New York REIT Liquidating LLC - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - QUARTERLY 9.30.2016 - November 9, 2016

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EX-99.1 - EXHIBIT 99.1 - PRESS RELEASE - New York REIT Liquidating LLCnyrtexhibit991-9302016pres.htm
8-K - 8-K - New York REIT Liquidating LLCnyrt9302016-8xk.htm
Exhibit 99.2

q32016frontcover.jpg


New York REIT, Inc.

Table of Contents

 
Page
 
 
Page
Financial Information:
 
 
Portfolio Metrics:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Forward-looking Statements:

This supplemental package includes “forward looking statements”. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: the factors included in (i) the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, including those set forth under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business,” and (ii) in future periodic reports filed by the Company under the Securities Exchange Act of 1934, as amended. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. For a further discussion of these and other factors that could impact the Company’s future results, performance or transactions, see the section entitled “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2015, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements). 

(i)

New York REIT, Inc.

Company Overview
OVERVIEW

New York REIT, Inc. (NYSE: NYRT) (the “Company”) is a publicly traded real estate investment trust focused on owning and operating commercial real estate in New York City. The Company seeks to provide its shareholders with both stable dividend income and appreciation potential. The Company’s focused strategy enhances its effectiveness and provides investors with a pure play investment opportunity in New York City, one of the world's most dynamic real estate markets.

SNAPSHOT (September 30, 2016)

New York City Focus(1)
100%
 
Enterprise Value(3)
$2.8 billion
Manhattan Focus(1)
98%
 
Combined Debt
$1.3 billion
Square Feet(2)
3.3 million
 
Combined Debt/Enterprise Value(4)
45%
Number of Buildings
19
 
Monthly Dividend per Share
$0.038
Q3 2016 Ending Occupancy(5)
93.4%
 
Annualized Dividend per Share(6)
$0.46
Weighted Average Remaining Lease Term
9.0 years
 
Dividend Yield(7)
5.0%
Company Website
www.nyrt.com
 
Fully Diluted Shares and Units Outstanding
168.6 million
______________
(1)
Based on square footage.
(2)
Includes pro rata share of unconsolidated joint venture.
(3)
Based on the September 30, 2016 closing price of $9.15 per share and September 30, 2016 fully diluted share count and combined debt balances.
(4)
Based on combined debt, which includes pro rata share of unconsolidated debt, as a percentage of enterprise value.
(5)
Inclusive of leases signed but not yet commenced.
(6)
On October 26, 2016, the Company announced that in light of the Company’s previously announced plan of liquidation, which is subject to stockholder approval, the Company’s board of directors determined that the Company will not pay a regular dividend for the month of November 2016 and does not currently expect to pay a regular monthly dividend for the month of December 2016. As described in the preliminary proxy statement filed on September 27, 2016, if the plan of liquidation is approved by the Company’s stockholders, the Company intends to thereafter make periodic liquidating distributions, subject to satisfying its liabilities and obligations, in lieu of regular monthly distributions. If the plan of liquidation is not approved by the Company’s stockholders, the Company’s board of directors will re-evaluate the dividend policy.
(7)
Based on the September 30, 2016 closing price of $9.15 per share.

1

New York REIT, Inc.

Key Financial Metrics - As of and for the quarter ended September 30, 2016
(dollar amounts in thousands, except per share information)

 
Q3 2016
 
 
Q3 2016
OPERATING RESULTS
 
 
COMMON SHARE PRICE AND DIVIDENDS
 
Revenues
$
41,260

 
At the end of the period
$
9.15

Net Loss
$
46,407

 
High during period
10.15

NOI
$
33,025

 
Low during period
8.95

Cash NOI
$
27,700

 
Annualized dividend per share
0.46

Adjusted Cash NOI(1)
$
30,510

 
Annualized dividend yield(5)(9)
5.0
%
Adjusted EBITDA
$
29,790

 
 
 
 
 
 
LEVERAGE INFORMATION
 
Monthly dividends paid per share
$
0.038

 
Combined basis(6)
 
 
 
 
Total debt
$
1,282,061

Core FFO
$
15,835

 
Cash
59,841

Core FFO per diluted share(2)
$
0.09

 
Net debt
1,222,220

AFFO
$
5,264

 
Debt/enterprise value
45
%
AFFO per diluted share(2)
$
0.03

 
Interest coverage ratio on combined debt(7)
2.5 X

 
 
 
Fixed charge coverage ratio on combined debt(7)
2.5 X

MARKET CAPITALIZATION - As of September 30, 2016
 
 
Weighted average interest rate
3.7
%
Share price(3)
$
9.15

 
Weighted average remaining debt term (years)
3.6

Fully diluted common shares and units outstanding
168,640,394

 
Weighted average remaining debt term - including extensions (years)
3.7

Total equity market capitalization
$
1,543,060

 
 
 
Consolidated debt(4)
$
854,186

 
LIQUIDITY
 
Proportionate share of unconsolidated joint venture mortgage debt
$
427,875

 
Cash
$
59,841

Enterprise value
$
2,825,121

 
Credit Facility availability(8)
$
55,233

______________
(1)
Adjusted for free rent.
(2)
Reference slide 4, Consolidated Statements of Operations, for the three months ending June 30, 2016 for the fully diluted weighted average share count.
(3)
Closing price on September 30, 2016.
(4)
Represents principal amount and is gross of $5.3 million of deferred financing costs.
(5)
Based on the September 30, 2016 closing price of $9.15 per share.
(6)
Combined metrics include pro rata share of unconsolidated joint venture debt.
(7)
Reference slide 15, Leverage Metrics, for a detailed calculation of Interest coverage ratio on combined debt and fixed charge coverage ratio on combined debt.
(8)
Availability of borrowings is based on a pool of eligible unencumbered real estate assets.
(9)
On October 26, 2016, the Company announced that in light of the Company’s previously announced plan of liquidation, which is subject to stockholder approval, the Company’s board of directors determined that the Company will not pay a regular dividend for the month of November 2016 and does not currently expect to pay a regular monthly dividend for the month of December 2016. As described in the preliminary proxy statement filed on September 27, 2016, if the plan of liquidation is approved by the Company’s stockholders, the Company intends to thereafter make periodic liquidating distributions, subject to satisfying its liabilities and obligations, in lieu of regular monthly distributions. If the plan of liquidation is not approved by the Company’s stockholders, the Company’s board of directors will re-evaluate the dividend policy.

NOTE: A reconciliation of Net Income (Loss) to FFO, Core FFO, AFFO, Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI, which are non-GAAP measures, appears on pages 6 and 7 of this supplemental information package.

2

New York REIT, Inc.

Consolidated Balance Sheets
(in thousands)

 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
ASSETS
 
 
 
 
 
 
 
 
 
Real estate investments, at cost
 
 
 
 
 
 
 
 
 
Land
$
477,171

 
$
477,171

 
$
477,171

 
$
477,171

 
$
487,808

Buildings, fixtures and improvements
1,175,518

 
1,213,767

 
1,213,928

 
1,208,138

 
1,231,204

Acquired intangible assets
132,673

 
133,334

 
137,512

 
137,594

 
156,609

Total real estate investments, at cost
1,785,362

 
1,824,272

 
1,828,611

 
1,822,903

 
1,875,621

Less: accumulated depreciation and amortization
(197,076
)
 
(198,778
)
 
(189,856
)
 
(172,668
)
 
(183,775
)
Total real estate investments, net
1,588,286

 
1,625,494

 
1,638,755

 
1,650,235

 
1,691,846

Cash and cash equivalents
59,841

 
88,130

 
100,162

 
98,604

 
20,423

Funds held in escrow(1)
—

 
—

 
—

 
—

 
48,768

Investment in unconsolidated joint venture
194,325

 
201,114

 
208,558

 
215,370

 
223,229

Real estate assets held for sale
—

 
—

 
—

 
29,268

 
27,482

Other assets(2)
80,939

 
71,707

 
72,420

 
71,285

 
76,875

Total assets
$
1,923,391

 
$
1,986,445

 
$
2,019,895

 
$
2,064,762

 
$
2,088,623

LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
Mortgage notes payable, net of deferred financing costs(2)
$
363,851

 
$
363,468

 
$
363,085

 
$
381,443

 
$
381,141

Credit facility
485,000

 
485,000

 
485,000

 
485,000

 
485,000

Market lease intangibles, net
67,102

 
69,024

 
70,999

 
73,083

 
75,385

Other liabilities
41,091

 
34,701

 
32,790

 
31,701

 
32,633

Derivatives, at fair value
1,569

 
2,228

 
2,129

 
1,266

 
2,320

Total liabilities
958,613

 
954,421

 
954,003

 
972,493

 
976,479

 
 
 
 
 
 
 
 
 
 
Common stock
1,659

 
1,652

 
1,651

 
1,626

 
1,626

Additional paid-in capital
1,434,644

 
1,427,708

 
1,426,766

 
1,403,624

 
1,402,990

Accumulated other comprehensive loss
(1,555
)
 
(2,215
)
 
(2,116
)
 
(1,237
)
 
(2,301
)
Accumulated deficit
(482,510
)
 
(418,197
)
 
(387,670
)
 
(369,273
)
 
(341,110
)
Total stockholders' equity
952,238

 
1,008,948

 
1,038,631

 
1,034,740

 
1,061,205

Non-controlling interests
12,540

 
23,076

 
27,261

 
57,529

 
50,939

Total equity
964,778

 
1,032,024

 
1,065,892

 
1,092,269

 
1,112,144

Total liabilities and equity
$
1,923,391

 
$
1,986,445

 
$
2,019,895

 
$
2,064,762

 
$
2,088,623

_____________________
(1)
Funds held in escrow, received on October 1, 2015, related to amounts due as a result of financing transactions which closed on September 30, 2015.
(2)
Revised to reflect the impact of ASU 2015-03, which was adopted in Q1 2016. See Note 2 — Summary of Significant Accounting Policies in the notes to the consolidated financial statements contained in the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2016.

