New York REIT Liquidating LLC Announces Results for the Quarter Ended March 31, 2021 and Declaration of Distribution of $0.25 Per Unit

Friday, 07. May 2021 22:23

NEW YORK, May 07, 2021 (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 March 31, 2021.

Distributions

On May 4, 2021, the Company declared a cash liquidating distribution of $0.25 per unit to be paid on May 18, 2021 to unitholders of record as of May 11, 2021. Future liquidating distributions will depend on, among other things, the timing and amount of cash flow distributions from our interest in Worldwide Plaza.   There can be no assurance that future distributions will be similar to the current distribution.

On March 24, 2021, the Company paid a cash liquidating distribution of $0.18 per unit to unitholders of record as of March 17, 2021.

Liquidation Status

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. Exclusive of the distribution to be paid on May 18, 2021, the Company has paid aggregate cash liquidating distributions of $60.69 per unit.

Financial Results

Liquidation Basis of Accounting

Based on the liquidation basis of accounting, the Company reported that estimated net assets in liquidation at March 31, 2021 are currently estimated to result in future liquidating distributions of approximately $19.40 per unit.   After giving effect to the $0.18 per unit distribution paid on March 24, 2021, the current estimate of future liquidating distributions represents a $0.08 per unit increase from the Company’s estimate at December 31, 2020.   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 March 31, 2021 has been estimated based on undiscounted cash flow projections and assumes a final liquidation on March 31, 2022, 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.

COVID-19 Impact

The COVID-19 pandemic and government protections thereto continue to impact rent collections from our retail and amenities tenants at Worldwide Plaza. As of March 31, 2021, the property collected 100% of the office rents that were due for the year to date period. With respect to the retail and amenities tenants of the property, approximately $3.6 million of base rents due for 2020 and the first quarter of 2021 have not been paid as those tenants seek rent concessions for the time period during which they were required to be closed as a result of the COVID-19 pandemic.   The unpaid rents represent approximately 3.1% of total rents due at the property for the period from April 1, 2020 through March 31, 2021. Management of Worldwide Plaza is evaluating each rent relief request on a tenant by tenant basis. Not all tenant relief requests will result in the granting of relief, and the Company anticipates that a majority of any rent concessions will be in the form of a rent deferral and not rent forgiveness. Worldwide Plaza does not plan to forgo any of its contractual rights under its lease agreements in connection with any relief requests.   To date, the impact of COVID-19 has not been material to the Company, however, it is not possible to estimate the impact of the pandemic on cash collections in future quarters.

Forward-Looking Statements

"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, 2020, filed with the SEC on March 15, 2021, 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 March 31, 2021 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

Contact:

John Garilli
Chief Financial Officer and Chief Executive Officer
New York REIT Liquidating LLC
jgarilli@nyrt.com
(617) 570-4750


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