Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Empire State Realty Trust (ESRT) and Sunstone Hotel Investors (SHO) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36105 EMPIRE STATE REALTY TRUST, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or orga ...

NEW YORK--(BUSINESS WIRE)--Empire State Realty Trust, Inc. (NYSE: ESRT) announced today that it signed a new 11-year office lease with Sol de Janeiro USA – a luxury skincare and beauty brand – for 57,203 square feet at One Grand Central Place. Sol de Janeiro is a subsidiary of French beauty brand L’Occitane, who recently signed a separate 9,497 square foot expansion and lease term extension on their existing 20,962 square foot space at ESRT’s 111 W. 33rd Street. One Grand Central Place offers 55 stories of ...

NEW YORK--(BUSINESS WIRE)--Be an ESB VIP. The Empire State Building (ESB) announced today its new ambassador program for locals who host guests in New York City and superfans of its world-famous Observatory Experience. Visitors earn points in the loyalty program for each ticket purchased on the ESB website for the 86th and 102nd Floor Observatories and redeem them for complimentary experiences and collectibles. “ Each visit to the Empire State Building is unique, and we made it easier for our loyal locals ...

NEW YORK--(BUSINESS WIRE)--Empire State Realty Trust, Inc. (NYSE: ESRT) announced today that Burlington Stores, Inc. signed an expansion lease for an additional 67,865 square feet of office space across two full floors at 1400 Broadway. With this expansion, Burlington will occupy a total of 170,763 square feet within ESRT’s portfolio across five full floors, with a new 16-year lease term for the expansion space coterminous with the current office space. After an initial deal in 2010 for 35,182 square feet, ...

NEW YORK--(BUSINESS WIRE)--Empire State Realty Trust, Inc. (NYSE: ESRT) announced today that it signed a new lease with Hanover Street Capital, a commercial real estate platform that provides comprehensive services for Deutsche Bank’s commercial and multifamily real estate financing business, for a 12,622 square foot space at 250 West 57th Street. “ We were drawn to 250 W. 57th Street for its unbeatable location and our high end pre-built space that is move-in ready,” said Sunil Madan, Head and COO, at Han ...