3

New York REIT, Inc.

Consolidated Statements of Operations
(in thousands, except for share and per share information)
 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Revenues
 
 
 
 
 
 
 
 
 
 
Rental income
$
30,267

 
$
29,769

 
$
29,009

 
$
31,000

 
$
32,510

 
Hotel revenue
7,098

 
7,060

 
4,329

 
7,499

 
7,054

 
Operating expense reimbursements and other revenue
3,895

 
3,094

 
3,371

 
5,888

 
5,044

 
   Total revenues
41,260

 
39,923

 
36,709

 
44,387

 
44,608

Operating expenses
 
 
 
 
 
 
 
 
 
 
Property operating
11,539

 
10,089

 
10,366

 
11,488

 
11,197

 
Hotel operating
6,856

 
6,600

 
6,254

 
6,676

 
6,525

 
Operating fees incurred from the Advisor
3,500

 
3,050

 
3,074

 
3,099

 
3,121

 
Acquisition and transaction related
11,623

 
6,261

 
349

 
700

 
2,850

 
Impairment loss on real estate investment(1)
27,911

 
—

 
—

 
—

 
—

 
General and administrative
3,865

 
2,541

 
3,086

 
2,946

 
2,438

 
Equity-based compensation(2)
(2,105
)
 
(1,932
)
 
(6,430
)
 
8,727

 
4,081

 
Depreciation and amortization
16,305

 
16,587

 
17,225

 
18,398

 
20,484

 
   Total operating expenses
79,494

 
43,196

 
33,924

 
52,034

 
50,696

Operating income (loss)
(38,234
)
 
(3,273
)
 
2,785

 
(7,647
)
 
(6,088
)
Other income (expense)
 
 
 
 
 
 
 
 
 
 
Interest expense
(8,875
)
 
(9,312
)
 
(9,726
)
 
(9,271
)
 
(7,495
)
 
Income from unconsolidated joint venture
711

 
757

 
1,088

 
661

 
473

 
Income from preferred equity investment, investment securities and interest
3

 
3

 
18

 
24

 
141

 
Gain on sale of real estate investments, net
—

 
125

 
6,505

 
7,523

 
—

 
Loss on derivative instruments
(12
)
 
(107
)
 
(251
)
 
(34
)
 
(540
)
 
   Total other expense
(8,173
)
 
(8,534
)
 
(2,366
)
 
(1,097
)
 
(7,421
)
Net income (loss)
(46,407
)
 
(11,807
)
 
419

 
(8,744
)
 
(13,509
)
 
Net loss attributable to non-controlling interests(3)
1,140

 
267

 
68

 
236

 
434

 
Net income (loss) attributable to stockholders(3)
$
(45,267
)
 
$
(11,540
)
 
$
487

 
$
(8,508
)
 
$
(13,075
)
 
Basic weighted average shares
165,384,074

 
164,835,872

 
163,872,612

 
162,208,672

 
162,203,065

 
Adjustments to fully diluted shares(4)
3,255,556

 
3,690,811

 
4,053,498

 
5,720,451

 
5,712,992

 
Fully diluted weighted average shares
168,639,630

 
168,526,683

 
167,926,110

 
167,929,123

 
167,916,057

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per basic share attributable to stockholders
$
(0.27
)
 
$
(0.07
)
 
$
—

 
$
(0.05
)
 
$
(0.08
)
 
Net income (loss) per diluted share attributable to stockholders(4)
$
(0.27
)
 
$
(0.07
)
 
$
—

 
$
(0.05
)
 
$
(0.08
)
______________
(1)
Impairment loss recorded for the excess of carrying value over fair value for the Viceroy Hotel recognized during the third quarter of 2016.
(2)
Amounts represent the portion of non-cash expense related to the 2014 Advisor Multi-Year Outperformance Agreement which vests over five years and other non-cash equity-based compensation.
(3)
Includes amounts allocated to minority interest holders of 163 Washington Street (which was sold on October 21, 2015), OP unitholders and participating LTIP unitholders.
(4)
Adjustments to fully diluted shares are excluded from the calculation of diluted loss per share attributable to stockholders if their effect would have been antidilutive.

4

New York REIT, Inc.

Unconsolidated Joint Venture — Summary Balance Sheets and Income Statements
(in thousands)
 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Unconsolidated Joint Venture Condensed Balance Sheet
 
 
 
 
 
 
 
 
 
 
Real estate assets, at cost
 
$
715,415

 
$
715,266

 
$
714,654

 
$
714,642

 
$
714,875

Less accumulated depreciation and amortization
 
(132,349
)
 
(127,218
)
 
(122,077
)
 
(117,092
)
 
(112,046
)
Total real estate assets, net
 
583,066

 
588,048

 
592,577

 
597,550

 
602,829

Cash and cash equivalents
 
1,809

 
3,935

 
4,689

 
9,036

 
11,951

Other assets
 
264,329

 
267,127

 
267,125

 
259,894

 
258,529

     Total assets
 
$
849,204

 
$
859,110

 
$
864,391

 
$
866,480

 
$
873,309

 
 
 
 
 
 
 
 
 
 
 
Debt
 
$
875,000

 
$
875,000

 
$
875,000

 
$
875,000

 
$
875,000

Other liabilities
 
15,675

 
16,914

 
17,619

 
15,515

 
17,240

     Total liabilities
 
890,675

 
891,914

 
892,619

 
890,515

 
892,240

Deficit
 
(41,471
)
 
(32,804
)
 
(28,228
)
 
(24,035
)
 
(18,931
)
     Total liabilities and deficit
 
$
849,204

 
$
859,110

 
$
864,391

 
$
866,480

 
$
873,309

 
 
 
 
 
 
 
 
 
 
 
Company's basis
 
$
194,325

 
$
201,114

 
$
208,558

 
$
215,370

 
$
223,229

 
 
 
 
 
 
 
 
 
 
 
Unconsolidated Joint Venture Condensed Statement of Operations
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
    Rental income
 
$
31,564

 
$
31,120

 
$
31,489

 
$
31,326

 
$
30,771

    Other revenue
 
1,239

 
1,230

 
1,230

 
1,246

 
1,245

         Total revenue
 
32,803

 
32,350

 
32,719

 
32,572

 
32,016

Operating expenses:
 
 
 
 
 
 
 
 
 
 
     Operating expense
 
12,026

 
11,624

 
11,986

 
12,036

 
11,812

     Depreciation and amortization
 
6,850

 
6,847

 
6,772

 
7,018

 
6,945

          Total operating expenses
 
18,876

 
18,471

 
18,758

 
19,054

 
18,757

Operating income
 
13,927

 
13,879

 
13,961

 
13,518

 
13,259

Interest expense
 
(10,364
)
 
(10,255
)
 
(10,254
)
 
(10,101
)
 
(10,102
)
Net income
 
3,563

 
3,624

 
3,707

 
3,417

 
3,157

Company's Preferred return
 
(3,957
)
 
(3,987
)
 
(4,067
)
 
(4,055
)
 
(3,936
)
Net loss to members
 
$
(394
)
 
$
(363
)
 
$
(360
)
 
$
(638
)
 
$
(779
)
 
 
 
 
 
 
 
 
 
 
 
Company's preferred return
 
$
3,957

 
$
3,987

 
$
4,067

 
$
4,055

 
$
3,936

Company's share of net loss
 
(193
)
 
(177
)
 
(176
)
 
(313
)
 
(381
)
Amortization of difference in basis
 
(3,053
)
 
(3,053
)
 
(2,803
)
 
(3,081
)
 
(3,082
)
Company's income from Worldwide Plaza
 
$
711

 
$
757

 
$
1,088

 
$
661

 
$
473

 
 
 
 
 
 
 
 
 
 
 
Supplemental information:
 
 
 
 
 
 
 
 
 
 
Straight-line rent included in rental income above
 
$
292

 
$
744

 
$
1,449

 
$
1,809

 
$
2,021


5

New York REIT, Inc.

