Gyrodyne, LLC reported its financial performance for the nine months ending September 30, 2024, highlighting significant developments in its strategic direction and financial metrics. The company, which operates in the management of medical office and industrial properties in New York, has adopted a liquidation basis of accounting as it plans to dissolve after selling its real estate assets and settling debts.

As of September 30, 2024, Gyrodyne's cash and cash equivalents increased to approximately $6.7 million, up from $3.5 million at the end of 2023. Total assets slightly decreased to $57.2 million from $57.4 million, while total liabilities remained relatively stable at $26.7 million. The net assets in liquidation were reported at $30.5 million, a decrease from $30.7 million at the end of the previous fiscal year. This decline in net assets is attributed to a reduction in the estimated value of real estate holdings by $3.5 million and increased costs of $1.7 million, partially offset by net proceeds of approximately $4.4 million from a rights offering.

The rights offering, which closed on March 7, 2024, allowed shareholders to purchase shares at $8 each, resulting in the issuance of 625,000 shares and net proceeds of about $4.4 million. These funds are earmarked for entitlements on the Flowerfield and Cortlandt Manor properties, litigation fees, and general working capital.

Gyrodyne's rental revenue for the reporting period was approximately $40,620, with a notable lease agreement extending to December 2027. However, the company faced challenges, including six lease terminations that resulted in a loss of approximately $76,500 in annual revenue. The ongoing COVID-19 pandemic has also impacted occupancy rates and rental income due to shifts in market demand.

Strategically, Gyrodyne is pursuing entitlements for its properties, with preliminary approvals for the Flowerfield subdivision and a Medical Oriented Zoning District for the Cortlandt Manor property. The company anticipates final subdivision approvals in early to mid-2025, contingent on contract timing and ongoing legal proceedings related to the Flowerfield application.

Legal challenges continue to affect Gyrodyne, including an Article 78 proceeding initiated against the Town of Smithtown regarding the Flowerfield property. A recent court ruling dismissed the petition, but an appeal has been filed, potentially extending negotiations and sales into 2026.

Overall, Gyrodyne's financial position reflects a focus on asset liquidation and strategic property management, with ongoing efforts to enhance property values and navigate legal complexities.