Overview

* Empire State Realty Trust ( ESRT ) Q2 net income per share at $0.04

* Core FFO per share for Q2 at $0.22

* Operating income missed analyst expectations, per LSEG data

* Co acquired Williamsburg retail asset for $31 mln

Outlook

* Company revises 2025 Core FFO guidance to $0.83-$0.86 per share

* Empire State Realty Trust ( ESRT ) expects year-end commercial occupancy of 89%-91%

* Company projects 2025 same-store cash NOI change of -2.0% to +1.5%

* Observatory NOI guidance lowered to $90M-$94M for 2025

Result Drivers

* HIGHER EXPENSES - Same-Store Property Cash NOI decreased 5.9% due to increased real estate taxes and property operating expenses

* POSITIVE LEASING SPREADS - Manhattan office leasing spreads increased by 12.1%, marking 16th consecutive qtr of positive spreads

* OBSERVATORY INCOME - Empire State Building Observatory generated NOI of $24.1 mln

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 $153.54

Rental mln

Revenue

Q2 Net $11.38

Income mln

Q2 Miss $35.12 $39.30

Operatin mln mln (3

g Income Analysts

)

Q2 $11.86

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the diversified reits peer group is "hold"

* Wall Street's median 12-month price target for Empire State Realty Trust Inc ( ESRT ) is $9.00, about 13.7% above its July 22 closing price of $7.77

* The stock recently traded at 92 times the next 12-month earnings vs. a P/E of 89 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)