Reconciliation of Net Income (Loss) to FFO, Core FFO and AFFO
(in thousands, except share and per share information)
 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Net income (loss)
 
$
(46,407
)
 
$
(11,807
)
 
$
419

 
$
(8,744
)
 
$
(13,509
)
Gain on sale of real estate investments, net
 
—

 
(125
)
 
(6,505
)
 
(7,523
)
 
—

Depreciation and amortization
 
16,306

 
16,587

 
17,225

 
18,398

 
20,477

Depreciation and amortization related to unconsolidated joint venture(1)
 
6,402

 
6,400

 
6,114

 
6,512

 
6,478

Impairment Loss on Real Estate Investment
 
27,911

 
—

 
—

 
—

 
—

Funds from operations (FFO)
 
4,212

 
11,055

 
17,253

 
8,643

 
13,446

Acquisition and transaction related expenses(2)
 
11,623

 
6,261

 
349

 
700

 
2,850

Gain on sale of investment securities
 
—

 
—

 
—

 
(7
)
 
(54
)
Other revenue and income(3)
 
—

 
(132
)
 
(57
)
 
(1,795
)
 
—

Straight-line rent bad debt expense
 
—

 
98

 
79

 
19

 
—

Deferred financing and other costs(5)
 
—

 
—

 
345

 
40

 
1,060

Derivative losses
 
—

 
—

 
—

 
—

 
423

Core FFO
 
15,835

 
17,282

 
17,969

 
7,600

 
17,725

Non-cash compensation expense
 
(2,105
)
 
(1,932
)
 
(6,430
)
 
8,727

 
4,081

Amortization of deferred financing costs
 
1,795

 
2,406

 
2,426

 
2,457

 
1,179

Seller free rent credit
 
—

 
—

 
—

 
—

 
197

Amortization of market lease intangibles
 
(1,568
)
 
(1,616
)
 
(1,724
)
 
(1,610
)
 
(1,843
)
Mark-to-market adjustments
 
12

 
107

 
251

 
34

 
117

Straight-line rent
 
(4,301
)
 
(1,801
)
 
(2,252
)
 
(2,431
)
 
(2,525
)
Straight-line ground rent
 
686

 
686

 
686

 
686

 
719

Tenant improvements - second generation
 
(1,165
)
 
(430
)
 
—

 
(43
)
 
—

Leasing commissions - second generation
 
(87
)
 
(473
)
 
(987
)
 
(194
)
 
(12
)
Building improvements - second generation
 
(3,695
)
 
(1,174
)
 
(609
)
 
(962
)
 
(201
)
Proportionate share of straight-line rent related to unconsolidated joint venture
 
(143
)
 
(364
)
 
(709
)
 
(884
)
 
(988
)
Adjusted funds from operations (AFFO)
 
$
5,264

 
$
12,691

 
$
8,621

 
$
13,380

 
$
18,449

 
 
 
 
 
 
 
 
 
 
 
Fully diluted shares
 
168,639,630

 
168,526,683

 
167,926,110

 
167,929,123

 
167,916,057

FFO per diluted share
 
$
0.02

 
$
0.07

 
$
0.10

 
$
0.05

 
$
0.08

Core FFO per diluted share
 
$
0.09

 
$
0.10

 
$
0.11

 
$
0.05

 
$
0.11

AFFO per diluted share
 
$
0.03

 
$
0.08

 
$
0.05

 
$
0.08

 
$
0.11

______________________
(1)
Proportionate share of depreciation and amortization related to unconsolidated joint venture and amortization of difference in basis.
(2)
Acquisition and transaction-related expenses in the third quarter of 2016 primarily represent costs related to the termination of the Master Combination Agreement the Company entered into in May 2016 and terminated in August 2016 (the "Combination Agreement") with certain affiliates of The JBG Companies (collectively, "JBG"). Acquisition and transaction-related expenses in the second quarter of 2016 primarily represent costs associated with the Company's evaluation of strategic alternatives and its Combination Agreement with JBG. Acquisition and transaction-related expenses in the third quarter 2015 primarily represent costs associated with third quarter 2015 mortgage payoffs and Credit Facility amendment.
(3)
Adjustments primarily relate to tenant lease termination fees.
(4)
Represents deferred financing and other costs that were written off as a result of paying off mortgages in advance of their scheduled maturity dates as well as amendments to the Credit Facility.

We have calculated our FFO, Core FFO and AFFO based on our net income (loss), which is before adjusting for the net loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture. FFO, Core FFO and AFFO are defined and discussed in more detail in "Definitions," beginning on page 27 and in the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2016.

6

New York REIT, Inc.

Reconciliation of Net Income (Loss) to Adjusted EBITDA, NOI and Cash NOI
(in thousands)
 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Combined:
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(46,407
)
 
$
(11,807
)
 
$
419

 
$
(8,744
)
 
$
(13,509
)
Gain on sale of real estate investments, net
 
—

 
(125
)
 
(6,505
)
 
(7,523
)
 
—

Acquisition and transaction related expenses(1)
 
11,623

 
6,261

 
349

 
700

 
2,850

Impairment Loss on Real Estate Investment
 
27,911

 
—

 
—

 
—

 
—

Depreciation and amortization
 
16,305

 
16,587

 
17,225

 
18,398

 
20,484

Interest expense
 
8,875

 
9,312

 
9,726

 
9,271

 
7,495

Loss on derivatives
 
12

 
107

 
251

 
34

 
540

Adjustments related to unconsolidated joint venture(2)
 
11,471

 
11,414

 
11,129

 
11,453

 
11,418

Adjusted EBITDA
 
29,790

 
31,749

 
32,594

 
23,589

 
29,278

General and administrative
 
3,865

 
2,541

 
3,086

 
2,946

 
2,438

Equity-based compensation
 
(2,105
)
 
(1,932
)
 
(6,430
)
 
8,727

 
4,081

Operating fees incurred from the Advisor
 
3,500

 
3,050

 
3,074

 
3,099

 
3,121

Income from preferred equity investment, investment securities and interest
 
(3
)
 
(3
)
 
(18
)
 
(24
)
 
(141
)
Preferred return on unconsolidated joint venture
 
(3,957
)
 
(3,987
)
 
(4,068
)
 
(4,055
)
 
(3,936
)
Proportionate share of other adjustments related to unconsolidated joint venture
 
1,935

 
1,949

 
1,989

 
1,983

 
1,924

NOI
 
33,025

 
33,367

 
30,227

 
36,265

 
36,765

Amortization of above/below market lease assets and liabilities
 
(1,568
)
 
(1,616
)
 
(1,724
)
 
(1,610
)
 
(1,843
)
Straight-line rent
 
(4,300
)
 
(1,703
)
 
(2,173
)
 
(2,412
)
 
(2,525
)
Straight-line ground rent
 
686

 
686

 
686

 
686

 
719

Proportionate share of straight-line rent related to unconsolidated joint venture
 
(143
)
 
(364
)
 
(709
)
 
(884
)
 
(988
)
Cash NOI
 
$
27,700

 
$
30,370

 
$
26,307

 
$
32,045

 
$
32,128

______________
(1)
Acquisition and transaction-related expenses in the third quarter of 2016 primarily represent costs related to the termination of the Combination Agreement with JBG. Acquisition and transaction-related expenses in the second quarter of 2016 primarily represent costs associated with the Company's evaluation of strategic alternatives and its Combination Agreement with JBG. Acquisition and transaction-related expenses in the third quarter 2015 primarily represent costs associated with third quarter 2015 mortgage payoffs and Credit Facility amendment.
(2)
Acquisition and transaction-related expenses in the third quarter 2015 primarily represent costs associated with third quarter 2015 mortgage payoffs and Credit Facility amendment.
(3)
Proportionate share of adjustments related to unconsolidated joint venture and amortization of difference in basis.

Consolidated adjusted EBITDA for the third quarter 2016 was $17,608, reflecting net loss of $46,407 increased by depreciation and amortization of $16,305, interest expense of $8,875, acquisition and transaction related costs of $11,623 and loss on derivative instruments of $12. Consolidated adjusted EBITDA was decreased by the Company's share of income in its joint venture of $711.

We have calculated our Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI based on our net income (loss), which is before adjusting for the net loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture. Adjusted EBITDA, NOI, Cash NOI and Adjusted Cash NOI are defined and discussed in more detail in "Definitions," beginning on page 27 and in the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2016.

7

New York REIT, Inc.

Reconciliation of Net Income (Loss) to Adjusted EBITDA, NOI, Same Store NOI and Same Store Cash NOI(1) 
(in thousands)
 
 
Q3 2016
 
Q2 2016
 
Q3 2015
Combined:
 
 
 
 
 
 
Net income (loss)
 
$
(46,407
)
 
$
(11,807
)
 
$
(13,509
)
Gain on sale of real estate investments, net
 
—

 
(125
)
 
—

Acquisition and transaction related expenses(2)
 
11,623

 
6,261

 
2,850

Impairment Loss on Real Estate Investment
 
27,911

 
—

 
—

Depreciation and amortization
 
16,305

 
16,587

 
20,484

Interest expense
 
8,875

 
9,312

 
7,495

Loss on derivatives
 
12

 
107

 
540

Adjustments related to unconsolidated joint venture(3)
 
11,471

 
11,414

 
11,418

Adjusted EBITDA
 
29,790

 
31,749

 
29,278

General and administrative
 
3,865

 
2,541

 
2,438

Equity-based compensation
 
(2,105
)
 
(1,932
)
 
4,081

Operating fees incurred from the Advisor
 
3,500

 
3,050

 
3,121

Income from preferred equity investment, investment securities and interest
 
(3
)
 
(3
)
 
(141
)
Preferred return on unconsolidated joint venture
 
(3,957
)
 
(3,987
)
 
(3,936
)
Proportionate share of other adjustments related to unconsolidated joint venture
 
1,935

 
1,949

 
1,924

NOI
 
33,025

 
33,367

 
36,765

Non-same store NOI
 
(197
)
 
(452
)
 
(1,487
)
Same Store NOI
 
32,828

 
32,915

 
35,278

Straight line rent adjustment
 
(4,444
)
 
(2,067
)
 
(3,458
)
Above/below market lease amortization
 
(1,456
)
 
(1,504
)
 
(1,731
)
Same Store Cash NOI
 
26,928

 
29,344

 
30,089

        Viceroy Hotel
 
815

 
1,033

 
1,135

Same Store Cash NOI — Including Hotel
 
$
27,743

 
$
30,377

 
$
31,224

______________
(1)
Same store portfolio excludes the Viceroy Hotel unless otherwise noted and consists of only those properties owned and operated for the entire current and prior periods presented.
(2)
Acquisition and transaction-related expenses in the third quarter of 2016 primarily represent costs related to the termination of the Combination Agreement with JBG. Acquisition and transaction-related expenses in the second quarter of 2016 primarily represent costs associated with the Company's evaluation of strategic alternatives and its Combination Agreement with JBG. Acquisition and transaction-related expenses in the third quarter 2015 primarily represent costs associated with third quarter 2015 mortgage payoffs and Credit Facility amendment.
(3)
Proportionate share of adjustments related to unconsolidated joint venture and amortization of difference in basis.

