Sign in Subscribe
Empire State Realty Trust Inc.

Empire State Realty Trust Reports Strong Third Quarter 2024 Financial Results

Strategic Insights

— 1 min read

Empire State Realty Trust, Inc. (NYSE: ESRT), a NYC-focused REIT, reported its operational and financial results for the third quarter 2024, showcasing a strong performance across various key metrics. Despite increases in operating expenses, the Company's Same-Store Property Cash Net Operating Income (NOI) increased 5.2% year-over-year, driven by higher revenues from cash rent commencements. The Manhattan office portfolio leased rate increased by 170bps year-over-year to 93.6%, with a total commercial portfolio of 93.0% leased as of September 30, 2024.

Key Takeaways:

  • Net Income of $0.08 per share for the third quarter 2024, a significant improvement from previous years.
  • Core Funds From Operations (Core FFO) of $0.26 per share, a 4% increase year-over-year, driven by lease termination fee income.
  • Same-Store Property Cash NOI increased 5.2% year-over-year, excluding non-recurring revenue items, driven by higher cash rent commencements.
  • Manhattan office portfolio leased rate increased by 170bps year-over-year to 93.6%, indicating strong tenant demand.
  • Total commercial portfolio is 93.0% leased as of September 30, 2024, with a Manhattan office occupancy rate of 89.2%.
  • The Company achieved its 13th consecutive quarter of positive leasing spreads in its Manhattan office portfolio, with blended leasing spreads of +2.6%.
  • Empire State Building Observatory generated $29.7 million of NOI, a 5.6% increase year-over-year.
  • ESRT acquired prime retail assets on North 6th Street in Williamsburg, Brooklyn, for $143 million, with the remaining balance expected to close in the 4th quarter 2024.
  • The Company secured a GRESB 5 Star Rating for the fifth consecutive year, ranking first among all listed companies in the Americas for the second year in a row.

Statistics:

  • Same-Store Property Cash NOI increased 5.2% year-over-year, excluding non-recurring revenue items, to $0.25 per share.
  • Manhattan office portfolio leased rate increased by 30bps sequentially and 170bps year-over-year to 93.6%.
  • Total commercial portfolio is 88.8% occupied as of September 30, 2024.
  • Emprie State Building Observatory generated $29.7 million of NOI, a 5.6% increase year-over-year.
  • Core FFO included $0.02 per share of lease termination fee income.

Sources:

  • Empire State Realty Trust, Inc. (NYSE: ESRT) news release dated October 2024.
  • Tripadvisor's 2024 Travelers' Choice Awards: Best of the Best Things to Do.
  • GRESB 2024 rating report.

Read more