US Market News
4 weeks ago
The Empire State Building’s Tastes of New York Experience to Feature EatalyJune 4, 2026 10:44 AM
Business Wire Gelato, cannoli, and tiramisù available on the 86th Floor Observation Deck from June 4 through Aug. 31 The Empire State Building (ESB), the “World’s Most Famous Building,” today announced that it will feature Eataly as its latest Tastes of New York Experience, a year-round offering of pop-ups which feature unique New York City bites. From June 4 through Aug. 31, Eataly will bring its New York City spin on “la dolce vita” to the Empire State Building’s iconic Observation Deck with a curated selection of its most beloved desserts and beverages. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260604332533/en/Gelato, cannoli, and tiramisù available on the 86th Floor Observation Deck from June 4 through Aug. 31 “We are excited to present Eataly’s true ‘estate Italiana’ as part of our year-round featured Tastes of New York to our visitors,” said Dan Rogoski, observatory general manager. “The Empire State Building can be seen and photographed all around New York City, but only a visit to our Observatory Deck gives you the most authentic # 1 experience in the United States, and the best view in New York City.” Located on the iconic 86th Floor Observation Deck each day from 9 a.m. to 10 p.m., the seasonal activation will bring together two iconic New York City brands for a delicious addition to visitors’ trip to the “World’s Most Famous Building.” Guests can indulge in a variety of handcrafted gelato flavors which include Cioccolato (Chocolate), Pistacchio (Pistachio), Fior di Latte (Sweet Milk), Limone (Lemon), and Fragola (Strawberry). The cart will feature Coppa Cremino – an exclusive gelato cup available only at the Empire State Building Observation Deck – that features hazelnut gelato with gianduja swirl, whipped cream, and an Eataly chocolate cremini. The menu also features Eataly’s classic and limited-edition tiramisù flavors: Classico – Layers of coffee-soaked rice flour sponge cake and mascarpone cream, topped with cocoa powder Pistacchio – Layers of coffee-soaked rice flour sponge cake and pistachio mascarpone cream, topped with crushed pistachios Hazelnut Gianduja – Layers of coffee-soaked rice flour sponge cake and hazelnut gianduja mascarpone cream, topped with hazelnut gianduja and chopped hazelnuts Fragole – Layers of maraschino-soaked rice flour sponge cake and mascarpone cream, topped with strawberry gelee and fresh strawberries Peanut Butter and Jelly – Layers of coffee-soaked rice flour sponge cake and mascarpone and peanut cream, topped with strawberry gelee, peanuts, and fresh strawberries Speculoos – Layers of coffee-soaked rice flour sponge cake, mascarpone and Speculoos cream, topped with Speculoos cookie crumble Additionally, guests can enjoy freshly filled cannoli finished with their choice of pistachios, chocolate chips, or sliced almonds. The pop-up will offer a selection of beverages which include San Benedetto still and sparkling water, Eataly Cola, Eataly No Sugar Cola, Eataly Lemon Soda, and Eataly Orange Soda. "Eataly is thrilled to bring New York City’s most authentic Italian cuisine to visitors from around the world at the Empire State Building Observation Deck this summer," said Enrico Prodi, VP of Operations at Eataly North America. "Together, we will create a unique experience that celebrates great food, culture, and one of New York City’s most iconic destinations.” The Empire State Building’s world-famous Observation Deck Experience underwent a $165 million reimagination that added a new interactive museum with nine galleries, bespoke host uniforms, and an upgraded 102nd Floor Observation Deck with unmatched views from the heart of New York City. The iconic Observation Deck Experience was voted the #1 top attraction in the U.S. in Tripadvisor’s 2026 Travelers’ Choice Awards: Best of the Best Things to Do. Hi-res images of the popup offerings, and the Empire State Building Observation Deck Experience, can be found here. Tickets to the Empire State Building Observation Deck can be found online. About the Empire State Building The Empire State Building, the "World's Most Famous Building," owned by Empire State Realty Trust, Inc. (ESRT: NYSE), soars 1,454 feet above Midtown Manhattan from base to antenna. The $165 million reimagination of the Empire State Building Observation Deck Experience created an all-new experience with a dedicated guest entrance, an interactive museum with nine galleries, and a redesigned 102nd Floor Observation Deck with floor-to-ceiling windows. The journey to the world-famous 86th Floor Observation Deck, the only 360-degree, open-air observatory with views of New York and beyond, orients visitors for their entire New York City experience and covers everything from the building's iconic history to its current place in pop culture. The Empire State Building Observation Deck Experience welcomes millions of visitors each year and is ranked the #1 Top Attraction in the United States in Tripadvisor's 2026 Travelers' Choice Awards: Best of the Best Things to Do, "America's Favorite Building" by the American Institute of Architects, the world's