Empire State Realty OP - S250 | 8-K: FY2025 Q4 Revenue: USD 199.22 M

Revenue: As of FY2025 Q4, the actual value is USD 199.22 M.

EPS: As of FY2025 Q4, the actual value is USD 0.12.

EBIT: As of FY2025 Q4, the actual value is USD 59.34 M.

Net Income

Net income per fully diluted share was $0.12 for the fourth quarter of 2025 and $0.25 for the full year 2025. For the three months ended December 31, 2025, net income was $32,172 thousand, with net income attributable to common stockholders at $19,676 thousand.

Core Funds From Operations (Core FFO)

Core FFO per fully diluted share was $0.23 for the fourth quarter of 2025, compared to $0.24 for the same period in 2024, and was $0.87 for the full year 2025, compared to $0.95 for the full year 2024. Core FFO attributable to common stockholders and the Operating Partnership was $61,650 thousand for the three months ended December 31, 2025.

Same-Store Property Cash Net Operating Income (NOI)

Excluding lease termination fees, Same-Store Property Cash NOI increased 0.9% for the fourth quarter of 2025 compared to the same period in 2024, but decreased 2.0% for the full year 2025 compared to the full year 2024. Adjusted for non-recurring items, Same-Store Property Cash NOI increased by 3.4% for the fourth quarter of 2025 and 0.6% for the full year 2025. For the three months ended December 31, 2025, the office portfolio generated $64,863 thousand, the retail portfolio generated $2,297 thousand, totaling $67,160 thousand in Same Store Property Cash NOI (excluding lease termination fees).

Observatory Net Operating Income (NOI)

The Empire State Building Observatory generated NOI of $24.4 million in the fourth quarter of 2025 and $90.1 million for the full year 2025. Observatory NOI was $24,445 thousand for the three months ended December 31, 2025, with 618,000 visitors, representing a -13.9% change in visitors year-over-year.

Total Operating Income

Total operating income for the fourth quarter of 2025 was $35,406 thousand, down from $42,940 thousand in the fourth quarter of 2024. For the full year 2025, total operating income was $135,649 thousand, down from $158,710 thousand in the full year 2024. Total operating income for the three months ended December 31, 2025, was $35,406 thousand.

Operational Costs

Total operating expenses were $163,818 thousand for the three months ended December 31, 2025.

Funds From Operations (FFO)

FFO attributable to common stockholders and the Operating Partnership was $58,963 thousand for the three months ended December 31, 2025.

Modified Funds From Operations (Modified FFO)

Modified FFO attributable to common stockholders and the Operating Partnership was $60,921 thousand for the three months ended December 31, 2025.

Core Funds Available for Distribution (Core FAD)

Core FAD was $30,900 thousand for the three months ended December 31, 2025.

EBITDA and Adjusted EBITDA

EBITDA was $109,672 thousand and Adjusted EBITDA was $87,824 thousand for the three months ended December 31, 2025.

Multifamily Cash NOI

Multifamily Cash NOI was $5,128 thousand for the three months ended December 31, 2025.

Balance Sheet & Liquidity

As of December 31, 2025, the company had $0.6 billion of total liquidity, including $133 million in cash and $475 million available under its revolving credit facility. Cash and cash equivalents were $132,657 thousand, total assets were $4,468,961 thousand, total liabilities were $2,646,769 thousand, and total equity was $1,822,192 thousand.

Debt

Total debt outstanding was approximately $2.4 billion at a weighted average interest rate of 4.48% as of December 31, 2025. Total debt was $2,389,011 thousand, with a weighted average interest rate of 4.48% and weighted average maturity of 4.8 years as of December 31, 2025.

Net Debt to Adjusted EBITDA

The ratio of net debt to adjusted EBITDA was 6.3x as of December 31, 2025.

Acquisitions and Dispositions

Empire State Realty OP, L.P. completed $417 million of all-cash acquisitions in 2025, including the $386.0 million acquisition of 130 Mercer Street and the $31.0 million acquisition of 86-90 North 6th Street. The disposition of Metro Center, the last suburban office asset, was completed, and $71.6 million of related mortgage debt was repaid, resulting in a 100% New York City commercial portfolio.

Financing Activities

The company issued $175 million of senior unsecured notes in a private placement at a fixed rate of 5.47% maturing in 2031. It also closed on a $245 million upsize and extension of its unsecured term loan credit facility, now maturing in 2031, with a fixed interest rate of 4.51% through interest rate swap agreements. The company has no unaddressed debt maturity until March 2027.

Share Repurchases

Approximately $6.0 million of common stock was repurchased in the fourth quarter of 2025 at a weighted average price of $6.73 per share, and $8.1 million was repurchased for the full year 2025 at a weighted average price of $6.78 per share.

Dividends

A quarterly dividend of $0.035 per share or unit was paid for the fourth quarter of 2025 to holders of Class A and Class B common stock and various partnership units of Empire State Realty OP, L.P. Quarterly preferred dividends of $0.15 and $0.175 per unit were paid for the fourth quarter of 2025 to holders of Series 2014 and 2019 private perpetual preferred units of the Operating Partnership, respectively. Annualized dividends per share were $0.14.

Occupancy Rates (as of December 31, 2025)

Total commercial portfolio occupancy was 90.3%, office occupancy was 89.9%, retail occupancy was 94.4%, and total multifamily portfolio occupancy was 97.8%. The total office and retail portfolio, comprising 8,324,766 rentable square feet, was 90.3% occupied and 93.6% leased.

Leasing Activity

Empire State Realty OP, L.P. signed 458,473 rentable square feet of commercial leases in the fourth quarter of 2025, including 333,451 rentable square feet of office leases. For the full year 2025, 1,009,009 rentable square feet of commercial leases were signed, including 847,598 square feet of Manhattan office leases. Blended leasing spreads for the office portfolio were +6.4% in the fourth quarter, marking the 18th consecutive quarter of positive leasing spreads, with an average lease duration of 6.7 years for all leases executed in the fourth quarter, and new leases averaging 11.6 years. For the three months ended December 31, 2025, 27 leases were executed for the total office and retail portfolio, with an average starting cash rent per square foot of $75.61, representing a 3.7% increase over previously escalated cash rents. Leasing commission costs were $21.53 per square foot, tenant improvement costs were $33.61 per square foot, and total LC and TI were $55.14 per square foot.

Portfolio Composition (as of December 31, 2025)

The operating portfolio comprised 7.6 million rentable square feet of office space, 0.8 million rentable square feet of retail space, and 743 residential units.

Key Ratios (as of December 31, 2025)

Debt to Total Market Capitalization was 55.7%, Net Debt to Total Market Capitalization was 54.3%, Debt to Adjusted EBITDA was 6.7x, Core FFO Payout Ratio was 16%, and Core FAD Payout Ratio was 32%.

2026 Outlook / Guidance

Empire State Realty Trust, Inc. forecasts Core FFO per fully diluted share to be between $0.85 and $0.89 for 2026, with year-end commercial occupancy projected at 90% to 92%. Same-Store Property Cash NOI (excluding lease termination fees) is expected to range from -1.5% to +2.0%, while Observatory NOI is anticipated to be between $87 million and $92 million. Empire State Realty OP, L.P. forecasts office and retail expirations for full year 2026 at 438,263 square feet, with incremental cash rent from commenced and signed leases expected to be $16,564 thousand in 2026, increasing to $46,271 thousand in 2027 and $55,734 thousand in 2028.