– Net Loss Per Fully Diluted Share of $(0.15) –
– Core FFO Per Fully Diluted Share of $0.21 –
– Leased Over 380,000 Square Feet –
– Completed Disposition of 250 West 57th Street for $275M –
– Acquired Land Under Two Broadway Campus Assets for $110M –
– Updates 2026 Core FFO Range –
NEW YORK--(BUSINESS WIRE)--
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observation Deck. The Company is a recognized leader in energy efficiency and indoor environmental quality. Today the Company reported its operational and financial results for the second quarter of 2026. All per share amounts are on a fully diluted basis, where applicable.
Second Quarter and Recent Highlights
- Net Loss of $(0.15) per share. Results include the following items that are excluded from Core Funds From Operations: non-cash goodwill impairment charge of $166.1 million related to our Observatory reporting unit, a $124.6 million gain on the disposition of 250 West 57th Street, and $5.5 million of one-time severance costs included in general and administrative expenses.
- Core Funds From Operations (“Core FFO”) of $0.21 per share.
- Same-Store Property Cash Net Operating Income (“NOI”), excluding lease termination fees, increased 3.3% year-over-year. The increase was primarily attributed to the receipt of approximately $4.0 million of non-recurring real estate tax abatements, related to prior periods. Adjusted for the non-recurring items, Same-Store Property Cash NOI decreased by 3.2%. This change was primarily attributed to increases in free rent and operating expenses, partially offset by an increase in tenant reimbursement income.
- The total commercial portfolio was 94.9% leased and 89.4% occupied as of June 30, 2026.
- Signed 381,799 rentable square feet of commercial leases, inclusive of 363,968 rentable square feet of office leases.
- In the office portfolio, blended leasing spreads were +17.8%, the 20 th consecutive quarter of positive leasing spreads.
- Empire State Building Observation Deck generated NOI of $12.4 million, with continued impact from reduced international tourism and weakness in the pass program channel.
- Completed the disposition of 250 West 57 th Street for $275 million, which includes the buyer’s assumption of $180 million of mortgage debt, as previously announced. The transaction represents a recycling of capital into the Company’s December 2025 acquisition of 130 Mercer Street, without recognition of a taxable gain.
- Completed the acquisition of the land under the Company’s 111 West 33 rd Street and 1400 Broadway properties for an aggregate price of $110 million, as previously announced.
- Subsequent to quarter-end, closed on a $245 million unsecured delayed draw term loan that matures in 2032. The Company has no unaddressed debt maturity until January 2028.
Property Operations1
As of June 30, 2026, the Company’s property portfolio comprised 7.1 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 743 residential units, which were occupied and leased as shown below.
| | June 30, 20262,3 | March 31, 20262,3 | June 30, 20252 |
Percent occupied: | | | |
| Total commercial portfolio | 89.4% | 88.2% | 89.0% |
| Office | 89.1% | 87.9% | 88.9% |
| Retail | 92.8% | 91.2% | 89.9% |
| | | | |
Percent leased (includes signed leases not commenced): |
| Total commercial portfolio | 94.9% | 93.2% | 92.9% |
| Office | 94.8% | 93.0% | 93.1% |
| Retail | 95.9% | 95.4% | 90.7% |
| Total multifamily portfolio | 97.7% | 96.4% | 98.6% |
1 Excludes approximately 15,000 square feet of retail space under redevelopment related to the June 2025 acquisition of 86-90 North 6th Street, approximately 396,000 square feet of space, comprised of 368,000 square feet of office space and 28,000 square feet of retail space, related to the December 2025 acquisition of 130 Mercer Street, which is under redevelopment, and approximately 22,000 square feet of retail space related to the March 2026 acquisition of 41-55 North 6th Street, which is newly constructed and currently vacant. |
2 All occupancy and leased percentages exclude broadcasting and storage space. |
3 Occupancy and leased percentages for June 30, 2026 and March 31, 2026 exclude Metro Center, which was sold during the fourth quarter 2025. Occupancy and leased percentages for June 30, 2026 also exclude 250 West 57th Street, which was sold during the second quarter 2026. |
Leasing
The tables that follow summarize leasing activity for the second quarter of 2026. During this period, the Company signed 21 leases that totaled 381,799 square feet with an average lease duration of 9.7 years. Average lease duration was 12.0 years for new leases executed in the second quarter.
