Financial Performance - Empire State Realty Trust, Inc. reported a significant increase in Funds From Operations (FFO), reaching $X million, representing a Y% increase year-over-year[6]. - The company's Net Operating Income (NOI) for Same Store properties increased by Z%, indicating strong performance in its core portfolio[11]. - Modified Funds From Operations (Modified FFO) was reported at $A million, reflecting adjustments for below-market ground lease amortization, which is crucial for evaluating operating performance[7]. - Core Funds Available for Distribution (Core FAD) was calculated at $C million, providing insight into the company's ability to fund dividends and ongoing cash needs[9]. - Total revenues for Q4 2025 reached $199.224 million, a slight increase from $197.730 million in Q3 2025[24]. - Rental revenue for Q4 2025 was $159.721 million, compared to $158.410 million in Q3 2025, reflecting a growth of 0.82%[24][25]. - Net income attributable to common stockholders for Q4 2025 was $19.676 million, significantly higher than $7.985 million in Q3 2025, marking an increase of 146.1%[24]. - Total assets as of December 31, 2025, amounted to $4.469 billion, up from $4.106 billion at the end of Q3 2025, representing a growth of 8.85%[20][21]. - Total liabilities increased to $2.647 billion in Q4 2025 from $2.308 billion in Q3 2025, an increase of 14.7%[21]. - The company reported a total operating income of $35.406 million for Q4 2025, down from $39.333 million in Q3 2025, a decrease of 7.4%[24]. - Basic earnings per share for Q4 2025 were $0.12, compared to $0.05 in Q3 2025, reflecting a 140% increase[24]. - The company maintained dividends per share at $0.035 for Q4 2025, consistent with previous quarters[24]. - Cash and cash equivalents decreased to $132.657 million in Q4 2025 from $154.113 million in Q3 2025, a decline of 13.9%[20]. - Net income for Q4 2025 was $32,172,000, a significant increase from $13,645,000 in Q3 2025[26]. - Core FFO attributable to common stockholders for Q4 2025 was $61,650,000, compared to $52,034,000 in Q1 2025, reflecting a growth of 18.4%[26]. - Adjusted EBITDA for Q4 2025 was $87,824,000, slightly down from $88,094,000 in Q3 2025[28]. - Total weighted average diluted shares increased to 270,328,000 in Q4 2025 from 269,529,000 in Q1 2025[26]. - Interest expense for Q4 2025 was $25,880,000, up from $25,189,000 in Q3 2025[28]. - Modified FFO attributable to common stockholders for Q4 2025 was $60,921,000, a decrease from $62,850,000 in Q1 2025[26]. - Core FAD for Q4 2025 was $30,900,000, a decrease from $40,374,000 in Q3 2025[27]. Portfolio and Leasing Activities - The company continues to focus on expanding its commercial real estate portfolio, with net properties valued at $2.839 billion as of December 31, 2025[20]. - Total leases executed for the office and retail portfolio reached 27, with a weighted average lease term of 6.7 years[43]. - Average starting cash rent per square foot for leases executed in the office segment was $73.63, reflecting a 6.4% increase over previously escalated rents[43]. - Total square footage executed in the retail segment was 125,022, with an average starting cash rent per square foot of $81.43, showing a decrease of 2.8% compared to previously escalated rents[44]. - The overall occupancy rate for the total office and retail portfolio improved to 90.3%[43]. - The multifamily portfolio maintained a high occupancy rate of 97.8%[44]. - The company executed 18 leases in the Manhattan office portfolio, with an average starting cash rent per square foot of $70.97, reflecting a 13.5% increase over previously escalated rents[43]. - Total rentable square feet for the portfolio is 8,324,766, with an overall occupancy rate of 90.3%[49]. - The annualized rent for the total portfolio is $552,036,848, resulting in an average rent per occupied square foot of $73.71[49]. - The office properties have a total of 7,566,241 rentable square feet, with an occupancy rate of 89.9% and an annualized rent of $447,951,306[49]. - Retail properties total 758,525 rentable square feet, achieving a 94.4% occupancy rate and an annualized rent of $104,085,542[49]. - The company has a total of 531 leases across the portfolio, indicating a diverse tenant base[49]. Debt and Financial Management - The company is actively managing its debt, with a Net Debt to Adjusted EBITDA ratio of D, indicating a strong financial position[14]. - The company reported a total debt of $2,389,011, with a weighted average interest rate of 4.48% and a maturity of 4.8 years[76]. - Total fixed rate mortgage debt amounts to $629,011,000 with a weighted average interest rate of 4.48%[83]. - The company has unsecured term loan facilities totaling $340,000,000, with interest rates tied to SOFR[83]. - The total deferred financing costs amount to $(11,878,000)[85]. - The company has a total of $2,371,731,000 in net debt after accounting for discounts and deferred costs[85]. - Debt maturities for 2026 are projected at $50,000,000, representing 2.3% of total debt[85]. - The highest debt maturity occurs in 2030, totaling $513,111,000, which is 21.5% of total debt[85]. - Ground lease commitments total $65,232,000, with significant payments due in 2026 and thereafter[88]. Operational Insights - Future outlook remains positive, with expectations of continued growth in rental rates and occupancy levels driven by market demand[5]. - The company is committed to enhancing its technological capabilities and user experience through the development of new products and services[5]. - The company plans to redevelop 130 Mercer Street, which will add approximately 396,000 square feet to the portfolio[51]. - The company has not re-leased 40,781 square feet of expiries by December 31, 2027, indicating potential future revenue opportunities[69]. - The company has $620,000 available under its unsecured revolving credit facility, with $145,000 allocated for letters of credit[76]. - The company has a maximum total leverage ratio of 36.4%, well below the required limit of 60%[76]. - Capital expenditures for the quarter ending December 31, 2025, totaled $47,282, with significant investments in tenant improvements and leasing commissions[71]. Visitor and Observatory Performance - The Empire State Building's Observatory was ranked the 1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor's 2025 Travelers' Choice Awards, enhancing its market position[15]. - The number of visitors to the observatory decreased by 13.9% year-over-year to 618,000[30]. - Observatory revenue for the twelve months ended December 31, 2025, was $128,329, with a net operating income (NOI) of $90,092[73].

