Empire State Realty OP | 10-Q: 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.

Rental Revenue: Increased by $1.07 million (0.7%) to $153.54 million for the three months ended June 30, 2025, compared to $152.47 million for the same period in 2024, primarily due to higher operating and real estate tax expense escalations, partially offset by the net impact of acquisitions and dispositions made during 2024, which reduced rental revenue by $2.2 million.
Property Operating Expenses: Increased by $3.36 million (8.1%) to $44.88 million for the three months ended June 30, 2025, compared to $41.52 million for the same period in 2024, primarily due to higher repair and maintenance costs and cleaning-related payroll costs.
Interest Income: Decreased by $3.23 million (63.3%) to $1.87 million for the three months ended June 30, 2025, compared to $5.09 million for the same period in 2024, primarily due to a decrease in cash and cash equivalents.
Gain on Disposition of Property: No gain on disposition activity for the three months ended June 30, 2025, compared to a gain of $10.8 million for the same period in 2024, related to the consensual foreclosure of First Stamford Place.

Observatory Revenue: Decreased by $0.23 million (0.7%) to $33.90 million for the three months ended June 30, 2025, compared to $34.12 million for the same period in 2024, primarily due to lower visitation caused by more bad weather days and lower levels of international tourism.
Observatory Expenses: Increased by $0.86 million (9.6%) to $9.82 million for the three months ended June 30, 2025, compared to $8.96 million for the same period in 2024, primarily due to higher marketing expenses.

Net Cash Provided by Operating Activities: Increased by $1.8 million to $109.9 million for the six months ended June 30, 2025, primarily due to changes in working capital.
Net Cash Used in Investing Activities: Increased by $27.9 million to $155.6 million for the six months ended June 30, 2025, primarily due to the acquisition of two retail properties for $31.7 million.
Net Cash Used in Financing Activities: Increased by $436.1 million to $246.9 million for the six months ended June 30, 2025, primarily due to repayments of the revolving credit facility and senior unsecured notes.

Core Business Focus: The company is focused on maintaining a diversified portfolio with a strong balance sheet, modest leverage, and good access to liquidity. The absence of near-term debt maturities provides security and optionality for capital recycling, acquisitions, and buybacks.
Non-Core Business: The company is navigating an environment of uncertainty around inflation, interest rates, and geopolitical unrest, with a focus on maintaining competitive rental rates and strong leased percentages in its New York City-focused portfolio.