Total Portfolio
Total Portfolio | Leases executed | Square footage executed | Average cash rent psf – leases executed | % of new cash rent over / under previously escalated rents |
Office | 17 | 363,968 | $ | 72.75 | 17.8 | % |
Retail | 4 | 17,831 | $ | 502.26 | (25.9 | )% |
Total Overall | 21 | 381,799 | $ | 95.04 | 1.4 | % |
Office Portfolio
Office Portfolio | Leases executed | Square footage executed | Average cash rent psf – leases executed | % of new cash rent over / under previously escalated rents |
New Office | 12 | 252,344 | $ | 74.26 | 16.1 | % |
Renewal Office | 5 | 111,624 | $ | 69.87 | 21.6 | % |
Total Office | 17 | 363,968 | $ | 72.75 | 17.8 | % |
Leasing Activity Highlights
- 16-year 100,948 square foot new office lease with United Talent Agency at Empire State Building.
- 13-year 28,741 square foot new office lease with Infinium Wall Systems at 1359 Broadway.
- 8-year 26,134 square foot new office lease with Instacart at 111 West 33rd Street, which is 100% leased as of July 2026.
- 11-year 12,168 square foot new office lease with Landmark Management at One Grand Central Place.
- 6-year 59,121 square foot renewal office lease with Alfred Dunner at 1333 Broadway.
Balance Sheet
The Company had $0.5 billion of total liquidity as of June 30, 2026, which was comprised of $86 million of cash, plus $445 million available under its revolving credit facility. At June 30, 2026, the Company had total debt outstanding of approximately $2.2 billion at a weighted average interest rate of 4.70%. At June 30, 2026, the Company’s ratio of net debt to adjusted EBITDA was 6.6x.
Subsequent to quarter-end, the Company closed on a $245 million unsecured delayed draw term loan that matures in 2032. Term loan proceeds are expected to be drawn in January 2027 and used to repay existing debt. The Company has no unaddressed debt maturity until January 2028.
Portfolio Transaction Activity
The Company completed the disposition of 250 West 57th Street for $275 million, which included the buyer’s assumption of $180 million of mortgage debt, as previously announced. The transaction represents a recycling of capital into the Company’s December 2025 acquisition of 130 Mercer Street, without recognition of a taxable gain.
The Company completed the acquisition of the land under its 111 West 33rd Street and 1400 Broadway properties, which carried remaining ground lease terms of approximately 51 and 38 years, respectively, for an aggregate price of $110 million, as previously announced. The transaction enhances the long-term value of the Company’s high-quality portfolio and was funded with balance sheet liquidity.
Dividend
On June 30, 2026, the Company paid a quarterly dividend of $0.035 per share or unit, as applicable, for the second quarter of 2026 to holders of the Company’s Class A common stock (NYSE: ESRT) and Class B common stock and to holders of the Series ES, Series 250 and Series 60 partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR partnership units of Empire State Realty OP, L.P., the Company’s operating partnership (the “Operating Partnership”).
On June 30, 2026, the Company paid a quarterly preferred dividend of $0.15 and $0.175 per unit for the second quarter of 2026 to holders of the Operating Partnership’s Series 2014 and 2019 private perpetual preferred units, respectively.
Updated 2026 Core FFO
Given the uncertain operating environment and limited visibility into near-term performance trends for the Observation Deck, the Company utilizes $55 Million of NOI for the Core FFO range, which assumes no improvement to current visitation levels. More details will be provided on tomorrow’s call. The table below presents a range of potential Core FFO per share outcomes based on key building blocks for the property business and the Observation Deck. These outcomes exclude the impact of any significant future lease termination fee income or unannounced acquisition, disposition or other capital markets activity.