most popular travel destination by Uber, and the #1 New York City attraction in Lonely Planet's Ultimate Travel List. Since 2011, the building has been fully powered by renewable wind electricity, and its many floors house a diverse array of office tenants such as LinkedIn and Shutterstock, as well as retail options like STATE Grill and Bar, Tacombi, Ghirardelli, and Starbucks. For more information and Empire State Building Observation Deck Experience tickets visit esbnyc.com or follow the building's Facebook, X (formerly Twitter), Instagram, Weibo, YouTube, or TikTok. About Eataly Eataly stands as a distinctive brand with a high commitment to elevating the global presence of Italian food and wine excellence. Engaged in the distribution and promotion of premium-quality products, Eataly seamlessly integrates production, sales, catering, and educational components in its offerings. Distinguished as the sole genuinely international Italian food retail company, Eataly serves as an emblem of Italian culinary artistry and, more broadly, the essence of Made in Italy. Since 2023, Investindustrial, a leading independent investment company in Europe, has held a majority ownership stake of 52% in the Group. Eataly presently boasts a workforce of over 5,000 employees and operates 69 locations across 16 countries worldwide. These include Italy, the United States, Canada, the United Arab Emirates, Japan, Germany, Great Britain, France, Sweden, Turkey, South Korea, and Saudi Arabia. The company is actively executing an ambitious expansion plan, with new openings slated for some of the world's major cities. Additional information is available at www.eataly.com. Source: Empire State Realty Trust, Inc. Category: Empire State Building View source version on businesswire.com: https://www.businesswire.com/news/home/20260604332533/en/ Media Contact:
Empire State Realty Trust
Jamie Heitner
212-400-3339
jheitner@esrtreit.com Original: The Empire State Building’s Tastes of New York Experience to Feature Eataly
US Market News
2 months ago
Empire State Realty Trust Announces First Quarter 2026 ResultsApril 29, 2026 4:05 PM
Business Wire
– Net Income Per Fully Diluted Share of $0.01 –
– Core FFO Per Fully Diluted Share of $0.20 –
– Acquired Prime Retail Asset in Williamsburg for $46M with Recycled Investment Capacity –
– Completed $184M of Financings that Extend Debt Maturities –
– 2026 Outlook Unchanged –
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 Observatory. The Company is a recognized leader in energy efficiency and indoor environmental quality. Today the Company reported its operational and financial results for the first quarter of 2026. All per share amounts are on a fully diluted basis, where applicable.
First Quarter and Recent Highlights
Net Income of $0.01 per share.
Core Funds From Operations (“Core FFO”) of $0.20 per share.
Same-Store Property Cash Net Operating Income (“NOI”), excluding lease termination fees, increased 5.5% year-over-year. The first quarter change was primarily attributed to increases in base rent and tenant reimbursement income, as well as approximately $3.0 million of first quarter 2026 non-recurring items, which predominately consisted of lease modification revenue and net insurance recoveries. These increases to cash NOI were partially offset by operating expense increases. Adjusted for the previously noted non-recurring items, Same-Store Property Cash NOI increased by 1.3%.
The total commercial portfolio was 93.2% leased and 88.2% occupied as of March 31, 2026, with occupancy reduced by approximately 140 basis points due to temporary downtime related to the previously disclosed FDIC expiration, which is fully re-leased.
Signed 113,484 rentable square feet of commercial leases, inclusive of 90,687 rentable square feet of office leases, in the first quarter.
In the office portfolio, blended leasing spreads were +6.8% in the first quarter, the 19th consecutive quarter of positive leasing spreads.
Empire State Building Observatory generated NOI of $10.6 million in the seasonally light first quarter, which represents a year-over-year decline of approximately $3.5 million, excluding gift shop license revenue. As previously announced, gift shop license fees are expected to be more heavily weighted to the fourth quarter in 2026 as compared to 2025 due to a COVID-era license amendment.
Acquired a newly constructed, currently vacant, prime retail asset located at 41-55 North 6th Street in Williamsburg, Brooklyn for $46 million, which represents a redeployment of investment capacity from the December 2025 disposition of Metro Center, the Company’s last suburban commercial asset, without a recognition of a taxable gain, as previously announced.
Closed on a $53.5 million mortgage refinancing for 10 Union Square East, as previously announced.
In mid-April, announced the issuance of $130 million of 6-year senior unsecured notes in a private placement transaction. The Company now has no unaddressed debt maturity until January 2028.
Property Operations1
As of March 31, 2026, the Company’s property portfolio comprised 7.6 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units, which were occupied and leased as shown below.
