Overview

* Empire State Realty Trust ( ESRT ) Q3 net income decreases yr/yr

* Rental revenue for Q3 increases slightly yr/yr

* Same-store property cash NOI decreases due to higher taxes and expenses

Outlook

* Empire State Realty Trust ( ESRT ) reaffirms 2025 Core FFO guidance of $0.83 to $0.86 per share

* Company expects year-end commercial occupancy between 89% and 91%

* Observatory NOI projected to be $90M to $94M in 2025

Result Drivers

* HIGHER EXPENSES - Same-store property cash NOI decreased due to increased real estate taxes and property operating expenses, partially offset by tenant reimbursement income

* OCCUPANCY IMPROVEMENT - Manhattan office occupancy increased by 80 bps sequentially to 90.3%, positively impacting total commercial portfolio occupancy

* LEASING ACTIVITY - Signed 87,880 rentable square feet of commercial leases, with positive leasing spreads for 17 consecutive quarters

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $158.41

Rental mln

Revenue

Q3 Net $13.64

Income mln

Q3 $39.33

Operatin mln

g Income

Q3 $15.29

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 "buy."

* Wall Street's median 12-month price target for Empire State Realty Trust Inc ( ESRT ) is $8.30, about 6.1% above its October 28 closing price of $7.79

* The stock recently traded at 126 times the next 12-month earnings vs. a P/E of 95 three months ago

Press Release:

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(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.)