New York REIT Liquidating LLC Expands Ongoing Cost Reduction Program


NEW YORK, Oct. 30, 2020 (GLOBE NEWSWIRE) -- New York REIT Liquidating LLC (the “Company”) announced today that the Company has implemented a number of additional cost-saving initiatives that will reduce operating expenses by at least $275,000 annually. The changes announced today, together with the $270,000 in annual cost reductions announced last June (which arose from a 40% reduction in the size of the Company’s board of managers (the “Board”), along with a 33% reduction in basic individual Board member fees), total at least $545,000 in annual cost savings.

Recently, the Company concluded negotiations with the Company’s manager, Winthrop REIT Advisors LLC (“Winthrop”), and is pleased to announce that the parties have agreed to a $200,000 (or 14.3%) annual reduction in the fees and costs charged by Winthrop for its management of the Company. Additionally, the terms of the advisory agreement with Winthrop which provide for a potential future reduction of fees payable under certain circumstances that may occur in the future remain in place.

The Board also announced that it has negotiated with other third-party service providers resulting in a $75,000 annual reduction in those costs.

Further, the Company has implemented a variety of other changes intended to increase efficiency, which could result in still more cost reductions.

Mr. Randolph Read, Chairman of the Board, commented: “The changes announced today are the product of extensive negotiations with third-party suppliers. We are pleased that we have been able to achieve these savings without compromising on the quality of the advice and services received from experienced partners. As time progresses, the Board will remain vigilant in its efforts to reduce costs and maximize value for unitholders.”

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, 2019, filed with the SEC on March 13, 2020, supplemented by additional Risk Factors included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 filed with the SEC on May 8, 2020 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.

Randolph Read
Chairman of the Board
New York REIT Liquidating LLC
rread@nyrt.com
(617) 570-4750



Contact Data