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New York REIT cuts estimated liquidating distribution

New York REIT expects to make liquidating distributions of roughly $9.21 per common share, down 4 cents apiece from its earlier estimate.

The company said the new distribution rate is based on its management's estimate of net assets in liquidation at June 30.

New York REIT attributed the reduced payout estimate in large part to a $2.5 million decrease in the liquidation value of its 50 Varick St. office building in Manhattan, N.Y., that was sold for $135.0 million earlier in August; a $1.7 million increase of projected tenant improvements mainly at its 1440 Broadway and 256 W. 38th St. properties in New York City; and a $1.2 million increase in the estimated fees payable to its adviser over the course of its liquidation because of the timing of its additional stake purchase in One Worldwide Plaza, also in New York City, and a change in the expected holding period of certain assets.

The reduction also stems from a $1.0 million decrease in net operating cash flow as it relates to cumulative adjustments across the company's portfolio, and a $400,000 increase in interest expense on loans related to its plan of liquidation.

Additionally, the company said it extended the maturity date of a mortgage loan collateralized by its 1100 Kings Highway property in Brooklyn to April 1, 2018. Unless the property is under contract for sale for an amount equal to or greater than 133% of the payable outstanding mortgage loan, the loan also requires a cash sweep starting Jan. 1, 2018.

New York REIT obtained shareholder approval for its liquidation plan in January.