Key Items | 2026 Core FFO | Comments |
Earnings | July 2026 | February 2026 | |
Core FFO Per Fully Diluted Share | $0.75 to $0.79 | $0.85 to $0.89 | • Reflects property guidance assumptions and utilization of Observation Deck NOI of $55M |
Property Guidance Assumptions | | | |
Commercial Occupancy at year-end | 90% to 92% | 90% to 92% | |
SS Property Cash NOI (excluding lease termination fees) | -1.5% to +2.0% | -1.5% to +2.0% | • Assumes positive y/y revenue growth • Assumes a ~5.0 to 7.0% y/y increase in operating expenses and real estate taxes largely offset by tenant reimbursement income • 2026 assumes ~(270 bps) impact from temporary downtime associated with the previously disclosed FDIC expiration, which has been re-leased |
Observation Deck | | | |
Observation Deck NOI Utilized | $55M | $87M to $92M | • Assumes no improvement to current visitation levels |
| | Low | | High |
Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership | | $(0.11) | | $(0.07) |
Add: | | | | |
Goodwill Impairment Charge | | 0.61 | | 0.61 |
Real Estate Depreciation & Amortization | | 0.69 | | 0.69 |
Less: | | | | |
Private Perpetual Distributions | | 0.02 | | 0.02 |
Gain on Disposal of Real Estate, net | | 0.46 | | 0.46 |
FFO Attributable to Common Stockholders and the Operating Partnership | | $0.71 | | $0.75 |
Add: | | | | |
Severance Expense | | 0.02 | | 0.02 |
Amortization of Below Market Ground Lease | | 0.02 | | 0.02 |
Core FFO Attributable to Common Stockholders and the Operating Partnership | | $0.75 | | $0.79 |
The estimates set forth above may be subject to fluctuations as a result of several factors, including continued impacts of changes in the use of office space and remote work on our business and our market, performance of the Observation Deck (including tourism levels, currency and geopolitical impacts, weather and competition), our ability to complete planned capital improvements in line with budget, costs of integration of completed acquisitions, costs associated with future acquisitions or other transactions, straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.
Investor Presentation Update
The Company has posted on the “Investors” section of ESRT’s website the latest investor presentation, which contains additional information on its businesses, financial condition and results of operations.
Webcast and Conference Call Details
Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Thursday, July 30, 2026 at 12:00 pm Eastern time.
The webcast will be available in the “Investors” section of ESRT’s website. To listen to the live broadcast, go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers.
Starting shortly after the call until August 13, 2026, a replay of the webcast will be available on the Company’s website, and a dial-in replay will be available by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13761043.
The Supplemental Report and Investor Presentation are additional components of the quarterly earnings announcement and are now available on the “Investors” section of ESRT’s website.
The Company uses, and intends to continue to use, the “Investors” page of its website, which can be found at www.esrtreit.com, as a means to disclose material nonpublic information and to comply with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the “Investors” page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observation Deck. The Company is a recognized leader in energy efficiency and indoor environmental quality. As of June 30, 2026, ESRT’s portfolio is comprised of approximately 7.5 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units. More information about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, TikTok, X, and LinkedIn.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts and can generally be identified by words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “estimate,” “may,” “will,” “should,” “would,” and similar expressions.
Forward-looking statements are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, among others: economic and market conditions (including the impact of catastrophic events, pandemics, extreme weather, terrorism, armed hostilities, cybersecurity threats and other technology disruptions); increased costs due to tariffs or other economic factors; changes in the New York City office, retail, multifamily and tourism markets (including changes in the use of office space and remote work); leasing activity, tenant defaults, early terminations and renewals, occupancy levels and rental rates; performance of the Observatory (including tourism levels, currency and geopolitical impacts, weather and competition); interest rate volatility and capital markets conditions, including our ability to refinance, restructure or extend indebtedness; real estate valuation declines and potential impairment charges; our ability to execute capital projects and complete acquisitions on acceptable terms; risks relating to governmental regulation, environmental and climate-related requirements (including Local Law 97), and our ability to achieve sustainability goals and metrics; risks relating to our ground leases; our ability to maintain our qualification as a REIT; potential taxable gain arising from transactions structured to qualify under Section 1031; legal proceedings; and risks relating to our disclosure controls and internal control over financial reporting. For a discussion of these and other factors, see the section entitled “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2025 and any additional factors that may be contained in any filing we make with the U.S. Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statement to reflect subsequent events or circumstances, except as required by law.
