Empire State Realty Trust Reports Third Quarter 2024 Financial Results
Intellectia.AI2024-10-22
Empire State Realty Trust Reports Third Quarter 2024 Financial Results
Empire State Realty Trust, Inc. (NYSE:ESRT), a NYC-focused real estate investment trust, announced its financial results for the third quarter ended September 30, 2024.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2023 | Wall Street Estimates |
|---|---|---|---|
| Net Income Per Share (Diluted) | $0.08 | Not Provided | Not Provided |
| Core FFO Per Share (Diluted) | $0.26 | $0.25 | Not Provided |
Empire State Realty Trust's financial performance in the third quarter of 2024 reflects a stable operational backdrop, with an increase in Core Funds From Operations (Core FFO) per share compared to the same quarter in 2023, partly due to a $0.02 per share benefit from lease termination fees.
Segment Revenue Performance
| Revenue Segment | Q3 2024 Revenue | Year-over-Year Change |
|---|---|---|
| Observatory NOI | $29.7M | +5.6% |
The revenue from the Empire State Building Observatory increased by 5.6% year-over-year in the third quarter, underscoring sustained demand for this key asset.
Key Developments and Operational Highlights
- Signed approximately 304,000 rentable square feet in new, renewal, and expansion leases.
- Closed on $143 million of a previously announced $195 million retail acquisition in Williamsburg, Brooklyn.
- Entered an agreement to acquire an additional retail asset on North 6th Street in Williamsburg, Brooklyn, for $30 million.
- Achieved the highest possible GRESB 5-Star Rating for the fifth consecutive year with a score of 93.
Management Commentary
Empire State Realty Trust's management highlighted their strategic focus on strengthening the NYC core assets by recycling capital from non-core assets into highly desirable properties. The stable leasing activity and rise in occupancy rates have contributed positively to their portfolio's performance.
Dividend and Share Repurchase Program
The company paid a quarterly dividend of $0.035 per share for the third quarter of 2024. No share repurchases occurred during this period, although the program started in March 2020 with approximately $293.7 million repurchased at an average share price of $8.18.
Forward Guidance
ESRT raised its 2024 FFO guidance, although specific figures for future projections were not disclosed. Management indicates caution due to various market uncertainties, including continued impacts on office space utilization trends.
Stock Price Movement
Post-earnings release, the stock price experienced a decrease of approximately 1.75%, reflecting perhaps a measured investor outlook despite positive operational highlights.
Overall, Empire State Realty Trust's third-quarter results showcase its resilience in the NYC real estate market, with strategic acquisitions and strong segment performances underpinning its financial health amidst a challenging environment.
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