Empire State Realty Trust Reports Strong Second Quarter 2024 Financial Results

Strategic Insights -

Empire State Realty Trust, a New York City-focused REIT, reported strong operational and financial results for the second quarter 2024. The Company's flagship Empire State Building, the "World's Most Famous Building," continues to attract record-breaking numbers, with the Observatory declared the #1 Attraction in the World and the #1 Attraction in the U.S. for the third consecutive year in TripAdvisor's 2024 Travelers' Choice Awards. The Company remains the leader in energy efficiency and indoor environmental quality.

Key Takeaways:

  • Net Income of $0.10 per share, up from $0.06 per share in the second quarter 2023.
  • Core Funds From Operations ("Core FFO") of $0.24 per share, a 7.1% increase year-over-year.
  • Same-Store Property Cash Net Operating Income ("NOI") increased 7.4% year-over-year, driven by higher revenues from cash rent commencements.
  • Manhattan office portfolio leased rate increased by 60bps sequentially and 170bps year-over-year to 93.3%, the highest level in a decade.
  • Signed approximately 272,000 rentable square feet of new, renewal, and expansion leases, including an 11-year, 40,679 square foot lease with Pontera Solutions Inc. at the Empire State Building.
  • Empire State Building Observatory generated $41.3 million of NOI year-to-date, a 5.8% increase year-over-year.
  • Total liquidity of $1.0 billion, comprising $536 million of cash and $500 million available under the Company's revolving credit facility.
  • Total debt outstanding of approximately $2.3 billion, with no floating rate debt exposure and a weighted average interest rate of 4.27% per annum.
  • Acquired a prime retail portfolio on North 6th Street in Williamsburg, Brooklyn for $195 million in two separate transactions.
  • Share repurchase program has repurchased approximately $293.7 million of common stock at a weighted average price of $8.18 per share.

Statistics:

  • $41.3 million: NOI generated by the Empire State Building Observatory year-to-date, a 5.8% increase year-over-year.
  • 93.3%: Manhattan office portfolio leased rate as of June 30, 2024.
  • 272,000: Rentable square feet of new, renewal, and expansion leases signed in the second quarter.
  • 2.7%: Average increase in cash rent per square foot for new leases in the second quarter.
  • $195 million: Aggregate purchase price of two prime retail portfolios acquired on North 6th Street in Williamsburg, Brooklyn.
  • $293.7 million: Total amount repurchased under the Company's share repurchase program as of July 23, 2024.
  • $8.18: Weighted average price per share repurchased under the share repurchase program.

Sources:

  • Empire State Realty Trust, Inc. (2024). News Release. [1]
  • Empire State Realty Trust, Inc. (2024). Second Quarter 2024 Results Presentation. [2]
  • Empire State Realty Trust, Inc. (2024). 2024 Earnings Outlook. [3]