Gyrodyne, LLC: A Guide to Their "Exit Strategy"

I’ve put together this guide to help you understand how Gyrodyne, LLC is performing. Think of Gyrodyne not as a typical company looking to grow, but as a project nearing its finish line. Their goal is to sell their real estate, close the business, and return the cash to you.

1. What is the current plan?

Gyrodyne owns two main properties in New York: the 63-acre Flowerfield complex in St. James and the 13.8-acre Cortlandt Manor medical center. Their strategy is to secure government permits for development to make the land as valuable as possible.

As of December 31, 2024, the company held about $54.2 million in assets, mostly in these properties. They are not starting new businesses. Instead, they are focused on selling their land. Once they sell the properties and pay off their $14.5 million in debt, they plan to close the company and distribute the remaining cash to shareholders.

2. Recent Wins and the "Clock"

In July 2025, the company agreed to sell about 49 acres of the Flowerfield property for $24 million to $28.7 million. This is a major step forward, though it still depends on final site approvals and the outcome of ongoing zoning lawsuits.

The process remains complicated. Local community groups are challenging the Flowerfield development in court. While a judge ruled in Gyrodyne’s favor in late 2024, the opponents have appealed. Between this legal battle and the slow pace of government approvals, the company now expects to finish this process by 2028.

3. What’s the payout for shareholders?

As of December 31, 2025, the company expects to have about $25.9 million in cash left after paying off debts and covering closing costs. With roughly 2.2 million shares, this works out to an estimated $11.76 per share.

A very important warning: This is just an estimate. It depends on the final sale price of the Cortlandt Manor property, how long the legal appeals take, and the ongoing costs of owning the land. If the process drags on past 2028, taxes and maintenance fees will eat into that cash, potentially lowering your payout.

4. Key Risks to Keep in Mind

• The "Wait and See" Game: Because of legal appeals and slow government approvals, your money is tied up until at least 2028.
• No Guarantees: The Board of Directors decides when and how to pay you. If they decide the remaining assets are worth less than $1 million, they can close the company and pay you out without a shareholder vote.
• Market Swings: The value of the land depends on the New York real estate market. A downturn could force the company to accept lower offers, which would lower your payout.
• Operational Burn: The company spends more on legal and administrative costs than it earns in rent. They are using their cash reserves to fund the liquidation process.

5. The Bottom Line

You aren't buying a business that is trying to innovate. You are buying into a "liquidating trust." Your investment depends on whether the company can clear its legal hurdles and sell its land at a good price. The main risk is that legal delays and high costs will shrink the final payout.

Final Thought for Investors: Before deciding to invest, ask yourself if you are comfortable with your capital being locked up for several years while waiting for legal and zoning outcomes. If you are looking for quick growth or dividends, this is likely not the right fit for your portfolio.