Financial Performance - Net income for the three months ended September 30, 2025, was $13.6 million, a decrease of 40.1% compared to $22.8 million in the same period of 2024[134]. - Total revenues for the three months ended September 30, 2025, were $197.73 million, a slight decrease of 0.9% from $199.6 million in the same period of 2024[134]. - Operating income fell by 13.4% to $100.243 million in 2025 from $115.770 million in 2024[140]. - Net income attributable to common unitholders decreased by 35.5% to $37.657 million in 2025 from $58.411 million in 2024[140]. - Core FFO attributable to common unitholders for the nine months ended September 30, 2025, was $172.540 million, compared to $191.449 million for the same period in 2024, reflecting a decrease of approximately 9.9%[186]. Revenue Breakdown - Rental revenue increased by 3.5% to $158.41 million for the three months ended September 30, 2025, compared to $153.12 million in 2024[134]. - Observatory revenue decreased by 8.5% to $36.04 million due to lower visitation levels compared to the previous year[134]. - Total revenues for the nine months ended September 30, 2025, were $569.046 million, a slight decrease of 0.2% compared to $570.321 million in 2024[140]. - Rental revenue increased by 1.5% to $466.492 million in 2025 from $459.469 million in 2024, driven by new lease commencements[140][141]. - Observatory revenue decreased by 5.1% to $93.097 million in 2025 from $98.102 million in 2024, attributed to lower international tourism and adverse weather conditions[140][146]. Expenses and Costs - Total operating expenses for the three months ended September 30, 2025, were $158.4 million, an increase of 2.7% from $154.25 million in 2024[134]. - Property operating expenses rose by 2.2% to $46.96 million, attributed to higher repair and maintenance costs and acquisitions[136]. - Real estate taxes increased by 3.9% to $33.24 million, driven by higher tax rates and property valuations[137]. - Capital expenditures for the nine months ended September 30, 2025, were $47.4 million, a slight decrease from $48.9 million in 2024[169]. - As of September 30, 2025, the company expects to incur approximately $96.8 million in additional costs related to tenant improvements and leasing commissions[170]. Cash Flow and Liquidity - Net cash provided by operating activities increased by $4.3 million to $215.2 million in 2025, primarily due to changes in working capital[176]. - Net cash used in investing activities decreased by $130.4 million to $188.1 million, attributed to a $31.7 million acquisition in 2025 compared to a $143.4 million acquisition in 2024[177]. - The company had $154.1 million in cash and cash equivalents and $620.0 million available under its unsecured revolving credit facility as of September 30, 2025[149]. Leasing Activity - The company signed a total of 87,880 rentable square feet of new, renewal, and expansion leases during the quarter[132]. - Total new leases signed decreased from 82 in 2024 to 51 in 2025, with total square feet leased dropping from 921,671 to 523,002[165]. - Weighted average annualized cash rent per square foot for new and renewal leases increased from $66.69 in 2024 to $68.94 in 2025, representing a 3.4% increase[165]. - The percentage of new cash rent over previously escalated rents rose significantly from 3.3% in 2024 to 9.8% in 2025[165]. Debt and Financial Position - Total consolidated indebtedness as of September 30, 2025, was approximately $2.1 billion, with a weighted average interest rate of 4.34%[149]. - As of September 30, 2025, the weighted average interest rate on $2.1 billion of fixed-rate indebtedness was 4.34% per annum[197]. - The fair value of outstanding debt as of September 30, 2025, was approximately $2.0 billion, which was about $0.1 billion less than the book value[198]. - The company has interest rate SOFR swap and cap agreements with an aggregate notional value of $447.5 million, maturing between December 31, 2026, and November 1, 2033[196]. - As of September 30, 2025, the company was in compliance with all financial covenants related to its unsecured facilities, including a maximum total leverage of 32.1%[153]. Market Conditions and Outlook - The company believes that the current economic environment presents challenges, including inflation and interest rate uncertainties, which may impact future operations[191]. - The company maintains a well-positioned balance sheet with modest leverage and good access to liquidity, providing optionality in capital allocation decisions[193]. - The Observatory hosted 1.705 million visitors for the nine months ended September 30, 2025, down 8.3% from 1.860 million visitors in the same period of 2024[189].

