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UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): July 24, 2024
EMPIRE STATE REALTY TRUST, INC.
(Exact Name of Registrant as Specified in its
Charter)
Maryland |
001-36105 |
37-1645259 |
(State or other Jurisdiction
of Incorporation) |
(Commission File
Number) |
(I.R.S. Employer
Identification No.) |
EMPIRE STATE REALTY OP, L.P.
(Exact Name of Registrant as Specified in its
Charter)
Delaware |
|
001-36106 |
|
45-4685158 |
(State
or other Jurisdiction
of Incorporation) |
|
(Commission File Number) |
|
(I.R.S.
Employer
Identification No.) |
111 West 33rd Street, 12th Floor
New York, New York |
10120 |
(Address of Principal Executive Offices) |
(Zip Code) |
Registrant’s telephone number, including
area code: (212) 687-8700
n/a
(Former name or former address, if changed from
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b)
of the Act:
Title of each class |
|
Trading
Symbol(s) |
|
Name of each exchange
on which registered |
Empire State Realty Trust, Inc. |
|
|
|
|
Class
A Common Stock, par value $0.01 per share |
|
ESRT |
|
The
New York Stock Exchange |
Empire State Realty OP, L.P. |
|
|
|
|
Series ES Operating Partnership Units |
|
ESBA |
|
NYSE Arca, Inc. |
Series 60 Operating Partnership Units |
|
OGCP |
|
NYSE Arca, Inc. |
Series 250 Operating Partnership Units |
|
FISK |
|
NYSE Arca, Inc. |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Co-Registrant CIK |
0001553079 |
Co-Registrant Amendment Flag |
false |
Co-Registrant Form Type |
8-K |
Co-Registrant Document Period EndDate |
2024-07-24 |
Co-Registrant Address Line One |
111 West 33rd Street |
Co-Registrant Address Line Two |
12th Floor |
Co-Registrant City or Town |
New York |
Co-Registrant State or Province |
New York |
Co-Registrant City Area Code |
212 |
Co-Registrant Local Phone Number |
687-8700 |
Co-Registrant Written Communications |
false |
Co-Registrant Solicitating Materials |
false |
Co-Registrant PreCommencement Tender Offer |
false |
Co-Registrant PreCommencement Issuer Tender Offer |
false |
Co-Registrant Emerging growth company |
false |
Item 2.02. |
Results of Operations and Financial Condition. |
On July 24, 2024, Empire State Realty Trust, Inc. (the “Company”
or “we”) issued a press release announcing its financial results for the second quarter 2024. The press release referred to
certain supplemental information that is available on the Company’s website. The press release and supplemental report are attached
hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
The information in Item 2.02 of this Current Report, including Exhibits
99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. Such information shall
not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended
(the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 7.01. |
Regulation FD Disclosure |
Second Quarter 2024 Earnings
As discussed in Item 2.02 above, the Company issued a press release
regarding its financial results for the second quarter 2024 and made available on its website certain supplemental information relating
thereto.
The information in Item 7.01 of this Current Report is being furnished
and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities
of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to
the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
Non-GAAP Supplemental Financial Measures
Funds From Operations ("FFO")
We compute FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) (determined in accordance with GAAP), excluding impairment write-off of investments in depreciable real estate and investments in in-substance real estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs), less distributions to non-controlling interests and gains/losses from discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized non-GAAP financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, we believe FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of performance is limited. There can be no assurance that FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.
Modified Funds From Operations ("Modified FFO")
Modified FFO adds back an adjustment for any above or below-market
ground lease amortization to traditionally defined FFO. We believe this a useful supplemental measure in evaluating our operating performance
due to the non-cash accounting treatment under GAAP, which stems from the third quarter 2014 acquisition of two option properties following
our formation transactions as they carry significantly below market ground leases, the amortization of which is material to our overall
results. We present Modified FFO because we believe it is an important supplemental measure of our operating performance in that it adds
back the non-cash amortization of below-market ground leases. There can be no assurance that Modified FFO presented by us is comparable
to similarly titled measures of other REITs. Modified FFO does not represent cash generated from operating activities and should not be
considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined
in accordance with GAAP. Modified FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash
distributions.
Core Funds From Operations ("Core FFO")
Core FFO adds back to Modified FFO the following items: loss on early
extinguishment of debt, acquisition expenses, severance expenses, IPO litigation expense and interest expense associated with property
in receivership. The Company believes Core FFO is an important supplemental measure of its operating performance because it excludes non-recurring
items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other REITs. Core
FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined
in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash
available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items
from Core FFO that we believe may help investors compare our results.
Core Funds Available for Distribution (“Core FAD")
In addition to Core FFO, we present Core FAD by (i) adding to Core
FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and non-cash
compensation expenses and (ii) deducting straight-line rent, amortization of debt premiums and above/below market rent revenue, and recurring
capital improvements such as second generation leasing commissions, tenant improvements, prebuilts, capital expenditures and furniture,
fixtures & equipment. Core FAD is presented solely as a supplemental disclosure that we believe provides useful information regarding
our ability to fund our dividends. Core FAD does not represent cash generated from operating activities and should not be considered as
an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance
with GAAP. Core FAD is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions.
There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.
Net Operating Income (“NOI”) and Property Cash NOI
NOI is a non-GAAP financial measure of performance. NOI is used by
our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value
of our properties as it is not affected by: (i) the cost of funds of the property owner, (ii) the impact of depreciation and amortization
expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance
with GAAP, (iii) acquisition expenses, loss on early extinguishment of debt, impairment charges and loss from derivative financial instruments,
or (iv) general and administrative expenses and other gains and losses that are specific to the property owner. The cost of funds is eliminated
from NOI because it is specific to the particular financing capabilities and constraints of the owner. The cost of funds is eliminated
because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate
mix of capital which may have changed or may change in the future. Depreciation and amortization expenses as well as gains or losses from
the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our office
or retail properties that result from use of the properties or changes in market conditions. While certain aspects of real property do
decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a
whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the
property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market
conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing
one period to another or when comparing our operating results to the operating results of other real estate companies that have not made
similarly-timed purchases or sales. We believe that eliminating these costs from net income is useful to investors because the resulting
measure captures the actual revenue generated and actual expenses incurred in operating our properties as well as trends in occupancy
rates, rental rates and operating costs. In some cases, the Company also presents (1) Property Cash NOI, which excludes Observatory NOI
and the effects of straight-line rent, fair value lease revenue, and straight-line ground rent expense adjustment, and (2) Property Cash
NOI excluding lease termination fees. Property Cash NOI is presented solely as a supplemental disclosure that management believes allows
investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues and straight-line
ground rent expense adjustment. Similar to depreciation and amortization expense, fair value lease revenues, because of historical cost
accounting, may distort operating performance measures at the property level. Additionally, presenting NOI excluding the impact of straight-line
rent and straight-line ground rent expense adjustment provides investors with an alternative view of operating performance at the property
level that more closely reflects net cash generated in the portfolio. Presenting Property Cash NOI excluding lease termination fees provides
investors with additional information that allows them to compare operating performance between periods without taking into account termination
fees, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s
rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not
reflective of the core ongoing operating performance of the Company’s portfolio. However, the usefulness of NOI, Property Cash NOI,
and Property Cash NOI excluding lease termination fees is limited because it excludes general and administrative costs, interest expense,
depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP,
the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are
significant economic costs. NOI and Property Cash NOI may fail to capture significant trends in these components of net income which further
limits its usefulness. NOI and Property Cash NOI are measurements of the operating performance of our properties but do not measure our
performance as a whole. These metrics therefore are not substitutes for net income as computed in accordance with GAAP. These measures
should be analyzed in conjunction with net income computed in accordance with GAAP. Other companies may use different methods for calculating
NOI, Property Cash NOI or similarly titled measures and, accordingly, our measures may not be comparable to similarly titled measures
reported by other companies that do not define the measure exactly as we do.
