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Walker & Dunlop Arranges $253 Million Construction Financing for Nashville’s Pendry Nashville and Pendry Residences Nashville

BETHESDA, Md.–(BUSINESS WIRE)–Walker & Dunlop, Inc. announced today that it arranged a $253 million construction loan to facilitate the development of the Pendry Nashville and Pendry Residences Nashville a soon to be 30-story hotel condominium tower located in Nashville’s rapidly growing Paseo South Gulch district.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250319584769/en/

The Walker & Dunlop New York Capital Markets team, led by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Michael Diaz, Sean Bastian and Jackson Irwin arranged the construction financing on behalf of SomeraRoad and Trestle Studio. Bank OZK and InterVest Capital Partners provided the financing package.

Jay Morrow and Carter Gradwell of the Walker & Dunlop Hospitality team advised SomeraRoad throughout the process, working in collaboration with the New York Capital Markets team.

As Phase 3 of the Paseo South Gulch master-planned micro-neighborhood by SomeraRoad, the Pendry Nashville Hotel & Residences will feature 180 hotel keys and 146 Pendry-branded luxury condominiums. Upon completion, the development will offer a wide range of amenities, a variety of upscale food and beverage outlets, curated event spaces, and individual pools for both hotel guests and residents, among other offerings.

“Having worked with SomeraRoad to capitalize prior phases of their Paseo South Gulch master-planned development, we are firm believers in their long-term vision for the neighborhood,” said Aaron Appel, senior managing director and co-head of New York Capital Markets at Walker & Dunlop. “In a market where more and more capital providers are shying away from complex mixed-use developments, this transaction highlights the availability of liquidity for qualified Sponsors with unique projects.”

The project is expected to break ground immediately with opening scheduled for 2027.

In 2024, Walker & Dunlop’s Capital Markets team sourced over $16 billion from non-Agency capital providers. This vast experience has made them a top advisor on all asset classes for many of the industry’s top developers, owners, and operators. To learn more about Walker & Dunlop’s broad financing options, visit our website.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250319584769/en/

Investors:

Kelsey Duffey

Investor Relations

Phone 301.202.3207

[email protected]

Media:

Nina H. von Waldegg

VP, Public Relations

Phone 301.564.3291

[email protected]

Phone 301.215.5500

7272 Wisconsin Avenue, Suite 1300

Bethesda, Maryland 20814

KEYWORDS: United States North America Maryland

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Lodging Finance Travel Building Systems Professional Services Urban Planning

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Photo Credits: SomeraRoad

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American Strategic Investment Co. Announces Fourth Quarter 2024 Results

NEW YORK–(BUSINESS WIRE)–
American Strategic Investment Co. (NYSE: NYC) (“ASIC” or the “Company”), a company that owns a portfolio of commercial real estate located within the five boroughs of New York City, announced today its financial and operating results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024 and Subsequent Events

• Revenue was $14.9 million compared to $15.4 million for the fourth quarter of 2023 due, in part, to the sale of 9 Times Square
• Net loss attributable to common stockholders was $6.7 million or $2.60 per share, compared to net loss of $73.9 million, or $32.27 per share, in the fourth quarter of 2023
• Adjusted EBITDA was $1.3 million
• Cash net operating income (“NOI”) was $6.6 million compared to $6.3 million in the same quarter of 2023
• 77% of annualized straight-line rent from top 10 tenants⁽¹⁾ is derived from investment grade or implied investment grade⁽²⁾ rated tenants with a weighted-average remaining lease term⁽³⁾ of 8.0 years as of December 31, 2024

Full Year 2024 Highlights

• Revenue was $61.6 million compared to $62.7 million in 2023 due, in part, to the sale of 9 Times Square
• Net loss attributable to common stockholders was $140.6 million compared to $105.9 million for 2023
• Adjusted EBITDA was $11.8 million compared to $12.3 million for the full year 2023
• Cash NOI was $27.6 million compared to $27.3 million in 2023
• Portfolio occupancy of 80.8% with a weighted-average remaining lease term of 6.3 years as of December 31, 2024
• Completed five new leases totaling 37,407 square feet and $2.0 million in straight-line rent
• Portfolio debt, as of December 31, 2024, is 100% fixed-rate with a 4.4% weighted-average interest rate and 3.6 years of weighted-average debt maturity
• Conservative balance sheet with net leverage of 56.9% as of December 31, 2024