We have calculated our Adjusted EBITDA, NOI, Same Store NOI, Cash NOI, Same Store Cash NOI and Same Store Cash NOI - Including Hotel based on our net income (loss), which is before adjusting for the net loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture. Adjusted EBITDA, NOI, and Cash NOI are defined and discussed in more detail in "Definitions," beginning on page 27 and in the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2016.


8

New York REIT, Inc.

Same Store Statistics — Sequential Quarters(1) 
(dollar amounts in thousands)

 
 
Q3 2016
 
Q2 2016
 
Change
 
% change
Total portfolio square footage / total buildings
 
3,338,707(2) / 19

 
3,338,707(2) / 19

 
 
 
 
Same store square footage / same store buildings
 
3,210,095(2) / 18

 
3,210,095(2) / 18

 
 
 
 
Same store occupancy at quarter end(3)
 
93.4
%
 
93.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total GAAP operating revenue
 
$
50,203

 
$
48,671

 
$
1,532

 
3.1
 %
Less: Straight line rent adjustment
 
(4,444
)
 
(2,067
)
 
 
 
 
Less: Above/below market lease amortization
 
(1,456
)
 
(1,504
)
 
 
 
 
Total cash operating revenue
 
$
44,303

 
$
45,100

 
$
(797
)
 
(1.8
)%
 
 
 
 
 
 
 
 
 
Total operating expenses
 
$
17,375

 
$
15,756

 
$
1,619

 
10.3
 %
 
 
 
 
 
 
 
 
 
Same store NOI(4)
 
$
32,828

 
$
32,915

 
$
(87
)
 
(0.3
)%
Same store Cash NOI(4)
 
$
26,928

 
$
29,344

 
$
(2,416
)
 
(8.2
)%
 
 
 
 
 
 
 
 
 
Same store Cash NOI — Including Hotel(4)
 
$
27,743

 
$
30,377

 
$
(2,634
)
 
(8.7
)%
_______________
(1)
Same store portfolio excludes the Viceroy Hotel unless otherwise noted and consists of only those properties owned and operated for the entire current and prior periods presented.
(2)
Square footage may change due to reconfiguration of tenants' occupied space.
(3)
Inclusive of leases signed but not yet commenced.
(4)
See reconciliation of net income (loss) to Same Store NOI, Same Store Cash NOI and Same Store Cash NOI - Including Hotel on page 9 of this supplemental information package.


Note: Amounts above include our pro rata share of investment in our unconsolidated joint venture.

We have calculated our Adjusted EBITDA, NOI, Same Store NOI, Cash NOI, Same Store Cash NOI and Same Store Cash NOI - Including Hotel based on our net income (loss), which is before adjusting for the net loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture. Adjusted EBITDA, NOI, and Cash NOI are defined and discussed in more detail in "Definitions," beginning on page 27 and in the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2016.



9

New York REIT, Inc.

Same Store Statistics — Year Over Year(1) 
(dollar amounts in thousands)

 
 
Q3 2016
 
Q3 2015
 
Change
 
% change
Total portfolio square footage / total buildings
 
3,338,707(2) / 19

 
3,414,710(2) / 23

 
 
 
 
Same store square footage / same store buildings
 
3,210,095(2) / 18

 
3,208,303(2) / 18

 
 
 
 
Same store occupancy at quarter end(3)
 
93.4
%
 
97.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total GAAP operating revenue
 
$
50,203

 
$
52,016

 
$
(1,813
)
 
(3.5
)%
Less: Straight line rent adjustment
 
(4,444
)
 
(3,458
)
 
 
 
 
Less: Above/below market lease amortization
 
(1,456
)
 
(1,731
)
 
 
 
 
Total cash operating revenue
 
$
44,303

 
$
46,827

 
$
(2,524
)
 
(5.4
)%
 
 
 
 
 
 
 
 
 
Total operating expenses
 
$
17,375

 
$
16,738

 
$
637

 
3.8
 %
 
 
 
 
 
 
 
 
 
Same store NOI(4)
 
$
32,828

 
$
35,278

 
$
(2,450
)
 
(6.9
)%
Same store cash NOI(4)
 
$
26,928

 
$
30,089

 
$
(3,161
)
 
(10.5
)%
 
 
 
 
 
 
 
 
 
Same store Cash NOI — Including Hotel(4)
 
$
27,743

 
$
31,224

 
$
(3,481
)
 
(11.1
)%
_______________
(1)
Same store portfolio excludes the Viceroy Hotel unless otherwise noted and consists of only those properties owned and operated for the entire current and prior periods presented.
(2)
Square footage may change due to reconfiguration of tenants' occupied space.
(3)
Inclusive of leases signed but not yet commenced.
(4)
See reconciliation of net income (loss) to Same Store NOI, Same Store Cash NOI and Same Store Cash NOI - Including Hotel on page 9 of this supplemental information package.



Note: Amounts above include our pro rata share of investment in our unconsolidated joint venture.

We have calculated our Adjusted EBITDA, NOI, Same Store NOI, Cash NOI, Same Store Cash NOI and Same Store Cash NOI - Including Hotel based on our net income (loss), which is before adjusting for the net loss attributable to our non-controlling interests, and all adjustments are made based on our gross adjustments, without excluding the portion of the adjustments attributable to our non-controlling interests, other than adjustments related to the unconsolidated joint venture. Adjusted EBITDA, NOI, and Cash NOI are defined and discussed in more detail in "Definitions," beginning on page 27 and in the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2016.




10

New York REIT, Inc.

Dividends and Payout Ratios
(dollar amounts in thousands, except per share information)

 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Dividends paid in cash
 
$
19,017

 
$
18,955

 
$
18,847

 
$
18,652

 
$
18,653

LTIP distributions paid
 
223

 
863

 
140

 
140

 
140

OP distributions paid
 
126

 
184

 
288

 
481

 
481

Restricted stock dividends paid
 
29

 
31

 
48

 
39

 
58

Total dividends and distributions paid
 
$
19,395

 
$
20,033

 
$
19,323

 
$
19,312

 
$
19,332

 
 
 
 
 
 
 
 
 
 
 
Weighted average fully diluted shares
 
168,639,630

 
168,526,683

 
167,926,110

 
167,929,123

 
167,916,057

 
 
 
 
 
 
 
 
 
 
 
Dividends per fully diluted share
 
$
0.1150

 
$
0.1189

 
$
0.1151

 
$
0.1150

 
$
0.1151

 
 
 
 
 
 
 
 
 
 
 
Core FFO per fully diluted share
 
$
0.09

 
$
0.10

 
$
0.11

 
$
0.05

 
$
0.11

AFFO per fully diluted share
 
$
0.03

 
$
0.08

 
$
0.05

 
$
0.08

 
$
0.11

 
 
 
 
 
 
 
 
 
 
 
Payout ratios
 
 
 
 
 
 
 
 
 
 
Quarterly dividend per share
 
$
0.115

 
$
0.115

 
$
0.115

 
$
0.115

 
$
0.115

Core FFO payout ratio
 
122
%
 
116
%
 
108
%
 
254
%
 
109
%
AFFO payout ratio
 
368
%
 
158
%
 
224
%
 
144
%
 
105
%


11

New York REIT, Inc.

Debt Analysis
(dollar amounts in thousands)
 
 
Q3 2016
 
Weighted Average
Remaining Term (in Years)(1)
 
Weighted Average Rate
 
% of Total Debt
Consolidated mortgage debt
 
$
369,186

 
2.9
 
4.0
%
 
28.9
%
Consolidated credit facility term debt - fixed rate
 
80,000

 
1.9
 
3.6
%
 
6.2
%
Consolidated credit facility term debt - floating rate
 
225,000

 
1.9
 
2.5
%
 
17.5
%
Consolidated credit facility revolving debt - floating rate
 
180,000

 
0.9
 
2.4
%
 
14.0
%
Total consolidated debt
 
854,186

 
2.1
 
3.2
%
 
66.6
%
 
 
 
 
 
 
 
 
 
Company's share of unconsolidated joint venture mortgage debt
 
427,875

 
6.4
 
4.6
%
 
33.4
%
Combined debt
 
$
1,282,061

 
3.6
 
3.7
%
 
100.0
%
 
 
 
 
 
 
 
 
 
Fixed rate debt (including pro rata share of unconsolidated debt)
 
$
572,061

 
 
 
 
 
 
Floating rate debt
 
$
710,000

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
% fixed rate debt (including pro rata share of unconsolidated debt)
 
45
%
 
 
 
 
 
 
% floating rate debt
 
55
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average fixed rate (including pro rata share of unconsolidated debt)
 
4.3
%
 
 
 
 
 
 
Average floating rate
 
3.2
%
 
 
 
 
 
 
___________________________
(1)
The weighted average remaining term in year excludes the second extension option for the revolving debt of the credit facility until August 20, 2018. The weighted-average remaining term of combined debt, including second extension option, is 3.7 years.