Same Store
In the Company’s analysis of NOI, particularly to make comparisons
of NOI between periods meaningful, it is important to provide information for properties that were owned by the Company throughout each
period presented. The Company refers to properties acquired prior to the beginning of the earliest period presented and owned by the Company
through the end of the latest period presented as “Same Store.” Same Store therefore excludes properties acquired after the
beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least
one year and one quarter after a property is acquired for that property to be included in Same Store. The Company’s definition of
Same Store also excludes properties held-for-sale or those which we otherwise expect to dispose of in the subsequent quarter, properties
placed in receivership and our multifamily properties. For mixed-use properties, all same store property NOI is represented in the property
category that comprises the majority of that mixed-use property's NOI. As of June 30, 2024, Same Store excludes 500 Mamaroneck Ave, Harrison,
NY which was sold in April 2023, Williamsburg retail in New York City, NY which was acquired in September 2023, and First Stamford Place,
Stamford, CT which was placed into receivership in May 2024.
EBITDA and Adjusted EBITDA
We compute EBITDA as net income plus interest expense, interest expense
associated with property in receivership, income taxes and depreciation and amortization. We present EBITDA because we believe that EBITDA,
along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator
of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with
GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance
with GAAP), or as a measure of its liquidity. For Adjusted EBITDA, we add back impairment charges and (gain) loss on disposition of property.
Net Debt to Adjusted EBITDA
We compute Net Debt to Adjusted EBITDA as the Company’s pro-rata
share of gross debt less cash and cash equivalents divided by the Company’s pro-rata share of trailing twelve months Adjusted EBITDA.
The Company believes that the presentation of Net Debt to Adjusted EBITDA provides useful information to investors because the Company
reviews Net Debt to Adjusted EBITDA as part of the management of its overall financial flexibility, capital structure and leverage based
on its percentage ownership interest in all of its assets.
SIGNATURE
Pursuant to the requirements of the Exchange Act,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EMPIRE STATE REALTY TRUST, INC. |
|
(Registrant) |
|
|
Date: July 24, 2024 |
By: |
/s/ Stephen V. Horn |
|
|
Name: |
Stephen V. Horn |
|
|
Title: |
Executive Vice President, Chief Financial Officer & Chief Accounting Officer |
Pursuant to the requirements of the Exchange Act,
the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
EMPIRE
STATE REALTY OP, L.P. |
|
(Registrant) |
|
|
|
By:
Empire State Realty Trust, Inc., as general partner |
|
|
Date: July 24, 2024 |
By: |
/s/ Stephen V. Horn |
|
|
Name: |
Stephen V. Horn |
|
|
Title: |
Executive Vice President, Chief Financial Officer &
Chief Accounting Officer |
Exhibit 99.1
EMPIRE STATE REALTY TRUST ANNOUNCES SECOND QUARTER
2024 RESULTS
– Net Income Per Fully Diluted Share of
$0.10 –
– Core FFO Per Fully Diluted Share of
$0.24 –
– Signed
272,000 Rentable Square Feet of Leases –
– Announces Agreements
to Acquire North 6th Street Williamsburg, Brooklyn Retail –
– 10th Quarter of Positive
Leased Absorption –
– 12th Quarter of Positive
Leasing Spreads –
– Over $1.0B of Liquidity, No Floating
Rate Debt Exposure –
– Reaffirms
2024 FFO Guidance –
New York,
New York, July 24, 2024 – Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns
and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship
Empire State Building, the “World's Most Famous Building,” features its iconic Observatory that was declared the #1
Attraction in the World – and the #1 Attraction in the U.S. for the third consecutive year – in Tripadvisor’s 2024
Travelers’ Choice Awards: Best of the Best Things to Do. The Company is the recognized leader in energy efficiency and indoor
environmental quality. Today the Company reported its operational and financial results for the second quarter 2024. All per share
amounts are on a fully diluted basis, where applicable.
Second Quarter and Recent Highlights
| • | Net Income of $0.10 per share. |
| • | Core Funds From Operations (“Core FFO”) of $0.24 per share. |
| • | Same-Store Property Cash Net Operating Income (“NOI”) increased 7.4% year-over-year, excluding
lease termination fees, primarily driven by higher revenues from cash rent commencement, which was partially offset by increases in operating
expenses. Adjusted for certain nonrecurring items, Same-Store NOI increased by approximately 6% year-over-year. |
| • | Manhattan office portfolio leased rate increased by 60bps sequentially and 170bps year-over-year to 93.3%.
The total commercial portfolio is 92.6% leased as June 30, 2024. This is the 10th consecutive quarter of positive commercial
leased rate absorption. |
| • | Signed approximately 272,000 rentable square feet of new, renewal and expansion leases. In our Manhattan
office portfolio, blended leasing spreads were +2.0%, and this is the 12th consecutive quarter of positive leasing spreads. |
| • | Empire State Building Observatory generated $41.3 million of NOI year-to-date, a 5.8% increase year-over-year. |
| • | Subsequent to quarter-end, the Company entered into two agreements to acquire prime retail assets located
on North 6th Street in Williamsburg, Brooklyn, for $195 million in aggregate. |
Property Operations
As of June 30, 2024, the Company’s
property portfolio contained 7.9 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727
residential units, which were occupied and leased as shown below.
| |
June 30,
20241 | | |
March 31,
2024 | | |
June 30,
2023 | |
Percent occupied: | |
| | | |
| | | |
| | |
Total commercial portfolio | |
| 88.5 | % | |
| 87.6 | % | |
| 86.8 | % |
Total office | |
| 88.2 | % | |
| 87.4 | % | |
| 86.5 | % |
Manhattan office | |
| 88.8 | % | |
| 88.9 | % | |
| 87.6 | % |
GNYMA office | |
| 70.7 | % | |
| 76.8 | % | |
| 79.2 | % |
Total retail2 | |
| 92.3 | % | |
| 89.8 | % | |
| 90.7 | % |
| |
| | | |
| | | |
| | |
Percent leased (includes signed leases not commenced): |
Total commercial portfolio | |
| 92.6 | % | |
| 91.1 | % | |
| 90.3 | % |
Total office | |
| 92.5 | % | |
| 91.1 | % | |
| 90.2 | % |
Manhattan office | |
| 93.3 | % | |
| 92.7 | % | |
| 91.6 | % |
GNYMA office | |
| 73.3 | % | |
| 79.5 | % | |
| 80.4 | % |
Total retail2 | |
| 93.5 | % | |
| 91.0 | % | |
| 91.6 | % |
Total multifamily portfolio | |
| 97.9 | % | |
| 97.1 | % | |
| 97.4 | % |
1 Occupancy and leased percentages
for June 30, 2024 exclude First Stamford Place.
2 “Total retail” for the
periods ended June 30 and March 31, 2024 includes the Williamsburg Retail assets acquired in September 2023.
Leasing
The tables that
follow summarize leasing activity for the three months ended June 30, 2024. During this period, the Company signed 35 leases
that totaled 271,981 square feet, inclusive of 54,761 square feet of early renewals3.
Within the Manhattan office portfolio, the Company signed 31 office leases that totaled 261,311 square feet.
Total Portfolio3
Total Portfolio | |
Total Leases
Executed | | |
Total square
footage
executed | | |
Average cash
rent psf –
leases executed | | |
Previously
escalated cash
rents psf | | |
% of new cash
rent over/ under
previously
escalated rents | |
Office | |
| 32 | | |
| 262,991 | | |
$ | 66.60 | | |
$ | 65.31 | | |
| 2.0 | % |
Retail | |
| 3 | | |
| 8,990 | | |
$ | 91.14 | | |
$ | 75.03 | | |
| 21.5 | % |
Total Overall | |
| 35 | | |
| 271,981 | | |
$ | 67.41 | | |
$ | 65.63 | | |
| 2.7 | % |
Manhattan
Office Portfolio3
Manhattan Office
Portfolio | |
Total Leases
Executed | | |
Total square
footage
executed | | |
Average cash
rent psf –
leases executed | | |
Previously
escalated cash
rents psf | | |
% of new cash
rent over / under
previously
escalated rents | |
New Office | |
| 18 | | |
| 162,655 | | |
$ | 67.44 | | |
$ | 64.36 | | |
| 4.8 | % |
Renewal Office | |
| 13 | | |
| 98,656 | | |
$ | 65.50 | | |
$ | 67.09 | | |
| -2.4 | % |
Total Office | |
| 31 | | |
| 261,311 | | |
$ | 66.71 | | |
$ | 65.40 | | |
| 2.0 | % |
3 Beginning in the quarter ended June 30,
2024, we include "Early Renewals", defined as leases which were signed over two years prior to lease expiration. “Early
Renewals” are included within “Renewal Office” metrics listed above.
