Financial statement red lights?

NewYorker86

New member
UES co-op with financial statements showing loss in 2018, 2019 (very high) and 2020. Capital assessments plus maintenance hikes of 4-5% yearly. Is this as bad as it sounds? Liked the apartment, but financials don't look great.
 

David Goldsmith

All Powerful Moderator
Staff member
Are these actual losses or due to depreciation and other write offs? Were there capital projects going on or were those so called "capital" assessments used for operating? Do they own retail/commercial space and what's going on with it? How do projected expenses compare to actual?
 

NewYorker86

New member
Are these actual losses or due to depreciation and other write offs? Were there capital projects going on or were those so called "capital" assessments used for operating? Do they own retail/commercial space and what's going on with it? How do projected expenses compare to actual?
Thanks David!

They had actual operation losses in 2018 and 2019 (~400K) before depreciation and prepayment interest penalty, they broke even in 2020.
They have professional rentals and commercial rentals generating an annual income of ~300K - expected to be at that level in the next couple of years.
The notes also disclose maintenance operating assessments, special assessments to offset the real estate tax abatements given to the non-sponsor shareholders, and special assessments paid-in-capital.
Lastly, they also disclosed capital improvements (chiller work, landscaping, boiler, etc.) of ~120K during 2018-2020, and they seem to be working on their elevators (deposit in contract > 1MM).
 

Noah Rosenblatt

Talking Manhattan on UrbanDigs.com
Staff member
seems normal right David? Most buildings I would think operate flat or at slight loss for similar things posted
 

David Goldsmith

All Powerful Moderator
Staff member
It's hard to tell from just the info given. Some of the stuff is normal, but some of it I can't tell. I will say that it is very easy to misunderstood Coop financials if you're not experienced at interpreting them. For example I'd want to know more about that elevator project.
 
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