Empire State Realty Trust Q4 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy ESRT?
Source: seekingalpha
- Strong Financial Performance: Empire State Realty Trust (ESRT) reported a Q4 core FFO of $0.23, beating expectations by $0.01, indicating robust market performance despite a modest year-over-year revenue growth of only 0.8%.
- Revenue and Occupancy Rates: The company achieved Q4 revenue of $199.22 million, exceeding expectations by $1.57 million, with office occupancy at 89.9% and total commercial portfolio occupancy at 90.3%, reflecting success in tenant retention strategies.
- 2026 Outlook: ESRT projects core FFO for 2026 to range between $0.85 and $0.89, factoring in an estimated $0.03 negative impact from temporary downtime related to the previously disclosed FDIC expiration, showcasing a cautiously optimistic future.
- Operational Assumptions Analysis: The company anticipates a commercial occupancy rate of 90% to 92% in 2026, with operating expenses and real estate taxes expected to rise by 2% to 4% year-over-year, indicating strategic planning in cost control and revenue enhancement.
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Analyst Views on ESRT
Wall Street analysts forecast ESRT stock price to rise
5 Analyst Rating
2 Buy
2 Hold
1 Sell
Hold
Current: 6.390
Low
8.30
Averages
9.46
High
11.00
Current: 6.390
Low
8.30
Averages
9.46
High
11.00
About ESRT
Empire State Realty Trust, Inc. is a real estate investment trust (REIT), which owns and operates a portfolio of office, retail and multifamily assets. The Company’s portfolio consists of approximately 7.8 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 732 residential units. Its office portfolio included 10 properties. Nine of these office properties are located in midtown Manhattan and encompass over 7.6 million rentable square feet of office space and 0.5 million rentable square feet of retail space, including the Empire State Building. The Company’s segments include Real Estate and an Observatory. The Real Estate segment includes all activities related to the ownership, management, operation, acquisition, repositioning and disposition of its office, retail and multifamily assets principally located in New York City. The Observatory segment operates the 86th and 102nd floor observatories in the Empire State Building.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Empire State Realty Trust Reports 2025 Financial Highlights
- Strong Operational Performance: As of December 31, 2025, Empire State Realty Trust reported a commercial portfolio occupancy rate of 90.3%, up 1.7 percentage points from 2024, indicating robust demand and stable leasing activity in the New York City real estate market.
- Active Leasing Activity: In the fourth quarter of 2025, the company signed 27 leases totaling 458,473 square feet with an average lease duration of 6.7 years, demonstrating success in attracting long-term tenants and enhancing revenue predictability for the future.
- Solid Financial Position: As of December 31, 2025, the company had $600 million in liquidity and total debt of approximately $2.4 billion at an average interest rate of 4.48%, reflecting strong capital management that supports future acquisitions and investments.
- Increased Shareholder Returns: In the fourth quarter of 2025, the company repurchased $6 million of common stock at a weighted average price of $6.73 per share, totaling $8.1 million for the year, highlighting its commitment to shareholder returns and confidence in future market performance.
See More
Burlington Expands by 35,629 Square Feet in Fourth Expansion
- Lease Expansion: Burlington Stores, Inc. signed a 35,629 square foot expansion lease at 1400 Broadway, increasing its total leased space to 206,392 square feet, demonstrating the company's ongoing demand and confidence in Manhattan office space.
- Renewal Agreement: Burlington also executed an early renewal for its existing 170,763 square foot space, indicating a long-term strategic commitment in the area and further solidifying its market position.
- Partnership Continuation: Nespresso renewed its lease for 41,835 square feet at 111 W. 33rd Street, reflecting the appeal of ESRT's high-quality office spaces and exceptional service, thereby strengthening its partnership with tenants.
- Market Performance: Since 2013, ESRT has seen over 3.2 million square feet of tenant expansions, showcasing its robust asset portfolio and market demand, which enhances the company's competitiveness in the real estate sector.
See More
Empire State Realty Trust Q4 2025 Earnings Highlights
- Core Earnings Performance: For Q4 2025, Empire State Realty Trust reported core FFO of $0.23 per share and $0.87 for the full year, reflecting stable performance amid ongoing leasing momentum and asset management, with guidance for 2026 core FFO expected between $0.85 and $0.89, indicating management's confidence in future results.
- Strong Leasing Activity: The company leased nearly 460,000 square feet in 2025, totaling over 1 million square feet for the year, with office portfolio occupancy rising to 93.5%, which not only strengthens the company's market position but also lays a solid foundation for future growth.
- Strategic Acquisitions and Buybacks: In 2025, ESRT completed the acquisition of 130 Mercer for $386 million and repurchased $6 million of shares in Q4 at an average price of $6.73, demonstrating proactive capital allocation strategies and confidence in its intrinsic value.