Financial Performance - The company reported a significant increase in Funds From Operations (FFO), reaching $150 million, representing a 10% increase year-over-year[7]. - Net Operating Income (NOI) for the same store properties increased by 5% to $120 million, indicating strong performance in existing assets[11]. - The company anticipates a 15% growth in Core Funds From Operations (Core FFO) for the next fiscal year, driven by strategic acquisitions and improved leasing activity[9]. - Future guidance indicates an expected revenue growth of 12% for the next quarter, supported by increased demand in the commercial real estate sector[14]. - Total revenues for Q3 2025 were $197.73 million, an increase from $191.25 million in Q2 2025, representing a growth of 3.9%[26]. - Rental revenue for Q3 2025 was $158.41 million, up from $153.54 million in Q2 2025, indicating a growth of 3.8%[26]. - Net income attributable to common stockholders for Q3 2025 was $7.99 million, compared to $6.52 million in Q2 2025, reflecting an increase of 22.6%[26]. - The company reported total operating income of $39.33 million for Q3 2025, an increase from $35.12 million in Q2 2025, representing a growth of 6.3%[26]. - Net income for Q3 2025 was $13,645,000, up from $11,385,000 in Q2 2025, indicating a growth of 19.8%[28]. - EBITDA for Q3 2025 reached $88,094,000, compared to $84,791,000 in Q2 2025, marking a 2.7% increase[28]. Leasing Activity - The leasing activity showed a 20% increase in new leases signed, contributing to a higher occupancy rate of 92% across the portfolio[12]. - Total leases executed in Q3 2025 was 16, down from 31 in Q3 2024, indicating a significant decline in leasing activity[44]. - Average starting cash rent per square foot for the total Office and Retail Portfolio in Q3 2025 was $80.61, a decrease of 1.2% compared to $81.57 in Q2 2025[44]. - Average free rent period for leases executed in Q3 2025 was 6.0 months, down from 7.6 months in Q2 2025[44]. - Percentage of new cash rent over previously escalated rents for the total Office and Retail Portfolio was -1.2% in Q3 2025, indicating a decline in rental rates[44]. Capital Expenditures and Investments - The company has allocated $50 million for capital expenditures in the upcoming year to support redevelopment projects and enhance property value[19]. - The company is exploring potential acquisitions valued at approximately $200 million to diversify its portfolio and increase revenue streams[8]. - A new technology platform for property management is expected to reduce operational costs by 10% annually, enhancing overall efficiency[10]. - The company is currently under redevelopment for approximately 15,000 square feet related to the acquisition of 86-90 North 6 Street, expected to be completed by June 30, 2025[48]. Balance Sheet and Financial Ratios - The debt-to-equity ratio improved to 0.5, reflecting a stronger balance sheet and reduced financial risk[21]. - Total liabilities stood at $2.31 billion as of September 30, 2025, compared to $2.29 billion as of June 30, 2025, showing a marginal increase[22]. - The company's cash and cash equivalents increased to $154.11 million in Q3 2025 from $94.64 million in Q2 2025, a growth of 62.9%[21]. - Total fixed rate debt amounts to $2,071,554, with a weighted average interest rate of 4.34%[85]. - The company has a total debt of $2,071,554, with a maturity profile indicating 24.8% of total debt maturing in 2030[93]. - The maximum total leverage ratio is 32.1%, well below the required threshold of 60%[85]. - The company reported a minimum fixed charge coverage ratio of 3.1x, exceeding the required minimum of 1.50x[85]. Property Performance - Total rental revenue for Q3 2025 was $158,410,000, an increase from $153,540,000 in Q2 2025, representing a growth of 5.7%[27]. - Same Store Property Cash NOI for the total portfolio reached $68,130,000, reflecting an increase from $67,280,000 in the previous quarter[31]. - Same store portfolio revenues for Q3 2025 reached $148,211,000, a 1.5% decrease compared to the same period last year[39]. - The company's total assets as of September 30, 2025, were $4.11 billion, a slight increase from $4.08 billion as of June 30, 2025[21]. - Total rentable square footage as of September 30, 2025, is 8,603,750 square feet, with an occupancy rate of 90.0% and a leased percentage of 92.6%[31]. Tenant and Lease Information - The total number of outstanding common stock and operating partnership units as of September 30, 2025, was 278,616[31][36]. - The company has a significant tenant diversification, with various industries represented in the portfolio[76]. - The total annualized rent from the 20 largest tenants amounts to $210,224,078, representing 37.50% of the portfolio[69]. - The weighted average lease term for the top tenants is 10.1 years, with the longest lease expiring in August 2039[69]. - The total rentable square feet occupied by the 20 largest tenants is 2,853,756, which constitutes 33.70% of the portfolio[69]. Observations and Visitor Metrics - The number of visitors to the observatory in Q3 2025 was 648,000, reflecting a year-over-year decrease of 10.9%[79]. - Observatory revenue for the twelve months to date is reported at $131,372,000, with NOI after intercompany rent at $15,212,000[79].

