Empire State Realty OP | 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.

Real Estate Segment

• Rental Revenue: Increased by $5.0 million due to higher operating and real estate tax expense escalations, partially offset by a $4.0 million reduction from net impact of acquisitions and dispositions made during 2024.
• Property Operating Expenses: Remained consistent, with a $2.1 million decrease due to acquisitions and dispositions 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 and paydown of Series A senior unsecured notes and revolver in March 2025.
• Gain on Disposition of Property: $13.2 million gain from the deconsolidation of the mezzanine debt obligation related to the consensual foreclosure of First Stamford Place.

Observatory Segment

• Observatory Revenue: Decreased by 5.8% to $23.2 million due to lower visitation, primarily attributed to 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, mainly due to a decrease in capital expenditures and redevelopment costs.
• Financing Cash Flow: Increased by $211.7 million to $233.0 million, primarily due to repayment of Series A senior unsecured notes and a pay-down on the unsecured revolving credit facility.

Future Outlook and Strategy

• Core Business Focus: The company anticipates generating positive cash flows from operations and plans to meet short-term liquidity requirements through cash flows from operations, cash on hand, and available borrowing capacity under the unsecured revolving credit facility.
• Non-Core Business: The company is not involved in any material litigation and expects no material impact from routine litigation arising in the ordinary course of business.