- Outlook and Challenges: Despite facing short-term impacts from FDIC vacancies, with same-store cash NOI growth projected between -1.5% and 2% for 2026, management emphasized proactive balance sheet management and operational strategies to navigate market volatility, ensuring long-term value creation.
See More
Empire State Realty Trust Renews Leases with TJ Maxx and JP Morgan
- Lease Agreements Signed: Empire State Realty Trust has signed long-term renewal leases with TJ Maxx for 46,437 square feet, effective Q4 2025, which will secure stable rental income and enhance the attractiveness of the company's asset portfolio.
- JP Morgan Renewal: JP Morgan Chase Bank has also signed a renewal lease for 21,683 square feet, set to take effect in Q1 2026, which not only solidifies the bank's presence in a key commercial area but also ensures ongoing cash flow for the company.
- Stock Price Surge: Following the lease renewal announcements, shares of Empire State Realty Trust rose 3.3% in after-hours trading to $6.60, reflecting the market's positive response to the company's stable rental income outlook.
- Negotiation Representation: The lease negotiations for TJ Maxx were represented by Richard Skulnik of RIPCO, while Michael O’Neill of Cushman & Wakefield represented JP Morgan, showcasing the company's professionalism and influence in the leasing market.
See More
Empire State Realty Trust Renews Leases with TJ Maxx and JP Morgan
- Long-Term Lease Agreements: Empire State Realty Trust has signed long-term renewal leases with TJ Maxx for 46,437 square feet of retail space, effective Q4 2025, which will further solidify the company's market position in Midtown Manhattan.
- JP Morgan Renewal: JP Morgan Chase Bank has also signed a long-term renewal lease for 21,683 square feet, effective Q1 2026, demonstrating the bank's confidence in the Midtown commercial environment and enhancing ESRT's tenant stability.
- Increased Market Confidence: Fred C. Posniak, SVP at ESRT, stated that these long-term commitments reflect the strength of the company's asset portfolio in Midtown, particularly in high foot traffic areas, thereby increasing the company's commercial value and market appeal.
- Diverse Asset Portfolio: As of December 31, 2025, ESRT's operating portfolio comprises approximately 7.6 million square feet of office space and 0.8 million square feet of retail space, showcasing its robust presence and diversified investment strategy in the New York City real estate market.
See More
Empire State Realty Trust Signs Lease Renewals with Burlington and Nespresso
- Lease Renewals and Expansion: Empire State Realty Trust signed a total lease of 206,392 square feet with Burlington Stores in Q4 2025, including a 35,629 square foot expansion, indicating Burlington's ongoing trust and demand for ESRT's office spaces.
- High-Quality Office Space: Nespresso renewed its lease for 41,835 square feet at 111 W. 33rd Street, demonstrating its recognition of the premium office environment provided by ESRT, thereby solidifying their partnership.
- Tenant Expansion Trend: Since 2013, ESRT has seen over 3.2 million square feet of tenant expansions, reflecting its strong asset portfolio and financial stability, which continues to attract high-quality tenants.
- Market Leadership: ESRT's flagship Empire State Building has been ranked as the top attraction in New York City for four consecutive years, showcasing its market leadership and brand influence, which further enhances its appeal and tenant confidence.
See More
Empire State Realty Trust Reports 2025 Financial Highlights
- Strong Operational Performance: As of December 31, 2025, Empire State Realty Trust reported a commercial portfolio occupancy rate of 90.3%, up 1.7 percentage points from 2024, indicating robust demand and stable leasing activity in the New York City real estate market.
- Active Leasing Activity: In the fourth quarter of 2025, the company signed 27 leases totaling 458,473 square feet with an average lease duration of 6.7 years, demonstrating success in attracting long-term tenants and enhancing revenue predictability for the future.
- Solid Financial Position: As of December 31, 2025, the company had $600 million in liquidity and total debt of approximately $2.4 billion at an average interest rate of 4.48%, reflecting strong capital management that supports future acquisitions and investments.
- Increased Shareholder Returns: In the fourth quarter of 2025, the company repurchased $6 million of common stock at a weighted average price of $6.73 per share, totaling $8.1 million for the year, highlighting its commitment to shareholder returns and confidence in future market performance.
See More
Burlington Expands by 35,629 Square Feet in Fourth Expansion
- Lease Expansion: Burlington Stores, Inc. signed a 35,629 square foot expansion lease at 1400 Broadway, increasing its total leased space to 206,392 square feet, demonstrating the company's ongoing demand and confidence in Manhattan office space.