March 31, 20262,3
December 31, 20252,3
March 31, 20252
Percent occupied:
Total commercial portfolio
88.2%
90.3%
87.9%
Office
87.9%
89.9%
87.5%
Retail
91.2%
94.4%
91.2%
Percent leased (includes signed leases not commenced):
Total commercial portfolio
93.2%
93.6%
92.5%
Office
93.0%
93.5%
92.3%
Retail
95.4%
95.3%
94.1%
Total multifamily portfolio
96.4%
97.8%
99.0%
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 will be redeveloped, 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 March 31, 2026 and December 31, 2025 exclude Metro Center, which was sold during the fourth quarter 2025.
Leasing
The tables that follow summarize leasing activity for the first quarter of 2026. During this period, the Company signed 11 leases that totaled 113,484 square feet with an average lease duration of 12.2 years.
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
9
90,687
59.46
6.8 %
Retail
2
22,797
135.49
(1.1) %
Total Overall
11
113,484
74.73
3.8 %
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
7
83,397
58.54
5.9 %
Renewal Office
2
7,290
70.00
16.3 %
Total Office
9
90,687
59.46
6.8 %
Leasing Activity Highlights
A 13-year 60,003 square foot new office lease with Steve Madden at 501 Seventh Avenue.
A 20-year 21,683 square foot renewal retail lease with JP Morgan Chase at One Grand Central Place.
Subsequent to quarter-end, a 10.5-year 38,084 square foot new full-floor office lease with a financial services tenant at 130 Mercer Street.
Balance Sheet
The Company had $0.6 billion of total liquidity as of March 31, 2026, which was comprised of $69 million of cash, plus $530 million available under its revolving credit facility. At March 31, 2026, the Company had total debt outstanding of approximately $2.3 billion at a weighted average interest rate of 4.54%. At March 31, 2026, the Company’s ratio of net debt to adjusted EBITDA was 6.3x.
The Company closed on a $53.5 million mortgage refinancing for 10 Union Square East, as previously announced. The 10-year interest-only loan carries a fixed interest rate of 5.3% and replaces a $50.0 million loan that matured on April 1, 2026. In mid-April, the Company entered into a note purchase agreement to issue $130 million of senior unsecured notes in a private placement transaction at a fixed rate of 5.99% that matures in 2032. The private placement is scheduled to fund on July 15, 2026.
Portfolio Transaction Activity
The Company acquired a newly constructed, prime retail asset located at 41-55 North 6th Street in Williamsburg, Brooklyn for $46.0 million at the end of the first quarter, as previously announced. The approximately 22,000 square foot property, currently vacant, is located between Kent and Wythe Avenues and in close proximity to the Company’s existing 102,000 square foot portfolio of prime retail assets along North 6th Street. The property adds eight new storefronts to the Company's already dominant position along the corridor. This acquisition, together with the Company’s purchase of 86-90 North 6th Street in mid-2025, completed the redeployment of investment capacity from the December 2025 disposition of Metro Center, its last suburban commercial asset, without a recognition of a taxable gain. These transactions were part of the Company’s strategy to recycle capital from non-core suburban assets into high-quality NYC assets with stronger long-term cash flow growth prospects.
Dividend
On March 31, 2026, the Company paid a quarterly dividend of $0.035 per share or unit, as applicable, for the first 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 March 31, 2026, the Company paid a quarterly preferred dividend of $0.15 and $0.175 per unit for the first quarter of 2026 to holders of the Operating Partnership’s Series 2014 and 2019 private perpetual preferred units, respectively.
2026 Earnings Outlook
The Company provides 2026 guidance and key assumptions, as summarized in the table below. The Company’s guidance does not include the impact of any significant future lease termination fee income or any unannounced acquisition, disposition or other capital markets activity.
Key Assumptions
2026 Guidance
2025 Actual
Results
Comments
Earnings
Core FFO Per Fully Diluted Share
$0.85 to $0.89
$0.87
2026 assumes ~($0.03) impact from temporary downtime associated with the previously disclosed FDIC expiration, which has been re-leased
Property Assumptions
Commercial Occupancy at year-end
90% to 92%
90.3%
SS Property Cash NOI
(excluding lease termination fees)
-1.5% to +2.0%
+0.6% (ex-one-
time items)
Assumes positive y/y revenue growth
Assumes a ~2.0 to 4.0% y/y increase in operating expenses and real estate taxes
2026 assumes ~(270 bps) impact from temporary downtime associated with the previously disclosed FDIC expiration, which has been re-leased
Observatory Drivers
Observatory NOI
$87M to $92M
$90M
Reflects average quarterly expenses of ~$10M
Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership
Low
High
$0.19
$0.23
Add:
Impairment Charge
0.00
0.00
Real Estate Depreciation & Amortization
0.65
0.65
Less:
Private Perpetual Distributions
0.02
0.02
Gain on Disposal of Real Estate, net
0.00
0.00
FFO Attributable to Common Stockholders and the Operating Partnership
$0.82
$0.86
Add:
Amortization of Below Market Ground Lease
0.03
0.03
Core FFO Attributable to Common Stockholders and the Operating Partnership
$0.85
$0.89
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 Observatory (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, April 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 May 14, 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 1-412-3176671 for international callers. The passcode for this dial-in replay is 13759470.