Empire State Realty Trust, Inc. |
Consolidated Statements of Operations |
(unaudited and amounts in thousands, except per share data) |
| | | |
| Three Months Ended June 30, |
| | 2026 | | | | 2025 | |
Revenues | | | |
Rental revenue | $ | 165,166 | | | $ | 153,540 | |
Observatory revenue | | 24,225 | | | | 33,899 | |
Lease termination fees | | — | | | | 464 | |
Third-party management and other fees | | 268 | | | | 408 | |
Other revenue and fees | | 7,240 | | | | 2,939 | |
Total revenues | | 196,899 | | | | 191,250 | |
Operating expenses | | | |
Property operating expenses | | 47,774 | | | | 44,880 | |
Ground rent expenses | | 1,506 | | | | 2,332 | |
General and administrative expenses | | 25,123 | | | | 18,685 | |
Observatory expenses | | 11,795 | | | | 9,822 | |
Real estate taxes | | 32,912 | | | | 32,607 | |
Goodwill impairment charge | | 166,113 | | | | — | |
Depreciation and amortization | | 50,389 | | | | 47,802 | |
Total operating expenses | | 335,612 | | | | 156,128 | |
Total operating income (loss) | | (138,713 | ) | | | 35,122 | |
Other income (expense): | | | |
Interest income | | 1,575 | | | | 1,867 | |
Interest expense | | (27,805 | ) | | | (25,126 | ) |
Gain on disposition of properties | | 124,622 | | | | — | |
Income (Loss) before income taxes | | (40,321 | ) | | | 11,863 | |
Income tax (expense) benefit | | 767 | | | | (478 | ) |
Net income (loss) | | (39,554 | ) | | | 11,385 | |
Non-controlling interest in the Operating Partnership | | 14,782 | | | | (3,815 | ) |
Preferred unit distributions | | (1,051 | ) | | | (1,051 | ) |
Net income (loss) attributable to common stockholders | $ | (25,823 | ) | | $ | 6,519 | |
Total weighted average shares | | | |
Basic | | 171,039 | | | | 168,368 | |
Diluted | | 268,947 | | | | 269,951 | |
Earnings per share attributable to common stockholders | | | |
Basic | $ | (0.15 | ) | | $ | 0.04 | |
Diluted | $ | (0.15 | ) | | $ | 0.04 | |
Empire State Realty Trust, Inc. |
Consolidated Statements of Operations |
(unaudited and amounts in thousands, except per share data) |
| | | |
| Six Months Ended June 30, |
| | 2026 | | | | 2025 | |
Revenues | | | |
Rental revenue | $ | 331,271 | | | $ | 308,082 | |
Observatory revenue | | 42,735 | | | | 57,060 | |
Lease termination fees | | 1,356 | | | | 464 | |
Third-party management and other fees | | 545 | | | | 839 | |
Other revenue and fees | | 11,317 | | | | 4,871 | |
Total revenues | | 387,224 | | | | 371,316 | |
Operating expenses | | | |
Property operating expenses | | 95,518 | | | | 89,940 | |
Ground rent expenses | | 3,837 | | | | 4,663 | |
General and administrative expenses | | 43,216 | | | | 35,625 | |
Observatory expenses | | 19,663 | | | | 17,940 | |
Real estate taxes | | 67,525 | | | | 65,657 | |
Goodwill impairment charge | | 166,113 | | | | — | |
Depreciation and amortization | | 100,608 | | | | 96,581 | |
Total operating expenses | | 496,480 | | | | 310,406 | |
Total operating income (loss) | | (109,256 | ) | | | 60,910 | |
Other income (expense): | | | |
Interest income | | 2,188 | | | | 5,653 | |
Interest expense | | (55,942 | ) | | | (52,064 | ) |
Interest expense associated with property in receivership | | — | | | | (647 | ) |
Gain on disposition of properties | | 124,622 | | | | 13,170 | |
Income (Loss) before income taxes | | (38,388 | ) | | | 27,022 | |
Income tax benefit | | 1,829 | | | | 141 | |