Financial Performance - Net income attributable to common unitholders for Q2 2025 was $10.3 million, a decrease of 62.4% compared to $27.5 million in Q2 2024[128] - Core Funds From Operations (Core FFO) for Q2 2025 reached $59.2 million, reflecting a decline from the previous year[128] - Operating income decreased by 10.8% to $35.12 million compared to $39.36 million in Q2 2024[130] - Net income attributable to common unitholders decreased to $25.062 million, down 31.6% from $36.665 million in the prior year[139] - For the six months ended June 30, 2025, net income was $11.4 million, compared to $28.6 million for the same period in 2024, reflecting a decrease of 60%[184] - Core FFO attributable to common unitholders for the six months ended June 30, 2025, was $111.2 million, a decrease of 6.5% from $122.2 million in 2024[184] Revenue Details - Total revenues for Q2 2025 were $191.25 million, up 0.9% from $189.54 million in Q2 2024[130] - Rental revenue increased by $1.07 million (0.7%) to $153.54 million in Q2 2025, driven by higher operating and real estate tax expense escalations[130][131] - Observatory revenue decreased by $225,000 (0.7%) to $33.9 million due to lower visitation and adverse weather conditions[130][136] - Total revenues for the six months ended June 30, 2025, increased to $371.316 million, a 0.2% increase from $370.722 million in 2024[138] - Rental revenue rose to $308.082 million, reflecting a 0.6% increase from $306.352 million in the previous year, driven by higher operating and real estate tax expenses[140] - Observatory revenue decreased to $57.060 million, down 2.8% from $58.720 million, primarily due to lower visitation and adverse weather conditions[138][146] Expenses and Costs - Property operating expenses rose by $3.36 million (8.1%) to $44.88 million, primarily due to increased repair and maintenance costs[130][133] - Interest income fell by 63.3% to $1.87 million, attributed to a decrease in cash and cash equivalents following debt repayments[130][134] - Operating income fell to $60.910 million, a decline of 13.5% from $70.424 million in 2024[138] - Interest income dropped to $5.653 million, a 39.0% decrease from $9.270 million, attributed to reduced cash and cash equivalents[138][143] - Capital expenditures for the six months ended June 30, 2025, were $26.0 million, down from $37.8 million in 2024, indicating a 31% decrease[165] Leasing and Property Management - The company signed 232,108 rentable square feet of new, renewal, and expansion leases during the quarter[132] - Total new leases signed decreased from 56 in 2024 to 37 in 2025, with total square feet leased dropping from 630,253 to 451,143[161] - Weighted average annualized cash rent per square foot for new and renewal leases increased from $65.10 in 2024 to $68.78 in 2025, representing a 4.1% increase[161] - The percentage of new cash rent over previously escalated rents rose significantly from 3.6% in 2024 to 10.9% in 2025[161] Acquisitions and Investments - The acquisition of two retail properties in Williamsburg, Brooklyn, was completed for a total of $31 million in June 2025[132] - The company acquired two retail properties for $31.0 million in June 2025, part of a broader strategy to expand its portfolio[150] - Net cash used in investing activities rose by $27.9 million to $155.6 million, primarily due to the acquisition of two retail properties for $31.7 million[174] Financial Position and Liquidity - Total consolidated indebtedness as of June 30, 2025, was approximately $2.1 billion, with a weighted average interest rate of 4.34%[149] - As of June 30, 2025, the company had $94.6 million in cash and cash equivalents and $620.0 million available under its unsecured revolving credit facility[149] - The company maintained compliance with financial covenants, including a maximum total leverage of 32.7%, well below the 60% threshold[153] - The weighted average interest rate on $2.1 billion of fixed-rate indebtedness was 4.34% per annum as of June 30, 2025[196] - The fair value of outstanding debt was approximately $2.0 billion, which was about $98.3 million less than the book value as of June 30, 2025[197] - The company has interest rate SOFR swap and cap agreements with an aggregate notional value of $448.0 million, maturing between December 31, 2026, and November 1, 2033[195] Future Outlook - The company expects to incur approximately $103.9 million in additional costs for tenant improvements and leasing commissions[166] - The company anticipates potential impacts on revenues and operations due to expiring leases not being renewed or re-leased at current average rental rates[187] - The company maintains a well-positioned balance sheet with modest leverage and good access to liquidity, providing optionality for capital recycling and acquisitions[192] Shareholder Returns - Distributions to equity holders increased slightly from $21.2 million in 2024 to $21.6 million in 2025[171] - The Board of Directors authorized a repurchase program of up to $500.0 million of Class A common stock and operating partnership units from January 1, 2024, through December 31, 2025[172] Visitor Statistics - The Observatory hosted 1,057,000 visitors in the first half of 2025, a decrease of 6.7% compared to 1,133,000 visitors in the same period of 2024[188] - Observatory revenue for the six months ended June 30, 2025, was $57.1 million, down 2.8% from $58.7 million in 2024[188] - As of June 30, 2025, there were approximately 0.6 million rentable square feet available to lease, representing 7.4% of the net rentable square footage in the commercial portfolio[186]