CEO Comments

“In the fourth quarter we completed the sale of 9 Times Square and relaunched the marketing process for 123 William Street and 196 Orchard Street as we continue our expanded asset diversification strategy,” said Michael Anderson, CEO of ASIC. “At the same time, we grew Cash Net Operating Income in both the fourth quarter and for the full year 2024 compared to the same period in 2023. We remain focused on aggressively leasing our portfolio to high quality tenants in 2025.”

Financial Results

		Three Months Ended December 31,								Year Ended December 31,
(In thousands, except per share data)			2024				2023				2024				2023
Revenue from tenants		$	14,889			$	15,380			$	61,570			$	62,710
Net loss attributable to common stockholders		$	(6,650	)		$	(73,876	)		$	(140,591	)		$	(105,924	)
Net loss per common share (a)		$	(2.60	)		$	(32.27	)		$	(56.51	)		$	(47.57	)

____________________
(1)	All per share data has been retroactively adjusted to reflect the 1-for-8 reverse stock split that occurred on January 11, 2023. Per share data is based on 2,557,080 and 2,289,094 basic weighted-average shares outstanding for the three months ended December 31, 2024 and 2023, respectively and 2,487,827 and 2,226,721 for the years ended December 31, 2024 and 2023, respectively.

Real Estate Portfolio

The Company’s portfolio consisted of six properties and comprised 1.0 million rentable square feet as of December 31, 2024. Portfolio metrics include:

• 81% leased, compared to 87% at the end of fourth quarter 2023, with 6.3 years remaining weighted-average lease term
• 77% of annualized straight-line rent⁽⁴⁾ from top 10 tenants derived from investment grade or implied investment grade tenants
• 72% office (based on an annualized straight-line rent)

Capital Structure and Liquidity Resources

As of December 31, 2024, the Company had $9.8 million of cash and cash equivalents⁽⁵⁾. The Company’s net debt⁽⁶⁾ to gross asset value⁽⁷⁾ was 56.9%, with net debt of $340.2 million.

All of the Company’s debt was fixed-rate as of December 31, 2024. The Company’s total combined debt had a weighted-average interest rate of 4.4%⁽⁸⁾.

The Company’s debt was a weighted-average debt maturity of 3.6 years.

Footnotes/Definitions

(1)	Top 10 tenants based on annualized straight-line rent as of December 31, 2024.
(2)	As used herein, investment grade includes both actual investment grade ratings of the tenant or guarantor, if available, or implied investment grade. Implied investment grade may include actual ratings of tenant parent, guarantor parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or by using a proprietary Moody’s analytical tool, which generates an implied rating by measuring a company’s probability of default. The term “parent” for these purposes includes any entity, including any governmental entity, owning more than 50% of the voting stock in a tenant. Ratings information is as of December 31, 2024. Top 10 tenants are 54.9% actual investment grade rated and 21.9% implied investment grade rated.
(3)	The weighted-average remaining lease term (years) is based on annualized straight-line rent as of December 31, 2024.
(4)	Annualized straight-line rent is calculated using the most recent available lease terms as of December 31, 2024.
(5)	Under one of our mortgage loans, we are required to maintain minimum liquid assets (i.e. cash, cash equivalents and restricted cash) of $10.0 million.
(6)	Total debt of $350.0 million less cash and cash equivalents of $9.8 million as of December 31, 2024. Excludes the effect of deferred financing costs, net, mortgage premiums, net and includes the effect of cash and cash equivalents.
(7)	Defined as the carrying value of total assets of $507.1 million plus accumulated depreciation and amortization of $91.1 million as of December 31, 2024.
(8)	Weighted based on the outstanding principal balance of the debt.

