Empire State Realty Trust Announces Third Quarter 2025 Results

NEW YORK--( BUSINESS WIRE)--Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory, ranked the #1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor’s 2025 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is a recognized leader in energy efficiency and indoor environmental quality. Today the Company reported its operational and financial results for the third quarter 2025. All per share amounts are on a fully diluted basis, where applicable.

Third Quarter and Recent Highlights

Property Operations

As of September 30, 2025, the Company’s property portfolio contained 7.8 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units, which were occupied and leased as shown below.

September 30, 2025 1

June 30, 2025 1

September 30, 2024 1

Percent occupied:

Total commercial portfolio

90.0% 2

89.2% 2

89.1%

Total office

89.7%

88.9%

Manhattan office

90.3%

89.5%

89.6%

Total retail

92.8% 2

91.7% 2

91.1%

Percent leased (includes signed leases not commenced):

Total commercial portfolio

92.6% 2

93.1% 2

93.4%

Total office

92.4%

93.1%

93.3%

Manhattan office

93.1%

93.8%

94.1%

Total retail

94.7% 2

92.4% 2

94.0%

Total multifamily portfolio

98.6%

96.8%

1 All occupancy and leased percentages exclude broadcasting and storage space.

2 Excludes approximately 15,000 square feet of space related to the June 30, 2025 acquisition of 86-90 North 6 th Street, which is under redevelopment.

Leasing

The tables that follow summarize leasing activity for the third quarter of 2025. During this period, the Company signed 16 leases that totaled 87,880 square feet with an average lease duration of 8.1 years.

Total Portfolio

Leases executed

Square

footage executed

Average cash rent psf – leases executed

% of new cash rent over / under previously escalated rents

Office

71,859

69.97

3.9 %

Retail

16,021

128.33

(11.8) %

Total Overall

87,880

80.61

(1.2) %

Manhattan Office Portfolio

Leases executed

Square

footage executed

Average cash rent psf – leases executed

% of new cash rent over / under previously escalated rents

New Office

26,430

68.56

1.3 %

Renewal Office

45,429

70.80

5.5 %

Total Office

71,859

69.97

3.9 %

Notable Leasing Activity Highlights in 3Q25

Notable Leasing Activity Highlights Subsequent to Quarter-End

Balance Sheet

The Company had $0.8 billion of total liquidity as of September 30, 2025, which was comprised of $154 million of cash, plus $620 million available under its revolving credit facility. At September 30, 2025, the Company had total debt outstanding of approximately $2.1 billion, no floating rate debt exposure, and a weighted average interest rate of 4.34%. At September 30, 2025, the Company’s ratio of net debt to adjusted EBITDA was 5.6x.

In October, the Company entered into a note purchase agreement to issue $175 million of senior unsecured notes in a private placement transaction at a fixed rate of 5.47% that matures in 2031. The private placement is scheduled to fund on December 18, 2025.

Share Repurchases

The stock repurchase program began in March 2020 and through October 28, 2025, approximately $296 million has been repurchased. There were no share repurchases during the third quarter.

Dividend

On September 30, 2025, the Company paid a quarterly dividend of $0.035 per share or unit, as applicable, for the third quarter of 2025 to holders of the Company’s Class A common stock (NYSE: ESRT) and Class B common stock and to holders of the Series ES, Series 250 and Series 60 partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR partnership units of Empire State Realty OP, L.P., the Company’s operating partnership (the “Operating Partnership”).

On September 30, 2025, the Company paid a quarterly preferred dividend of $0.15 and $0.175 per unit for the third quarter of 2025 to holders of the Operating Partnership’s Series 2014 and 2019 private perpetual preferred units, respectively.

2025 Earnings Outlook

The Company provides 2025 guidance and key assumptions, as summarized in the table below. The Company’s guidance does not include the impact of any significant future lease termination fee income or any unannounced acquisition, disposition or other capital markets activity.

Key Assumptions

2025 Current Guidance (October 2025)

2025 Prior Guidance (July 2025)

Comments

Earnings

Core FFO Per Fully Diluted Share

$0.83 to $0.86

Commercial Property Drivers

Commercial Occupancy at year-end

89% to 91%

SS Property Cash NOI

(excluding lease termination fees)

–2.0% to +1.5%

Observatory Drivers

Observatory NOI

$90M to $94M

Low

High

Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership

$0.22

$0.25

Add:

Impairment Charge

0.00

Real Estate Depreciation & Amortization

0.65

Less:

Private Perpetual Distributions

0.02

Gain on Disposal of Real Estate, net

0.05

FFO Attributable to Common Stockholders and the Operating Partnership

$0.80

$0.83

Add:

Amortization of Below Market Ground Lease

0.03

Core FFO Attributable to Common Stockholders and the Operating Partnership

$0.83

$0.86

The estimates set forth above may be subject to fluctuations as a result of several factors, including continued impacts of changes in the use of office space and remote work on our business and our market, our ability to complete planned capital improvements in line with budget, costs of integration of completed acquisitions, costs associated with future acquisitions or other transactions, straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

Investor Presentation Update

The Company has posted on the “Investors” section of ESRT’s website the latest investor presentation, which contains additional information on its businesses, financial condition and results of operations.