12

New York REIT, Inc.

Mortgage Debt Summary
(dollar amounts in thousands)

As of September 30, 2016
 
Debt amount
 
Maturity
 
Effective interest rate
Consolidated mortgages:
 
 
 
 
 
 
256 West 38th Street
 
$
24,500

 
12/26/2017
 
3.1%
Design Center
 
19,486

 
12/1/2021
 
4.4%
1100 Kings Highway
 
20,200

 
8/1/2017
 
3.4%
1440 Broadway
 
305,000

 
10/5/2019
 
4.1%
Consolidated mortgage debt
 
369,186

 
 
 
4.0%
 
 
 
 
 
 
 
Pro rata share of unconsolidated joint venture mortgage debt:
 
 
 
 
 
 
One Worldwide Plaza
 
427,875

 
3/6/2023
 
4.6%
 
 
 
 
 
 
 
Combined mortgage debt
 
$
797,061

 
 
 
4.3%

Note: All but two of our properties not otherwise subject to mortgage loans collateralize the borrowing base of our Credit Facility and have mortgages recorded for that purpose.

13

New York REIT, Inc.

Leverage Metrics
(dollar amounts in thousands)
 
Q3 2016
 
Consolidated Basis
 
Combined Basis
Interest coverage ratio
 
 
 
Interest expense(1)
$
8,875

 
$
8,875

Non-cash interest expense
(1,795
)
 
(1,795
)
Interest expense related to unconsolidated joint venture
—

 
5,068

Total interest
$
7,080

 
$
12,148

Adjusted EBITDA
$
17,608

 
$
29,790

Interest coverage ratio
2.5
 X
 
2.5
 X
 
 
 
 
Fixed charge coverage ratio
 
 
 
Total interest
$
7,080

 
$
12,148

Secured debt principal amortization
(105
)
 
(105
)
Total fixed charges
$
6,975

 
$
12,043

Adjusted EBITDA
$
17,608

 
$
29,790

Fixed charge coverage ratio
2.5
 X
 
2.5
 X
 
 
 
 
Net debt to Adjusted EBITDA ratio
 
 
 
Company's pro rata share of total debt
$
854,186

 
$
1,282,061

Less: cash and cash equivalents
(59,841
)
 
(59,841
)
Net debt
$
794,345

 
$
1,222,220

Adjusted EBITDA annualized(2)
$
70,432

 
$
119,160

Net debt to Adjusted EBITDA ratio
11.3
 X
 
10.3
 X
 
 
 
 
Debt to enterprise value
 
 
 
Company's pro rata share of debt
$
854,186

 
$
1,282,061

Equity(3)
1,543,060

 
1,543,060

Enterprise value(3)
$
2,397,246

 
$
2,825,121

Debt as % of enterprise value
35.6
%
 
45.4
%
 
 
 
 
Unencumbered real estate assets/total real estate assets:
 
 
 
Unencumbered real estate assets(4)
 
 
$
1,074,149

Total real estate assets
 
 
$
2,368,251

Unencumbered real estate assets/total real estate assets
 
 
45.4
%
__________________
(1)
Excludes the Company’s share of unconsolidated joint venture interest expense.
(2)
Adjusted EBITDA during Q3 2016 annualized (multiplied by 4).
(3)
Based on the September 30, 2016 closing price of $9.15 per share and September 30, 2016 debt balances and share count.
(4)
Properties not financed by mortgage. All but two of our properties not otherwise subject to mortgage loans collateralize the borrowing base of our Credit Facility and have mortgages recorded for that purpose.

14

New York REIT, Inc.

Credit Facility and Liquidity Analysis(1) 
(dollar amounts in thousands)

 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Credit facility availability:
 
 
 
 
 
 
 
 
 
 
Credit facility commitments
 
$
705,000

 
$
705,000

 
$
705,000

 
$
705,000

 
$
705,000

Outstanding balance on credit facility
 
485,000

 
485,000

 
485,000

 
485,000

 
485,000

Undrawn credit facility commitments
 
$
220,000

 
$
220,000

 
$
220,000

 
$
220,000

 
$
220,000

 
 
 
 
 
 
 
 
 
 
 
Outstanding balance - term debt
 
$
305,000

 
$
305,000

 
$
305,000

 
$
305,000

 
$
305,000

Outstanding balance - revolving debt
 
180,000

 
180,000

 
180,000

 
180,000

 
180,000

Total outstanding balance
 
$
485,000

 
$
485,000

 
$
485,000

 
$
485,000

 
$
485,000

 
 
 
 
 
 
 
 
 
 
 
Liquidity:
 
 
 
 
 
 
 
 
 
 
Cash
 
$
59,841

 
$
88,130

 
$
100,162

 
$
98,604

 
$
20,423

Credit Facility availability
 
55,233

 
56,761

 
58,722

 
63,008

 
65,314

 
 
 
 
Actual - as of
 
 
Required
 
September 30, 2016
Credit facility covenant ratios(1):
 
 
 
 
Consolidated leverage ratio
 
< 60%
 
53.9
%
Fixed charge coverage ratio
 
> 1.5X
 
2.0 X

Tangible net worth
 
 > $900,000
 
$
1,149,314

Secured leverage ratio
 
< 60%
 
33.0
%
Borrowing base advance rate
 
< 60%
 
40.2
%
Debt service coverage ratio
 
> 1.3X
 
1.4 X

_______________
(1)
The Company’s credit facility covenant ratios are computed in accordance with the terms of the Company’s credit facility. The methodology for these computations may differ significantly from similarly titled ratios of other companies and ratios computed elsewhere in this supplemental information package.

15

New York REIT, Inc.

Debt Maturities
(dollar amounts in thousands)

 
Total
 
2016
 
2017
 
2018
 
2019
 
2020
 
Thereafter
Consolidated mortgage debt
$
369,186

 
$
106

 
$
48,245

 
$
3,703

 
$
308,869

 
$
4,041

 
$
4,222

Proportionate share of unconsolidated joint venture mortgage debt
427,875

 
—

 
—

 
4,860

 
6,837

 
7,103

 
409,075

Combined mortgage debt
797,061

 
106

 
48,245

 
8,563

 
315,706

 
11,144

 
413,297

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility - revolving(1)
180,000

 
—

 
180,000

 
—

 
—

 
—

 
—

Credit facility - term
305,000

 
—

 
—

 
305,000

 
—

 
—

 
—

Total credit facility
485,000

 
—

 
180,000

 
305,000

 
—

 
—

 
—

Total combined debt
$
1,282,061

 
$
106

 
$
228,245

 
$
313,563

 
$
315,706

 
$
11,144

 
$
413,297

% Expiring
100.0
%
 
—
%
 
17.8
%
 
24.5
%
 
24.6
%
 
0.9
%
 
32.2
%
% Expiring with extensions(1)
100.0
%
 
—
%
 
3.8
%
 
38.5
%
 
24.6
%
 
0.9
%
 
32.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average remaining term - excluding extensions (years)
3.6

 
 
 
 
 
 
 
 
 
 
 
 
Weighted average remaining term - including extensions (years)
3.7

 
 
 
 
 
 
 
 
 
 
 
 
Weighted average remaining term (years) (excluding credit facility)
4.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt maturing
$
1,282,061

 
$
106

 
$
228,245

 
$
313,563

 
$
315,706

 
$
11,144

 
$
413,297

Weighted average interest rate expiring
3.7
%
 
4.4
%
 
2.6
%
 
2.8
%
 
4.1
%
 
4.5
%
 
4.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt maturing (excluding credit facility)
$
797,061

 
$
106

 
$
48,245

 
$
8,563

 
$
315,706

 
$
11,144

 
$
413,297

Weighted average interest rate expiring
4.3
%
 
4.4
%
 
3.3
%
 
4.5
%
 
4.1
%
 
4.5
%
 
4.6
%
_________________________
(1)
During the third quarter of 2016, the Company exercised its first extension option beginning August 2016 through August 2017. The Company has one extension option remaining to extend the due date to August 2018.

Note: All but two of our properties not otherwise subject to mortgage loans collateralize the borrowing base of our Credit Facility and have mortgages recorded for that purpose.

16

New York REIT, Inc.

