Financial Performance - Net income for the year ended December 31, 2023, was $84.4 million, an increase of 33.5% from $63.2 million in 2022[144] - Net operating income (NOI) for 2023 was $399.2 million, compared to $404.3 million in 2022, reflecting a decrease of 1.8%[144] - Funds from operations (FFO) attributable to common stockholders and non-controlled interests was $238.0 million for 2023, compared to $235.8 million in 2022[169] - Modified funds from operations (Modified FFO) attributable to common stockholders and non-controlled interests was $245.8 million for 2023, up from $243.6 million in 2022[169] - Core funds from operations (Core FFO) attributable to common stockholders and non-controlled interests was $245.8 million for 2023, compared to $243.6 million in 2022[169] Leasing Activity - Total new leases, expansions, and renewals signed in 2023 amounted to 82, down from 130 in 2022, indicating a decline of 36.9%[153] - Total square feet leased in 2023 was 929,031, a decrease of 13.3% from 1,071,426 square feet in 2022[153] - Leasing commission costs per square foot increased to $19.80 in 2023 from $18.23 in 2022, representing an increase of 8.6%[153] - Tenant improvement costs per square foot rose to $81.86 in 2023, compared to $56.72 in 2022, marking an increase of 44.3%[153] Cash and Investments - Cash and cash equivalents increased to $407.0 million as of December 31, 2023, up from $314.7 million in 2022, primarily due to proceeds from property dispositions[161] - Net cash used in investing activities decreased by $153.6 million to $77.3 million in 2023, attributed to reduced acquisition activity and property sales[162] Debt and Financial Instruments - As of December 31, 2023, the fair value of outstanding debt was approximately $2.0 billion, which was about $194.0 million less than the book value[179] - The company has interest rate SOFR swap and cap agreements with an aggregate notional value of $573.2 million, maturing between October 1, 2024, and November 1, 2033[178] - The fair value of the company's interest rate swaps is $11.8 million, included in prepaid expenses and other assets[178] Goodwill and Tax Receivables - The company performed annual goodwill testing in October 2023, concluding that the fair value of the reporting unit exceeds its carrying value[172] - The Observatory TRS had a federal income tax receivable of $2.5 million as of December 31, 2023, reflecting an anticipated refund from the carryback of 2020 NOL[174] Risk Management - The company aims to mitigate interest rate volatility through hedging instruments, including interest rate swap agreements[177] Stock Repurchase Program - The company authorized a stock repurchase program of up to $500 million for the period from January 1, 2024, through December 31, 2025[160] Off-Balance Sheet Arrangements - As of December 31, 2023, the company had no off-balance sheet arrangements[156]
Empire State Realty OP(FISK) - 2023 Q4 - Annual Report