New York REIT Liquidating LLC Announces Results of
NEW YORK, Aug. 05, 2022 (GLOBE NEWSWIRE) — New York REIT Liquidating LLC (the “Company” or “LLC”), which was formed to complete the liquidation of assets previously held by New York REIT, Inc., has today announced that 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 liquidation 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 expect to pay regular quarterly distributions in the foreseeable future. Future liquidation distributions will depend on, among other things, the timing and amount of cash flow distributions from our ownership interest in Worldwide Plaza. Distributions from Worldwide Plaza will be limited in the following periods due to turnover of pending tenants and expiring leases.
On May 23, 2022, the Company paid a cash liquidation distribution of $0.10 per unit to unitholders of record as of May 16, 2022.
Owners of interests in the company are reminded that the conversion of New York REIT, Inc. to an LLC took place on November 7, 2018. As previously stated, interests in the LLC are generally not transferable except by will, estate ab intestate or Operation of the law.
The Company has sold all of its properties except for the remaining 50.1% interest in Worldwide Plaza. The Company has no outstanding debt other than its pro rata share of non-recourse debt on Worldwide Plaza. The Company paid aggregate cash liquidation 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 Directors approved an extension of the LLC’s expiration from November 7, 2022 to November 31, 2022. December 2023.
Accounting liquidation basis
Based on liquidation accounting, the Company has indicated that the estimated net assets in liquidation as of June 30, 2022 are currently expected to result in future liquidation distributions of approximately $18.64 per unit. Considering the distribution of $0.10 per unit paid on May 23, 2022, the current estimate of future liquidation distributions represents a decrease of $0.09 per unit from the Company’s estimate as of March 31, 2022 The estimate of future liquidation distributions includes projections of income to be earned and costs and expenses to be incurred over the next 12 months, including the estimated cost of disposing of our remaining investment. There is inherent uncertainty in these projections and, accordingly, the projections could change materially depending on a number of factors both within and beyond the control of the Company, including public health crises, such as the novel coronavirus (“COVID-19”), market conditions, the performance of the underlying real estate asset, the timing of the sale and any changes in the underlying projected cash flow assumptions.
The current estimate of net assets in liquidation as of June 30, 2022 has been estimated based on undiscounted cash flow projections and assumes final liquidation on June 30, 2023, although the actual timing of the sale of the remaining equity interest of the Company in Worldwide Plaza is indeterminate, given the continued impact of COVID-19 on the commercial real estate market, ongoing negotiations with tenants and other elements of the real estate 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 recognized at their contractual amounts due adjusted for the impact of the timing of the planned liquidation.
Impact of COVID-19
Rent collections for Worldwide Plaza retail and equipment tenants were not impacted by the COVID-19 pandemic during the six months ended June 30, 2022, although they were impacted during for the fiscal year ended December 31, 2021. The extent of the future impact of the COVID-19 pandemic, including its multiple variants and related government safeguards, on rental collections in the property for the coming quarters. During the six months ended June 30, 2022 and the financial year ended December 31, 2021, the building received 100% of the office rents that were due. WWP waived approximately $494,000 of base rent for existing retail and amenity tenants and wrote off approximately $477,000 of base rent related to divested retail and amenity 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 contained in this release set forth the company’s and management’s hopes, intentions, beliefs, expectations or projections for the future. and are forward-looking statements for which the Company claims safe harbor protections 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 or contemplated by such forward-looking statements. These forward-looking statements include, but are not limited to, statements about potential increases in liquidation distributions if the joint venture is able to achieve 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 to pay their rental obligations due to bankruptcy, insolvency or a general downturn in business, (iv) local real estate conditions, (v) increases in rental rates interest, (vi) increases in operating costs and property taxes, (vii) changes in the 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, in particular in the sections “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the last Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 16, 2022, as these risk factors may be updated in subsequent reports. The Company undertakes no 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 three months ended June 30, 2022 has been filed with the Securities and Exchange Commission and will be available for download on the Company’s website www.nyrt.com or on the website of the Securities and Exchange Commission www.sec. govt.
Chief Executive Officer and Chief Financial Officer
New York REIT Liquidation LLC