Square Footage Summary


As of September 30, 2016
 
Total
 
Manhattan
 
Brooklyn
Total square feet by property type:
 
 
 
 
 
 
 
Office
 
2,767,002

 
2,749,002

 
18,000

 
Retail(1)
 
303,747

 
260,429

 
43,318

 
Hotel
 
128,612

 
128,612

 
—

 
Parking
 
120,589

 
120,589

 
—

 
Storage
 
18,757

 
18,757

 
—

Total owned square feet (end of period)(2)
 
3,338,707

 
3,277,389

 
61,318

 
 
 
 
 
 
 
 
% of total square feet by property type:
 
 
 
 
 
 
 
Office
 
83
%
 
84
%
 
29
%
 
Retail(1)
 
9
%
 
8
%
 
71
%
 
Hotel
 
4
%
 
4
%
 
—
%
 
Parking
 
3
%
 
3
%
 
—
%
 
Storage
 
1
%
 
1
%
 
—
%
Total owned square feet (end of period)(2)
 
100
%
 
98.2
%
 
1.8
%
_____________
(1)
Includes 81,160 square feet of stand-alone retail and 222,587 square feet of retail associated with the Company’s office portfolio.
(2)
Excludes 15,055 square foot parking garage at 416 Washington Street, which is being operated under a management agreement with a third party.

All figures above include the Company’s proportionate share of its investment in an unconsolidated joint venture.


17

New York REIT, Inc.

Major Tenant Summary
(dollar amounts in thousands)

Top Ten Office Tenants as a % of Total Annualized Cash Rent
 
Property
 
Total
Square Feet
 
Annualized
Cash Rent
 
% of
Annualized Cash Rent
1
 
 
Cravath, Swaine & Moore LLP
 
One Worldwide Plaza
 
301,779

 
$
29,537

 
16.2
%
2
 
 
Nomura Holding America Inc.
 
One Worldwide Plaza
 
400,934

 
19,660

 
10.8
%
3
 
 
Twitter, Inc.
 
245-249 West 17th Street
 
214,666

 
15,178

 
8.3
%
4
 
 
Macy's, Inc.
 
1440 Broadway
 
203,196

 
12,214

 
6.7
%
5
 
 
The Segal Company (Eastern States) Inc.
 
333 West 34th Street
 
144,307

 
9,148

 
5.0
%
6
 
 
Spring Studios New York LLC
 
50 Varick Street
 
158,574

 
7,927

 
4.4
%
7
 
 
Ford Foundation
 
1440 Broadway
 
104,525

 
6,514

 
3.6
%
8
 
 
Metropolitan Transportation Authority (MTA)
 
333 West 34th Street
 
130,443

 
4,527

 
2.5
%
9
 
 
Liz Claiborne, Inc.
 
1440 Broadway
 
67,213

 
3,400

 
1.9
%
10
 
 
Red Bull North America, Inc.
 
218 West 18th Street
 
41,642

 
2,852

 
1.6
%
 
Total top ten office tenants
 
 
 
1,767,279

 
$
110,957

 
61.0
%

Top Ten Retail Tenants as a % of Total Annualized Cash Rent
 
Property
 
Total
Square Feet
 
Annualized Cash Rent
 
% of
Annualized Cash Rent
1
 
 
Room & Board, Inc.
 
245-249 West 17th Street
 
60,161

 
$
4,699

 
2.6
%
2
 
 
CVS Albany, LLC
 
1440 Broadway
 
22,185

 
3,500

 
1.9
%
3
 
 
Sam Ash New York Megastores, LLC
 
333 West 34th Street
 
29,688

 
1,490

 
0.8
%
4
 
 
Dodger Stage Holding Theatricals, Inc.
 
One Worldwide Plaza
 
27,841

 
1,231

 
0.7
%
5
 
 
TD Bank
 
One Jackson Square
 
4,158

 
1,147

 
0.6
%
6
 
 
Early Bird Delivery Systems LLC d/b/a Urban Express
 
229 West 36th Street
 
20,132

 
1,065

 
0.6
%
7
 
 
Burberry
 
367-387 Bleecker Street
 
4,726

 
1,050

 
0.6
%
8
 
 
99th Avenue Holdings, LLC
 
One Worldwide Plaza
 
17,233

 
909

 
0.5
%
9
 
 
JPMorgan Chase Bank, N.A.
 
1100 Kings Highway, Brooklyn
 
6,385

 
815

 
0.4
%
10
 
 
The Dress Barn, Inc.
 
1100 Kings Highway, Brooklyn
 
14,200

 
783

 
0.4
%
 
Total top ten retail tenants
 
 
 
206,709

 
$
16,689

 
9.1
%

18

New York REIT, Inc.

Tenant Industry Concentration

 
 
 
 
 
 
 
 
% of Annualized Cash Rent
Technology, Advertising, Media & Information
 
21
%
Retail
 
19
%
Legal Services
 
17
%
Finance, Insurance, Real Estate
 
14
%
Professional Services
 
13
%
Education
 
3
%
Food and Beverage
 
3
%
Consumer Goods
 
2
%
Government
 
2
%
Health Services
 
2
%
Parking
 
2
%
Other
 
2
%
 
 
100
%



19

New York REIT, Inc.

Lease Expirations — Next Five Years

 
 
 
Total
 
2016
 
2017
 
2018
 
2019
 
2020
 
Thereafter
Combined:(1)(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leases expiring
 
136

 
3

 
16

 
17

 
9

 
8

 
83

 
Expiring Annualized Cash Rent (in thousands)(3)(4)
 
$
212,079

 
$
1,322

 
$
6,509

 
$
11,384

 
$
1,255

 
$
5,839

 
$
185,770

 
Expiring square feet(4)
 
3,005,108

 
2,469

 
106,379

 
159,320

 
32,077

 
80,051

 
2,624,812

 
% of total square feet expiring
 
100.0
%
 
0.1
%
 
3.5
%
 
5.3
%
 
1.1
%
 
2.7
%
 
87.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized Cash Rent per square foot(3)(4)
 
$
70.57

 
$
535.53

 
$
61.18

 
$
71.46

 
$
39.12

 
$
72.95

 
$
70.77

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated properties:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leases expiring
 
101

 
2

 
15

 
13

 
8

 
6

 
57

 
Expiring Annualized Cash Rent (in thousands)(3)(4)
 
$
139,125

 
$
1,309

 
$
6,438

 
$
9,176

 
$
1,249

 
$
5,264

 
$
115,689

 
Expiring square feet(4)
 
2,003,282

 
2,469

 
89,959

 
157,487

 
32,077

 
78,906

 
1,642,384

 
% of total square feet expiring
 
100.0
%
 
0.1
%
 
4.5
%
 
7.9
%
 
1.6
%
 
3.9
%
 
82.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized Cash Rent per square foot(3)(4)
 
$
69.45

 
$
530.05

 
$
71.57

 
$
58.27

 
$
38.94

 
$
66.72

 
$
70.44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated joint ventures:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leases expiring
 
35

 
1

(6) 
1

 
4

 
1

(6) 
2

 
26

 
Expiring Annualized Cash Rent (in thousands)(3)(4)
 
$
72,954

 
$
13

 
$
71

 
$
2,208

 
$
6

 
$
575

 
$
70,081

 
Expiring square feet(5)
 
1,001,826

 
—

 
16,420

 
1,833

 
—

 
1,145

 
982,428

 
% of total square feet expiring
 
100.0
%
 
—
%
 
1.6
%
 
0.2
%
 
—
%
 
0.1
%
 
98.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized Cash Rent per square foot(3)(4)
 
$
72.82

 
$
—

 
$
4.30

 
$
1,204.27

 
$
—

 
$
502.40

 
$
71.33

_________________
(1)
Combined reflects 100% of consolidated properties plus the Company’s pro rata share of unconsolidated properties.
(2)
Month-to-month leases are considered to expire in the Company's next fiscal quarter.
(3)
Expiring Annualized Cash Rent represents contractual cash base rents at the time of lease expiration and reimbursements from tenants.
(4)
Excludes 122,896 square feet of the hotel (which excludes 5,716 square feet leased to the hotel restaurant tenant). Total vacant square footage at September 30, 2016 was 218,214 square feet.
(5)
Reflects the Company's pro rata share of its unconsolidated joint venture.
(6)
Represents an antenna lease with no square feet associated.

20

New York REIT, Inc.