Webcast and Conference Call

ASIC will host a webcast and call on March 19, 2025 at 11:00 a.m. ET to discuss its financial and operating results. This webcast will be broadcast live over the Internet and can be accessed by all interested parties through the ASIC website, www.americanstrategicinvestment.com, in the “Investor Relations” section.

Dial-in instructions for the conference call and the replay are outlined below.

To listen to the live call, please go to ASIC’s “Investor Relations” section of the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the ASIC website at www.americanstrategicinvestment.com.

Live Call

Dial-In (Toll Free): 1-888-330-3127

International Dial-In: 1-646-960-0855

Conference ID: 5954637

Conference Replay*

Domestic Dial-In (Toll Free): 1-800-770-2030

International Dial-In: 1-609-800-9909

Conference ID: 5954637#

*Available one hour after the end of the conference call through June 19, 2025

About American Strategic Investment Co.

American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City. Additional information about ASIC can be found on its website at www.americanstrategicinvestment.com.

Supplemental Schedules

The Company will file supplemental information packages with the Securities and Exchange Commission (the “SEC”) to provide additional disclosure and financial information. Once posted, the supplemental package can be found under the “Presentations” tab in the Investor Relations section of ASIC’s website at www.americanstrategicinvestment.com and on the SEC website at www.sec.gov.

Important Notice Regarding Forward-Looking Statements

The statements in this press release that are not historical facts may be forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to be materially different. The words “may,” “will,” “seeks,” “anticipates,” “believes,” “expects,” “estimates,” “projects,” “plans,” “intends,” “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include (a) the anticipated benefits of the Company’s election to terminate its status as a real estate investment trust, (b) whether the Company will be able to successfully acquire new assets or businesses, (c) the potential adverse effects of the geopolitical instability due to the ongoing military conflicts between Russia and Ukraine and Israel and Hamas, including related sanctions and other penalties imposed by the U.S. and European Union, and the related impact on the Company, the Company’s tenants, and the global economy and financial markets, (d) inflationary conditions and higher interest rate environment, (e) that any potential future acquisition or disposition is subject to market conditions and capital availability and may not be completed on favorable terms, or at all, (f) that we may not be able to continue to meet the New York Stock Exchange’s (“NYSE”) continued listing requirements and rules, and the NYSE may delist the Company’s common stock, which could negatively affect the Company, the price of the Company’s common stock and shareholders’ ability to sell the Company’s common stock, as well as those risks and uncertainties set forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed on March 19, 2025 and all other filings with the Securities and Exchange Commission after that date, including but not limited to the subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent report. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, unless required to do so by law.

Accounting Treatment of Rent Deferrals

The majority of the concessions granted to our tenants as a result of the COVID-19 pandemic are rent deferrals or temporary rent abatements with the original lease term unchanged and collection of deferred rent deemed probable. As a result of relief granted by the FASB and the SEC related to lease modification accounting, rental revenue used to calculate Net Income, have not been, and we do not expect it to be, significantly impacted by these types of deferrals.

American Strategic Investment Co. Consolidated Balance Sheets (In thousands. except share and per share data)
		December 31,
			2024				2023
ASSETS		(Unaudited)
Real estate investments, at cost:
Land		$	129,517			$	188,935
Buildings and improvements			341,314				479,265
Acquired intangible assets			19,063				56,929
Total real estate investments, at cost			489,894				725,129
Less accumulated depreciation and amortization			(91,135	)			(144,956	)
Total real estate investments, net			398,759				580,173
Cash and cash equivalents			9,776				5,292
Restricted cash			9,159				7,516
Operating lease right-of-use asset			54,514				54,737
Prepaid expenses and other assets			5,233				6,150
Derivative asset, at fair value			—				400
Straight-line rent receivable			23,060				30,752
Deferred leasing costs, net			6,565				9,152
Total assets		$	507,066			$	694,172
LIABILITIES AND STOCKHOLDER’S EQUITY
Mortgage notes payable, net		$	347,384			$	395,702
Accounts payable, accrued expenses and other liabilities (including amounts due to related parties of $317 and $20 at December 31, 2024 and 2023, respectively)			15,302				12,975
Operating lease liability			54,592				54,657
Below-market lease liabilities, net			1,161				2,061
Derivative liability, at fair value			—				—
Deferred revenue			3,041				3,983
Total liabilities			421,480				469,378
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding at December 31, 2024 and 2023			—				—
Common stock, $0.01 par value, 300,000,000 shares authorized, 1,886,298 (1) and 1,659,717 (1) shares issued and outstanding as of December 31, 2022 and 2021, respectively			27				23
Additional paid-in capital			731,429				729,644
Accumulated other comprehensive earnings (loss)			—				406
Distributions in excess of accumulated earnings			(645,870	)			(505,279	)
Total stockholders’ equity			85,586				224,794
Non-controlling interests			—				—
Total equity			85,586				224,794
Total liabilities and stockholders’ equity		$	507,066			$	694,172