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 Observatory. The Company is a recognized leader in energy efficiency and indoor environmental quality. As of March 31, 2026, ESRT’s portfolio is comprised of approximately 8.0 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.
Condensed Consolidated Statements of Operations
(unaudited and amounts in thousands, except per share data)
Three Months Ended March 31,
2026
2025
Revenues
Rental revenue
$
166,105
$
154,542
Observatory revenue
18,510
23,161
Lease termination fees
1,356
—
Third-party management and other fees
277
431
Other revenue and fees
4,077
1,932
Total revenues
190,325
180,066
Operating expenses
Property operating expenses
47,744
45,060
Ground rent expenses
2,331
2,331
General and administrative expenses
18,093
16,940
Observatory expenses
7,868
8,118
Real estate taxes
34,613
33,050
Depreciation and amortization
50,219
48,779
Total operating expenses
160,868
154,278
Total operating income
29,457
25,788
Other income (expense):
Interest income
613
3,786
Interest expense
(28,137
)
(26,938
)
Interest expense associated with property in receivership
—
(647
)
Gain on disposition of properties
—
13,170
Income before income taxes
1,933
15,159
Income tax benefit
1,062
619
Net income
2,995
15,778
Net income attributable to non-controlling interests:
Non-controlling interest in the Operating Partnership
(710
)
(5,508
)
Preferred unit distributions
(1,050
)
(1,050
)
Net income attributable to common stockholders
$
1,235
$
9,220
Total weighted average shares
Basic
170,673
167,181
Diluted
269,348
269,529
Earnings per share attributable to common stockholders
Basic
$
0.01
$
0.06
Diluted
$
0.01
$
0.05
Empire State Realty Trust, Inc.
Reconciliation of Net Income 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 March 31,
2026
2025
Net income
$
2,995
$
15,778
Preferred unit distributions
(1,050
)
(1,050
)
Real estate depreciation and amortization
49,292
47,871
Gain on disposition of properties
—
(13,170
)
FFO attributable to common stockholders and Operating Partnership units
51,237
49,429
Amortization of below-market ground leases
1,958
1,958
Modified FFO attributable to common stockholders and Operating Partnership units
53,195
51,387
Interest expense associated with property in receivership
—
647
Core FFO attributable to common stockholders and Operating Partnership units
$
53,195
$
52,034
Total weighted average shares and Operating Partnership units
Basic
268,792
267,073
Diluted
269,348
269,529
FFO per share
Basic
$
0.19
$
0.19
Diluted
$
0.19
$
0.18
Modified FFO per share
Basic
$
0.20
$
0.19
Diluted
$
0.20
$
0.19
Core FFO per share
Basic
$
0.20
$
0.19
Diluted
$
0.20
$
0.19
Empire State Realty Trust, Inc.
Reconciliation of Net Income to Cash NOI and Same Store Cash NOI
(unaudited and amounts in thousands)
Three Months Ended March 31,
2026
2025
Net income
$
2,995
$
15,778
Add:
General and administrative expenses
18,093
16,940
Depreciation and amortization
50,219
48,779
Interest expense
28,137
26,938
Interest expense associated with property in receivership
—
647
Income tax benefit
(1,062
)
(619
)
Less:
Gain on disposition of property
—
(13,170
)
Third-party management and other fees
(277
)
(431
)
Interest income
(613
)
(3,786
)
Net operating income
97,492
91,076
Straight-line rent
(7,209
)
(5,283
)
Above/below-market rent revenue amortization
(670
)
(798
)
Below-market ground lease amortization
1,958
1,958
Total cash NOI - including Observatory and lease termination fees
91,571
86,953
Less: Observatory NOI
(10,642
)
(15,043
)
Less: cash NOI from non-Same Store properties
(5,383
)
(1,583
)
Total Same Store property cash NOI - including lease termination fees
75,546
70,327
Less: Lease termination fees
(1,356
)
—
Total Same Store property cash NOI - excluding Observatory and lease termination fees
$
74,190
$
70,327
Empire State Realty Trust, Inc.