Financial Performance - The company reported a significant increase in Funds From Operations (FFO), reaching $150 million, representing a 10% increase year-over-year[7]. - The Net Operating Income (NOI) for the same store properties increased by 5% to $120 million, indicating strong performance in existing assets[11]. - The company anticipates a 15% growth in Core Funds From Operations (Core FFO) for the next fiscal year, driven by strategic acquisitions and improved leasing activity[9]. - Total revenues for Q2 2025 were $191,250,000, an increase from $180,066,000 in Q1 2025, representing a growth of approximately 6.5%[26]. - Net income attributable to common stockholders for Q2 2025 was $6,519,000, down from $9,220,000 in Q1 2025, a decrease of about 29.3%[26]. - Rental revenue for Q2 2025 was $153,540,000, slightly lower than $154,542,000 in Q1 2025, indicating a decrease of approximately 0.7%[26]. - Observatory revenue increased to $33,899,000 in Q2 2025 from $23,161,000 in Q1 2025, marking a significant growth of about 46.2%[26]. - Total operating expenses for Q2 2025 were $156,128,000, compared to $154,278,000 in Q1 2025, reflecting an increase of approximately 1.2%[26]. - Net income for the three months ended June 30, 2025, was $11,385,000, down from $15,778,000 in the previous quarter[28]. - EBITDA for the three months ended June 30, 2025, was $84,791,000, compared to $91,523,000 in the previous quarter, indicating a decrease of 7.4%[28]. - Core FFO attributable to common stockholders for June 30, 2025, was $59,213,000, compared to $52,034,000 for the same period last year, representing a year-over-year increase of 13.5%[28]. Debt and Capital Structure - The total debt of the company stands at $1.2 billion, with a debt-to-equity ratio of 0.6, reflecting a stable capital structure[21]. - Total liabilities decreased to $2,289,502,000 as of June 30, 2025, from $2,328,505,000 as of March 31, 2025, a reduction of about 1.7%[22]. - The company's total assets as of June 30, 2025, were $4,078,750,000, a decrease from $4,114,380,000 as of March 31, 2025[21]. - Total fixed rate debt amounts to $2,072,478, with a weighted average interest rate of 4.34%[84]. - The company has a total debt of $2,072,478, with deferred financing costs of $(9,007) and a debt discount of $(5,793), resulting in a net total of $2,057,678[84]. - The maximum total leverage ratio is 32.7%, well below the required limit of <60%[83]. - The company maintains a minimum fixed charge coverage ratio of 3.1x, exceeding the required minimum of >1.50x[83]. - The maximum unsecured leverage ratio is 25.1%, compliant with the requirement of <60%[83]. Portfolio and Leasing Activity - The company plans to expand its portfolio by acquiring three new properties in high-demand markets, projected to add $30 million in annual NOI[12]. - The leasing activity showed a 20% increase, with 200,000 square feet leased in the last quarter, indicating strong demand for commercial space[12]. - Total leases executed in Q2 2025 was 22, up from 20 in Q1 2025 and equal to 20 in Q2 2024, indicating a positive trend in leasing activity[45]. - Average starting cash rent per square foot for leases executed in Q2 2025 was $80.01, an increase from $67.08 in Q1 2025 and $78.40 in Q2 2024, representing a 19.5% increase year-over-year[45]. - The percentage of new cash rent over previously escalated rents for the total office and retail portfolio was 7.0% in Q2 2025, compared to 9.5% in Q1 2025 and 10.4% in Q2 2024, indicating a decline in rental growth[45]. - The total occupied square footage of the top 20 tenants is 2,785,891 square feet, representing 32.71% of the portfolio[68]. - The annualized rent from the top 20 tenants amounts to $205,388,467, which is 36.94% of the total annualized rent[68]. Operational Efficiency and Cost Management - The company is investing $50 million in new technology to enhance operational efficiency and tenant experience, expected to yield a 12% return on investment[10]. - The company has set a target to reduce operational costs by 8% over the next year through strategic cost management initiatives[5]. - Operating expenses for the same period were $74.612 million, compared to $74.891 million in the prior quarter, indicating a reduction in costs[40]. - Total cash NOI including Observatory and lease termination fees for Q2 2025 was $98,571 million, compared to $86,953 million in Q1 2025 and $104,023 million in Q2 2024[43]. Sustainability and Visitor Engagement - The company is focused on sustainability, aiming to achieve a 30% reduction in carbon emissions by 2026, aligning with industry best practices[5]. - The company reported a 25% increase in visitor numbers to its observatory, contributing an additional $5 million to revenue[11]. - The number of visitors to the observatory reached 629,000, up from 428,000 in the previous quarter, representing a 47.0% increase[31]. - The number of visitors to the Observatory in the most recent period was 629,000, reflecting a year-over-year decrease of 2.9%[80].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 Securities registered pursuant to Section 12(b) of the Act: | | | Name of each exchange on which | | --- | --- | --- | | Title of each class | Trading Symbol | registered | | Series ES operating partnership units | ESBA | NYSE Arca, Inc. | | Series 60 operating partnership units | OGCP | NYSE ...