____________________
(1)	Retroactively adjusted to reflect the 1-for-8 reverse stock split which occurred on January 11, 2023.

American Strategic Investment Co. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data)
		Three Months Ended December 31,								Year Ended December 31,
			2024				2023				2024				2023
Revenue from tenants		$	14,889			$	15,380			$	61,570			$	62,710
Operating expenses:
Asset and property management fees to related parties			1,927				1,926				7,751				7,680
Property operating			8,746				8,230				34,185				33,797
Impairment of real estate investments			—				66,053				112,541				66,565
Equity-based compensation			92				151				408				5,863
General and administrative			2,690				1,824				9,216				9,375
Depreciation and amortization			3,582				6,332				18,408				26,532
Total operating expenses			17,037				84,516				182,509				149,812
Operating (loss) income			(2,148	)			(69,136	)			(120,939	)			(87,102	)
Gain/loss on sale of real estate			(276	)			—				(276	)			—
Other income (expenses):
Interest expense			(4,311	)			(4,749	)			(19,488	)			(18,858	)
Other income (expenses)			85				9				112				36
Total other expense			(4,502	)			(4,740	)			(19,652	)			(18,822	)
Net loss before income taxes			(6,650	)			(73,876	)			(140,591	)			(105,924	)
Income tax expense			—				—				—				—
Net loss and Net loss attributable to common stockholders		$	(6,650	)		$	(73,876	)		$	(140,591	)		$	(105,924	)
Weighted-average shares outstanding — Basic and Diluted (1)			2,557,080				2,289,094				2,487,827				2,226,721
Net loss per share attributable to common stockholders — Basic and Diluted (1)		$	(2.60	)		$	(32.27	)		$	(56.51	)		$	(47.57	)

___________________
(1)	Retroactively adjusted to reflect the 1-for-8 reverse stock split which occurred on January 11, 2023.

American Strategic Investment Co. Quarterly Reconciliation of Non-GAAP Measures (Unaudited) (In thousands)
		Three Months Ended																Year Ended
		March 31, 2024				June 30, 2024				September 30, 2024				December 31, 2024				December 31, 2024
Net loss and Net loss attributable to common stockholders		$	(7,608	)		$	(91,851	)		$	(34,482	)		$	(6,650	)		$	(140,591	)
Depreciation and amortization			5,261				5,151				4,414				3,582				18,408
Interest expense			4,697				5,201				5,279				4,311				19,488
Income tax expense			—				—				—				—				—
EBITDA			2,350				(81,499	)			(24,789	)			1,243				(102,695	)
Impairment of real estate investments			—				84,724				27,817				—				112,541
Acquisition, transaction and other costs			—				—				—				—				—
Listing expenses			—				—				—				—				—
Vesting and conversion of Class B Units			—				—				—				—				—
Equity-based compensation			54				186				76				92				408
Other income (expenses)			(9	)			(9	)			(9	)			(85	)			(112	)
Management fees paid in common stock to the Advisor in lieu of cash			533				1,077				—				—				1,610
Adjusted EBITDA			2,395				3,402				3,095				1,250				11,752
Asset and property management fees to related parties			1,371				850				1,994				1,927				6,142
General and administrative			2,801				1,964				1,762				2,689				9,216
NOI			6,567				6,216				6,851				5,866				27,110
Accretion of below- and amortization of above-market lease liabilities and assets, net			(55	)			(57	)			(219	)			(145	)			(476	)
Straight-line rent (revenue as a lessor)			(30	)			153				102				644				869
Straight-line ground rent (expense as lessee)			27				27				27				28				109
Cash NOI		$	6,509			$	6,339			$	6,761			$	6,393			$	27,612
Cash Paid for Interest:
Interest expense		$	4,697			$	5,201			$	5,279			$	4,311			$	19,488
Amortization of deferred financing costs			(386	)			(377	)			(373	)			(25	)			(1,161	)
Total cash paid for interest		$	4,311			$	4,824			$	4,906			$	4,286			$	18,327

