Embattled landlord New York City REIT is looking to change its strategy and its operating model as it navigates the challenges of operating an aging urban office portfolio.

In documents filed with the Securities and Exchange Commission, NYC REIT announced it would be looking to acquire properties outside of New York and that it would be seeking alternative asset classes to office.

The company plans to expand its coworking office business and is seeking to acquire and operate asset classes such as hotels and parking lots, as well as investing in management companies specialized in hotels and parking, according to the filing.

“We are excited to expand the scope of NYC beyond Manhattan real estate, which we believe will allow us to diversify our revenue streams and pursue opportunities that may not have been previously available to us,” NYC REIT CEO Michael Weil said in a statement. “While we continue to believe in the long-term necessity of New York City real estate, the pace of recovery of the office segment since the COVID outbreak remains challenged.”

The company also said it plans to "deREIT" and convert its corporate structure to a C corporation for tax purposes, which it expects to take place in the first quarter and be effective as of Jan. 1.

“The Company has not historically generated REIT taxable income and does not presently pay dividends to its stockholders,” it said in the filing. “Thus, the Company has not received and does not presently receive a tax benefit from its election to be taxed as a REIT.”

Along with deREITing, the company plans to executive an 8-to-1 reverse stock-split after trading closes on Jan. 11 in an attempt to boost share prices.

The office landlord’s shares are trading at less than $2, putting it at risk of being delisted from the New York Stock Exchange, according to Crain’s New York Business, which first reported the story.

Although the pandemic has battered NYC’s office market, NYC REIT's Manhattan-centric portfolio has been particularly afflicted. It disclosed in its second-quarter report that it was in danger of defaulting on approximately $200M worth of loans across four commercial properties, and that vacancy rates in its buildings outstripped Manhattan averages.

By Sept. 30, NYC REIT had just $7M left in cash — less than a third of the $23M cash on hand one year prior, Crain’s reported.