Financial Performance - Empire State Building Observatory generated $14.3 million of net operating income with a visitor count increase of 65% year over year [200]. - Net income attributable to common unitholders was $10.7 million [218]. - Net cash provided by operating activities increased by $18.7 million to $86.4 million due to changes in working capital [237]. - Distributions to equity holders amounted to $9.7 million in Q1 2023, compared to $10.8 million in Q1 2022 [252]. Debt and Cash Management - As of March 31, 2023, total consolidated indebtedness was approximately $2.3 billion with a weighted average interest rate of 3.9% [213]. - As of March 31, 2023, the company had $272.6 million available in cash and cash equivalents, and $850 million available under its unsecured revolving credit facility [228]. - As of March 31, 2023, the fair value of outstanding debt was approximately $2.1 billion, which was about $180.9 million less than the book value [29]. - Cash and cash equivalents decreased from $482.7 million in Q1 2022 to $380.8 million in Q1 2023, primarily due to real estate acquisitions and higher capital expenditures [253]. Leasing Activity - The company signed a total of 202,057 rentable square feet of new, renewal, and expansion leases [219]. - Total new leases signed in Q1 2023 were 18, down from 42 in Q1 2022, with total square feet leased decreasing from 317,633 to 201,145 [247]. - Leasing commission costs per square foot increased from $19.70 in 2022 to $20.99 in 2023, while tenant improvement costs per square foot rose from $66.26 to $83.39 [247]. - As of March 31, 2023, the company expects to incur approximately $107.9 million in additional costs for tenant improvements and leasing commissions [248]. Asset Management - The company closed on the sale of 69-97 and 103-107 Main Street in Westport, Connecticut at a gross asset valuation of $40.0 million [214]. - The company has interest rate swap agreements with an aggregate notional value of $574.4 million, maturing between October 2024 and November 2033 [28]. - The company plans to fund capital improvements through operating cash flow, cash on hand, and borrowings under the unsecured revolving credit facility [249]. Stock Repurchase and Shareholder Returns - The company repurchased $11.6 million of its common stock in the first quarter of 2023 [220]. - The company has authorized a repurchase program of up to $500 million for its Class A common stock and operating partnership units, effective until December 31, 2023 [252]. Tenant Concentration - The company's five largest tenants represented approximately 15.7% of total annualized rent, with the largest tenant accounting for 6.1% of total annualized rent [267]. Operating Expenses - The increase in property operating expenses reflects higher payroll and repairs and maintenance due to increased building utilization [221]. - The company was in compliance with all financial covenants as of March 31, 2023, including a maximum total leverage ratio of 36.9% [217].
Empire State Realty OP(FISK) - 2023 Q1 - Quarterly Report