American Strategic Investment Co. Quarterly Reconciliation of Non-GAAP Measures (Unaudited) (In thousands)
		Three Months Ended
		December 31, 2023
Net loss attributable to common stockholders		$	(73,878	)
Depreciation and amortization			6,332
Interest expense			4,749
EBITDA			(62,797	)
Equity-based compensation			151
Other income			(9	)
Management fees paid in common stock to the Advisor in lieu of cash
Adjusted EBITDA			3,397
Asset and property management fees to related parties			1,926
General and administrative			1,824
NOI			7,147
Accretion of below- and amortization of above-market lease liabilities and assets, net			(25	)
Straight-line rent (revenue as a lessor)			(848	)
Straight-line ground rent (expense as lessee)			28
Cash NOI		$	6,302

Non-GAAP Financial Measures

This release discusses the non-GAAP financial measures we use to evaluate our performance, including Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), Net Operating Income (“NOI”) and Cash Net Operating Income (“Cash NOI”) and Cash Paid for Interest. A description of these non-GAAP measures and reconciliations to the most directly comparable GAAP measure, which is net loss, is provided above.

In December 2022 we announced that we changed our business strategy and terminated our election to be taxed as a REIT effective January 1, 2023, however, our business and operations have not materially changed in the first quarter of 2023. Therefore, we did not change any of the non-GAAP metrics that we have historically used to evaluate performance.

Caution on Use of Non-GAAP Measures

EBITDA, Adjusted EBITDA, NOI, Cash NOI and Cash Paid for Interest should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating our operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP metrics.

As a result, we believe that the use of these non-GAAP metrics, together with the required GAAP presentations, provide a more complete understanding of our performance, including relative to our peers and a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities. However, these non-GAAP metrics are not indicative of cash available to fund ongoing cash needs, including the ability to pay cash dividends. Investors are cautioned that these non-GAAP metrics should only be used to assess the sustainability of our operating performance excluding these activities, as they exclude certain costs that have a negative effect on our operating performance during the periods in which these costs are incurred.

Adjusted Earnings before Interest, Taxes, Depreciation and Amortization, Net Operating Income, Cash Net Operating Income and Cash Paid for Interest.

We believe that EBITDA and Adjusted EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization adjusted for (i) impairment charges, (ii) interest income or other income or expense, (iii) gains or losses on debt extinguishment, (iv) equity-based compensation expense, (v) acquisition and transaction costs, (vi) gains or losses from the sale of real estate investments and (vii) expenses paid with issuances of common stock in lieu of cash is an appropriate measure of our ability to incur and service debt. We consider EBITDA and Adjusted EBITDA useful indicators of our performance. Because these metrics’ calculations exclude such factors as depreciation and amortization of real estate assets, interest expense, and equity-based compensation (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), these metrics; presentations facilitate comparisons of operating performance between periods and between other companies that use these measures. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, as a measure of our liquidity or as an alternative to net income as an indicator of our operating activities. Other companies may calculate Adjusted EBITDA differently and our calculation should not be compared to that of other companies.

NOI is a non-GAAP financial measure used by us to evaluate the operating performance of our real estate. NOI is equal to total revenues, excluding contingent purchase price consideration, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). We believe NOI provides useful and relevant information because it reflects only those income and expense items that are incurred at the property level and presents such items on an unleveraged basis. We use NOI to assess and compare property level performance and to make decisions concerning the operations of the properties. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain items included in calculating net income (loss) in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other companies that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of our performance or to cash flows as a measure of our liquidity or our ability to pay dividends.