NEW YORK--(BUSINESS WIRE)--Celebrate the most romantic day of the year at the “World’s Most Romantic Building.” The Empire State Building (ESB) – the number one attraction in the U.S. by Tripadvisor travelers for two consecutive years – announced today that it will host themed movie screenings; offer an over-the-top, bucket list Valentine’s Day date for one lucky couple; and provide a special engagement package for couples who plan to tie the knot this February. Empire for Two – This year, one lucky coupl ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%201.%20FINANCIAL%20INFORMATION) [Financial Statements](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company's financial statements for the period ended September 30, 2023, show total assets of $4.22 billion, a slight increase from $4.16 billion at year-end 2022. For the nine months ended September 30, 2023, net income attributable to common stockholders was $39.9 million, a significant increase from $23.8 million in the prior-year period, driven by higher observatory revenue and gains on property dispositions. Cash flow from operations also increased to $196.0 million from $174.0 million year-over-year [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, total assets were $4.217 billion, a slight increase from $4.164 billion at December 31, 2022. The increase was primarily driven by a rise in cash and cash equivalents. Total liabilities remained stable at approximately $2.48 billion, while total equity increased to $1.733 billion from $1.683 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 (unaudited) | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Commercial real estate properties, net | $2,402,130 | $2,414,182 | | Cash and cash equivalents | $353,999 | $264,434 | | Total assets | $4,216,547 | $4,163,594 | | **Liabilities & Equity** | | | | Mortgage notes payable, net | $878,757 | $883,705 | | Senior unsecured notes, net | $973,819 | $973,659 | | Total liabilities | $2,483,227 | $2,480,503 | | Total equity | $1,733,320 | $1,683,091 | | Total liabilities and equity | $4,216,547 | $4,163,594 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the third quarter of 2023, total revenues increased to $191.5 million from $183.7 million year-over-year, primarily due to a 13.6% rise in Observatory revenue. Net income attributable to common stockholders more than doubled to $11.6 million, or $0.07 per diluted share, compared to $5.6 million, or $0.03 per diluted share, in Q3 2022. For the nine-month period, net income attributable to common stockholders rose to $39.9 million from $23.8 million Q3 2023 vs Q3 2022 Performance (in thousands, except per share) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Total revenues | $191,526 | $183,712 | | Rental revenue | $151,458 | $148,290 | | Observatory revenue | $37,562 | $33,051 | | Total operating income | $42,257 | $35,527 | | Net income attributable to common stockholders | $11,560 | $5,557 | | Diluted EPS | $0.07 | $0.03 | Nine Months Ended Sep 30, 2023 vs 2022 Performance (in thousands, except per share) | Metric | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | | Total revenues | $546,690 | $545,768 | | Observatory revenue | $93,149 | $73,660 | | Gain on disposition of property | $29,261 | $27,170 | | Net income attributable to common stockholders | $39,933 | $23,847 | | Diluted EPS | $0.25 | $0.14 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash provided by operating activities increased to $196.0 million from $174.0 million in the prior-year period. Net cash used in investing activities decreased significantly to $39.4 million from $89.1 million, mainly due to proceeds from property dispositions. Net cash used in financing activities also decreased to $50.4 million from $119.7 million, primarily due to lower share repurchases Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $196,048 | $173,985 | | Net cash used in investing activities | ($39,379) | ($89,116) | | Net cash used in financing activities | ($50,394) | ($119,692) | | **Net increase (decrease) in cash** | **$106,275** | **($34,823)** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business as a New York City-focused REIT with a portfolio of office, retail, and multifamily assets, including the Empire State Building Observatory. Key notes cover acquisitions and dispositions, debt structure, lease information, segment performance, and equity compensation. In Q3 2023, the company acquired a retail property in Brooklyn for $26.4 million. Total debt stood at $2.26 billion, with no significant maturities until November 2024. The company remains in compliance with all debt covenants - As of September 30, 2023, ESRT's portfolio comprised approximately **8.6 million rentable sq. ft. of office space**, **0.7 million rentable sq. ft. of retail space**, and **727 residential units**, primarily in New York City[26](index=26&type=chunk) - On September 14, 2023, the company acquired a retail property in Williamsburg, Brooklyn for **$26.4 million**. In early 2023, it disposed of properties in Harrison, NY, and Westport, CT, for a total of **$93.0 million**, generating a combined gain of **$29.3 million**[37](index=37&type=chunk)[40](index=40&type=chunk) - Total principal debt as of September 30, 2023, was approximately **$2.26 billion**, consisting of mortgage debt, senior unsecured notes, and unsecured term loan facilities. The company was in compliance with all debt covenants[48](index=48&type=chunk)[49](index=49&type=chunk) - The company has two reportable segments: Real Estate and Observatory. For Q3 2023, the Real Estate segment generated **$15.2 million in net income**, while the Observatory segment generated **$4.7 million**[113](index=113&type=chunk)[115](index=115&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reports strong Q3 2023 results, with net income attributable to common stockholders of $11.6 million and Core FFO of $65.9 million. The performance was driven by a 13.6% year-over-year increase in Observatory revenue and stable rental revenue. The company maintains a strong liquidity position with $354.0 million in cash and $850 million available on its credit facility, with no significant debt maturities until late 2024. While acknowledging macroeconomic uncertainties, management believes its diversified, modernized New York City-focused portfolio and strong balance sheet position it well competitively - Highlights for Q3 2023 include net income of **$11.6 million**, Core FFO of **$65.9 million**, and signing **248,479 rentable square feet of leases**. The Empire State Building Observatory generated **$28.1 million of net operating income**[126](index=126&type=chunk) - The company maintains a strong liquidity position with **$354.0 million in cash and cash equivalents** and **$850 million available** under its unsecured revolving credit facility as of September 30, 2023[146](index=146&type=chunk) - Management acknowledges global economic uncertainty but believes ESRT is well-positioned due to its diversified income drivers (office, retail, multifamily, observatory), modernized NYC-focused portfolio, and a strong balance sheet with no near-term debt maturities[188](index=188&type=chunk)[189](index=189&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) For Q3 2023, total revenues grew 4.3% YoY to $191.5 million, driven by a $4.5 million (13.6%) increase in Observatory revenue. Real Estate rental revenue saw a modest 2.1% increase. For the nine-month period, Observatory revenue grew 26.5% YoY, while a $20 million lease termination fee in 2022 kept total revenue growth nearly flat at 0.2%. The decrease