Trinity Place Holdings Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in total revenues, which fell to $397,000 for the three months ended September 30, 2024, down from $10.7 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $3.1 million, a decrease from $32.1 million year-over-year. This decline was primarily attributed to the absence of sales from residential condominium units, as TPHGreenwich, the company's joint venture, is now recording these sales.

Despite the drop in revenues, total operating expenses also decreased significantly, from $13.9 million to $1.4 million for the three months ended September 30, 2024, and from $40.0 million to $7.7 million for the nine-month period. The operating loss improved to $(1.0 million) for the three months ended September 30, 2024, compared to $(3.2 million) in 2023, and $(4.6 million) for the nine months, down from $(8.0 million) in the previous year.

The net loss attributable to common stockholders for the three months ended September 30, 2024, was $(1.1 million), a significant improvement from $(11.9 million) in the same period of 2023. For the nine months, the company reported a net income of $6.1 million, a turnaround from a net loss of $(29.0 million) in the prior year. This shift was largely due to a gain of approximately $21.0 million recorded from the contribution to the joint venture during the Recapitalization Transactions.

As of September 30, 2024, Trinity Place Holdings had cash and cash equivalents of $505.3 million, a substantial increase from $1.3 million at the end of 2023. Total assets were reported at $3.0 million, down from $267.5 million, while total liabilities decreased to $1.5 million from $277.6 million, resulting in total stockholders’ equity improving to $1.5 million from a deficit of $(10.0 million).

Strategically, the company has engaged advisors Houlihan Lokey and Ackman-Ziff to explore financing alternatives and maximize stockholder value, including potential equity and debt financing, refinancing existing debt, and possible mergers or sales. The company is also facing challenges regarding its ability to continue as a going concern without additional capital or strategic transactions, as indicated by its limited unrestricted cash and liquidity.

In terms of management changes, Mr. Messinger transitioned from CEO to a consulting role in August 2024, while remaining a board member. The company is also navigating legal issues related to its properties, particularly concerning water damage and construction defects at the 237 11th property.