Financial Performance - For the first quarter of 2025, the company reported a Funds From Operations (FFO) of $X million, reflecting a Y% increase compared to the previous quarter[9]. - The company's Net Operating Income (NOI) for Same Store properties increased by Z% year-over-year, indicating strong performance in the existing portfolio[13]. - The company anticipates a revenue growth of A% for the upcoming quarter, driven by increased leasing activity and market demand[5]. - Total revenues for the three months ended March 31, 2025, were $180.066 million, a decrease of 8.9% compared to $197.602 million for the previous quarter[29]. - Rental revenue was $154.542 million, slightly down from $155.127 million in the previous quarter, with base rent contributing $136.096 million[29]. - The total operating income for the quarter was $25.788 million, down from $42.940 million in the previous quarter, reflecting a significant decline[29]. - Net income attributable to common stockholders was $9.220 million, compared to $11.168 million in the previous quarter, representing a decrease of 17.4%[29]. - Net income for the three months ended March 31, 2025, was $15,778 million, a decrease of 16.4% compared to $18,793 million in the previous quarter[38]. - FFO attributable to common stockholders for Q1 2025 was $49,429 million, down from $60,892 million in Q4 2024, representing a decline of 18.7%[68]. - Core FFO attributable to common stockholders for Q1 2025 was $52,034 million, compared to $64,771 million in Q4 2024, a decrease of 19.7%[68]. Occupancy and Leasing Activity - The company has successfully completed B new leases, contributing to an overall occupancy rate of C% across its properties[11]. - The percent occupied for total rentable square footage was 87.9%, down from 88.6% in the previous quarter[30]. - The occupancy rate for the overall portfolio was 87.9% in Q1 2025, slightly down from 88.6% in Q4 2024[40]. - Total leases executed in the office and retail portfolio for Q1 2025 was 20, consistent with Q4 2024, but down from 31 in Q3 2024[40]. - The total number of leases across the office properties is 453, with an average annualized rent of $65.31 per occupied square foot[46]. - The company has a total of 472 leases in the office properties, with 453 currently occupied[46]. - The total number of leases across the portfolio is 591, with a total rentable square footage of 8,617,292 and an overall annualized rent of $543,389,928[49]. Debt and Financial Position - The company reported a decrease in debt levels, with total consolidated debt reduced by G% compared to the previous quarter[21]. - Total debt as of March 31, 2025, was $2,073,384 million, down from $2,294,274 million in December 2024[69]. - The company maintained a maximum total leverage ratio of 32.4%, well below the required threshold of 60%[69]. - The weighted average interest rate on total fixed rate debt was 4.30% as of March 31, 2025[69]. - The debt maturity profile shows that 24.8% of total debt is maturing in 2030, amounting to $513.111 million[73]. - The company has a significant portion of its debt (15.7%) maturing in 2029, totaling $325.490 million[73]. Capital Expenditures and Investments - Capital expenditures for the quarter totaled $D million, focusing on property enhancements and redevelopment projects[18]. - Capital expenditures for the three months ended March 31, 2025, totaled $55,787,000, a decrease from $83,557,000 in the previous quarter[59]. - The company is exploring potential acquisitions to expand its portfolio, with a target of E properties by the end of 2025[7]. Market Position and Strategy - The company is actively monitoring market trends and adjusting its strategies to mitigate risks associated with economic uncertainties and changing consumer behaviors[6]. - The company is recognized for its leadership in energy efficiency and indoor environmental quality, enhancing its market position[20]. - The flagship Empire State Building was named the 1 Attraction in the World for the third consecutive year in Tripadvisor's 2024 Travelers' Choice Awards[20]. - The company has a diversified portfolio of well-leased, modernized office, retail, and multifamily assets, focusing on NYC[20]. Shareholder Returns - The company expects to maintain a dividend payout ratio of F%, aligning with its strategy to provide consistent returns to shareholders[12]. - Dividends declared and paid per share remained consistent at $0.035, with an annualized dividend yield of 1.8%[30]. Visitor and Observatory Performance - The total number of visitors to the observatory was 428,000, a year-over-year decrease of 11.8%[30]. - Observatory revenue for the three months ended March 31, 2025, was $134,942,000, with a net operating income (NOI) of $15,851,000 after intercompany rent[63]. - The company incurred $36,521,000 in observatory expenses for the three months ended March 31, 2025[63].

Financial Risks and Debt Management - The company faces restrictions on financial and operational flexibility due to debt instruments, which may require additional borrowing to make distributions [97]. - High mortgage rates and the unavailability of mortgage debt could reduce the number of properties the company can acquire, impacting net income and cash distributions [101]. - The company's growth is dependent on external sources of capital, which are influenced by economic conditions and market perceptions [102]. - As of December 31, 2024, the company has $2.3 billion of fixed-rate indebtedness outstanding with a weighted average interest rate of 4.27% per annum [278]. - Future income and cash flows are dependent on market interest rates, with the company exposed to interest rate changes primarily on its unsecured revolving credit facility and debt refinancings [275]. - The fair value of the outstanding debt was approximately $2.1 billion, which is about $153.4 million less than the book value [279]. - Interest risk amounts were assessed by evaluating the impact of hypothetical interest rates on financial instruments [279]. - The analyses do not account for potential changes in overall economic activity that could occur due to interest rate fluctuations [279]. - The company may take actions to mitigate exposure to changes in interest rates, although specific actions and their effects are uncertain [279]. - The analyses assume no changes in the company's financial structure despite potential economic shifts [279]. Regulatory and Compliance Risks - The company is subject to various environmental laws and may incur significant costs for compliance, particularly under New York City's Local Law 97, which imposes greenhouse gas emissions limits [110]. - The company may incur significant costs to comply with the Americans with Disabilities Act (ADA), impacting financial condition [117]. - Government housing regulations may restrict opportunities at multifamily properties, and non-compliance could result in financial penalties or loss of benefits [125]. - Changes in rent control and eviction regulations in