NEW YORK, March 15, 2019 /PRNewswire/ -- 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 Annual Report on Form 10-K for the year ended December 31, 2018. All per share amounts have been restated to reflect the effect of the 1-for-10 reverse stock split which was completed on March 15, 2018.
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. To date, the Company has paid aggregate cash liquidating distributions of $58.80 per unit.
Liquidation Basis of Accounting
Based on the liquidation basis of accounting, the Company reported that estimated net assets in liquidation at December 31, 2018 are currently estimated to result in future liquidating distributions of approximately $22.19 per unit. The estimate of future liquidating distributions includes projections of revenues to be earned and costs and expenses to be incurred during the period required to complete the plan of liquidation. 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 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 as of December 31, 2018 has been estimated based on undiscounted cash flow projections and assumes a final liquidation on December 31, 2019. The actual timing of the sale of the Company's remaining interest in Worldwide Plaza may take an additional two to four years, given ongoing tenant negotiations and other items in the property business plan. Based on these factors, the actual timing of the sale of this property, and 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.
- Viceroy Hotel – property sale – On October 4, 2018, the Viceroy Hotel property located in Manhattan, New York was sold to an independent third party for a sale price of $41.0 million. After satisfaction of pro-rations and closing costs, New York REIT, Inc. received net proceeds of approximately $39.8 million. The estimated liquidation value of the property was $41.0 million at September 30, 2018.
On March 12, 2019, the Company declared a cash liquidating distribution of $0.71 per unit to be paid on March 25, 2019 to unitholders of record as of March 18, 2019.
On October 22, 2018, New York REIT, Inc. paid a cash liquidating distribution of $3.25 per share to shareholders of record as of October 15, 2018.
New York REIT Liquidating LLC Schedule K-1's for 2018 are now available and can be accessed by clicking on the link on the homepage of the Company's website, www.nyrt.com.
"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) general economic conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or general downturn in their business, (iii) local real estate conditions, (iv) increases in interest rates, (v) increases in operating costs and real estate taxes, (vi) changes in accessibility of debt and equity capital markets and (vii) 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, 2018, filed with the SEC on March 15, 2019, 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.
Further details regarding the Company's results of operations, properties, joint ventures and tenants are available in the Company's Form 10-K for the year ended December 31, 2018 which 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.
John Garilli, Chief Financial Officer and
Chief Executive Officer
Joele Frank, Wilkinson Brimmer Katcher
New York REIT Liquidating LLC
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SOURCE New York REIT Liquidating LLC