Condensed Consolidated Balance Sheets
(unaudited and amounts in thousands)
March 31, 2026
December 31, 2025
Assets
Real estate properties, at cost
$
4,267,420
$
4,205,907
Less: accumulated depreciation
(1,400,827
)
(1,366,829
)
Real estate properties, net
2,866,593
2,839,078
Cash and cash equivalents
68,820
132,657
Restricted cash
37,326
33,854
Tenant and other receivables
23,667
22,063
Deferred rent receivables
261,275
255,270
Prepaid expenses and other assets
62,849
93,355
Deferred costs, net
262,212
267,682
Acquired below market ground leases, net
303,621
305,579
Right of use assets
27,882
27,944
Goodwill
491,479
491,479
Total assets
$
4,405,724
$
4,468,961
Liabilities and equity
Mortgage notes payable, net
$
621,392
$
619,269
Senior unsecured notes, net
1,270,909
1,270,668
Unsecured term loan facility, net
336,972
336,794
Unsecured revolving credit facility
90,000
145,000
Accounts payable and accrued expenses
111,918
120,150
Acquired below market leases, net
37,948
39,767
Ground lease liabilities
27,882
27,944
Deferred revenue and other liabilities
57,601
59,901
Tenants’ security deposits
26,964
27,276
Total liabilities
2,581,586
2,646,769
Total equity
1,824,138
1,822,192
Total liabilities and equity
$
4,405,724
$
4,468,961
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429773743/en/
Investors and Media
Empire State Realty Trust Investor Relations
(212) 850-2678
IR@esrtreit.com
Original: Empire State Realty Trust Announces First Quarter 2026 Results
US Market News
4 months ago
Empire State Realty Trust Announces Fourth Quarter and Full Year 2025 ResultsFebruary 17, 2026 4:41 PM
Business Wire
– Net Income Per Fully Diluted Share of $0.12 in 4Q and $0.25 in 2025 –
– Core FFO Per Fully Diluted Share of $0.23 in 4Q and $0.87 in 2025 –
– $417M of All-Cash Acquisitions of Well-Located, High-Quality Assets in 2025 –
– Exited Suburban Commercial Assets and Transitioned to 100% NYC Portfolio –
– Provides 2026 Outlook –
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 Observatory, ranked the #1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor’s 2025 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is a recognized leader in energy efficiency and indoor environmental quality. Today the Company reported its operational and financial results for the fourth quarter of 2025 and the full year. All per share amounts are on a fully diluted basis, where applicable.
Fourth Quarter and Full Year 2025 Recent Highlights
Net Income of $0.12 per share for the fourth quarter of 2025 and $0.25 per share for the full year.
Core Funds From Operations (“Core FFO”) of $0.23 per share for the fourth quarter of 2025 and $0.87 per share for the full year, compared to $0.24 per share and $0.95 per share for the same respective periods in 2024.
Same-Store Property Cash Net Operating Income (“NOI”), excluding lease termination fees, increased 0.9% for the fourth quarter and decreased 2.0% for the full year as compared to the same periods in 2024. The fourth quarter change was primarily attributed to increases in base rent and tenant reimbursement income. These higher revenues were partially offset by increases in utility costs and real estate taxes. Adjusted for approximately $2 million and $7 million of non-recurring items, which predominately consisted of revenue items recognized in the fourth quarter of 2024 and full year 2024, respectively, Same-Store Property Cash NOI increased by 3.4% and 0.6%, respectively.
Office occupancy of 89.9% and total commercial portfolio occupancy of 90.3%.
Signed 458,473 rentable square feet of commercial leases, inclusive of 333,451 rentable square feet of office leases, in the fourth quarter. Signed 1,009,009 rentable square feet of commercial leases, inclusive of 847,598 square feet of Manhattan office leases, in the full year 2025.
In the office portfolio, blended leasing spreads were +6.4% in the fourth quarter, the 18th consecutive quarter of positive leasing spreads.
Empire State Building Observatory generated NOI of $24.4 million in the fourth quarter and $90.1 million for the full year.
Completed the previously announced all-cash acquisition of 130 Mercer Street (555-557 Broadway, “The Scholastic Building”), located in the SoHo submarket of Manhattan, for a purchase price of $386.0 million.
Completed the disposition of the last suburban office asset, Metro Center, in Stamford, Connecticut and repaid the related mortgage debt of $71.6 million. The Company’s commercial portfolio is now 100% New York City.
Issued $175 million of senior unsecured notes in a private placement transaction.
Closed on a $245 million upsize and extension of our unsecured term loan credit facility that will now mature in 2031, inclusive of extensions. The Company now has no unaddressed debt maturity until March 2027.
Repurchased approximately $6.0 million of common stock in the fourth quarter, $8.1 million in the full year 2025.