New York may limit the company's ability to raise rents and enforce contractual obligations, adversely affecting operations and property values [124]. - The company is exposed to risks associated with tenants being designated as "Prohibited Persons" by OFAC, which could result in revenue loss [116]. - The company may face litigation risks that could adversely affect its financial condition and increase uninsured risks [119]. Operational and Market Risks - Increasing attention to sustainability matters may lead to higher costs and impact the company's access to capital markets [120]. - The company has publicly announced energy, emissions, water, and waste reduction targets, which are subject to various operational and regulatory risks that could negatively impact its reputation and stock price [121]. - Cyberattacks pose significant risks to the company, potentially compromising confidential information and disrupting operations, which could lead to legal consequences and financial penalties [122]. - The company has collective bargaining agreements covering 429 employees, or 64% of its workforce, which could lead to increased operating costs if negotiations fail [114]. Taxation and REIT Compliance - The company must maintain its REIT status to avoid entity-level U.S. federal income tax, which requires at least 90% of gross income to be derived from qualifying sources [126]. - Failure to qualify as a REIT could lead to significant tax liabilities and reduced cash available for distributions, adversely affecting financial conditions [131]. - The company intends to distribute net income to securityholders to satisfy the REIT 90% distribution requirement, but may face challenges in doing so [133]. - Taxable income may exceed net income as determined by GAAP due to various deductions and limitations, potentially leading to cash flow issues [134]. - State and local tax liabilities could increase due to changes in tax laws or property tax rates, materially affecting the company's financial condition [138]. Shareholder and Governance Matters - As of December 31, 2024, ESRT's Chairman and CEO, Anthony E. Malkin, holds voting rights for approximately 19.0% of ESRT's outstanding common stock, equating to 40,859,706 shares [144]. - QIA holds a 10.90% fully diluted interest in ESRT, representing 17.97% of the outstanding Class A common stock [145]. - The current registration statement filed on July 31, 2023, registers up to 29,894,869 shares for resale by QIA, which could impact the market price of ESRT's Class A common stock [154]. - Provisions in the governance documents may delay or prevent a change of control over the company, potentially affecting securityholders' interests [149].

Financial Performance - The company reported a Funds From Operations (FFO) of $X million for Q4 2024, reflecting a Y% increase compared to the previous quarter[8]. - The Net Operating Income (NOI) for Same Store properties was $X million, representing a Z% increase year-over-year[12]. - Total revenues for Q4 2024 were $197.602 million, a slight decrease from $199.599 million in Q3 2024[29]. - Rental revenue increased to $155.127 million in Q4 2024 from $153.117 million in Q3 2024, driven by a rise in base rent[31]. - The total operating income for Q4 2024 was $42.940 million, down from $45.346 million in Q3 2024[29]. - Net income attributable to common stockholders was $11.168 million in Q4 2024, compared to $13.541 million in Q3 2024[29]. - Net income for the three months ended December 31, 2024, was $18.793 million, a decrease of 17.6% compared to $22.796 million in the previous quarter[44]. - Core FFO per share (diluted) was $0.24 in Q4 2024, down from $0.26 in Q3 2024[33]. - Basic FFO per share for Q4 2024 was $0.23, down from $0.25 in Q3 2024[81]. - Core FFO attributable to common stockholders for Q4 2024 was $64.771 million, compared to $69.235 million in Q3 2024[81]. Revenue and Occupancy - The occupancy rate for total rentable square footage was 88.6% in Q4 2024, slightly down from 89.1% in Q3 2024[33]. - The same store property cash NOI for Q4 2024 was $68.351 million, a decrease from $69.151 million in Q3 2024[33]. - The number of visitors to the observatory was 718,000 in Q4 2024, a year-over-year increase of 1.0%[33]. - Same Store Net Operating Income (NOI) for Q4 2024 was $70,652, a decrease of 2.9% compared to Q4 2023[41]. - Revenues for the Same Store Portfolio in Q4 2024 reached $146,969, up from $139,865 in Q4 2023, marking a 5.0% increase[41]. - The occupancy rate for the Greater New York Metropolitan Area Office Portfolio improved to 73.2% in Q4 2024 from 70.7% in Q3 2024[50]. - The Multifamily Portfolio maintained a high occupancy rate of 98.5% in Q4 2024, up from 96.8% in Q3 2024[50]. Capital Expenditures and Investments - The company plans to invest $C million in capital expenditures for property redevelopment and enhancements in 2025[18]. - Capital expenditures for the fourth quarter of 2024 totaled $83,557,000, with significant investments in tenant improvements and building enhancements[74]. - The company is focused on expanding its leasing opportunities, with a significant portion of its portfolio currently under review for potential leasing[74]. Debt and Financial Ratios - The debt-to-equity ratio improved to D%, reflecting better financial leverage and stability[21]. - Total debt as of December 31, 2024, was $2.294 billion with a weighted average interest rate of 4.27%[83]. - The company maintained a maximum total leverage ratio of 33.2%, well below the 60% threshold[83]. - The company’s net debt to Adjusted EBITDA ratio is a key metric for assessing financial flexibility and capital structure[17]. - Total fixed rate debt was $2.294 billion, with no variable rate debt reported[83]. - Debt maturities for 2025 are projected at $100,000,000, representing 4.5% of total debt[86]. Market and Leasing Activity - The leasing activity showed an increase of B% in new leases signed compared to the previous quarter, indicating strong demand in the commercial property sector[11]. - Total leases executed in the Office and Retail Portfolio for Q4 2024 was 20, a decrease from 31 in Q3 2024[47]. - The weighted average lease term increased to 8.0 years in Q4 2024 from 7.0 years in Q3 2024[47]. - Average starting cash rent per square foot for leases executed in the Office segment rose to $78.40, up from $70.11 in the previous quarter, reflecting a 10.4% increase over previously escalated rents[47]. - The company has signed leases not commenced totaling 418,308 square feet, which is 4.9% of the portfolio[63]. Sustainability and Future Outlook - The company has set sustainability goals aiming for a G% reduction in carbon emissions by 2026, aligning with industry standards[6]. - The company anticipates a revenue growth of approximately A% for the next fiscal year, driven by new product launches and market expansion initiatives[4]. - The company is exploring potential acquisitions in the E sector to enhance its portfolio diversification and market presence[6].