Leasing Activity Highlights
| • | 11-year 40,679 square foot new lease at the Empire
State Building with Pontera Solutions Inc., which represents a relocation and expansion from its current 10,539 square foot space at 111
West 33rd Street. |
| • | 11-year 27,866 square foot new lease with A.T.
Kearney, Inc. at the Empire State Building. |
| • | 11-year 24,592 square feet new lease with William
Carter Company at 1350 Broadway. |
Observatory Results
In the second quarter, Observatory revenue was $34.1 million, and expenses
were $8.9 million. Observatory NOI was $25.2 million, a 1.6% increase year-over-year. Year-to-date, Observatory NOI was $41.3 million,
a 5.8% increase year-over-year.
Balance Sheet
The Company had $1.0 billion of total liquidity
as of June 30, 2024, which was comprised of $536 million of cash, plus $500 million available under its revolving credit facility.
At June 30, 2024, the Company had total debt outstanding of approximately $2.3 billion, no floating rate debt exposure, and a weighted
average interest rate of 4.27% per annum. At June 30, 2024, the Company’s ratio of net debt to adjusted EBITDA was 5.1x.
In July, the Company executed an agreement to
refinance the mortgage for the Metro Center property that was due to mature in November 2024. Beginning November 2024, the new
loan balance of $72 million will be interest-only at the same interest rate of 3.6%, with a maturity of November 2029, inclusive
of a one-year extension option.
Portfolio Transaction Activity
Subsequent to quarter
end, the Company entered into an agreement to acquire a prime retail portfolio located on North 6th Street in Williamsburg,
Brooklyn for $103 million. The approximately 40,000 square foot retail portfolio comprises five high quality retail storefronts which
are 86% leased for a weighted average lease term of 7.5 years. Separately, the Company has entered into another agreement to acquire
an additional prime retail portfolio on North 6th Street for $92 million. Due to confidentiality requirements, more details
on this additional portfolio will be disclosed upon closing. These all-cash transactions are consistent with our strategy to recycle
capital and balance sheet capacity from non-core suburban assets into strong NYC assets. This further expands the Company’s presence
in Williamsburg, Brooklyn following its initial acquisition of prime retail on North 6th Street in September 2023.
Share Repurchase
The stock repurchase program began in March 2020 and through July 23,
2024, approximately $293.7 million has been repurchased at a weighted average price of $8.18 per share. There were no share repurchases
during the second quarter.
Dividend
On June 28, 2024, the Company paid a quarterly
dividend of $0.035 per share or unit, as applicable, for the second quarter of 2024 to holders of the Company’s Class A common
stock (NYSE: ESRT) and Class B common stock and to holders of the Series ES, Series 250 and Series 60 partnership
units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR partnership units of Empire State Realty OP, L.P., the Company’s
operating partnership (the “Operating Partnership”).
On June 28, 2024, the Company paid a quarterly
preferred dividend of $0.15 per unit for the second quarter of 2024 to holders of the Operating Partnership’s Series 2014 private
perpetual preferred units and a preferred dividend of $0.175 per unit for the second quarter of 2024 to holders of the Operating Partnership’s
Series 2019 private perpetual preferred units.
2024 Earnings Outlook
The Company provides
2024 guidance and key assumptions, as summarized in the table below. The Company’s guidance does not include the impact of
any significant future lease termination fee income or any unannounced acquisition, disposition or other capital markets activity.
Key
Assumptions |
2024
Updated
Guidance
(July 2024) |
2024
Initial
Guidance
(Feb 2024) |
Comments |
Earnings |
|
|
|
Core
FFO Per Fully Diluted Share |
$0.90
to $0.94 |
$0.90
to $0.94 |
•
2024 includes $0.04 from multifamily assets |
Commercial
Property Drivers |
|
|
|
Commercial
Occupancy at year-end |
87%
to 89% |
87%
to 89% |
|
SS
Property Cash NOI (excluding
lease termination fees) |
0%
to 3% |
-1%
to +2% |
• Assumes positive revenue growth
• Assumes a 6-7% y/y increase in operating expenses and real estate taxes, partially offset by higher tenant expense reimbursements |
Observatory
Drivers |
|
|
|
Observatory
NOI |
$94M
to $102M |
$94M
to $102M |
•
Reflects average quarterly expenses of ~$9M |
| |
Low | | |
High | |
Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership | |
$ | 0.21 | | |
$ | 0.25 | |
Add: | |
| | | |
| | |
Impairment Charge | |
| 0.00 | | |
| 0.00 | |
Real Estate Depreciation & Amortization | |
| 0.67 | | |
| 0.67 | |
Less: | |
| | | |
| | |
Private Perpetual Distributions | |
| 0.02 | | |
| 0.02 | |
Gain on Disposal of Real Estate, net | |
| 0.00 | | |
| 0.00 | |
FFO Attributable to Common Stockholders and the Operating Partnership | |
$ | 0.87 | | |
$ | 0.91 | |
Add: | |
| | | |
| | |
Amortization of Below Market Ground Lease | |
| 0.03 | | |
| 0.03 | |
Core FFO Attributable to Common Stockholders and the Operating Partnership | |
$ | 0.90 | | |
$ | 0.94 | |
The estimates set forth above may be subject to
fluctuations as a result of several factors, including continued impacts of changes in the use of office space and remote work on our
business and our market, our ability to complete planned capital improvements in line with budget, costs of integration of completed acquisitions,
costs associated with future acquisitions or other transactions, straight-line rent adjustments and the amortization of above and below-market
leases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.
Investor Presentation Update
The Company has
posted on the “Investors” section of ESRT’s website the latest investor presentation, which contains additional
information on its businesses, financial condition and results of operations.
Webcast and Conference Call Details
Empire State Realty Trust, Inc. will host
a webcast and conference call, open to the general public, on Thursday, July 25, 2024 at 12:00 pm Eastern time.
The webcast will
be accessible on the “Investors” section of ESRT’s website. To listen to the live webcast, go to the site at
least five minutes prior to the scheduled start time in order to register and download and install any necessary audio software. The
conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers.
Starting shortly after the call until August 1,
2024, a replay of the webcast will be available on the Company’s website, and a dial-in replay will be available by dialing 1-844-512-2921
for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13741462.
The Supplemental
Report and Investor Presentation are additional components of the quarterly earnings announcement and are now available on the “Investors”
section of ESRT’s website.
The Company uses, and intends to continue to use,
the “Investors” page of its website, which can be found at www.esrtreit.com, as a means to disclose material nonpublic
information and to comply with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor
presentations that may include material nonpublic information. Accordingly, investors should monitor the “Investors” page,
in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained
on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Empire State Realty Trust
Empire State Realty
Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office,
retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features
its iconic Observatory that was declared the #1 Attraction in the World - and the #1 Attraction in the U.S. for the third consecutive year - in Tripadvisor’s 2024 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is the recognized
leader in energy efficiency and indoor environmental quality. As of June 30, 2024, ESRT’s portfolio is comprised of approximately
7.9 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units. More information
about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, TikTok, X, and LinkedIn.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking
statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. You can identify forward-looking
statements by the use of forward-looking terminology such as “aims," "anticipates," "approximately," "believes,"
"contemplates," "continues," "estimates," "expects," "forecasts," "hope,"
"intends," "may," "plans," "seeks," "should," "thinks," "will,"
"would" or the negative of these words and phrases or similar words or phrases. For the avoidance of doubt, any projection,
guidance, or similar estimation about the future or future results, performance or achievements is a forward-looking statement.
