--- title: "Empire State Realty Trust | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 196.9 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/294259221.md" datetime: "2026-07-29T20:44:53.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294259221.md) - [en](https://longbridge.com/en/news/294259221.md) - [zh-HK](https://longbridge.com/zh-HK/news/294259221.md) --- # Empire State Realty Trust | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 196.9 M Revenue: As of FY2026 Q2, the actual value is USD 196.9 M, missing the estimate of USD 199.94 M. EPS: As of FY2026 Q2, the actual value is USD -0.15. EBIT: As of FY2026 Q2, the actual value is USD -112.48 M. ### Financial Performance (Three Months Ended June 30, 2026 vs. 2025) #### Net Income and FFO Empire State Realty Trust, Inc. reported a net loss per fully diluted share of - $0.15, compared to $0.04 in the prior year period, which included a non-cash goodwill impairment charge of $166.1 million, a $124.6 million gain on the disposition of 250 West 57th Street, and $5.5 million of one-time severance costs for the three months ended June 30, 2026. Core Funds From Operations (Core FFO) per fully diluted share was $0.21, a decrease from $0.22 in the prior year period. Net income (loss) was - $39,554 thousand, down from $11,385 thousand in the comparable period of 2025. Net income (loss) attributable to common stockholders was - $25,823 thousand, a decrease from $6,519 thousand in the prior year. Core FFO attributable to common stockholders and Operating Partnership units was $57,134 thousand, compared to $59,213 thousand in the same period of 2025. FFO attributable to common stockholders and the Operating Partnership was - $115,764 thousand for the three months ended June 30, 2026, a decrease from $57,255 thousand in the comparable 2025 period. Modified FFO was - $114,515 thousand, down from $59,213 thousand. Core FAD increased to $16,152 thousand from $11,949 thousand. #### Segment Revenue Total revenues increased to $196,899 thousand from $191,250 thousand year-over-year. Rental revenue increased to $165,166 thousand from $153,540 thousand. Observatory revenue decreased to $24,225 thousand from $33,899 thousand, reflecting continued impact from reduced international tourism. #### Operational Metrics Total operating expenses significantly increased to $335,612 thousand from $156,128 thousand, primarily due to a $166,113 thousand goodwill impairment charge in 2026. Total operating income (loss) was - $138,713 thousand, a substantial decrease from $35,122 thousand in the second quarter of 2025. Same-Store Property Cash Net Operating Income (NOI), excluding lease termination fees, increased 3.3% year-over-year, primarily due to approximately $4.0 million of non-recurring real estate tax abatements. Adjusted for non-recurring items, Same-Store Property Cash NOI decreased by 3.2%, mainly due to increases in free rent and operating expenses, partially offset by increased tenant reimbursement income. Observatory NOI was $12.4 million, down from $24,077 thousand in the prior year. The total commercial portfolio was 94.9% leased and 89.4% occupied as of June 30, 2026. The company signed 381,799 rentable square feet of commercial leases, including 363,968 rentable square feet of office leases. In the office portfolio, blended leasing spreads were +17.8%, marking the 20th consecutive quarter of positive leasing spreads. EBITDA for the second quarter of 2026 was $37,873 thousand, a decrease from $84,791 thousand in the second quarter of 2025. Adjusted EBITDA also decreased to $79,364 thousand from $84,791 thousand year-over-year. The percent occupied for the Office and Retail Portfolio was 89.4% as of June 30, 2026, up from 89.2% as of June 30, 2025, while the percent leased was 94.9%, an increase from 93.1%. The Multifamily Portfolio saw a decrease in percent occupied to 97.7% from 98.6%. New cash rent over previously escalated rents for the total Office and Retail Portfolio increased by 1.4% for the three months ended June 30, 2026, compared to a 7.0% increase in the same period in 2025. Office properties showed a 17.8% increase, while Retail properties experienced a -25.9% decrease. #### Capital Activities and Balance Sheet Empire State Realty Trust, Inc. completed the disposition of 250 West 57th Street for $275 million, which included the buyer’s assumption of $180 million of mortgage debt. The company acquired the land under its 111 West 33rd Street and 1400 Broadway properties for an aggregate price of $110 million. As of June 30, 2026, the company had $0.5 billion in total liquidity, comprising $86 million in cash and $445 million available under its revolving credit facility. Total debt outstanding was approximately $2.2 billion with a weighted average interest rate of 4.70% and a weighted average maturity of 4.5 years as of June 30, 2026. The ratio of net debt to adjusted EBITDA was 6.6x as of June 30, 2026, compared to 5.6x as of June 30, 2025. Subsequent to quarter-end, Empire State Realty Trust, Inc. closed on a $245 million unsecured delayed draw term loan maturing in 2032, with no unaddressed debt maturity until January 2028. Total capital expenditures for the three months ended June 30, 2026, were $60,464 thousand, compared to $61,572 thousand in the prior year period, including $24,720 thousand for second-generation tenant improvements and $11,435 thousand for second-generation leasing commissions. #### Dividends A quarterly dividend of $0.035 per share or unit was paid for the second quarter of 2026. Quarterly preferred dividends of $0.15 and $0.175 per unit were also paid for the second quarter of 2026. #### Outlook / Guidance Empire State Realty Trust, Inc. updated its 2026 Core FFO per fully diluted share range to $0.75 to $0.79, down from the previous guidance of $0.85 to $0.89, reflecting a revised Observation Deck NOI utilization of $55 million assuming no improvement to current visitation levels. The company anticipates commercial occupancy at year-end to be between 90% and 92%, and Same-Store Property Cash NOI (excluding lease termination fees) to range from -1.5% to +2.0%. The company forecasts total Office and Retail Portfolio expirations of 240,692 square feet for July to December 2026, and 475,127 square feet for the full year 2027. Incremental cash rent contributing to cash NOI from signed leases not commenced and commenced leases in free rent period is projected to be $10,298 thousand in 2026, $49,743 thousand in 2027, $73,189 thousand in 2028, $76,697 thousand in 2029, and $76,156 thousand in 2030. ### Related Stocks - [ESRT.US](https://longbridge.com/en/quote/ESRT.US.md) ## Related News & Research - [Empire State Realty Trust (NYSE:ESRT) Issues Earnings Results](https://longbridge.com/en/news/294263229.md) - [Empire State Realty Trust Signs 26,134 Square Foot Space with Instacart at 111 W. 33rd Street | ESRT Stock News](https://longbridge.com/en/news/293256233.md) - [Empire State Realty Trust to Present at The Nareit REITweek 2026 Investor Conference | ESRT Stock News](https://longbridge.com/en/news/288111271.md) - [Empire State Realty Posts Q2 Loss, Maintains Strong Leasing](https://longbridge.com/en/news/294260333.md) - [Empire State Realty Trust Q1 2026 Earnings Call: Complete Transcript](https://longbridge.com/en/news/284810172.md)