Empire State Realty OP - S250 | 8-K: FY2025 Q2 Revenue: USD 191.25 M

Revenue: As of FY2025 Q2, the actual value is USD 191.25 M.

EPS: As of FY2025 Q2, the actual value is USD 0.04.

EBIT: As of FY2025 Q2, the actual value is USD 11.86 M.

Financial Data and Metrics

Net Income

Net Income per Fully Diluted Share: $0.04

Core Funds From Operations (Core FFO)

Core FFO per Fully Diluted Share: $0.22

Same-Store Property Cash Net Operating Income (NOI)

Decreased 5.9% year-over-year, primarily due to increases in real estate taxes and property operating expenses, partially offset by higher tenant reimbursement income. Adjusted for non-recurring items, Same-Store Property Cash NOI decreased by 3.0%.

Leasing Activity

Signed 221,776 rentable square feet of Manhattan office leases with blended leasing spreads of +12.1%, marking the 16th consecutive quarter of positive leasing spreads.
Manhattan office leased rate increased by 80bps sequentially to 93.8%, and the total commercial portfolio is 92.9% leased as of June 30, 2025.
Manhattan office occupancy increased by 140bps sequentially to 89.5%, and the total commercial portfolio is 89.0% occupied as of June 30, 2025.

Empire State Building Observatory

Generated NOI of $24.1 million.

Acquisition

Closed on the acquisition of a retail asset located at 86-90 North 6th Street in Williamsburg Brooklyn for $31.0 million.

Balance Sheet

Total liquidity of $0.7 billion, including $95 million of cash and $620 million available under its revolving credit facility.
Total debt outstanding of approximately $2.1 billion with no floating rate debt exposure and a weighted average interest rate of 4.34%.
Ratio of net debt to adjusted EBITDA was 5.6x.

Share Repurchases

Repurchased $2.1 million of common stock at a weighted average price of $6.92 per share during the second quarter and through July 22, 2025.
Since the stock repurchase program began in March 2020, approximately $296 million has been repurchased at a weighted average price of $8.17 per share.

Dividend

Paid a quarterly dividend of $0.035 per share or unit for the second quarter of 2025.
Paid a quarterly preferred dividend of $0.15 and $0.175 per unit for the second quarter of 2025 to holders of the Operating Partnership’s Series 2014 and 2019 private perpetual preferred units, respectively.

Segment Revenue

Rental Revenue

Q2 2025: $153.54 million
Q1 2025: $154.54 million
Q4 2024: $155.13 million
Q3 2024: $153.12 million
Q2 2024: $152.47 million

Observatory Revenue

Q2 2025: $33.90 million
Q1 2025: $23.16 million
Q4 2024: $38.28 million
Q3 2024: $39.38 million
Q2 2024: $34.12 million

Lease Termination Fees

Q2 2025: $0.46 million
Q1 2025: $0.00 million
Q4 2024: $0.00 million
Q3 2024: $4.77 million
Q2 2024: $0.00 million

Third-Party Management and Other Fees

Q2 2025: $0.41 million
Q1 2025: $0.43 million
Q4 2024: $0.26 million
Q3 2024: $0.27 million
Q2 2024: $0.38 million

Other Revenue and Fees

Q2 2025: $2.94 million
Q1 2025: $1.93 million
Q4 2024: $3.94 million
Q3 2024: $2.06 million
Q2 2024: $2.57 million

Operational Metrics

Net Income

Q2 2025: $11.39 million
Q1 2025: $15.78 million
Q4 2024: $18.79 million
Q3 2024: $22.80 million
Q2 2024: $28.56 million

Gross Margin

Q2 2025: $35.12 million
Q1 2025: $25.79 million
Q4 2024: $42.94 million
Q3 2024: $45.35 million
Q2 2024: $39.36 million

Operating Profit

Q2 2025: $35.12 million
Q1 2025: $25.79 million
Q4 2024: $42.94 million
Q3 2024: $45.35 million
Q2 2024: $39.36 million

Operating Margin

Q2 2025: 18.4%
Q1 2025: 14.3%
Q4 2024: 21.7%
Q3 2024: 22.7%
Q2 2024: 20.8%

Operating Costs

Q2 2025: $156.13 million
Q1 2025: $154.28 million
Q4 2024: $154.66 million
Q3 2024: $154.25 million
Q2 2024: $150.18 million

Cash Flow

Operating Cash Flow

Q2 2025: $101.20 million
Q1 2025: $91.08 million
Q4 2024: $105.92 million
Q3 2024: $109.35 million
Q2 2024: $104.48 million

Free Cash Flow

Q2 2025: $67.28 million
Q1 2025: $65.57 million
Q4 2024: $68.35 million
Q3 2024: $69.15 million
Q2 2024: $71.51 million

Unique Metrics

Same Store Property Cash NOI

Q2 2025: $67.28 million
Q1 2025: $65.57 million
Q4 2024: $68.35 million
Q3 2024: $69.15 million
Q2 2024: $71.51 million

Multifamily Cash NOI

Q2 2025: $5.17 million
Q1 2025: $4.64 million
Q4 2024: $4.17 million
Q3 2024: $4.51 million
Q2 2024: $4.53 million

Observatory NOI

Q2 2025: $24.08 million
Q1 2025: $15.04 million
Q4 2024: $28.55 million
Q3 2024: $29.67 million
Q2 2024: $25.17 million

Outlook / Guidance

Core FFO per Fully Diluted Share for 2025 is expected to be between $0.83 and $0.86, down from the initial guidance of $0.86 to $0.89.
Commercial Occupancy at year-end is expected to be between 89% and 91%.
Observatory NOI for 2025 is expected to be between $90 million and $94 million, down from the initial guidance of $97 million to $102 million.

Empire State Realty OP, L.P. anticipates continued growth in rental revenue and observatory revenue, with significant contributions from new leases commencing in the upcoming quarters. The company expects operating margins to remain stable, supported by effective cost management and strategic investments in property improvements.