Gyrodyne Reports $30.6 Million Net Asset Value and Decreased Share Distribution

Gyrodyne, LLC reported a net asset value of approximately $30.6 million as of December 31, 2024, translating to an estimated distribution of $13.91 per common share based on 2,199,308 shares outstanding. This figure represents a decrease from the previous year's estimated distribution of $19.51 per share, attributed to a decline in real estate value and increased costs associated with the extended timeline for liquidation. The company’s total revenue for the fiscal year was approximately $2.44 million, with a net operating income of $1.21 million after accounting for operating costs of $1.90 million. This reflects a slight decrease in revenue compared to the previous year, where total revenue was $3.13 million.

In terms of operational changes, Gyrodyne's leasing strategy has seen a reduction in occupancy rates, dropping from 86% in 2023 to 82% in 2024, primarily due to the early termination of a lease by a tenant in Cortlandt Manor. The company signed two new leases during 2024, totaling 6,289 square feet, while also experiencing eight lease terminations. The company is focusing on renewing leases set to expire in 2025 and 2026, which represent approximately 30% and 47% of gross annual rental revenues, respectively.

Strategically, Gyrodyne is pursuing entitlements for its remaining properties, Flowerfield and Cortlandt Manor, to enhance their market value before sale. The company incurred approximately $422,000 in land entitlement costs during 2024 and anticipates an additional $1.24 million in costs through the end of the liquidation process, currently projected for December 31, 2026. The company has engaged JLL Capital Markets to assist in marketing these properties, aiming to maximize net asset value for shareholders.

The company’s financial position was bolstered by a rights offering completed in March 2024, which generated net proceeds of approximately $4.4 million. This capital is intended to support ongoing operations, including legal expenses related to the Article 78 proceeding concerning the Flowerfield property, and to facilitate the strategic sale of its assets. As of December 31, 2024, Gyrodyne had cash and cash equivalents totaling approximately $5.9 million, which will be utilized to fund its operational and liquidation activities.

Looking ahead, Gyrodyne remains committed to enhancing the value of its properties and executing its liquidation plan. However, the timeline for completing the sale of its assets and the subsequent distributions to shareholders may be influenced by various factors, including market conditions, regulatory approvals, and the ongoing impacts of the COVID-19 pandemic. The company has indicated that it cannot guarantee the timing or amount of future distributions, as these will depend on the successful execution of its strategic initiatives and the resolution of outstanding legal matters.