Forward-looking statements are subject to substantial
risks and uncertainties, many of which are difficult to predict and are generally beyond our control, and you should not rely on them
as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise,
and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that
they will happen at all).
Many important factors could cause our actual
results, performance, achievements, and future events to differ materially from those set forth, implied, anticipated, expected, projected,
assumed or contemplated in our forward-looking statements, including, among other things: (i) economic, market, political and social
impact of, and uncertainty relating to, any catastrophic events, including pandemics, epidemics or other outbreaks of disease, climate-related
risks such as natural disasters and extreme weather events, terrorism and other armed hostilities, as well as cybersecurity threats and
technology disruptions; (ii) a failure of conditions or performance regarding any event or transaction described herein; (iii) resolution
of legal proceedings involving the Company; (iv) reduced demand for office, multifamily or retail space, including as a result of
the changes in the use of office space and remote work; (v) changes in our business strategy; (vi) a decline in Observatory
visitors due to changes in domestic or international tourism, including due to health crises, geopolitical events, currency exchange rates,
and/or competition from other observatories; (vii) defaults on, early terminations of, or non-renewal of, leases by tenants; (viii) increases
in the Company’s borrowing costs as a result of changes in interest rates and other factors; (ix) declining real estate valuations
and impairment charges; (x) termination of our ground leases; (xi) limitations on our ability to pay down, refinance, restructure
or extend our indebtedness or borrow additional funds; (xii) decreased rental rates or increased vacancy rates; (xiii) difficulties
in executing capital projects or development projects successfully or on the anticipated timeline or budget; (xiv) difficulties in
identifying and completing acquisitions; (xv) impact of changes in governmental regulations, tax laws and rates and similar matters;
(xvi) our failure to qualify as a REIT; (xvii) incurrence of taxable capital gain on disposition of an asset due to failure
of compliance with a 1031 exchange program; and (xviii) failure to achieve sustainability metrics and goals, including as a result
of tenant collaboration, and impact of governmental regulation on our sustainability efforts. For a further discussion of these and other
factors that could impact the company's future results, performance, or transactions, see the section entitled “Risk Factors”
of our annual report on Form 10-K for the year ended December 31, 2023 and any additional factors that may be contained in any
filing we make with the SEC.
While forward-looking statements reflect the Company's
good faith beliefs, they do not guarantee future performance. Any forward-looking statement contained in this press release speaks only
as of the date on which it was made, and we assume no obligation to update or revise publicly any forward-looking statement to reflect
changes in underlying assumptions or factors, new information, data or methods, future events, or other changes after the date of this
press release, except as required by applicable law. Prospective investors should not place undue reliance on any forward-looking statements,
which are based only on information currently available to the Company (or to third parties making the forward-looking statements).
Contact: Investors and Media
Empire State Realty Trust Investor Relations
(212) 850-2678
IR@esrtreit.com
Empire State Realty Trust, Inc.
Condensed Consolidated Statements of Operations
(unaudited and amounts
in thousands, except per share data)
| |
Three Months Ended June 30, | |
| |
2024 | | |
2023 | |
Revenues | |
| | |
| |
Rental revenue | |
$ | 152,470 | | |
$ | 154,603 | |
Observatory revenue | |
| 34,124 | | |
| 33,433 | |
Lease termination fees | |
| - | | |
| - | |
Third-party management and other fees | |
| 376 | | |
| 381 | |
Other revenue and fees | |
| 2,573 | | |
| 2,125 | |
Total revenues | |
| 189,543 | | |
| 190,542 | |
Operating expenses | |
| | | |
| | |
Property operating expenses | |
| 41,516 | | |
| 39,519 | |
Ground rent expenses | |
| 2,332 | | |
| 2,332 | |
General and administrative expenses | |
| 18,020 | | |
| 16,075 | |
Observatory expenses | |
| 8,958 | | |
| 8,657 | |
Real estate taxes | |
| 31,883 | | |
| 31,490 | |
Depreciation and amortization | |
| 47,473 | | |
| 46,280 | |
Total operating expenses | |
| 150,182 | | |
| 144,353 | |
Total operating income | |
| 39,361 | | |
| 46,189 | |
Other income (expense): | |
| | | |
| | |
Interest income | |
| 5,092 | | |
| 3,339 | |
Interest expense | |
| (25,323 | ) | |
| (25,405 | ) |
Interest expense associated with property in receivership | |
| (628 | ) | |
| - | |
Gain on disposition of properties | |
| 10,803 | | |
| 13,565 | |
Income before income taxes | |
| 29,305 | | |
| 37,688 | |
Income tax expense | |
| (750 | ) | |
| (733 | ) |
Net income | |
| 28,555 | | |
| 36,955 | |
Net income attributable to non-controlling interests: | |
| | | |
| | |
Non-controlling interest in the Operating Partnership | |
| (10,433 | ) | |
| (14,049 | ) |
Non-controlling interests in other partnerships | |
| - | | |
| (1 | ) |
Preferred unit distributions | |
| (1,051 | ) | |
| (1,051 | ) |
Net income attributable to common stockholders | |
$ | 17,071 | | |
$ | 21,854 | |
Total weighted average shares | |
| | | |
| | |
Basic | |
| 164,277 | | |
| 160,028 | |
Diluted | |
| 268,716 | | |
| 264,196 | |
Earnings per share attributable to common stockholders | |
| | | |
| | |
Basic | |
$ | 0.10 | | |
$ | 0.14 | |
Diluted | |
$ | 0.10 | | |
$ | 0.14 | |
Empire State Realty Trust, Inc.
Condensed Consolidated Statements of Operations
(unaudited and amounts in thousands, except per share data)
| |
Six Months
Ended June 30, | |
| |
2024 | | |
2023 | |
Revenues | |
| | |
| |
Rental revenue | |
$ | 306,352 | | |
$ | 294,694 | |
Observatory revenue | |
| 58,720 | | |
| 55,587 | |
Lease termination fees | |
| - | | |
| - | |
Third-party management and other
fees | |
| 641 | | |
| 808 | |
Other revenue
and fees | |
| 5,009 | | |
| 4,075 | |
Total
revenues | |
| 370,722 | | |
| 355,164 | |
Operating expenses | |
| | | |
| | |
Property operating expenses | |
| 86,576 | | |
| 81,563 | |
Ground rent expenses | |
| 4,663 | | |
| 4,663 | |
General and administrative expenses | |
| 33,992 | | |
| 31,783 | |
Observatory expenses | |
| 17,389 | | |
| 16,512 | |
Real estate taxes | |
| 64,124 | | |
| 63,278 | |
Depreciation
and amortization | |
| 93,554 | | |
| 93,688 | |
Total
operating expenses | |
| 300,298 | | |
| 291,487 | |
Total operating income | |
| 70,424 | | |
| 63,677 | |
Other income (expense): | |
| | | |
| | |
Interest
income | |
| 9,270 | | |
| 5,934 | |
Interest
expense | |
| (50,451 | ) | |
| (50,709 | ) |
Interest
expense associated with property in receivership | |
| (628 | ) | |
| - | |
Loss
on early extinguishment of debt | |
| (553 | ) | |
| - | |
Gain
on disposition of properties | |
| 10,803 | | |
| 29,261 | |
Income before income taxes | |
| 38,865 | | |
| 48,163 | |
Income
tax benefit (expense) | |
| (95 | ) | |
| 486 | |
Net income | |
| 38,770 | | |
| 48,649 | |
Net (income) loss attributable
to noncontrolling interests: | |
| | | |
| | |
Noncontrolling interest in the
Operating Partnership | |
| (13,933 | ) | |
| (18,217 | ) |
Noncontrolling interests in
other partnerships | |
| (4 | ) | |
| 42 | |
Preferred
unit distributions | |
| (2,101 | ) | |
| (2,101 | ) |
Net
income attributable to common stockholders | |
$ | 22,732 | | |
$ | 28,373 | |
Total weighted average shares | |
| | | |
| | |
Basic | |
| 163,988 | | |
| 160,669 | |
Diluted | |
| 268,105 | | |
| 264,736 | |
Earnings per share attributable
to common stockholders | |
| | | |
| | |
Basic | |
$ | 0.14 | | |
$ | 0.18 | |
Diluted | |
$ | 0.14 | | |
$ | 0.18 | |
Empire State Realty Trust, Inc.