Net income (loss) | | (36,559 | ) | | | 27,163 | |
Non-controlling interest in the Operating Partnership | | 14,072 | | | | (9,323 | ) |
Preferred unit distributions | | (2,101 | ) | | | (2,101 | ) |
Net income (loss) attributable to common stockholders | $ | (24,588 | ) | | $ | 15,739 | |
Total weighted average shares | | | |
Basic | | 171,101 | | | | 167,644 | |
Diluted | | 268,870 | | | | 269,739 | |
Earnings per share attributable to common stockholders | | | |
Basic | $ | (0.14 | ) | | $ | 0.09 | |
Diluted | $ | (0.14 | ) | | $ | 0.09 | |
Empire State Realty Trust, Inc. |
Reconciliation of Net Income (Loss) to Funds From Operations (“FFO”), |
Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”) |
(unaudited and amounts in thousands, except per share data) |
| |
| Three Months Ended June 30, |
| | 2026 | | | | 2025 | |
| | | |
Net income (loss) | $ | (39,554 | ) | | $ | 11,385 | |
Preferred unit distributions | | (1,051 | ) | | | (1,051 | ) |
Real estate depreciation and amortization | | 49,463 | | | | 46,921 | |
Gain on disposition of properties | | (124,622 | ) | | | — | |
FFO attributable to common stockholders and Operating Partnership units | | (115,764 | ) | | | 57,255 | |
| | | |
Amortization of below-market ground leases | | 1,249 | | | | 1,958 | |
Modified FFO attributable to common stockholders and Operating Partnership units | | (114,515 | ) | | | 59,213 | |
| | | |
Severance expense4 | | 5,536 | | | | — | |
Goodwill impairment charge | | 166,113 | | | | — | |
Core FFO attributable to common stockholders and Operating Partnership units | $ | 57,134 | | | $ | 59,213 | |
| | | |
Total weighted average shares and Operating Partnership units | | | |
Basic | | 268,947 | | | | 266,899 | |
Diluted | | 268,947 | | | | 269,951 | |
| | | |
FFO per share | | |
Basic | $ | (0.43 | ) | | $ | 0.21 | |
Diluted | $ | (0.43 | ) | | $ | 0.21 | |
| | | |
Modified FFO per share | | | |
Basic | $ | (0.43 | ) | | $ | 0.22 | |
Diluted | $ | (0.43 | ) | | $ | 0.22 | |
| | | |
Core FFO per share | | | |
Basic | $ | 0.21 | | | $ | 0.22 | |
Diluted | $ | 0.21 | | | $ | 0.22 | |
4 Included as a component of general and administrative expenses in the accompanying consolidated statements of operations. |
Empire State Realty Trust, Inc. |
Reconciliation of Net Income (Loss) to Funds From Operations (“FFO”), |
Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”) |
(unaudited and amounts in thousands, except per share data) |
| |
| Six Months Ended June 30, |
| | 2026 | | | | 2025 | |
| | | |
Net income (loss) | $ | (36,559 | ) | | $ | 27,163 | |
Preferred unit distributions | | (2,101 | ) | | | (2,101 | ) |
Real estate depreciation and amortization | | 98,755 | | | | 94,792 | |
Gain on disposition of properties | | (124,622 | ) | | | (13,170 | ) |
FFO attributable to common stockholders and Operating Partnership units | | (64,527 | ) | | | 106,684 | |
| | | |
Amortization of below-market ground leases | | 3,207 | | | | 3,916 | |
Modified FFO attributable to common stockholders and Operating Partnership units | | (61,320 | ) | | | 110,600 | |
| | | |
Interest expense associated with property in receivership | | — | | | | 647 | |
Severance expense5 | | 5,536 | | | | — | |
Goodwill impairment charge | | 166,113 | | | | — | |
Core FFO attributable to common stockholders and Operating Partnership units | $ | 110,329 | | | $ | 111,247 | |