- Renewal Agreement: Burlington also executed an early renewal for its existing 170,763 square foot space, indicating a long-term strategic commitment in the area and further solidifying its market position.
- Partnership Continuation: Nespresso renewed its lease for 41,835 square feet at 111 W. 33rd Street, reflecting the appeal of ESRT's high-quality office spaces and exceptional service, thereby strengthening its partnership with tenants.
- Market Performance: Since 2013, ESRT has seen over 3.2 million square feet of tenant expansions, showcasing its robust asset portfolio and market demand, which enhances the company's competitiveness in the real estate sector.
See More
Empire State Realty Trust Q4 2025 Earnings Highlights
- Core Earnings Performance: For Q4 2025, Empire State Realty Trust reported core FFO of $0.23 per share and $0.87 for the full year, reflecting stable performance amid ongoing leasing momentum and asset management, with guidance for 2026 core FFO expected between $0.85 and $0.89, indicating management's confidence in future results.
- Strong Leasing Activity: The company leased nearly 460,000 square feet in 2025, totaling over 1 million square feet for the year, with office portfolio occupancy rising to 93.5%, which not only strengthens the company's market position but also lays a solid foundation for future growth.
- Strategic Acquisitions and Buybacks: In 2025, ESRT completed the acquisition of 130 Mercer for $386 million and repurchased $6 million of shares in Q4 at an average price of $6.73, demonstrating proactive capital allocation strategies and confidence in its intrinsic value.
- Outlook and Challenges: Despite facing short-term impacts from FDIC vacancies, with same-store cash NOI growth projected between -1.5% and 2% for 2026, management emphasized proactive balance sheet management and operational strategies to navigate market volatility, ensuring long-term value creation.
See More
Empire State Realty Trust Renews Leases with TJ Maxx and JP Morgan
- Lease Agreements Signed: Empire State Realty Trust has signed long-term renewal leases with TJ Maxx for 46,437 square feet, effective Q4 2025, which will secure stable rental income and enhance the attractiveness of the company's asset portfolio.
- JP Morgan Renewal: JP Morgan Chase Bank has also signed a renewal lease for 21,683 square feet, set to take effect in Q1 2026, which not only solidifies the bank's presence in a key commercial area but also ensures ongoing cash flow for the company.
- Stock Price Surge: Following the lease renewal announcements, shares of Empire State Realty Trust rose 3.3% in after-hours trading to $6.60, reflecting the market's positive response to the company's stable rental income outlook.
- Negotiation Representation: The lease negotiations for TJ Maxx were represented by Richard Skulnik of RIPCO, while Michael O’Neill of Cushman & Wakefield represented JP Morgan, showcasing the company's professionalism and influence in the leasing market.
See More
Empire State Realty Trust Renews Leases with TJ Maxx and JP Morgan
- Long-Term Lease Agreements: Empire State Realty Trust has signed long-term renewal leases with TJ Maxx for 46,437 square feet of retail space, effective Q4 2025, which will further solidify the company's market position in Midtown Manhattan.
- JP Morgan Renewal: JP Morgan Chase Bank has also signed a long-term renewal lease for 21,683 square feet, effective Q1 2026, demonstrating the bank's confidence in the Midtown commercial environment and enhancing ESRT's tenant stability.
- Increased Market Confidence: Fred C. Posniak, SVP at ESRT, stated that these long-term commitments reflect the strength of the company's asset portfolio in Midtown, particularly in high foot traffic areas, thereby increasing the company's commercial value and market appeal.
- Diverse Asset Portfolio: As of December 31, 2025, ESRT's operating portfolio comprises approximately 7.6 million square feet of office space and 0.8 million square feet of retail space, showcasing its robust presence and diversified investment strategy in the New York City real estate market.
See More
Empire State Realty Trust Signs Lease Renewals with Burlington and Nespresso
- Lease Renewals and Expansion: Empire State Realty Trust signed a total lease of 206,392 square feet with Burlington Stores in Q4 2025, including a 35,629 square foot expansion, indicating Burlington's ongoing trust and demand for ESRT's office spaces.
- High-Quality Office Space: Nespresso renewed its lease for 41,835 square feet at 111 W. 33rd Street, demonstrating its recognition of the premium office environment provided by ESRT, thereby solidifying their partnership.
- Tenant Expansion Trend: Since 2013, ESRT has seen over 3.2 million square feet of tenant expansions, reflecting its strong asset portfolio and financial stability, which continues to attract high-quality tenants.
- Market Leadership: ESRT's flagship Empire State Building has been ranked as the top attraction in New York City for four consecutive years, showcasing its market leadership and brand influence, which further enhances its appeal and tenant confidence.
See More