Reconciliation of Net Income to Funds From Operations (“FFO”),
Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)
(unaudited and amounts in thousands, except per share data)
| |
Three Months Ended June 30, | |
| |
2024 | | |
2023 | |
Net income | |
$ | 28,555 | | |
$ | 36,955 | |
Non-controlling interests in other partnerships | |
| - | | |
| (1 | ) |
Preferred unit distributions | |
| (1,051 | ) | |
| (1,051 | ) |
Real estate depreciation and amortization | |
| 46,398 | | |
| 44,887 | |
Gain on disposition of properties | |
| (10,803 | ) | |
| (13,565 | ) |
FFO attributable to common stockholders and Operating Partnership units | |
| 63,099 | | |
| 67,225 | |
| |
| | | |
| | |
Amortization of below-market ground leases | |
| 1,958 | | |
| 1,958 | |
Modified FFO attributable to common stockholders and Operating Partnership units | |
| 65,057 | | |
| 69,183 | |
| |
| | | |
| | |
Interest expense associated with property in receivership | |
| 628 | | |
| - | |
Core FFO attributable to common stockholders and Operating Partnership units | |
$ | 65,685 | | |
$ | 69,183 | |
| |
| | | |
| | |
Total weighted average shares and Operating Partnership units | |
| | | |
| | |
Basic | |
| 264,676 | | |
| 262,903 | |
Diluted | |
| 268,716 | | |
| 264,196 | |
| |
| | | |
| | |
FFO per share | |
| | | |
| | |
Basic | |
$ | 0.24 | | |
$ | 0.26 | |
Diluted | |
$ | 0.23 | | |
$ | 0.25 | |
| |
| | | |
| | |
Modified FFO per share | |
| | | |
| | |
Basic | |
$ | 0.25 | | |
$ | 0.26 | |
Diluted | |
$ | 0.24 | | |
$ | 0.26 | |
| |
| | | |
| | |
Core FFO per share | |
| | | |
| | |
Basic | |
$ | 0.25 | | |
$ | 0.26 | |
Diluted | |
$ | 0.24 | | |
$ | 0.26 | |
Empire State Realty Trust,
Inc.
Reconciliation of Net Income to Funds From Operations (“FFO”),
Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)
(unaudited and amounts in thousands, except per share data)
| |
Six Months
Ended June 30, | |
| |
2024 | | |
2023 | |
Net income | |
$ | 38,770 | | |
$ | 48,649 | |
Noncontrolling interests in
other partnerships | |
| (4 | ) | |
| 42 | |
Preferred unit distributions | |
| (2,101 | ) | |
| (2,101 | ) |
Real estate depreciation and
amortization | |
| 91,255 | | |
| 90,911 | |
Gain on
disposition of properties | |
| (10,803 | ) | |
| (29,261 | ) |
FFO attributable to common
stockholders and Operating Partnership units | |
| 117,117 | | |
| 108,240 | |
| |
| | | |
| | |
Amortization
of below-market ground leases | |
| 3,916 | | |
| 3,916 | |
Modified FFO attributable
to common stockholders and Operating Partnership units | |
| 121,033 | | |
| 112,156 | |
| |
| | | |
| | |
Interest expense associated
with property in receivership | |
| 628 | | |
| - | |
Loss on
early extinguishment of debt | |
| 553 | | |
| - | |
Core
FFO attributable to common stockholders and Operating Partnership units | |
$ | 122,214 | | |
$ | 112,156 | |
| |
| | | |
| | |
Total weighted average
shares and Operating Partnership units | |
| | | |
| | |
Basic | |
| 264,619 | | |
| 263,694 | |
Diluted | |
| 268,105 | | |
| 264,736 | |
| |
| | | |
| | |
FFO per share | |
| | | |
| | |
Basic | |
$ | 0.44 | | |
$ | 0.41 | |
Diluted | |
$ | 0.44 | | |
$ | 0.41 | |
| |
| | | |
| | |
Modified FFO per share | |
| | | |
| | |
Basic | |
$ | 0.46 | | |
$ | 0.43 | |
Diluted | |
$ | 0.45 | | |
$ | 0.42 | |
| |
| | | |
| | |
Core FFO per share | |
| | | |
| | |
Basic | |
$ | 0.46 | | |
$ | 0.43 | |
Diluted | |
$ | 0.46 | | |
$ | 0.42 | |
Empire State Realty Trust,
Inc.
Condensed Consolidated Balance Sheets
(unaudited and amounts in thousands)
| |
June 30,
2024 | | |
December 31,
2023 | |
Assets | |
| | | |
| | |
Commercial real estate properties, at cost | |
$ | 3,503,302 | | |
$ | 3,655,192 | |
Less: accumulated depreciation | |
| (1,206,039 | ) | |
| (1,250,062 | ) |
Commercial real estate properties, net | |
| 2,297,263 | | |
| 2,405,130 | |
Contract asset4 | |
| 166,955 | | |
| - | |
Cash and cash equivalents | |
| 535,533 | | |
| 346,620 | |
Restricted cash | |
| 41,015 | | |
| 60,336 | |
Tenant and other receivables | |
| 34,665 | | |
| 39,836 | |
Deferred rent receivables | |
| 242,940 | | |
| 255,628 | |
Prepaid expenses and other assets | |
| 105,438 | | |
| 98,167 | |
Deferred costs, net | |
| 172,318 | | |
| 172,457 | |
Acquired below market ground leases, net | |
| 317,326 | | |
| 321,241 | |
Right of use assets | |
| 28,318 | | |
| 28,439 | |
Goodwill | |
| 491,479 | | |
| 491,479 | |
Total assets | |
$ | 4,433,250 | | |
$ | 4,219,333 | |
| |
| | | |
| | |
Liabilities and equity | |
| | | |
| | |
Mortgage notes payable, net | |
$ | 700,348 | | |
$ | 877,388 | |
Senior unsecured notes, net | |
| 1,196,831 | | |
| 973,872 | |
Unsecured term loan facility, net | |
| 268,580 | | |
| 389,286 | |
Unsecured revolving credit facility | |
| 120,000 | | |
| - | |
Debt associated with property in receivership | |
| 177,667 | | |
| - | |
Accrued interest associated with property in receivership | |
| 1,589 | | |
| - | |
Accounts payable and accrued expenses | |
| 90,908 | | |
| 99,756 | |
Acquired below market leases, net | |
| 11,872 | | |
| 13,750 | |
Ground lease liabilities | |
| 28,318 | | |
| 28,439 | |
Deferred revenue and other liabilities | |
| 61,890 | | |
| 70,298 | |
Tenants’ security deposits | |
| 24,031 | | |
| 35,499 | |
Total liabilities | |
| 2,682,034 | | |
| 2,488,288 | |
Total equity | |
| 1,751,216 | | |
| 1,731,045 | |
Total liabilities and equity | |
$ | 4,433,250 | | |
$ | 4,219,333 | |
4 As of June
30, 2024, we have recorded a contract asset that represents our right to debt extinguishment once the foreclosure process on First
Stamford Place is completed.
Exhibit 99.2
| Second Quarter 2024 |
Table of Contents |
Page |
Summary |
|
Supplemental Definitions |
3 |
Company Profile |
5 |
Condensed Consolidated Balance
Sheets |
6 |
Condensed Consolidated Statements
of Operations |
7 |
Highlights |
8 |
Selected
Property Data |
|
Property Summary Net Operating
Income |
9 |
Same Store Net Operating Income
("NOI"), Initial Cash Rent Contributing to Cash NOI |
10 |
Leasing Activity |
11 |
Commercial Property Detail |
13 |
Portfolio Expirations and Vacates
Summary |
14 |
Tenant Lease Expirations |
15 |
Largest Tenants and Portfolio
Tenant Diversification by Industry |
17 |
Capital Expenditures and Redevelopment
Program |
18 |
Observatory Summary |
19 |
Financial
information |
|
FFO, Modified FFO, Core FFO,
FAD and EBITDA |
20 |
Consolidated Debt Analysis |
|
Debt Summary |
21 |
Debt Detail |
22 |
Debt Maturities |
23 |
Ground Leases |
23 |
Forward-looking Statements
This presentation includes “forward-looking
statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended (the “Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).