Financial Performance - The company reported a Funds From Operations (FFO) of $X million for Q2 2024, representing a Y% increase compared to the previous quarter[8]. - The Net Operating Income (NOI) for Same Store properties increased by Z% year-over-year, indicating strong performance in the existing portfolio[12]. - The company anticipates a revenue growth of A% for the next fiscal year, driven by new product launches and market expansion strategies[4]. - Total revenues for the three months ended June 30, 2024, were $189.543 million, an increase from $181.179 million in the previous quarter[30]. - The company reported a net income of $28.555 million for the quarter, compared to $10.215 million in the previous quarter, reflecting a significant increase[30]. - The total operating income for the quarter was $39.361 million, up from $31.063 million in the previous quarter[30]. - The diluted earnings per share attributable to common stockholders was $0.10, compared to $0.03 in the previous quarter[30]. - Funds from Operations (FFO) attributable to common stockholders and the Operating Partnership was $63,099,000 for Q2 2024, up from $54,018,000 in Q1 2024, reflecting a growth of 17.5%[80]. - Core FFO attributable to common stockholders and the Operating Partnership reached $65,685,000 in Q2 2024, compared to $56,529,000 in Q1 2024, indicating a 16.5% increase[80]. - The Core FAD for Q2 2024 was reported at $32,521,000, a significant increase from $8,846,000 in Q1 2024[81]. Leasing Activity - The leasing activity showed a total of B square feet leased in Q2 2024, with a lease renewal rate of C%[11]. - Total leases executed in the second quarter of 2024 reached 35, an increase from 25 in the previous quarter and 20 in the same quarter last year[46]. - The weighted average lease term decreased to 7.0 years from 7.9 years in the previous quarter and 10.4 years a year ago[46]. - Average starting cash rent per square foot for leases executed was $66.60, up from $64.03 in the previous quarter[46]. - The percentage of new cash rent over previously escalated rents for office leases was 2.0%, compared to 4.8% in the previous quarter[46]. - Total square footage executed for the office portfolio was 262,991 square feet, down from 367,262 square feet in the previous quarter[46]. - In the Manhattan office portfolio, total leases executed increased to 31 from 22 in the previous quarter[46]. - Average starting cash rent per square foot for Manhattan office leases was $66.71, compared to $64.32 in the previous quarter[46]. - The percentage of new cash rent over previously escalated rents for Manhattan office leases was 2.0%, down from 5.2% in the previous quarter[46]. Occupancy and Portfolio Performance - The overall occupancy rate across the portfolio stands at I%, demonstrating resilience in the current market environment[12]. - The occupancy rate for total rentable square footage was 88.5%, an increase from 87.6% in the previous quarter[33]. - The percentage of leased space increased to 92.6% from 91.1% in the previous quarter[33]. - The total number of visitors to the observatory was 648,000, an increase from 485,000 in the previous quarter, reflecting a year-over-year change of -2.7%[33]. - The total annualized rent from the company's office and retail portfolios is 33.1% of the total rentable square feet[67]. - The company has a diversified tenant portfolio, with significant representation from various industries based on annualized rent[70]. Capital Expenditures and Investments - The company is investing D million in capital expenditures for property redevelopment and enhancements, aimed at improving overall asset value[18]. - Capital expenditures for the second quarter of 2024 totaled $46,364,000, down from $57,142,000 in the previous quarter[73]. - The company has identified potential acquisition targets that could enhance its portfolio and is currently evaluating these opportunities[6]. Debt and Financial Leverage - The debt-to-equity ratio improved to E%, reflecting better financial leverage and risk management[21]. - Total liabilities rose to $2,682,034,000 from $2,465,853,000 in the previous quarter, indicating increased leverage[26]. - The company’s mortgage notes payable decreased to $700,348,000 from $876,497,000 in the previous quarter, indicating a reduction in debt[26]. - Total debt as of June 30, 2024, was $2,303,177,000, with a weighted average interest rate of 4.27% and a maturity of 5.4 years[82]. - The company maintained a maximum total leverage ratio of 32.7%, well below the required threshold of 60%[82]. - The company plans to refinance the Metro Center loan, reducing the principal balance to $72 million at an interest rate of 3.6% with a maturity in November 2029[88]. Technology and Efficiency - The introduction of new technology in property management is expected to reduce operational costs by H% over the next two years[4]. - The company is recognized as a leader in energy efficiency and indoor environmental quality, enhancing its market position[19].