<div id="readability-page-1"><div><p>Empire State Realty Trust (ESRT) just rolled out a $500 million share repurchase plan alongside a steady fourth quarter dividend, while also moving to buy the Scholastic Building in SoHo. That combination deserves a closer look.</p> <p>See our latest analysis for Empire State Realty Trust.</p> <p>These moves come after a tough stretch, with a 90 day share price return of negative 10.9 percent and a one year total shareholder return of negative 37.2 percent. However, ESRT’s opportunistic buyback and SoHo expansion suggest management sees long term upside even from today’s 6.94 dollar share price.</p> <p>If this kind of contrarian real estate bet has your attention, it might be a good time to see what else is compelling in the market and explore fast growing stocks with high insider ownership</p> <p>With shares still down sharply over the past year but trading at a sizable discount to analyst targets and intrinsic value estimates, is Empire State Realty Trust a contrarian buy, or is the market already discounting all future growth?</p> <h2>Most Popular Narrative Narrative: 18.8% Undervalued</h2> <p>With a fair value estimate of 8.55 dollars versus a 6.94 dollar last close, the most followed narrative sees meaningful upside still on the table.</p> <blockquote> <p><em>Ongoing portfolio modernization and demonstrated leadership in sustainability and energy efficiency strengthens ESRT's competitive position, enabling premium rents, attracting high-quality tenants, and supporting net margin expansion as tenants increasingly seek sustainable space and as operating costs are optimized.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious how modest revenue growth, thinner margins, and a surprisingly rich future earnings multiple can still justify upside from here? The full narrative unpacks the tension between slowing profits, rising share count, and a valuation framework more often reserved for fast growing sectors. Want to see which assumptions make that upside case hang together?</p> <p><strong>Result: Fair Value of $8.55 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, that upside hinges on execution, with Observatory tourism softness and rising operating expenses both capable of squeezing margins and undermining the bullish thesis.</p> <p>Find out about the key risks to this Empire State Realty Trust narrative.</p> <h2>Another View: Market Ratios Flash a Caution Signal</h2> <p>While our fair value points to upside, ESRT’s 33.9 times earnings looks steep beside the Office REITs industry at 22.3 times and a fair ratio of 26.6 times. That gap suggests less margin for error if earnings disappoint. Are investors overpaying for safety and brand?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0ca68fb-b88b-47a9-9dff-e8427ad5ff85/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f0ca68fb-b88b-47a9-9dff-e8427ad5ff85/chart/pe-multiple-vs-industry"/><figcaption>NYSE:ESRT PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Empire State Realty Trust Narrative</h2> <p>If you see things differently, or just enjoy digging into the numbers yourself, you can build a tailored view in minutes with Do it your way</p> <p>A great starting point for your Empire State Realty Trust research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.</p> <h2>Ready for more high conviction investment ideas?</h2> <p>Before you move on, make sure you are not leaving potential winners on the table. Use the Simply Wall Street Screener to explore potential next steps.</p> <ul> <li>Explore early stage momentum by researching these 3612 penny stocks with strong financials that combine low share prices with relatively strong fundamentals.</li> <li>Focus on structural growth by reviewing these 30 healthcare AI stocks that are involved in how medicine is delivered, analyzed, and personalized.</li> <li>Review consistent cashflow potential by examining these 13 dividend stocks with yields &gt; 3% that aim to provide investors with ongoing income and the potential benefits of long term compounding.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

ESRT

<p>Empire State Realty Trust (ESRT) has announced a $500 million share buyback plan, maintained its dividend, and acquired the Scholastic Building in SoHo. Despite recent share price declines, these actions suggest management's confidence in long-term growth. The stock is considered undervalued with a fair value estimate of $8.55, though its high P/E ratio compared to industry standards raises caution. The company's focus on sustainability and energy efficiency is seen as a competitive advantage. However, risks include potential margin pressures from tourism softness and rising expenses.</p>

Empire State Realty Trust (ESRT): Valuation Check After $500m Buyback, Dividend Affirmation and Scholastic Building Deal