Cash NOI, is a non-GAAP financial measure that is intended to reflect the performance of our properties. We define Cash NOI as NOI excluding amortization of above/below market lease intangibles and straight-line adjustments that are included in GAAP lease revenues. We believe that Cash NOI is a helpful measure that both investors and management can use to evaluate the current financial performance of our properties and it allows for comparison of our operating performance between periods and to other companies. Cash NOI should not be considered as an alternative to net income, as an indication of our financial performance, or to cash flows as a measure of liquidity or our ability to fund all needs. The method by which we calculate and present Cash NOI may not be directly comparable to the way other companies present Cash NOI.

Cash Paid for Interest is calculated based on the interest expense less non-cash portion of interest expense and amortization of mortgage (discount) premium, net. Management believes that Cash Paid for Interest provides useful information to investors to assess our overall solvency and financial flexibility. Cash Paid for Interest should not be considered as an alternative to interest expense as determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to our financial information prepared in accordance with GAAP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250319797036/en/

Investors and Media:

Email: [email protected]

Phone: (866) 902-0063

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property

MEDIA:

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ThredUp’s 13th Resale Report Shows Online Resale Saw Accelerated Growth in 2024 and Is Expected to Reach $40 Billion by 2029

59% of consumers say if new government policies around tariffs and trade make apparel more expensive, they will seek more affordable options like secondhand.

48% of consumers say personalization, improved search, and discovery make shopping secondhand apparel as easy as shopping new.

39% of younger generation shoppers have made a secondhand apparel purchase on a social commerce platform in the last 12 months.

OAKLAND, Calif.–(BUSINESS WIRE)–
ThredUp (Nasdaq: TDUP, LTSE: TDUP), one of the largest online resale platforms for apparel, shoes, and accessories, today released the results of its 2025 Resale Report. Conducted by third-party retail analytics firm GlobalData, the 13th annual study serves as the most comprehensive measure of the secondhand market globally and in the U.S., with forward looking projections through 2034. It also includes new insights about tariff and trade implications, how social commerce and AI are reshaping retail, and the government’s role in managing textile waste. The report’s findings are based on market sizing and growth estimates from GlobalData, a survey of 3,034 U.S. consumers over the age of 18, and a survey of 50 top U.S. fashion retailers and brands.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250319230685/en/

“As consumers are increasingly thinking secondhand first, the retail industry is adopting powerful new pathways for resale. From the integration of social commerce and innovative AI applications to the establishment of trade organizations and interfacing with government, it’s clear why resale is seeing accelerated growth and has such a promising growth trajectory.”

– James Reinhart, CEO, ThredUp

“Resale continues to outpace the broader retail sector, with online resale in particular driving the sector’s growth. Shoppers are prioritizing quality as resale value becomes an increasingly important factor in purchasing decisions, and retailers are evolving their secondhand offerings to meet consumer demand with new avenues like social commerce, further driving adoption and preference for secondhand.”

– Neil Saunders, Managing Director, GlobalData

The top five trends from ThredUp’s 2025 Resale Report:

(all figures pertain to the U.S. unless otherwise noted)

In 2024, the U.S. secondhand apparel market saw its strongest growth since 2021. Online resale saw accelerated growth for the second consecutive year.

• The global secondhand apparel market is expected to reach $367 billion by 2029, growing at a compound annual growth rate (CAGR) of 10%.
• The U.S. secondhand apparel market is expected to reach $74 billion by 2029.
• The U.S. secondhand apparel market grew 14% in 2024, seeing its strongest annual growth since 2021 and outpacing the broader retail clothing market by 5X.
• In 2024, online resale saw accelerated growth for the second consecutive year at 23%, growing at its strongest rate since 2021. It’s expected to nearly double in the next 5 years, growing at a CAGR of 13% to reach $40 billion by 2029.