We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions.
You can identify forward-looking statements by the use of forward-looking terminology such as “aims,"
"anticipates," "approximately," "believes," "contemplates," "continues," "estimates,"
"expects," "forecasts," "hope," "intends," "may," "plans," "seeks,"
"should," "thinks," "will," "would" or the negative of these words and phrases or similar words
or phrases. For the avoidance of doubt, any projection, guidance, or similar estimation about the future or future results, performance
or achievements is a forward-looking statement.
Forward-looking statements are subject to substantial risks and uncertainties,
many of which are difficult to predict and are generally beyond our control, and you should not rely on them as predictions of future
events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able
to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at
all).
Many important factors could cause our actual results, performance,
achievements, and future events to differ materially from those set forth, implied, anticipated, expected, projected, assumed or contemplated
in our forward-looking statements, including, among other things: (i) economic,
market, political and social impact of, and uncertainty relating to, any catastrophic events, including pandemics, epidemics or other
outbreaks of disease, climate-related risks such as natural disasters and extreme weather events, terrorism and other armed hostilities,
as well as cybersecurity threats and technology disruptions; (ii) a
failure of conditions or performance regarding any event or transaction described herein; (iii) resolution
of legal proceedings involving the Company; (iv) reduced demand
for office, multifamily or retail space, including as a result of the changes in the use of office space and remote work; (v) changes
in our business strategy; (vi) a decline in Observatory visitors
due to changes in domestic or international tourism, including due to health crises, geopolitical events, currency exchange rates, and/or
competition from other observatories; (vii) defaults on, early terminations
of, or non-renewal of, leases by tenants; (viii) increases in the
Company’s borrowing costs as a result of changes in interest rates
and other factors; (ix) declining real estate valuations and impairment
charges; (x) termination of our ground leases; (xi) limitations
on our ability to pay down, refinance, restructure or extend our indebtedness or borrow additional funds; (xii) decreased
rental rates or increased vacancy rates; (xiii) difficulties in
executing capital projects or development projects successfully or on the anticipated timeline or budget; (xiv) difficulties
in identifying and completing acquisitions; (xv) impact of changes
in governmental regulations, tax laws and rates and similar matters; (xvi) our
failure to qualify as a REIT; (xvii) incurrence of taxable capital
gain on disposition of an asset due to failure of compliance with a 1031 exchange program; and (xviii) failure
to achieve sustainability metrics and goals, including as a result of tenant collaboration, and impact of governmental regulation on
our sustainability efforts. For a further discussion of these and other factors that could impact the company's future results, performance,
or transactions, see the section entitled “Risk Factors”
of our annual report on Form 10-K for the year ended December 31,
2023 and any additional factors that may be contained in any filing we make with the U.S. Securities and Exchange Commission.
While forward-looking statements reflect the Company's good faith
beliefs, they do not guarantee future performance. Any forward-looking statement contained in this presentation speaks only as of the
date on which it was made, and we assume no obligation to update or revise publicly any forward-looking statement to reflect changes
in underlying assumptions or factors, new information, data or methods, future events, or other changes after the date of this presentation,
except as required by applicable law. Prospective investors should not place undue reliance on any forward-looking statements, which
are based only on information currently available to the Company (or to third parties making the forward-looking statements).
| Second Quarter 2024
Supplemental Definitions |
Funds From Operations ("FFO")
We compute FFO in accordance with the “White Paper” on
FFO published by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) (determined
in accordance with GAAP), excluding impairment write-off of investments in depreciable real estate and investments in in-substance real
estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related
depreciation and amortization (excluding amortization of deferred financing costs), less distributions to non-controlling interests and
gains/losses from discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized
non-GAAP financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is
useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, we
believe FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has
generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should
review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because
we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts,
investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures
neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and
leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could
materially impact our results of operations, the utility of FFO as a measure of performance is limited. There can be no assurance that
FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities
and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating
activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability
to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White
Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.
Modified Funds From Operations ("Modified FFO")
Modified FFO adds back an adjustment for any above or below-market
ground lease amortization to traditionally defined FFO. We believe this a useful supplemental measure in evaluating our operating performance
due to the non-cash accounting treatment under GAAP, which stems from the third quarter 2014 acquisition of two option properties following
our formation transactions as they carry significantly below market ground leases, the amortization of which is material to our overall
results. We present Modified FFO because we believe it is an important supplemental measure of our operating performance in that it adds
back the non-cash amortization of below-market ground leases. There can be no assurance that Modified FFO presented by us is comparable
to similarly titled measures of other REITs. Modified FFO does not represent cash generated from operating activities and should not
be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined
in accordance with GAAP. Modified FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash
distributions.
Core Funds From Operations ("Core FFO")
Core FFO adds back to Modified FFO the following items: loss on early
extinguishment of debt, acquisition expenses, severance expenses, IPO litigation expense and interest expense associated with property
in receivership. The Company believes Core FFO is an important supplemental measure of its operating performance because it excludes
non-recurring items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other
REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income
(loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not
indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may
also exclude other items from Core FFO that we believe may help investors compare our results.
Core Funds Available for Distribution ("Core FAD")
In addition to Core FFO, we present Core FAD by (i) adding to
Core FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts
and non-cash compensation expenses and (ii) deducting straight-line rent, amortization of debt premiums and above/below market rent
revenue, and recurring capital improvements such as second generation leasing commissions, tenant improvements, prebuilts, capital expenditures
and furniture, fixtures & equipment. Core FAD is presented solely as a supplemental disclosure that we believe provides useful
information regarding our ability to fund our dividends. Core FAD does not represent cash generated from operating activities and should
not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities
determined in accordance with GAAP. Core FAD is not indicative of cash available to fund ongoing cash needs, including the ability to
make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other
REITs.
Net Operating Income ("NOI") and Property Cash NOI
NOI is a non-GAAP financial measure of performance. NOI is used by
our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair
value of our properties as it is not affected by: (i) the cost of funds of the property owner, (ii) the impact of depreciation
and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed
in accordance with GAAP, (iii) acquisition expenses, loss on early extinguishment of debt, impairment charges and loss from derivative
financial instruments, or (iv) general and administrative expenses and other gains and losses that are specific to the property
owner. The cost of funds is eliminated from NOI because it is specific to the particular financing capabilities and constraints of the
owner. The cost of funds is eliminated because it is dependent on historical interest rates and other costs of capital as well as past
decisions made by us regarding the appropriate mix of capital which may have changed or may change in the future. Depreciation and amortization
expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent
the actual change in value in our office or retail properties that result from use of the properties or changes in market conditions.
While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization,
the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions
instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property
to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and
losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of
other real estate companies that have not made similarly-timed purchases or sales. We believe that eliminating these costs from net income
is useful to investors because the resulting measure captures the actual revenue generated and actual expenses incurred in operating
our properties as well as trends in occupancy rates, rental rates and operating costs. In some cases, the Company also presents (1) Property
Cash NOI, which excludes Observatory NOI and the effects of straight-line rent, fair value lease revenue, and straight-line ground rent
expense adjustment, and (2) Property Cash NOI excluding lease termination fees. Property Cash NOI is presented solely as a supplemental
disclosure that management believes allows investors to compare NOI performance across periods without taking into account the effect
of certain non-cash rental revenues and straight-line ground rent expense adjustment. Similar to depreciation and amortization expense,
fair value lease revenues, because of historical cost accounting, may distort operating performance measures at the property level. Additionally,
presenting NOI excluding the impact of straight-line rent and straight-line ground rent expense adjustment provides investors with an
alternative view of operating performance at the property level that more closely reflects net cash generated in the portfolio. Presenting
Property Cash NOI excluding lease termination fees provides investors with additional information that allows them to compare operating
performance between periods without taking into account termination fees, which can distort the results for any given period because
they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with
a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s
portfolio. However, the usefulness of NOI, Property Cash NOI, and Property Cash NOI excluding lease termination fees is limited because
it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale
of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain
the operating performance of our properties, all of which are significant economic costs. NOI and Property Cash NOI may fail to capture
significant trends in these components of net income which further limits its usefulness. NOI and Property Cash NOI are measurements
of the operating performance of our properties but do not measure our performance as a whole. These metrics therefore are not substitutes
for net income as computed in accordance with GAAP. These measures should be analyzed in conjunction with net income computed in accordance
with GAAP. Other companies may use different methods for calculating NOI, Property Cash NOI or similarly titled measures and, accordingly,
our measures may not be comparable to similarly titled measures reported by other companies that do not define the measure exactly as
we do.