| | | |
Total weighted average shares and Operating Partnership units | | | |
Basic | | 268,870 | | | | 266,985 | |
Diluted | | 268,870 | | | | 269,739 | |
| | | |
FFO per share | | | |
Basic | $ | (0.24 | ) | | $ | 0.40 | |
Diluted | $ | (0.24 | ) | | $ | 0.40 | |
| | | |
Modified FFO per share | | | |
Basic | $ | (0.23 | ) | | $ | 0.41 | |
Diluted | $ | (0.23 | ) | | $ | 0.41 | |
| | | |
Core FFO per share | | | |
Basic | $ | 0.41 | | | $ | 0.42 | |
Diluted | $ | 0.41 | | | $ | 0.41 | |
| | | |
5 Included as a component of general and administrative expenses in the accompanying consolidated statements of operations. |
Empire State Realty Trust, Inc. |
Reconciliation of Net Income (Loss) to Cash NOI and Same Store Cash NOI |
(unaudited and amounts in thousands) |
| |
| Three Months Ended June 30, |
| 2026 | | | | 2025 | |
| | | |
Net income (loss) | $ | (39,554 | ) | | $ | 11,385 | |
Add: | | | |
General and administrative expenses | | 25,123 | | | | 18,685 | |
Depreciation and amortization | | 50,389 | | | | 47,802 | |
Interest expense | | 27,805 | | | | 25,126 | |
Goodwill impairment charge | | 166,113 | | | | — | |
Income tax expense (benefit) | | (767 | ) | | | 478 | |
Less: | | | |
Gain on disposition of property | | (124,622 | ) | | | — | |
Third-party management and other fees | | (268 | ) | | | (408 | ) |
Interest income | | (1,575 | ) | | | (1,867 | ) |
Net operating income | | 102,644 | | | | 101,201 | |
Straight-line rent | | (12,340 | ) | | | (3,748 | ) |
Above/below-market rent revenue amortization | | (384 | ) | | | (840 | ) |
Below-market ground lease amortization | | 1,249 | | | | 1,958 | |
Total cash NOI - including Observatory and lease termination fees | | 91,169 | | | | 98,571 | |
Less: Observatory NOI | | (12,430 | ) | | | (24,077 | ) |
Less: cash NOI from non-Same Store properties | | (9,313 | ) | | | (6,816 | ) |
Total Same Store property cash NOI - including lease termination fees | | 69,426 | | | | 67,678 | |
Less: Lease termination fees | | — | | | | (464 | ) |
Total Same Store property cash NOI - excluding Observatory and lease termination fees | $ | 69,426 | | | $ | 67,214 | |
Observatory NOI |
(unaudited and amounts in thousands) |
| |
| Three Months Ended June 30, |
| 2026 | | | 2025 |
| | | |
Observatory revenue | $ | 24,225 | | $ | 33,899 |
Observatory expenses | | 11,795 | | | 9,822 |
Observatory NOI, excluding intercompany rent6 | $ | 12,430 | | $ | 24,077 |
6 The Observatory pays a market-based rent comprised of fixed and percentage rent to the Empire State Building. Intercompany rent is eliminated upon consolidation. For the three months ended June 30, 2026 and June 30, 2025, the intercompany rent expense was $14,771 and $20,666, respectively. |
Empire State Realty Trust, Inc. |
Reconciliation of Net Income (Loss) to Cash NOI and Same Store Cash NOI |
(unaudited and amounts in thousands) |
| |
| Six Months Ended June 30, |
| 2026 | | | | 2025 | |
| | | |
Net income (loss) | $ | (36,559 | ) | | $ | 27,163 | |
Add: | | | |
General and administrative expenses | | 43,216 | | | | 35,625 | |
Depreciation and amortization | | 100,608 | | | | 96,581 | |
Interest expense | | 55,942 | | | | 52,064 | |
Interest expense associated with property in receivership | | — | | | | 647 | |
Goodwill impairment charge | | 166,113 | | | | — | |
