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Gyrodyne LLC has submitted its annual report on Form 10-K filing for the fiscal year ended December 31, 2024.
The filing outlines Gyrodyne's strategy to enhance the value of its properties in Flowerfield and Cortlandt Manor by pursuing entitlements to increase development flexibility. The company intends to dissolve after selling its properties and distributing proceeds to shareholders.
As of December 31, 2024, Gyrodyne's net assets were valued at approximately $30.6 million, translating to an estimated distribution of $13.91 per share. This represents a decrease from the previous year, primarily due to a reduction in real estate values and increased costs associated with extending the timeline for liquidation.
Gyrodyne's real estate portfolio includes a 63-acre site in St. James, New York, and 13.8 acres in Cortlandt Manor, New York. The company is actively seeking entitlements to enhance the value of these properties before sale.
The company faces ongoing litigation related to its Flowerfield property. An Article 78 proceeding seeks to annul the preliminary subdivision approval granted by the Town of Smithtown Planning Board. Gyrodyne is actively defending against this challenge.
Gyrodyne completed a rights offering in March 2024, raising approximately $4.4 million in net proceeds. The funds are intended to support entitlement efforts, litigation costs, and general working capital.
Gyrodyne's financial statements are prepared on a liquidation basis, reflecting the company's plan to sell its assets and distribute the proceeds. This approach involves estimating the net realizable value of assets and the costs associated with liquidation.
The company has several loans secured by its properties, with outstanding balances totaling approximately $11.2 million as of December 31, 2024. These loans are being managed to support the company's cash flow needs during the liquidation process.
Gyrodyne's largest tenants account for a significant portion of rental income, with the three largest tenants representing 55% of total rental revenue. The company continues to manage leasing activities to maintain occupancy and rental income.
The company has implemented a retention bonus plan to incentivize directors and employees during the liquidation process. Recent amendments to the plan aim to better align the interests of participants with those of shareholders.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Gyrodyne LLC annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.