Lease Expirations — Quarterly Through Fourth Quarter 2017

 
 
 
Q4 2016
 
Q1 2016
 
Q2 2017
 
Q3 2017
 
Q4 2017
Combined:(1)(2)
 
 
 
 
 
 
 
 
 
 
 
Leases expiring
 
3

 
2

 
2

 
6

 
6

 
Expiring Annualized Cash Rent (in thousands)(3)
 
$
1,322

 
$
345

 
$
906

 
$
2,978

 
$
2,280

 
Expiring square feet
 
2,469

 
6,366

 
8,883

 
37,945

 
53,185

 
% of total square feet expiring
 
0.1
%
 
0.2
%
 
0.3
%
 
1.3
%
 
1.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized Cash Rent per square foot(3)
 
$
535.53

 
$
54.03

 
$
102.04

 
$
78.48

 
$
42.87

 
 
 
 
 
 
 
 
 
 
 
 
Consolidated properties:
 
 
 
 
 
 
 
 
 
 
 
Leases expiring
 
2

 
2

 
2

 
6

 
5

 
Expiring Annualized Cash Rent (in thousands)(3)
 
$
1,309

 
$
345

 
$
906

 
$
2,978

 
$
2,210

 
Expiring square feet
 
2,469

 
6,366

 
8,883

 
37,945

 
36,765

 
% of total square feet expiring
 
0.1
%
 
0.3
%
 
0.4
%
 
1.9
%
 
1.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized Cash Rent per square foot(3)
 
$
530.05

 
$
54.03

 
$
102.04

 
$
78.48

 
$
60.10

 
 
 
 
 
 
 
 
 
 
 
 
Unconsolidated joint ventures:
 
 
 
 
 
 
 
 
 
 
 
Leases expiring
 
1

(5) 
—

 
—

 
—

 
1

 
Expiring Annualized Cash Rent (in thousands)(3)(4)
 
$
13

 
$
—

 
$
—

 
$
—

 
$
70

 
Expiring square feet(4)
 
—

 
—

 
—

 
—

 
16,420

 
% of total square feet expiring
 
—
%
 
—
%
 
—
%
 
—
%
 
1.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized Cash Rent per square foot(4)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
4.30

_________________
(1)
Combined reflects 100% of consolidated properties plus the Company’s pro rata share of unconsolidated properties.
(2)
Month-to-month leases are considered to expire in the Company's next fiscal quarter.
(3)
Expiring Annualized Cash Rent represents contractual cash base rents at the time of lease expiration and reimbursements from tenants.
(4)
Reflects the Company's pro rata share of its unconsolidated joint venture.
(5)
Represents antenna lease with no square feet associated

21

New York REIT, Inc.

Leasing Activity

 
 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Leasing activity:
 
 
 
 
 
 
 
 
 
 
 
Leases executed
 
4

 
2

 
1

 
5

 
1

 
Total square feet leased
 
16,188

 
19,394

 
11,807

 
129,889

 
2,811

 
Company's share of square feet leased
 
16,188

 
19,394

 
11,807

 
125,727

 
2,811

 
     Initial rent
 
$
45.67

 
$
49.32

 
$
47

 
$
62.14

 
$
158.42

 
     Weighted average lease term (years)
 
10

 
5

 
11

 
4

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
     Replacement leases:(1)
 
 
 
 
 
 
 
 
 
 
 
          Replacement leases executed
 
1

 
1

 
1

 
4

 
—

 
          Square feet
 
3,833

 
6,782

 
11,807

 
123,002

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
          Cash basis:
 
 
 
 
 
 
 
 
 
 
 
               Initial rent
 
$
40.70

 
$
55.50

 
$
47.00

 
$
67.09

 
$
—

 
               Prior escalated rent (2)
 
$
45.13

 
$
43.05

 
$
31.33

 
$
54.62

 
$
—

 
               Percentage increase (decrease)
 
(10
)%
 
29
%
 
50
%
 
23
%
 
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
          GAAP basis:
 
 
 
 
 
 
 
 
 
 
 
               Initial rent
 
$
47.45

 
$
59.51

 
$
54.19

 
$
69.61

 
$
—

 
               Prior escalated rent (2)
 
$
49.97

 
$
40.40

 
$
30.55

 
$
54.66

 
$
—

 
               Percentage increase (decrease)
 
(5
)%
 
47
%
 
77
%
 
27
%
 
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenant improvements on replacement leases per square foot(3)
 
$
10.64

 
$
32.52

 
$
—

 
$
17.40

 
$
—

 
Leasing commissions on replacement leases per square foot(3)
 
$
19.25

 
$
14.55

 
$
15.49

 
$
11.92

 
$
—

_______________
(1)
Replacement leases are for spaces that were leased during the period and also have been leased at some time during the prior twelve months.
(2)
Prior escalated rent is calculated as total annualized rental income on a cash or GAAP basis. It includes base rent, excluding recoveries.
(3)
Presented as if tenant improvements and leasing commissions were incurred in the period in which the lease was signed, which may be different than the period in which these amounts were actually paid.

22

New York REIT, Inc.

Tenant Improvements, Leasing Commissions and Capital Expenditures
(in thousands)

 
 
Q3 2016
 
Q2 2016
 
Q1 2016
 
Q4 2015
 
Q3 2015
Capital expenditures (accrual basis):(1)
 
 
 
 
 
 
 
 
 
 
First generation tenant improvements
 
$
149

 
$
777

 
$
7,263

 
$
3,449

 
$
9,175

First generation leasing commissions
 
875

 
99

 
—

 
695

 
620

First generation building improvements
 
2,228

 
1,462

 
954

 
2,828

 
1,594

Total first generation tenant improvements, leasing commissions and capital expenditures
 
$
3,252

 
$
2,338

 
$
8,217

 
$
6,972

 
$
11,389

 
 
 
 
 
 
 
 
 
 
 
Second generation tenant improvements
 
$
1,165

 
$
430

 
$
—

 
$
43

 
$
—

Second generation leasing commissions
 
87

 
473

 
987

 
194

 
12

Second generation building improvements
 
3,695

 
1,174

 
609

 
962

 
201

Total second generation tenant improvements, leasing commissions and capital expenditures
 
4,947

 
2,077

 
1,596

 
1,199

 
213

Total tenant improvements, leasing commissions and capital expenditures
 
$
8,199

 
$
4,415

 
$
9,813

 
$
8,171

 
$
11,602

____________
(1)
Amounts incurred presented on a combined basis, including our pro rata share of our unconsolidated joint venture.

23

New York REIT, Inc.
Property Table
Property
 
Ownership
 
Rentable Square Feet(1)
 
Percent Occupied(2)
 
Annualized Cash Rent (in thousands)
 
Annualized Cash Rent Per Square Foot
 
Number of Leases
Manhattan Office Properties - Office
 
 
 
 
 
 
 
 
 
 
 
 
Design Center
 
100.0%
 
81,082

 
93.9
%
 
$
4,000

 
$
52.53

 
17

416 Washington Street
 
100.0%
 
1,565

 
100.0
%
 
60

 
38.22

 
1

256 West 38th Street
 
100.0%
 
88,683

 
77.2
%
 
2,512

 
36.67

 
10

229 West 36th Street
 
100.0%
 
129,751

 
100.0
%
 
5,974

 
46.04

 
8

218 West 18th Street
 
100.0%
 
165,670

 
100.0
%
 
9,784

 
59.06

 
7

50 Varick Street
 
100.0%
 
158,574

 
100.0
%
 
7,927

 
49.99

 
1

333 West 34th Street
 
100.0%
 
317,040

 
100.0
%
 
15,364

 
48.46

 
3

1440 Broadway
 
100.0%
 
711,800

 
74.6
%
 
31,035

 
58.46

 
10

One Worldwide Plaza
 
48.9%
 
878,613

 
100.0
%
 
59,524

 
67.75

 
9

245-249 West 17th Street
 
100.0%
 
214,666

 
100.0
%
 
15,178

 
70.70

 
1

Manhattan Office Properties - Office Total
 
 
 
2,747,444

 
92.5
%
 
151,358

 
59.56

 
67

 
 
 
 
 
 
 
 
 
 
 
 
 
Manhattan Office Properties - Retail
 
 
 
 
 
 
 
 
 
 
 
 
256 West 38th Street
 
100.0%
 
28,360

 
100.0
%
 
1,199

 
42.28

 
3

229 West 36th Street
 
100.0%
 
20,132

 
100.0
%
 
1,065

 
52.91

 
1

333 West 34th Street
 
100.0%
 
29,688

 
100.0
%
 
1,490

 
50.19

 
1

1440 Broadway
 
100.0%
 
37,619

 
95.5
%
 
5,112

 
142.29

 
7

One Worldwide Plaza
 
48.9%
 
123,213

 
100.0
%
 
5,152

 
41.81

 
20

245-249 West 17th Street
 
100.0%
 
66,628

 
100.0
%
 
5,496

 
82.49

 
3

Manhattan Office Properties - Retail Total
 
 
 
305,640

 
99.4
%
 
19,514

 
64.21

 
35

Sub-Total/Weighted Average Manhattan Office Properties - Office and Retail
 
 
 
3,053,084

 
93.2
%
 
$
170,872

 
$
60.05

 
102

__________________
(1)
Does not include 128,612 square feet at the Viceroy Hotel, antenna leases or 15,055 square feet at the garage at 416 Washington Street, which is being operated under a management contract with a third party. Includes pro rata share of our investment in Worldwide Plaza.
(2)
Inclusive of leases signed but not yet commenced.












24

New York REIT, Inc.
Property Table (continued)
Property
 
Ownership
 
Rentable Square Feet(1)
 
Percent Occupied(2)
 
Annualized Cash Rent (in thousands)
 
Annualized Cash Rent Per Square Foot
 
Number of Leases
Manhattan Stand Alone Retail
 
 
 
 
 
 
 
 
 
 
 
 
367-387 Bleecker Street
 
100.0%
 
9,724

 
91.9
%
 
$
2,482

 
$
277.86

 
4

33 West 56th Street (garage)
 
100.0%
 
12,856

 
100.0
%
 
460

 
35.79

 
1

416 Washington Street
 
100.0%
 
7,436

 
100.0
%
 
454

 
61.09

 
2

One Jackson Square
 
100.0%
 
8,392

 
100.0
%
 
1,707

 
203.42

 
4

350 West 42nd Street
 
100.0%
 
42,774

 
100.0
%
 
1,789

 
41.83

 
4

350 Bleecker Street
 
100.0%
 
14,511

 
84.6
%
 
744

 
60.59

 
2

Sub-Total/Weighted Average Manhattan Stand Alone Retail
 
 
 
95,693

 
92.8
%
 
7,636

 
82.41

 
17

 
 
 
 
 
 
 
 
 
 
 
 
 
Outer-Borough Properties
 
 
 
 
 
 
 
 
 
 
 
 
1100 Kings Highway
 
100.0%
 
61,318

 
100.0
%
 
2,825

 
46.07

 
5

Portfolio Total
 
 
 
3,210,095

 
93.4
%
 
$
181,333

 
$
60.46

 
124

__________________
(1)
Does not include 128,612 square feet at the Viceroy Hotel, antenna leases or 15,055 square feet at the garage at 416 Washington Street, which is being operated under a management contract with a third party.
(2)
Inclusive of leases signed but not yet commenced.