Tariffs are expected to provide a tailwind to the secondhand market as shoppers prioritize affordability and retailers seek stability.

• 59% of consumers say if new government policies around tariffs and trade make apparel more expensive, they will seek more affordable options like secondhand. This figure is highest among Millennials at 69%.
• Consumers plan to spend 34% of their apparel budget on secondhand in the next 12 months. This figure is higher among younger generations (Gen Z and Millennials) who say they’ll spend nearly half (46%) on secondhand.
• 80% of retail executives expect new government policies around tariffs and trade to disrupt their global supply chain.
• 44% of retail executives are looking to reduce reliance on imported goods, and 54% of retail executives believe resale offers a more stable and predictable source of clothing in the face of potential tariff fluctuations.

Retailers view resale as a new revenue stream that helps them stay competitive and acquire new customers.

• 94% of retail executives say their customers are already participating in resale – an all-time high, +4 pts from 2023.
• 32% of consumers who bought secondhand apparel in 2024 made a purchase directly from a brand. 47% of younger generations did.
• 47% of consumers are more likely to make a first-time purchase with a brand if they offer shopping credit for trading in used apparel, +25 pts from 2023.

Retailers can unlock revenue by integrating social commerce and resale for omnichannel success.

• 39% of younger generation shoppers have made a secondhand apparel purchase on a social commerce platform in the last 12 months. 28% of consumers overall have.
• Half (50%) of younger generation shoppers who purchased secondhand apparel in the last 12 months purchased to create content or share on social media.
• 76% of retail executives say social commerce will play a significant role in driving resale adoption within their brand.
• 38% of retail executives allow customers to shop secondhand through a social commerce platform. Another 48% are considering integrating social commerce in the future.
• 22% of retail executives believe social commerce will generate meaningful (> 10% of total) revenue within the next 3 years.

AI is driving resale adoption by reducing thrift overwhelm and bridging the gap between shopping used and new.

• 48% of consumers say personalization, improved search, and discovery make shopping secondhand apparel as easy as shopping new. 59% of younger generations say this.
• 46% of consumers say if they can find an item secondhand, they won’t buy it new. 55% of younger generations say this.
• 78% of retailers have already made significant investments in AI; and 58% plan to launch AI-powered tools in the next year.
• 62% of retailers agree that AI has the power to make the secondhand shopping experience more appealing.
• 44% of retailers agree that AI bridging the gap between secondhand and new apparel.

To see the 2025 Resale Report, visit thredup.com/resale.

About the 2025 Resale Report

ThredUp’s annual Resale Report contains research and data from GlobalData, a third-party retail analytics firm. GlobalData’s assessment of the secondhand market is determined through consumer surveys, retailer tracking, official public data, data sharing, store observation, and secondary sources. These inputs are used by analysts to model and calculate market sizes, channel sizes, and market shares. Further, for the purpose of this report, GlobalData conducted a January-February 2025 survey of 3,034 American adults over 18, asking specific questions about their behaviors and preferences for secondhand. GlobalData also surveyed the top 50 U.S. fashion retailers and brands from January-February 2025 to gather their opinions on resale. In addition, ThredUp’s Resale Report also leverages data from internal ThredUp customer and brand performance data.

About ThredUp

ThredUp is transforming resale with technology and a mission to inspire the world to think secondhand first. By making it easy to buy and sell secondhand, ThredUp has become one of the world’s largest online resale platforms for apparel, shoes and accessories. Sellers love ThredUp because we make it easy to clean out their closets and unlock value for themselves or for the charity of their choice while doing good for the planet. Buyers love shopping value, premium and luxury brands all in one place, at up to 90% off estimated retail price. Our proprietary operating platform is the foundation for our managed marketplace and consists of distributed processing infrastructure, proprietary software and systems and data science expertise. With ThredUp’s Resale-as-a-Service, some of the world’s leading brands and retailers are leveraging our platform to deliver customizable, scalable resale experiences to their customers. ThredUp has processed over 172 million unique secondhand items from 55,000 brands across 100 categories. By extending the life cycle of clothing, ThredUp is changing the way consumers shop and ushering in a more sustainable future for the fashion industry.