Same Store
In the Company’s analysis of NOI, particularly to make comparisons
of NOI between periods meaningful, it is important to provide information for properties that were owned by the Company throughout each
period presented. The Company refers to properties acquired prior to the beginning of the earliest period presented and owned by the
Company through the end of the latest period presented as “Same Store”. Same Store therefore excludes properties acquired
after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it
takes at least one year and one quarter after a property is acquired for that property to be included in Same Store. The Company’s
definition of Same Store also excludes properties held-for-sale or those which we otherwise expect to dispose of in the subsequent quarter,
properties placed in receivership, and our multifamily properties. For mixed-use properties, all same store property NOI is represented
in the property category that comprises the majority of that mixed-use property's NOI. As of June 30, 2024, Same Store excludes
500 Mamaroneck Ave, Harrison, NY which was sold in April 2023, Williamsburg retail in New York City, NY which was acquired in September 2023,
and First Stamford Place, Stamford, CT which was placed into receivership in May 2024.
| Second Quarter 2024
Supplemental Definitions |
EBITDA and Adjusted EBITDA
We compute EBITDA as net income plus interest expense, interest expense
associated with property in receivership, income taxes and depreciation and amortization. We present EBITDA because we believe that EBITDA,
along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional
indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance
with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined
in accordance with GAAP), or as a measure of its liquidity. For Adjusted EBITDA, we add back impairment charges and (gain) loss on disposition
of property.
Net Debt to Adjusted EBITDA
We compute Net Debt to Adjusted EBITDA as the Company’s pro-rata
share of gross debt less cash and cash equivalents divided by the Company’s pro-rata share of trailing twelve months Adjusted EBITDA.
The Company believes that the presentation of Net Debt to Adjusted EBITDA provides useful information to investors because the Company
reviews Net Debt to Adjusted EBITDA as part of the management of its overall financial flexibility, capital structure and leverage based
on its percentage ownership interest in all of its assets.
| Second Quarter 2024 |
COMPANY PROFILE
Empire State Realty Trust, Inc. (NYSE: ESRT) is a
NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily
assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory
that was declared the #1 Attraction in the World - and the #1 Attraction in the U.S. for the third consecutive year - in
Tripadvisor’s 2024 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is the recognized leader in
energy efficiency and indoor environmental quality.
BOARD
OF DIRECTORS
Anthony E. Malkin | |
Chairman and Chief Executive Officer |
Thomas J. DeRosa | |
Director, Chair of the Compensation and Human Capital Committee |
Steven J. Gilbert | |
Director, Lead Independent Director |
S. Michael Giliberto | |
Director, Chair of the Audit Committee |
Patricia S. Han | |
Director |
Grant H. Hill | |
Director |
R. Paige Hood | |
Director, Chair of the Finance Committee |
James D. Robinson IV | |
Director, Chair of the Nominating and Corporate Governance
Committee |
Christina Van Tassell | |
Director |
Hannah Yang | |
Director |
EXECUTIVE
MANAGEMENT
Anthony E. Malkin | |
Chairman and Chief Executive Officer |
Christina Chiu | |
President |
Thomas P. Durels | |
Executive Vice President, Real Estate |
Steve Horn | |
Executive Vice President, Chief Financial Officer &
Chief Accounting Officer |
COMPANY
INFORMATION
Corporate Headquarters | |
Investor Relations | |
New York Stock Exchange |
111 West 33rd Street, 12th Floor | |
IR@esrtreit.com | |
Trading
Symbol: ESRT |
New York, NY 10120 | |
| |
|
www.esrtreit.com | |
| |
|
(212) 687-8700 | |
| |
|
RESEARCH
COVERAGE
Bank of America Merrill Lynch | |
Camille Bonnel | |
(416)
369-2140 |
| camille.bonnel@bofa.com | |
BMO Capital Markets Corp. | |
John Kim | |
(212)
885-4115 |
| jp.kim@bmo.com | |
BTIG | |
Thomas Catherwood | |
(212)
738-6140 |
| tcatherwood@btig.com | |
Citi | |
Michael Griffin | |
(212)
816-5871 |
| michael.a.griffin@citi.com | |
Evercore ISI | |
Steve Sakwa | |
(212)
446-9462 |
| steve.sakwa@evercoreisi.com | |
Green Street Advisors | |
Dylan Burzinski | |
(949)
640-8780 |
| dburzinski@greenstreetadvisors.com | |
KeyBanc Capital Markets | |
Todd Thomas | |
(917)
368-2286 |
| tthomas@key.com | |
Wells Fargo Securities, LLC | |
Blaine Heck | |
(443)
263-6529 |
| blaine.heck@wellsfargo.com | |
Wolfe Research | |
Andrew Rosivach | |
(646)
582-9251 |
| arosivach@wolferesearch.com | |
| Second Quarter 2024
Condensed Consolidated Balance Sheets
(unaudited and dollars
in thousands) |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Assets | |
| | |
| | |
| | |
| | |
| |
Commercial real estate properties,
at cost: | |
| | | |
| | | |
| | | |
| | | |
| | |
Land | |
$ | 341,499 | | |
$ | 366,357 | | |
$ | 366,357 | | |
$ | 366,364 | | |
$ | 361,497 | |
Development costs | |
| 8,187 | | |
| 8,187 | | |
| 8,178 | | |
| 8,178 | | |
| 8,204 | |
Building and improvements | |
| 3,153,616 | | |
| 3,327,773 | | |
| 3,280,657 | | |
| 3,245,555 | | |
| 3,196,181 | |
| |
| 3,503,302 | | |
| 3,702,317 | | |
| 3,655,192 | | |
| 3,620,097 | | |
| 3,565,882 | |
Less: accumulated
depreciation | |
| (1,206,039 | ) | |
| (1,288,519 | ) | |
| (1,250,062 | ) | |
| (1,217,967 | ) | |
| (1,180,558 | ) |
Commercial real estate properties,
net | |
| 2,297,263 | | |
| 2,413,798 | | |
| 2,405,130 | | |
| 2,402,130 | | |
| 2,385,324 | |
Contract
asset(1) | |
| 166,955 | | |
| - | | |
| - | | |
| - | | |
| - | |
Cash and cash equivalents | |
| 535,533 | | |
| 333,573 | | |
| 346,620 | | |
| 353,999 | | |
| 315,357 | |
Restricted cash | |
| 41,015 | | |
| 51,738 | | |
| 60,336 | | |
| 66,954 | | |
| 80,451 | |
Tenant and other receivables | |
| 34,665 | | |
| 40,137 | | |
| 39,836 | | |
| 37,651 | | |
| 32,901 | |
Deferred rent receivables | |
| 242,940 | | |
| 257,266 | | |
| 255,628 | | |
| 254,233 | | |
| 249,881 | |
Prepaid expenses and other assets | |
| 105,438 | | |
| 74,472 | | |
| 98,167 | | |
| 82,918 | | |
| 98,986 | |
Deferred costs, net | |
| 172,318 | | |
| 180,462 | | |
