,823		1,827		(2,590)
Asset and property management fees to related parties	1,862		1,847		1,907		1,856
General and administrative	1,884		1,984		2,732		1,844
NOI	7,819		6,654		6,466		1,110
Accretion of below- and amortization of above-market lease liabilities and assets, net	(367)		(225)		(215)		(219)
Straight-line rent (revenue as a lessor)	(1,738)		(438)		(640)		3,180
Straight-line ground rent (expense as lessee)	28		26		28		27
Cash NOI	$	5,742	$	6,017	$	5,639	$	4,098

Cash Paid for Interest:
Interest expense	$	4,803	$	4,763	$	4,713	$	4,225
Amortization of deferred financing costs	(386)		(386)		(385)		(386)
Total cash paid for interest	$	4,417	$	4,377	$	4,328	$	3,839


	Three Months Ended
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020
Funds from operations (FFO):
Net loss attributable to common stockholders	$	(11,124)	$	(11,052)	$	(13,535)	$	(16,600)
Impairment of real estate investments	413		—		—		—
Depreciation and amortization	7,851		7,023		8,526		7,677

FFO attributable to common stockholders	(2,860)		(4,029)		(5,009)		(8,923)



Equity-based compensation	2,121		2,120		2,115		2,116

Core FFO attributable to common stockholders	$	(739)	$	(1,909)	$	(2,894)	$	(6,807)

Weighted average common shares outstanding — Basic and Diluted	13,093		12,800		12,780		12,797

Net loss per share attributable to common shareholders — Basic and Diluted	$	(0.85)	$	(0.87)	$	(1.06)	$	(1.30)
FFO per common share	$	(0.22)	$	(0.31)	$	(0.39)	$	(0.70)
Core FFO per common share	$	(0.06)	$	(0.15)	$	(0.23)	$	(0.53)


Tenant / Lease Guarantor	Property Type	Tenant Industry	Annualized SL Rent [1]		SL Rent Percent		Remaining Lease Term [2]	Investment Grade [3]
City National Bank	Office / Retail	Financial Services	$	4,356	8	%	11.8	Yes
Equinox	Retail	Fitness	3,448		6	%	17.2	No
Planned Parenthood Federation of America, Inc.	Office	Non-Profit	3,337		6	%	9.8	Yes
Cornell University	Office	Healthcare Services	2,476		4	%	2.8	Yes
The City of New York - Dept. of Youth & Community Development	Office	Government/Public Administration	2,255		4	%	5.9	Yes
CVS	Retail	Retail	2,161		4	%	12.9	Yes
Waterfall Asset Management LLC	Office	Finanical Services	2,019		4	%	0.9	No
USA General Services Administration	Office	Government/Public Administration	1,978		4	%	0.7	No
I Love NY Gifts	Retail	Retail	1,956		3	%	14.7	Yes
Marshalls	Retail	Retail	1,641		3	%	7.1	Yes
Subtotal			25,627		45	%	9.2

Remaining portfolio			30,843		55	%

Total Portfolio			$	56,470	100	%

[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 September 30, 2021. Top 10 tenants are 52% actual investment grade rated and 19% implied investment grade rated.


	Total Portfolio
Industry Type	Annualized SL Rent [1]		SL Rent Percent		Square Feet	Sq. ft. Percent
Financial Services	$	16,397	29	%	217	22	%
Government/Public Administration	7,392		13	%	173	17	%
Retail	7,246		13	%	56	6	%
Non-profit	6,737		12	%	146	15	%
Services	4,362		8	%	98	10	%
Fitness	3,448		6	%	39	4	%
Healthcare Services	3,140		6	%	43	4	%
Technology	2,985		5	%	53	5	%
Professional Services	2,731		5	%	53	5	%
Advertising	485		1	%	—	—	%
Other [2]	1,547		2	%	114	12	%
Total	$	56,470	100	%	992	100	%


Year of Expiration	Number of Leases Expiring	Annualized SL Rent [1]		Annualized SL Rent Percent		Leased Rentable Square Feet	Percent of Rentable Square Feet Expiring
		(In thousands)				(In thousands)
2021 (Remaining)	9	$	805	1	%	135	14	%
2022	14	6,689		12	%	140	14	%
2023	11	4,379		8	%	64	6	%
2024	9	6,110		11	%	97	10	%
2025	11	6,510		12	%	113	11	%
2026	6	2,278		4	%	47	5	%
2027	5	2,777		5	%	49	5	%
2028	10	3,407		6	%	65	7	%
2029	5	2,546		5	%	43	4	%
2030	3	1,810		3	%	34	3	%
2031	8	5,555		10	%	95	10	%
2032	2	676		1	%	13	1	%
2033	5	4,356		8	%	36	4	%
2034	2	2,161		4	%	10	1	%
2035	3	640		1	%	4	—	%
2036	4	2,321		4	%	17	2	%
Thereafter (>2036)	3	3,450		5	%	30	3	%
Total	110	$	56,470	100	%	992	100	%


Table of Contents

Item						Page
Non-GAAP Definitions						3
Key Metrics						5
Consolidated Balance Sheets						6
Consolidated Statements of Operations						7
Non-GAAP Measures						8
Debt Overview						10
Future Minimum Lease Rents						11
Top Ten Tenants						12
Diversification by Property Type						13
Diversification by Tenant Industry						14
Lease Expirations						15

Please note that totals may not add due to rounding.


	Future Minimum Base Rent Payments [1]
2021 (remainder)	$	13,025
2022	52,851
2023	44,892
2024	43,222
2025	35,872
2026	32,741
Thereafter	187,030
Total	$	409,633


New York City REIT, Inc.
Supplemental Information
Quarter ended September 30, 2021 (Unaudited)


New York City REIT, Inc.
Supplemental Information
Quarter ended September 30, 2021


Year of Maturity	Number of Encumbered Properties	Weighted-Average Debt Maturity (Years) [1]	Weighted-Average Interest Rate [1] [2]		Total Outstanding Balance [3]
					(In thousands)
2021 (remainder)	—	—	—	%	$	—
2022	—	—	—	%	—
2023	—	—	—	%	—
2024	1	2.5	3.7	%	55,000
2025	—	—	—	%	—
2026	1	4.7	4.2	%	99,000
Thereafter	5	6.1	4.5	%	251,000
Total Debt	7	5.3	4.4	%	$	405,000