Webcast and Conference Call Details

Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Thursday, October 30, 2025 at 12:00 pm Eastern time.

The webcast will be accessible on the “Investors” section of ESRT’s website. To listen to the live webcast, go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers.

Starting shortly after the call until November 6, 2025, a replay of the webcast will be available on the Company’s website, and a dial-in replay will be available by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13754951.

The Supplemental Report and Investor Presentation are additional components of the quarterly earnings announcement and are now available on the “Investors” section of ESRT’s website.

The Company uses, and intends to continue to use, the “Investors” page of its website, which can be found at www.esrtreit.com, as a means to disclose material nonpublic information and to comply with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the “Investors” page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory, ranked the #1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor’s 2025 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is a recognized leader in energy efficiency and indoor environmental quality. As of September 30, 2025, ESRT’s portfolio is comprised of approximately 7.8 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units. More information about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, TikTok, X, and LinkedIn.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. You can identify forward-looking statements by the use of forward-looking terminology such as “aims," "anticipates," "approximately," "believes," "contemplates," "continues," "estimates," "expects," "forecasts," "hope," "intends," "may," "plans," "seeks," "should," "thinks," "will," "would" or the negative of these words and phrases or similar words or phrases. For the avoidance of doubt, any projection, guidance, or similar estimation about the future or future results, performance or achievements is a forward-looking statement.

Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all).

Many important factors could cause our actual results, performance, achievements, and future events to differ materially from those set forth, implied, anticipated, expected, projected, assumed or contemplated in our forward-looking statements, including, among other things: (i) economic, market, political and social impact of, and uncertainty relating to, any catastrophic events, including pandemics, epidemics or other outbreaks of disease, natural disasters and extreme weather events, terrorism and other armed hostilities, as well as cybersecurity threats and technology disruptions; (ii) increased costs due to tariffs or other economic factors; (iii) a failure of conditions or performance regarding any event or transaction described herein; (iv) resolution of legal proceedings involving the Company; (v) reduced demand for office, multifamily or retail space, including as a result of the changes in the use of office space and remote work; (vi) changes in our business strategy; (vii) a decline in Observatory visitors due to changes in domestic or international tourism, including due to health crises, geopolitical events, currency exchange rates, and/or competition from other observatories; (viii) defaults on, early terminations of, or non-renewal of, leases by tenants; (ix) increases in the Company’s borrowing costs as a result of changes in interest rates and other factors; (x) declining real estate valuations and impairment charges; (xi) termination of our ground leases; (xii) limitations on our ability to pay down, refinance, restructure or extend our indebtedness or borrow additional funds; (xiii) decreased rental rates or increased vacancy rates; (xiv) difficulties in executing capital projects or development projects successfully or on the anticipated timeline or budget; (xv) difficulties in identifying and completing acquisitions; (xvi) impact of changes in governmental regulations, tax laws and rates and similar matters; (xvii) our failure to qualify as a REIT; (xviii) incurrence of taxable capital gain on disposition of an asset due to failure of compliance with a 1031 exchange program; (xix) our disclosure controls and internal control over financial reporting, including any material weakness; and (xx) failure to achieve sustainability metrics and goals, including as a result of tenant collaboration, and impact of governmental regulation on our sustainability efforts. For a further discussion of these and other factors that could impact the company's future results, performance, or transactions, see the section entitled “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2024 and any additional factors that may be contained in any filing we make with the SEC.

While forward-looking statements reflect the Company's good faith beliefs, they do not guarantee future performance. Any forward-looking statement contained in this press release speaks only as of the date on which it was made, and we assume no obligation to update or revise publicly any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes after the date of this press release, except as required by applicable law. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Operations

(unaudited and amounts in thousands, except per share data)

Three Months Ended September 30,

2025

2024

Revenues

Rental revenue

158,410

153,117

Observatory revenue

36,037

39,382

Lease termination fees

—

4,771

Third-party management and other fees

404

271

Other revenue and fees

2,879

2,058

Total revenues

197,730

199,599

Operating expenses

Property operating expenses

46,957

45,954

Ground rent expenses

2,331

General and administrative expenses

18,743

18,372

Observatory expenses

9,510

9,715

Real estate taxes

33,241

31,982

Depreciation and amortization

47,615

45,899

Total operating expenses

158,397

154,253

Total operating income

39,333

45,346

Other income (expense):

Interest income

1,146

6,960

Interest expense

(25,189

)

(27,408

)

Interest expense associated with property in receivership

—

(1,922

)

Gain on disposition of property

—

1,262

Income before income taxes

15,290

24,238

Income tax expense

(1,645

)

(1,442

)

Net income

13,645

22,796

Net income attributable to non-controlling interests:

Non-controlling interest in the Operating Partnership

(4,610

)

(8,205

)

Preferred unit distributions

(1,050

)

(1,050

)

Net income attributable to common stockholders

7,985

13,541

Total weighted average shares

Basic

169,250

164,880

Diluted

270,357

269,613

Earnings per share attributable to common stockholders

Basic

0.05

0.08

Diluted

0.05

0.08

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Operations

(unaudited and amounts in thousands, except per share data)

