Empire State Realty OP - S60 | 10-Q: FY2025 Q1 Revenue: USD 180.07 M

Revenue: As of FY2025 Q1, the actual value is USD 180.07 M.

EPS: As of FY2025 Q1, the actual value is USD 0.05.

EBIT: As of FY2025 Q1, the actual value is USD 15.16 M.

Real Estate Segment

• Rental Revenue: Increased by $660 thousand, primarily due to higher operating and real estate tax expense escalations, offset by the net impact of acquisitions and dispositions made during 2024, which reduced rental revenue by $4.0 million.
• Property Operating Expenses: Consistent with the previous year, primarily due to a $2.1 million decrease from acquisitions and dispositions made during 2024, offset by increases in payroll costs and utilities.
• Interest Expense: Increased due to the issuance of Series I-K senior unsecured notes in June 2024, partially offset by the release of the First Stamford Place senior mortgage obligation in February 2025 and the paydown of the Series A senior unsecured notes and revolver in March 2025.
• Gain on Disposition of Property: $13.2 million gain primarily from the deconsolidation of the mezzanine debt obligation related to the consensual foreclosure of First Stamford Place.

Observatory Segment

• Observatory Revenue: Decreased by $1.4 million or 5.8% due to decreased visitation, primarily due to the shift in the timing of the Easter holiday.

Cash Flow

• Operating Cash Flow: Increased by $12.2 million to $83.1 million, primarily due to increases in working capital.
• Investing Cash Flow: Decreased by $29.2 million to $42.1 million, primarily due to the prior year acquisition of non-controlling interests in other partnerships and a decrease in capital expenditures.
• Financing Cash Flow: Increased by $211.7 million to $233.0 million, primarily due to the repayment of the Series A senior unsecured notes and a pay-down on the unsecured revolving credit facility.

Future Outlook

• Leasing Activity: Signed a total of 231,000 rentable square feet of new, renewal, and expansion leases.
• Observatory Performance: The Observatory hosted 428,000 visitors, a decrease from 485,000 visitors in the previous year.

Strategic Focus

• Portfolio Diversification: ESRT’s portfolio is diversified across office, retail, multifamily, and the Empire State Building Observatory, with a focus on modernized, amenitized, and energy-efficient properties.
• Balance Sheet and Liquidity: Well-positioned with modest leverage and good access to liquidity, providing optionality for capital recycling, acquisitions, and buybacks.