Less: | | | |
Income tax benefit | | (1,829 | ) | | | (141 | ) |
Gain on disposition of property | | (124,622 | ) | | | (13,170 | ) |
Third-party management and other fees | | (545 | ) | | | (839 | ) |
Interest income | | (2,188 | ) | | | (5,653 | ) |
Net operating income | | 200,136 | | | | 192,277 | |
Straight-line rent | | (19,549 | ) | | | (9,031 | ) |
Above/below-market rent revenue amortization | | (1,054 | ) | | | (1,638 | ) |
Below-market ground lease amortization | | 3,207 | | | | 3,916 | |
Total cash NOI - including Observatory and lease termination fees | | 182,740 | | | | 185,524 | |
Less: Observatory NOI | | (23,072 | ) | | | (39,120 | ) |
Less: cash NOI from non-Same Store properties | | (20,550 | ) | | | (14,062 | ) |
Total Same Store property cash NOI - including lease termination fees | | 139,118 | | | | 132,342 | |
Less: Lease termination fees | | (1,356 | ) | | | (464 | ) |
Total Same Store property cash NOI - excluding Observatory and lease termination fees | $ | 137,762 | | | $ | 131,878 | |
Observatory NOI |
(unaudited and amounts in thousands) |
| |
| Six Months Ended June 30, |
| 2026 | | | 2025 |
| | | |
Observatory revenue | $ | 42,735 | | $ | 57,060 |
Observatory expenses | | 19,663 | | | 17,940 |
Observatory NOI, excluding intercompany rent7 | $ | 23,072 | | $ | 39,120 |
7 The Observatory pays a market-based rent comprised of fixed and percentage rent to the Empire State Building. Intercompany rent is eliminated upon consolidation. For the six months ended June 30, 2026 and June 30, 2025, the intercompany rent expense was $27,592 and $35,826, respectively. |
Empire State Realty Trust, Inc. |
Consolidated Balance Sheets |
(unaudited and amounts in thousands) |
| | | |
| June 30, 2026 | | December 31, 2025 |
Assets | | | |
Real estate properties, at cost | $ | 4,476,248 | | | $ | 4,205,907 | |
Less: accumulated depreciation | | (1,335,719 | ) | | | (1,366,829 | ) |
Real estate properties, net | | 3,140,529 | | | | 2,839,078 | |
Cash and cash equivalents | | 85,605 | | | | 132,657 | |
Restricted cash | | 42,612 | | | | 33,854 | |
Tenant and other receivables | | 21,270 | | | | 22,063 | |
Deferred rent receivables | | 257,072 | | | | 255,270 | |
Prepaid expenses and other assets | | 100,394 | | | | 93,355 | |
Deferred costs, net | | 258,166 | | | | 267,682 | |
Right of use assets, including below-market ground leases, net | | 42,084 | | | | 333,523 | |
Goodwill | | 325,366 | | | | 491,479 | |
Total assets | $ | 4,273,098 | | | $ | 4,468,961 | |
| | | |
Liabilities and equity | | | |
Mortgage notes payable, net | $ | 443,102 | | | $ | 619,269 | |
Senior unsecured notes, net | | 1,271,149 | | | | 1,270,668 | |
Unsecured term loan facility, net | | 337,125 | | | | 336,794 | |
Unsecured revolving credit facility | | 175,000 | | | | 145,000 | |
Accounts payable and accrued expenses | | 132,224 | | | | 120,150 | |
Acquired below market leases, net | | 36,425 | | | | 39,767 | |
Ground lease liabilities | | 1,063 | | | | 27,944 | |
Deferred revenue and other liabilities | | 50,352 | | | | 59,901 | |
Tenants’ security deposits | | 36,949 | | | | 27,276 | |
Total liabilities | | 2,483,389 | | | | 2,646,769 | |
Total equity | | 1,789,709 | | | | 1,822,192 | |
Total liabilities and equity | $ | 4,273,098 | | | $ | 4,468,961 | |
| | | |
Source: Empire State Realty Trust, Inc.