Property Operations1
As of December 31, 2025, the Company’s operating portfolio comprised 7.6 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units, which were occupied and leased as shown below.
December 31, 20252, 3
September 30, 20252
December 31, 20242
Percent occupied:
Total commercial portfolio
90.3%
90.0%
88.6%
Office
89.9%
89.7%
88.4%
Retail
94.4%
92.8%
90.4%
Percent leased (includes signed leases not commenced):
Total commercial portfolio
93.6%
92.6%
93.5%
Office
93.5%
92.4%
93.5%
Retail
95.3%
94.7%
94.1%
Total multifamily portfolio
97.8%
98.6%
98.5%
1 Excludes approximately 15,000 square feet of space under redevelopment related to the June 2025 acquisition of 86-90 North 6th Street and 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 will be redeveloped.
2 All occupancy and leased percentages exclude broadcasting and storage space.
3 Occupancy and leased percentages for December 31, 2025 exclude Metro Center, which was sold during the fourth quarter.
Leasing
The tables that follow summarize leasing activity for the fourth quarter of 2025. During this period, the Company signed 27 leases that totaled 458,473 square feet with an average lease duration of 6.7 years. Average lease duration was 11.6 years for new leases executed in the fourth 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
18
333,451
73.63
6.4 %
Retail
9
125,022
81.43
(2.8) %
Total Overall
27
458,473
75.61
3.7 %
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
106,311
70.97
13.5 %
Renewal Office
6
227,140
74.88
3.6 %
Total Office
18
333,451
73.63
6.4 %
Leasing Activity Highlights
A 10-Year 46,437 square foot early renewal retail lease with TJ Maxx at 250 West 57th Street.
A 7-year 41,835 square foot early renewal office lease with Nespresso at 111 West 33rd Street.
A 16-year 35,629 square foot expansion office lease and a 170,763 square foot 1-year early renewal at 1400 Broadway with Burlington Stores, Inc. which represents footprint growth of over 20% and aligns the leases to a coterminous expiration in 2042.
Balance Sheet
The Company had $0.6 billion of total liquidity as of December 31, 2025, which was comprised of $133 million of cash, plus $475 million available under its revolving credit facility. At December 31, 2025, the Company had total debt outstanding of approximately $2.4 billion at a weighted average interest rate of 4.48%. At December 31, 2025, the Company’s ratio of net debt to adjusted EBITDA was 6.3x. The Company’s balance sheet supported $417 million of all-cash acquisitions of well-located, high-quality office and retail assets in 2025.
In the fourth quarter, the Company issued $175 million of senior unsecured notes in a private placement transaction at a fixed rate of 5.47% that matures in 2031. The Company also closed on a $245 million upsize and extension of its unsecured term loan credit facility that will now mature in 2031, inclusive of extensions. Through the execution of interest rate swap agreements, the Company fixed its interest rate on this facility at 4.51%. The Company now has no unaddressed debt maturity until March 2027.
Portfolio Transaction Activity
In the fourth quarter, the Company completed the previously announced all-cash acquisition of 130 Mercer Street (555-557 Broadway, the “Scholastic Building”) for a purchase price of $386.0 million. The property is located in the SoHo submarket of Manhattan and is comprised of approximately 368,000 square feet of office and 28,000 square feet of prime retail. This follows the $31.0 million all-cash acquisition of a prime retail asset located at 86-90 North 6th Street in Williamsburg, Brooklyn completed in the second quarter.
In the fourth quarter, the company also completed the disposition of its last suburban office asset, Metro Center, in Stamford, Connecticut, and repaid the related mortgage debt of $71.6 million. The Company’s commercial portfolio is now 100% New York City.
Share Repurchases
During the fourth quarter, the Company repurchased $6.0 million of common stock at a weighted average price of $6.73 per share. For the full year, the Company repurchased $8.1 million of common stock at a weighted average price of $6.78 per share.
Dividend
On December 31, 2025, the Company paid a quarterly dividend of $0.035 per share or unit, as applicable, for the fourth quarter of 2025 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 December 31, 2025, the Company paid a quarterly preferred dividend of $0.15 and $0.175 per unit for the fourth quarter of 2025 to holders of the Operating Partnership’s Series 2014 and 2019 private perpetual preferred units, respectively.
2026 Earnings Outlook
The Company provides 2026 guidance and key assumptions, as summarized in the table below. The Company’s guidance does not include the impact of any significant future lease termination fee income or any unannounced acquisition, disposition or other capital markets activity.