25

New York REIT, Inc.
Selected Viceroy Hotel Metrics



 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
% Change
 
2016
 
2015
 
% Change
Average occupancy
90.4
%
 
86.4
%
 
4.7
 %
 
83.7
%
 
79.0
%
 
6.0
 %
Average daily rate
$
323.17

 
$
335.67

 
(3.7
)%
 
$
307.68

 
$
329.62

 
(6.7
)%
REVPAR
$
292.07

 
$
289.88

 
0.8
 %
 
$
257.57

 
$
260.24

 
(1.0
)%
NOI (in thousands)
$
242

 
$
529

 
(54.3
)%
 
$
(1,223
)
 
$
(64
)
 
1,810.9
 %
Cash NOI (in thousands)
$
815

 
$
1,135

 
(28.2
)%
 
$
497

 
$
2,092

 
(76.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
 
 
Nine Months Ended September 30,
 
 
Reconciliation to Cash NOI (in thousands)
2016
 
2015
 
 
 
2016
 
2015
 
 
Revenue
$
7,098

 
$
7,054

 
 
 
$
18,487

 
$
18,626

 
 
Property Operating Expenses
6,856

 
6,525

 
 
 
19,710

 
18,690

 
 
NOI
242

 
529

 
 
 
(1,223
)
 
(64
)
 
 
Above/below market lease amortization
(112
)
 
(112
)
 
 
 
(337
)
 
(337
)
 
 
Straight-line rent
685

 
718

 
 
 
2,057

 
2,493

 
 
Cash NOI
$
815

 
$
1,135

 
 
 
$
497

 
$
2,092

 
 

26

New York REIT, Inc.

Definitions

Definitions
This section contains an explanation of certain non-GAAP financial measures we provide in other sections of this document, as well as the reasons why management believes these measures provide useful information to investors about the Company’s financial condition or results of operations. Additional detail can be found in the Company’s most recent annual report on Form 10-K as well as other documents filed with or furnished to the SEC from time to time.
Adjusted Cash NOI
Adjusted Cash NOI is Cash NOI (as defined below) after eliminating the effects of free rent.
Adjusted funds from operations (AFFO)
AFFO is Core FFO, excluding certain income or expense items that we consider more reflective of investing activities, other non-cash income and expense items and the income and expense effects of other activities that are not a fundamental attribute of our business plan. These items include unrealized gains and losses, which may not ultimately be realized, such as gains or losses on derivative instruments, gains or losses on contingent valuation rights and gains and losses on investments. In addition, by excluding non-cash income and expense items such as amortization of above and below market leases, equity-based compensation expenses, amortization of deferred financing costs and straight-line rent from AFFO we believe we provide useful information regarding income and expense items which have a direct impact on our ongoing operating performance. We exclude certain interest expenses related to securities that are convertible to common stock as the shares are assumed to have converted to common stock in our calculation of weighted average common shares-fully diluted, if applicable. Furthermore we include certain cash inflows and outflows that are reflective of operating activities including preferred returns on joint ventures, second generation tenant improvements and leasing commissions (included in the period in which the lease commences) and recurring capital expenditures. We also include items such as free rent credits paid by sellers because these funds are paid to us during the free rent period and therefore improve our liquidity and ability to pay dividends and second generation capital expenditures in our calculation of AFFO because these funds are paid in order to maintain the level of operating performance.
Although our AFFO may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash dividends to stockholders. AFFO does not represent cash generated from operating activities determined in accordance with GAAP, and AFFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.
Annualized Cash Rent
Cash rent at the end of the reporting period, including operating expense reimbursements, excluding electric. Real estate tax reimbursements are typically multiplied by two because they are paid semi-annually. Free rent periods are excluded from annualized cash rent.
Cash net operating income (Cash NOI)
NOI, presented on a cash basis, which is NOI after eliminating the effects of straight-lining of rent and fair value lease revenue.
Core funds from operations (Core FFO)
Core FFO is FFO, excluding transaction related costs and other items that are considered to be not comparable from period to period, such as gains on sales of securities and investments, miscellaneous revenue, such as lease termination fees and insurance proceeds, and expenses related to the early extinguishment of debt. Additionally, we exclude transaction related expenses, which are primarily comprised of expenses related to our strategic alternatives process, as these expenses are not the result of the operations of our properties. By excluding transaction related costs and other items that are considered to be not comparable from period to period, 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.

27

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)
Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, acquisition and transaction-related expenses and other non-cash items, including our pro rata share of investments in unconsolidated joint ventures. We believe Adjusted EBITDA 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. Adjusted EBITDA is adjusted to include our pro rata share of Adjusted EBITDA from unconsolidated joint ventures.
Effective interest rate
The annualized rate, on a 365-day basis, at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums and deferred financing costs. For instance, the stated interest rate in a loan agreement may be based on a 360 day year. Therefore, the effective interest rate would be the stated rate divided by 360 x 365 days in the year.
First generation building improvements
Capital expenditures on first generation space, as defined below, that are not tenant improvement or leasing commission related.
First generation space
Space that is vacant at acquisition or space that was not consistent with the Company’s operating standards.
First generation tenant improvements and leasing commissions
Tenant improvements and leasing commissions incurred on first generation space as defined above.
Funds from operations (FFO)
Pursuant to the revised definition of funds from operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate funds from operations (FFO), by adjusting net income (loss) (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, impairment losses on depreciable real estate of consolidated real estate, impairment losses on investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required GAAP presentations, has been fundamentally beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to asset sales (land and property), impairment losses and real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash dividends. We believe that to further understand our performance, FFO should be compared with our reported net income and considered in addition to cash flows determined in accordance with GAAP, as presented in our consolidated financial statements.
LTIP units
Limited partnership units of the OP entitled "LTIP Units" (defined below) issued in connection with the 2014 Advisor Multi-Year Outperformance Agreement.


28

Net operating income (NOI)
Net operating income (NOI) is a non-GAAP financial measure equal to net income (loss), the most directly comparable GAAP financial measure, less discontinued operations, interest, other income and income from preferred equity investments and investments securities, plus corporate general and administrative expense, transaction-related expenses, depreciation and amortization, other non-cash expenses and interest expense. NOI is adjusted to include our pro rata share of NOI from unconsolidated joint ventures. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets and to make decisions about resource allocations. 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, operating costs, acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income 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 and is often incurred at the corporate level as opposed to the property level. 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, as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make dividends.
OP
New York Recovery Operating Partnership, L.P., a Delaware Limited Partnership.
OP units
Limited partnership units of the OP entitled "OP Units"
Replacement leases
Leases signed during the current period for space that had been previously leased at any point during the previous twelve months.
Prior escalated rent
Cash rent at expiration of the lease, including real estate tax and other operating expense reimbursements, multiplied by twelve.
Second generation capital expenditures
Represents building investments to maintain current revenues. These capital expenditures which may occur on a regular basis, may relate to repairs and maintenance that extend the useful life of an asset and are therefore capitalized. These costs are included in our calculation of AFFO.
Second generation space
Any space that is not first generation space.
Second generation tenant improvements and leasing commissions
Tenant improvements, leasing commissions, and other leasing costs incurred during leasing of second generation space.
Stated interest rate
The rate at which interest expense is recorded per the respective loan documents, excluding the impact of the amortization of any debt discounts/premiums and deferred financing costs.


29

New York REIT, Inc.

Management/Board of Directors
Executive Management Team
 
Board of Directors
 
Michael A. Happel
Chief Executive Officer
 
Randolph C. Read
Non-Executive Chairman of the Board of Directors
 
 
and President
 
 
 
 
 
 
 
 
Nicholas Radesca
Interim Chief Financial Officer,
 
P. Sue Perrotty
Independent Director, Audit Committee Chair, Nominating and Corporate Governance Committee Chair
 
 
Treasurer and Secretary
 
 
 
 
 
 
 
 
Patrick O'Malley
 
Chief Investment Officer
 
William M. Kahane
Director
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Robert H. Burns
Independent Director, Compensation Committee Chair
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Keith Locker
Independent Director
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
James Nelson
Independent Director, Conflicts Committee Chair
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
James P. Hoffmann
Independent Director
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gregory F. Hughes
Independent Director
 
 
 
 
 
 
 
 
 
 
 
Company Information
 
Craig T. Bouchard
Independent Director
Address:
 
405 Park Avenue, 14th floor
 
 
 
 
New York, NY 10022
 
 
 
Phone:
 
212-415-6500
 
 
 
Website:
 
www.nyrt.com
 
 
 

30

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New York REIT Liquidating LLC Reports