NEW YORK, Aug. 05, 2022 (GLOBE NEWSWIRE) — New York REIT Liquidating LLC (the “Company” or the “LLC”), which was formed to complete the liquidation of the assets previously held by New York REIT, Inc., announced today it has filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.
On August 3, 2022, the Company declared a cash liquidating distribution of $0.03 per unit to be paid on August 22, 2022 to unitholders of record as of August 15, 2022. Based on currently projected future cash flows, the Company does not anticipate paying regular quarterly distributions for the foreseeable future. Future liquidating distributions will depend on, among other things, the timing and amount of cash flow distributions from our interest in Worldwide Plaza. Distributions from Worldwide Plaza will be limited in subsequent periods due to pending tenant turnover and lease expirations.
On May 23, 2022, the Company paid a cash liquidating distribution of $0.10 per unit to unitholders of record as of May 16, 2022.
Holders of membership interests in the Company are reminded that the conversion of New York REIT, Inc. to the LLC occurred on November 7, 2018. As previously disclosed, membership interests in the LLC are generally not transferable except by will, intestate succession, or operation of law.
The Company has sold all its properties except for the remaining 50.1% interest in Worldwide Plaza. The Company has no debt outstanding other than its pro-rata share of the non-recourse debt on Worldwide Plaza. The Company has paid aggregate cash liquidating distributions of $61.55 per unit.
On March 15, 2022, based on the current facts and circumstances surrounding the Company’s remaining investment in Worldwide Plaza, the Company’s Board of Managers approved an extension of the expiration of the LLC from November 7, 2022 to December 31, 2023.
Liquidation Basis of Accounting
Based on the liquidation basis of accounting, the Company reported that estimated net assets in liquidation at June 30, 2022 are currently estimated to result in future liquidating distributions of approximately $18.64 per unit. After giving effect to the $0.10 per unit distribution paid on May 23, 2022, the current estimate of future liquidating distributions represents a $0.09 per unit decrease from the Company’s estimate at March 31, 2022. The estimate of future liquidating distributions includes projections of revenues to be earned and costs and expenses to be incurred during the next 12 months including the estimated cost to dispose of our remaining investment. There is inherent uncertainty with these projections and, accordingly, the projections could change materially based on a number of factors both within and outside of the Company’s control including public health crises, such as the novel coronavirus (“COVID-19”), market conditions, the performance of the underlying property asset, the timing of sale and any changes in the underlying assumptions of projected cash flows.
The current estimate of net assets in liquidation at June 30, 2022 has been estimated based on undiscounted cash flow projections and assumes a final liquidation on June 30, 2023, even though the actual timing of the sale of the Company’s remaining interest in Worldwide Plaza is indeterminate, given the continuing impact of COVID-19 on the commercial real estate market, ongoing tenant negotiations and other items in the property business plan. Based on these factors and the actual timing of the sale of this property, the final liquidation of the Company is subject to future events and uncertainties. Liabilities are carried at their contractual amounts due as adjusted for the impact of timing of the planned liquidation.
Rent collections for retail and amenities tenants at Worldwide Plaza were not impacted by the COVID-19 pandemic during the six months ended June 30, 2022, though they were impacted during the year ended December 31, 2021. It is uncertain as to the extent of the future impact of the COVID-19 pandemic, including its multiple variants and government protective measures thereto on rent collections at the property for future quarters. During the six months ended June 30, 2022 and the year ended December 31, 2021, the property collected 100% of the office rents that were due. WWP has forgiven approximately $494,000 of base rents for current retail and amenities tenants and has written off approximately $477,000 of base rents related to surrendered retail and amenities space. To date, the impact of the COVID-19 pandemic has not been material to the Company, however, it is not possible to estimate the future impact of the pandemic at this time.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. The statements in this release state the Company’s and management’s hopes, intentions, beliefs, expectations or projections of the future and are forward-looking statements for which the Company claims the protections of the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995. It is important to note that future events and the Company’s actual results could differ materially from those described in or contemplated by such forward-looking statements. Such forward looking statements include, but are not limited to, statements about potential increases in liquidating distributions if the joint venture is able to complete targeted capital improvements, critical tenant lease renewals and repositioning of this asset. Factors that could cause actual results to differ materially from current expectations include, but are not limited to, (i) the future impact of COVID-19, (ii) general economic conditions, (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or general downturn in their business, (iv) local real estate conditions, (v) increases in interest rates, (vi) increases in operating costs and real estate taxes, (vii) changes in accessibility of debt and equity capital markets and (viii) the timing of asset sales. The Company refers you to the documents filed by the Company from time to time with the SEC, particularly in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 16, 2022, as such Risk Factors may be updated in subsequent reports. The Company does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
The Company’s Form 10-Q for the quarter ended June 30, 2022 has been filed with the Securities and Exchange Commission and will be available for download at the Company’s website www.nyrt.com or at the Securities and Exchange Commission website www.sec.gov.
Chief Executive Officer and Chief Financial Officer
New York REIT Liquidating LLC
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