Key Assumptions
2026 Guidance
2025 Actual Results
Comments
Earnings
Core FFO Per Fully Diluted Share
$0.85 to $0.89
$0.87
• 2026 assumes ~($0.03) impact from temporary downtime associated with the previously disclosed FDIC expiration, which has been re-leased
Property Assumptions
Commercial Occupancy at year-end
90% to 92%
90.3%
SS Property Cash NOI (excluding lease termination fees)
-1.5% to +2.0%
+0.6% (ex-one-time items)
• Assumes positive y/y revenue growth
• Assumes a ~2.0 to 4.0% y/y increase in operating expenses and real estate taxes
• 2026 assumes ~(270 bps) impact from temporary downtime associated with the previously disclosed FDIC expiration, which has been re-leased
Observatory Drivers
Observatory NOI
$87M to $92M
$90M
• Reflects average quarterly expenses of ~$10M
Low
High
Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership
$0.19
$0.23
Add:
Impairment Charge
0.00
0.00
Real Estate Depreciation & Amortization
0.65
0.65
Less:
Private Perpetual Distributions
0.02
0.02
Gain on Disposal of Real Estate, net
0.00
0.00
FFO Attributable to Common Stockholders and the Operating Partnership
$0.82
$0.86
Add:
Amortization of Below Market Ground Lease
0.03
0.03
Core FFO Attributable to Common Stockholders and the Operating Partnership
$0.85
$0.89
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, 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 Wednesday, February 18, 2026 at 12:00 pm Eastern time.
The webcast will be accessible on the “Investors” section of ESRT’s website. To listen to the live webcast, 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 March 4, 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 13757582.
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 Observatory, ranked the #1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor’s 2025 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is a recognized leader in energy efficiency and indoor environmental quality. As of December 31, 2025, ESRT’s operating portfolio is comprised of approximately 7.6 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units. The Company also owns two properties that are being redeveloped with approximately 0.4 million rentable square feet of office space and 43 thousand rentable square feet of retail space. 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.
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 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, 2024 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 December 31,
2025
2024
Revenues
Rental revenue
$
159,721
$
155,127
Observatory revenue
35,232
38,275
Lease termination fees
—
—
Third-party management and other fees
240
258
Other revenue and fees
4,031
3,942
Total revenues
199,224
197,602
Operating expenses
Property operating expenses
47,817
46,645
Ground rent expenses
2,332
2,332
General and administrative expenses
18,474
17,870
Observatory expenses
10,787
9,730
Real estate taxes
33,842
32,720
Depreciation and amortization
50,566
45,365
Total operating expenses
163,818
154,662
Total operating income
35,406
42,940
Other income (expense):
Interest income
1,949
5,068
Interest expense
(25,880
)
(27,380
)
Interest expense associated with property in receivership
—
(1,921
)
Loss on early extinguishment of debt
(97
)
—
Gain on disposition of properties
21,848
1,237
Income before income taxes
33,226
19,944
Income tax expense
(1,054
)
(1,151
)
Net income
32,172
18,793
Net income attributable to non-controlling interests:
Non-controlling interest in the Operating Partnership
(11,446
)
(6,575
)
Preferred unit distributions
(1,050
)
(1,050
)
Net income attributable to common stockholders
$
19,676
$
11,168
Total weighted average shares
Basic
168,693
166,671
Diluted
270,328
270,251
Earnings per share attributable to common stockholders
Basic and Diluted
$
0.12
$
0.07
Empire State Realty Trust, Inc.
Consolidated Statements of Operations
(unaudited and amounts in thousands, except per share data)
Year ended December 31,
2025
2024
Revenues
Rental revenue
$
626,213
$
614,596
Observatory revenue
128,329
136,377
Lease termination fees
464
4,771
Third-party management and other fees
1,483
1,170
Other revenue and fees
11,781
11,009
Total revenues
768,270
767,923
Operating expenses
Property operating expenses
184,714
179,175
Ground rent expenses
9,326
9,326
General and administrative expenses
72,842
70,234
Observatory expenses
38,237
36,834
Real estate taxes
132,740
128,826
Depreciation and amortization
194,762
184,818
Total operating expenses
632,621
609,213
Total operating income
135,649
158,710
Other income (expense):
Interest income
8,748
21,298
Interest expense
(103,133
)
(105,239
)
Interest expense associated with property in receivership
(647
)
(4,471
)
Loss on early extinguishment of debt
(97
)
(553
)
Gain on disposition of properties
35,018
13,302
Income before income taxes
75,538
83,047
Income tax expense
(2,558
)
(2,688
)
Net income
72,980
80,359
Net income attributable to non-controlling interests:
Non-controlling interest in the Operating Partnership
(25,379
)
(28,713
)
Non-controlling interests in other partnerships
—
(4
)
Preferred unit distributions
(4,201
)
(4,201
)
Net income attributable to common stockholders
$
43,400
$
47,441
Total weighted average shares
Basic
168,539
164,902
Diluted
270,040
269,019
Earnings per share attributable to common stockholders
Basic
$
0.26
$
0.29
Diluted
$
0.25
$
0.28
Empire State Realty Trust, Inc.