in nine-month depreciation and amortization was due to accelerated depreciation on a disposed property in 2022 - Q3 2023 vs. Q3 2022: Observatory revenue increased by **$4.5 million (13.6%)** due to higher visitation and revenue per visitor. Rental revenue increased by **$3.2 million (2.1%)** from new leases and higher rents[127](index=127&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) - YTD 2023 vs. YTD 2022: Observatory revenue increased by **$19.5 million (26.5%)**. Total revenue growth was muted by the absence of a **$20.0 million lease termination fee** that was recognized in 2022[133](index=133&type=chunk) - YTD 2023 vs. YTD 2022: Depreciation and amortization decreased by **$32.1 million**, primarily reflecting accelerated depreciation in 2022 related to the consensual foreclosure of the 383 Main Avenue property[133](index=133&type=chunk)[138](index=138&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company has a strong liquidity position with $354.0 million in cash and $850 million available under its credit facility. Total debt is approximately $2.2 billion with a weighted average interest rate of 3.9% and no maturities until November 2024. The company is in compliance with all financial covenants, maintaining a total leverage ratio of 33.2% against a required maximum of 60%. Capital expenditure commitments for existing leases are estimated at $139.3 million Financial Covenant Compliance (as of Sep 30, 2023) | Financial covenant | Required | Actual | In Compliance | | :--- | :--- | :--- | :--- | | Maximum total leverage | < 60% | 33.2 % | Yes | | Maximum secured leverage | < 40% | 13.0 % | Yes | | Minimum fixed charge coverage | > 1.50x | 3.0x | Yes | | Minimum unencumbered interest coverage | > 1.75x | 5.3x | Yes | | Maximum unsecured leverage | < 60% | 24.8 % | Yes | - As of September 30, 2023, the company had approximately **$2.2 billion of total consolidated debt** with a weighted average interest rate of **3.9%** and a weighted average maturity of **5.7 years**[146](index=146&type=chunk) - The company expects to incur approximately **$139.3 million** for future tenant improvements and leasing commissions related to existing lease agreements[159](index=159&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like NOI, FFO, and Core FFO to evaluate performance. For Q3 2023, Net Operating Income (NOI) was $104.6 million, up from $97.8 million in Q3 2022. Core Funds From Operations (Core FFO) for Q3 2023 was $65.9 million, an increase from $56.5 million in the prior-year quarter Reconciliation of Net Income to NOI (in thousands) | | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Net income | $19,928 | $10,118 | | Adjustments... | ... | ... | | **Net operating income** | **$104,625** | **$97,847** | Reconciliation of Net Income to Core FFO (in thousands) | | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Net income | $19,928 | $10,118 | | Real estate depreciation and amortization | $45,174 | $45,461 | | Other adjustments... | ... | ... | | **FFO** | **$63,941** | **$54,578** | | Amortization of below-market ground leases | $1,957 | $1,957 | | **Modified FFO** | **$65,898** | **$56,535** | | **Core FFO** | **$65,898** | **$56,535** | [Quantitative and Qualitative Disclosure About Market Risk](index=44&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURE%20ABOUT%20MARKET%20RISK) The company is primarily exposed to interest rate risk on its variable-rate debt and future refinancings. To mitigate this, ESRT uses fixed-rate debt and derivative instruments like interest rate swaps. As of September 30, 2023, the company had interest rate swap and cap agreements with a notional value of $573.6 million. The weighted average interest rate on its $2.2 billion of fixed-rate debt was 3.9% per annum - The company uses derivative financial instruments, such as interest rate swaps and caps, to manage interest rate risk on floating-rate debt[192](index=192&type=chunk) - As of September 30, 2023, the company had interest rate swap and cap agreements with an aggregate notional value of **$573.6 million**[193](index=193&type=chunk) - The weighted average interest rate on the company's **$2.2 billion of fixed-rate debt** was **3.9%** per annum as of September 30, 2023[194](index=194&type=chunk) [Controls and Procedures](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of September 30, 2023. They concluded that these controls were effective. There were no material changes to the company's internal control over financial reporting during the quarter - The CEO and CFO concluded that as of September 30, 2023, the company's disclosure controls and procedures were effective[197](index=197&type=chunk) - No material changes to internal control over financial reporting occurred during the third quarter of 2023[198](index=198&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in an ongoing arbitration dispute with former investors of Empire State Building Associates L.L.C. related to the IPO. An initial award of approximately $1.2 million to the claimants was confirmed by a New York State court in July 2023. The company has appealed this ruling and believes it is incorrect. Other than this, the company is not involved in any material litigation outside the ordinary course of business - The company is appealing a New York State court ruling that confirmed a **~$1.2 million** arbitration award in favor of former investors related to the IPO[78](index=78&type=chunk) - The company believes the ruling is incorrect and the appeal is pending. Other than routine litigation, no other material legal proceedings are reported[77](index=77&type=chunk)[78](index=78&type=chunk) [Risk Factors](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - As of September 30, 2023, there were no material changes to the company's risk factors[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECUIRITIES%20AND%20USE%20OF%20PROCEEDS) The company did not have any unregistered sales of equity securities. Under its stock repurchase program, authorized through December 31, 2023, no equity securities were repurchased during the three-month period ended September 30, 2023. Approximately $396.7 million remains available under the $500 million authorization - No equity securities were repurchased in the three months ended September 30, 2023[203](index=203&type=chunk) - The company has a **$500 million** stock repurchase program authorized through December 31, 2023, with approximately **$396.7 million** remaining available as of September 30, 2023[202](index=202&type=chunk) [Exhibits](index=46&type=section&id=ITEM%206.%20EXHIBITS) The report includes several exhibits filed herewith, including CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and XBRL data files - Exhibits filed include CEO/CFO certifications (31.1, 31.2, 32.1, 32.2) and XBRL data files (101 series)[208](index=208&type=chunk)

Empire State Realty Trust Inc. (NYSE:ESRT) Q3 2023 Results Conference Call October 26, 2023 12:00 PM ET Company Participants Katy Malonoski - VP and Head of Investor Relations Anthony Malkin - Chairman, President and CEO Tom Durels - Executive Vice President of Real Estate Christina Chiu - Executive VP, COO and CFO Financial & Investment Officer Conference Call Participants Steve Sakwa - Evercore Michael Griffin - Citi John Kim - BMO Capital Markets Camille Bonnel - Bank of America Blaine Heck - Wells Fargo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 111 West 33rd Street, 12th Floor New York, New York 10120 (Address of principal executive offices) (Zip Code) (212) 850-2600 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF TH ...