Nine Months Ended September 30,

2025

2024

Revenues

Rental revenue

466,492

459,469

Observatory revenue

93,097

98,102

Lease termination fees

464

4,771

Third-party management and other fees

1,243

912

Other revenue and fees

7,750

7,067

Total revenues

569,046

570,321

Operating expenses

Property operating expenses

136,897

132,530

Ground rent expenses

6,994

General and administrative expenses

54,368

52,364

Observatory expenses

27,450

27,104

Real estate taxes

98,898

96,106

Depreciation and amortization

144,196

139,453

Total operating expenses

468,803

454,551

Total operating income

100,243

115,770

Other income (expense):

Interest income

6,799

16,230

Interest expense

(77,253

)

(77,859

)

Interest expense associated with property in receivership

(647

)

(2,550

)

Loss on early extinguishment of debt

—

(553

)

Gain on disposition of property

13,170

12,065

Income before income taxes

42,312

63,103

Income tax expense

(1,504

)

(1,537

)

Net income

40,808

61,566

Net income attributable to non-controlling interests:

Non-controlling interest in the Operating Partnership

(13,933

)

(22,138

)

Non-controlling interests in other partnerships

—

)

Preferred unit distributions

(3,151

)

(3,151

)

Net income attributable to common stockholders

23,724

36,273

Total weighted average shares

Basic

168,103

164,453

Diluted

269,945

268,608

Earnings per share attributable to common stockholders

Basic

0.14

0.22

Diluted

0.14

0.22

Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

Three Months Ended September 30,

2025

2024

Net income

13,645

22,796

Preferred unit distributions

(1,050

)

(1,050

)

Real estate depreciation and amortization

46,741

44,871

Gain on disposition of property

—

(1,262

)

FFO attributable to common stockholders and Operating Partnership units

59,336

65,355

Amortization of below-market ground leases

1,957

1,958

Modified FFO attributable to common stockholders and Operating Partnership units

61,293

67,313

Interest expense associated with property in receivership

—

1,922

Core FFO attributable to common stockholders and Operating Partnership units

61,293

69,235

Total weighted average shares and Operating Partnership units

Basic

266,963

264,787

Diluted

270,357

269,613

FFO per share

Basic

0.22

0.25

Diluted

0.22

0.24

Modified FFO per share

Basic

0.23

0.25

Diluted

0.23

0.25

Core FFO per share

Basic

0.23

0.26

Diluted

0.23

0.26

Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

Nine Months Ended September 30,

2025

2024

Net income

40,808

61,566

Non-controlling interests in other partnerships

—

)

Preferred unit distributions

(3,151

)

(3,151

)

Real estate depreciation and amortization

141,533

136,126

Gain on disposition of property

(13,170

)

(12,065

)

FFO attributable to common stockholders and Operating Partnership units

166,020

182,472

Amortization of below-market ground leases

5,873

5,874

Modified FFO attributable to common stockholders and Operating Partnership units

171,893

188,346

Interest expense associated with property in receivership

647

2,550

Loss on early extinguishment of debt

—

553

Core FFO attributable to common stockholders and Operating Partnership units

172,540

191,449

Total weighted average shares and Operating Partnership units

Basic

266,978

264,675

Diluted

269,945

268,608

FFO per share

Basic

0.62

0.69

Diluted

0.62

0.68

Modified FFO per share

Basic

0.64

0.71

Diluted

0.64

0.70

Core FFO per share

Basic

0.65

0.72

Diluted

0.64

0.71

Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

(unaudited and amounts in thousands)

September 30, 2025

December 31, 2024

Assets

Commercial real estate properties, at cost

3,940,755

3,786,653

Less: accumulated depreciation

(1,381,726

)

(1,274,193

)

Commercial real estate properties, net

2,559,029

2,512,460

Contract asset 3

—

170,419

Cash and cash equivalents

154,113

385,465

Restricted cash

43,642

43,837

Tenant and other receivables

27,416

31,427

Deferred rent receivables

259,070

247,754

Prepaid expenses and other assets

58,679

101,852

Deferred costs, net

177,307

183,987

Acquired below market ground leases, net

307,537

313,410

Right of use assets

28,007

28,197

Goodwill

491,479

Total assets

4,106,279

4,510,287

Liabilities and equity

Mortgage notes payable, net

691,046

692,176

Senior unsecured notes, net

1,097,498

1,197,061

Unsecured term loan facility, net

268,959

268,731

Unsecured revolving credit facility

—

120,000

Debt associated with property in receivership

—

177,667

Accrued interest associated with property in receivership

—

5,433

Accounts payable and accrued expenses

111,732

132,016

Acquired below market leases, net

15,875

19,497

Ground lease liabilities

28,007

28,197

Deferred revenue and other liabilities

64,191

62,639

Tenants’ security deposits

30,751

24,908

Total liabilities

2,308,059

2,728,325

Total equity

1,798,220

1,781,962

Total liabilities and equity

4,106,279

4,510,287

3 This contract asset represents the amount of obligation which was released on February 5, 2025, upon the final resolution of the foreclosure process on First Stamford Place.