Reconciliation of Net Income 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 December 31,
2025
2024
Net income
$
32,172
$
18,793
Preferred unit distributions
(1,050
)
(1,050
)
Real estate depreciation and amortization
49,689
44,386
Gain on disposition of properties
(21,848
)
(1,237
)
FFO attributable to common stockholders and Operating Partnership units
58,963
60,892
Amortization of below-market ground leases
1,958
1,958
Modified FFO attributable to common stockholders and Operating Partnership units
60,921
62,850
Interest expense associated with property in receivership
—
1,921
Loss on early extinguishment of debt
97
—
IPO litigation expense4
632
—
Core FFO attributable to common stockholders and Operating Partnership units
$
61,650
$
64,771
Total weighted average shares and Operating Partnership units
Basic
266,825
264,798
Diluted
270,328
270,251
FFO per share
Basic
$
0.22
$
0.23
Diluted
$
0.22
$
0.23
Modified FFO per share
Basic
$
0.23
$
0.24
Diluted
$
0.23
$
0.23
Core FFO per share
Basic
$
0.23
$
0.24
Diluted
$
0.23
$
0.24
4Included as a component of general and administrative expenses in the accompanying consolidated statements of operations.
Empire State Realty Trust, Inc.
Reconciliation of Net Income 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)
Year ended December 31,
2025
2024
Net income
$
72,980
$
80,359
Non-controlling interests in other partnerships
—
(4
)
Preferred unit distributions
(4,201
)
(4,201
)
Real estate depreciation and amortization
191,222
180,513
Gain on disposition of properties
(35,018
)
(13,302
)
FFO attributable to common stockholders and Operating Partnership units
224,983
243,365
Amortization of below-market ground leases
7,831
7,831
Modified FFO attributable to common stockholders and Operating Partnership units
232,814
251,196
Interest expense associated with property in receivership
647
4,471
Loss on early extinguishment of debt
97
553
IPO litigation expense5
632
—
Core FFO attributable to common stockholders and Operating Partnership units
$
234,190
$
256,220
Total weighted average shares and Operating Partnership units
Basic
266,939
264,706
Diluted
270,040
269,019
FFO per share
Basic
$
0.84
$
0.92
Diluted
$
0.83
$
0.90
Modified FFO per share
Basic
$
0.87
$
0.95
Diluted
$
0.86
$
0.93
Core FFO per share
Basic
$
0.88
$
0.97
Diluted
$
0.87
$
0.95
5 Included as a component of general and administrative expenses in the accompanying consolidated statements of operations.
Empire State Realty Trust, Inc.
Consolidated Balance Sheets
(unaudited and amounts in thousands)
December 31, 2025
December 31, 2024
Assets
Commercial real estate properties, at cost
$
4,205,907
$
3,786,653
Less: accumulated depreciation
(1,366,829
)
(1,274,193
)
Commercial real estate properties, net
2,839,078
2,512,460
Contract asset6
—
170,419
Cash and cash equivalents
132,657
385,465
Restricted cash
33,854
43,837
Tenant and other receivables
22,063
31,427
Deferred rent receivables
255,270
247,754
Prepaid expenses and other assets
93,355
101,852
Deferred costs, net
267,682
183,987
Acquired below market ground leases, net
305,579
313,410
Right of use assets
27,944
28,197
Goodwill
491,479
491,479
Total assets
$
4,468,961
$
4,510,287
Liabilities and equity
Mortgage notes payable, net
$
619,269
$
692,176
Senior unsecured notes, net
1,270,668
1,197,061
Unsecured term loan facility, net
336,794
268,731
Unsecured revolving credit facility
145,000
120,000
Debt associated with property in receivership
—
177,667
Accrued interest associated with property in receivership
—
5,433
Accounts payable and accrued expenses
120,150
132,016
Acquired below market leases, net
39,767
19,497
Ground lease liabilities
27,944
28,197
Deferred revenue and other liabilities
59,901
62,639
Tenants’ security deposits
27,276
24,908
Total liabilities
2,646,769
2,728,325
Total equity
1,822,192
1,781,962
Total liabilities and equity
$
4,468,961
$
4,510,287
6 This contract asset represents the amount of obligation which was released on February 5, 2025, upon the final resolution of the foreclosure process on First Stamford Place.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260217471923/en/
Investors and Media
Empire State Realty Trust Investor Relations
(212) 850-2678
IR@esrtreit.com
Original: Empire State Realty Trust Announces Fourth Quarter and Full Year 2025 Results
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