Forward-Looking Statements

This release contains forward-looking statements. Forward-looking statements include all statements that are not historical facts. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “predict” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. Except as required by law, ThredUp has no obligation to update any of these forward-looking statements to conform these statements to actual results or revised expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250319230685/en/

Media Contact

Christina Berger

[email protected]

Investor Relations Contact

Lauren Frasch

[email protected]

Resale-as-a-Service Contact

Christine Iovino

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Software Artificial Intelligence Data Management Technology Electronic Commerce Online Retail Fashion Retail

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U.S. online resale saw accelerated growth in 2024 for the second consecutive year.

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Brands across the apparel ecosystem are performing well in the resale market.

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Younger shoppers are turning to social platforms to buy secondhand apparel.

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AI is driving resale adoption by bridging the gap between shopping secondhand and new.

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KRISPY KREME®Introduces New Chocomania Collection, Featuring Doughnuts Made with HERSHEY’S Chocolate

Fan favorite Chocomania returns beginning March 19

CHARLOTTE, N.C.–(BUSINESS WIRE)–
It’s back! Krispy Kreme® today introduced a new edition of its popular annual Chocomania Collection – three new doughnuts and a returning fan favorite, all featuring melt-in-your-mouth Krispy Kreme doughnuts with delectable HERSHEY’S milk chocolate icing.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250319959643/en/

Krispy Kreme’s Chocomania returns for a limited time beginning March 19 at participating Krispy Kreme shops. The extra-chocolatey, extra-delicious Chocomania Collection includes:

• NEW: HERSHEY’S Chocolate Salted Caramel Cheesecake Doughnut, an unglazed shell doughnut filled with HERSHEY’S caramel cheesecake flavored Kreme^TM, dipped in HERSHEY’S milk chocolate icing, sprinkled with chocolate cookie crumb, and topped with a salted caramel swirl.
• NEW: HERSHEY’S Chocolate Buttercreme Doughnut, an unglazed ring doughnut dipped in HERSHEY’S milk chocolate icing and topped with chocolate flavored buttercreme and semi-sweet chocolate curls.
• NEW: HERSHEY’S Chocolate Chip Cookie Doughnut, anOriginal Glazed® doughnut dipped in salted cookie dough flavored icing, topped with chocolate chip cookie pieces, Hershey’s mini semi-sweet chocolate chips, and HERSHEY’S milk chocolate icing drizzles.
• HERSHEY’S Classic Chocolate Doughnut, anOriginal Glazed® Doughnut with HERSHEY’S milk chocolate icing and a chocolate swirl.

“Chocomania satisfies your cravings for Krispy Kreme doughnuts and Hershey’s chocolate with every bite,” said Dave Skena, Krispy Kreme Chief Growth Officer. “Decadent chocolate caramel cheesecake, crumbly chocolate chip cookies and rich chocolate flavored buttercreme – all delicious chocolatey flavors reimagined for savoring and sharing any part of the day.”

Krispy Kreme’s Chocomania Collection is available in-shop and for pickup or delivery via Krispy Kreme’s app and website, individually and by the dozen. You can also enjoy Chocomania doughnuts in a Krispy Kreme 6-pack box delivered fresh daily to select retailers. Visit krispykreme.com/locate/location-search#grocery to find a shop or retailer near you.

To learn more about Krispy Kreme’s new Chocomania Collection, visit www.krispykreme.com/promos/chocomania.

Share how you’re enjoying and sharing Krispy Kreme’s all-new Chocomania Collection by using #KrispyKreme and tagging @krispykreme on social media.

About Krispy Kreme

Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business with more than 17,500 fresh points of access. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities, and the planet. Connect with Krispy Kreme Doughnuts at KrispyKreme.com and follow us on social: X, Instagram and Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250319959643/en/

Liv Rockett

[email protected]

KEYWORDS: United States North America North Carolina

INDUSTRY KEYWORDS: Restaurant/Bar Other Retail Specialty Family Food/Beverage Consumer Other Consumer Retail

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Fan favorite Chocomania returns beginning March 19

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