| 172,457 | | |
| 175,488 | | |
| 176,678 | |
Acquired below-market ground leases,
net | |
| 317,326 | | |
| 319,284 | | |
| 321,241 | | |
| 323,199 | | |
| 325,157 | |
Right of use assets | |
| 28,318 | | |
| 28,378 | | |
| 28,439 | | |
| 28,496 | | |
| 28,554 | |
Goodwill | |
| 491,479 | | |
| 491,479 | | |
| 491,479 | | |
| 491,479 | | |
| 491,479 | |
Total assets | |
$ | 4,433,250 | | |
$ | 4,190,587 | | |
$ | 4,219,333 | | |
$ | 4,216,547 | | |
$ | 4,184,768 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities and Equity | |
| | | |
| | | |
| | | |
| | | |
| | |
Mortgage notes payable, net | |
$ | 700,348 | | |
$ | 876,497 | | |
$ | 877,388 | | |
$ | 878,757 | | |
$ | 880,592 | |
Senior unsecured notes, net | |
| 1,196,831 | | |
| 973,926 | | |
| 973,872 | | |
| 973,819 | | |
| 973,768 | |
Unsecured term loan facility, net | |
| 268,580 | | |
| 268,503 | | |
| 389,286 | | |
| 389,158 | | |
| 389,028 | |
Unsecured revolving credit facility | |
| 120,000 | | |
| 120,000 | | |
| - | | |
| - | | |
| - | |
Debt associated with property in receivership | |
| 177,667 | | |
| - | | |
| - | | |
| - | | |
| - | |
Accrued interest associated with property
in receivership | |
| 1,589 | | |
| - | | |
| - | | |
| - | | |
| - | |
Accounts payable and accrued expenses | |
| 90,908 | | |
| 91,005 | | |
| 99,756 | | |
| 83,299 | | |
| 71,709 | |
Acquired below-market leases, net | |
| 11,872 | | |
| 12,798 | | |
| 13,750 | | |
| 14,703 | | |
| 15,280 | |
Ground lease liabilities | |
| 28,318 | | |
| 28,378 | | |
| 28,439 | | |
| 28,496 | | |
| 28,554 | |
Deferred revenue and other liabilities | |
| 61,890 | | |
| 69,289 | | |
| 70,298 | | |
| 75,688 | | |
| 73,972 | |
Tenants' security
deposits | |
| 24,031 | | |
| 25,457 | | |
| 35,499 | | |
| 39,307 | | |
| 40,253 | |
Total liabilities | |
| 2,682,034 | | |
| 2,465,853 | | |
| 2,488,288 | | |
| 2,483,227 | | |
| 2,473,156 | |
Total equity | |
| 1,751,216 | | |
| 1,724,734 | | |
| 1,731,045 | | |
| 1,733,320 | | |
| 1,711,612 | |
Total liabilities
and equity | |
$ | 4,433,250 | | |
$ | 4,190,587 | | |
$ | 4,219,333 | | |
$ | 4,216,547 | | |
$ | 4,184,768 | |
|
Notes: |
(1) |
As of June 30,
2024, we have recorded a contract asset that represents our right to debt extinguishment once the foreclosure process on First Stamford
Place is completed. |
|
| Second Quarter 2024
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts) |
| |
Three
Months Ended | |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Revenues | |
| | | |
| | | |
| | | |
| | | |
| | |
Rental
revenue (1) | |
$ | 152,470 | | |
$ | 153,882 | | |
$ | 151,167 | | |
$ | 151,458 | | |
$ | 154,603 | |
Observatory revenue | |
| 34,124 | | |
| 24,596 | | |
| 36,217 | | |
| 37,562 | | |
| 33,433 | |
Third-party management and other fees | |
| 376 | | |
| 265 | | |
| 275 | | |
| 268 | | |
| 381 | |
Other revenue
and fees | |
| 2,573 | | |
| 2,436 | | |
| 5,223 | | |
| 2,238 | | |
| 2,125 | |
Total revenues | |
| 189,543 | | |
| 181,179 | | |
| 192,882 | | |
| 191,526 | | |
| 190,542 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Operating expenses | |
| | | |
| | | |
| | | |
| | | |
| | |
Property operating expenses | |
| 41,516 | | |
| 45,060 | | |
| 42,944 | | |
| 42,817 | | |
| 39,519 | |
Ground rent expenses | |
| 2,332 | | |
| 2,331 | | |
| 2,332 | | |
| 2,331 | | |
| 2,332 | |
General and administrative expenses | |
| 18,020 | | |
| 15,972 | | |
| 16,144 | | |
| 16,012 | | |
| 16,075 | |
Observatory expenses | |
| 8,958 | | |
| 8,431 | | |
| 9,282 | | |
| 9,471 | | |
| 8,657 | |
Real estate taxes | |
| 31,883 | | |
| 32,241 | | |
| 31,809 | | |
| 32,014 | | |
| 31,490 | |
Depreciation and
amortization | |
| 47,473 | | |
| 46,081 | | |
| 49,599 | | |
| 46,624 | | |
| 46,280 | |
Total operating
expenses | |
| 150,182 | | |
| 150,116 | | |
| 152,110 | | |
| 149,269 | | |
| 144,353 | |
Total operating income | |
| 39,361 | | |
| 31,063 | | |
| 40,772 | | |
| 42,257 | | |
| 46,189 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other income (expense) | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest income | |
| 5,092 | | |
| 4,178 | | |
| 4,740 | | |
| 4,462 | | |
| 3,339 | |
Interest expense | |
| (25,323 | ) | |
| (25,128 | ) | |
| (25,393 | ) | |
| (25,382 | ) | |
| (25,405 | ) |
Interest expense associated with property
in receivership | |
| (628 | ) | |
| - | | |
| - | | |
| - | | |
| - | |
Loss on early extinguishment of debt | |
| - | | |
| (553 | ) | |
| - | | |
| - | | |
| - | |
Gain (loss) on
disposition of property | |
| 10,803 | | |
| - | | |
| (2,497 | ) | |
| - | | |
| 13,565 | |
Income before income taxes | |
| 29,305 | | |
| 9,560 | | |
| 17,622 | | |
| 21,337 | | |
| 37,688 | |
Income tax (expense)
benefit | |
| (750 | ) | |
| 655 | | |
| (1,792 | ) | |
| (1,409 | ) | |
| (733 | ) |
Net income | |
| 28,555 | | |
| 10,215 | | |
| 15,830 | | |
| 19,928 | | |
| 36,955 | |
Net (income) loss attributable to noncontrolling
interests: | |
| | | |
| | | |
| | | |
| | | |
| | |
Non-controlling interests in the Operating
Partnership | |
| (10,433 | ) | |
| (3,500 | ) | |
| (5,670 | ) | |
| (7,207 | ) | |
| (14,049 | ) |
Non-controlling interests in other partnerships | |
| - | | |
| (4 | ) | |
| 1 | | |
| (111 | ) | |
| (1 | ) |
Private perpetual
preferred unit distributions | |
| (1,051 | ) | |
| (1,050 | ) | |
| (1,050 | ) | |
| (1,050 | ) | |
| (1,051 | ) |
Net income attributable to common
stockholders | |
$ | 17,071 | | |
$ | 5,661 | | |
$ | 9,111 | | |
$ | 11,560 | | |
$ | 21,854 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted average common shares outstanding | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 164,277 | | |
| 163,491 | | |
| 161,974 | | |
| 161,851 | | |
| 160,028 | |
Diluted | |
| 268,716 | | |
| 267,494 | | |
| 267,003 | | |
| 266,073 | | |
| 264,196 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Earnings per share attributable to common stockholders | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Basic and diluted | |
$ | 0.10 | | |
$ | 0.03 | | |
$ | 0.06 | | |
$ | 0.07 | | |
$ | 0.14 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Dividends per share | |
$ | 0.035 | | |
$ | 0.035 | | |
$ | 0.035 | | |
$ | 0.035 | | |
$ | 0.035 | |
Note: |
(1) |
The following table
reflects the components of rental revenue. |
| |
Three
Months Ended | |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Rental Revenue | |
| | |
| | |
| | |
| | |
| |
Base rent | |
$ | 136,328 | | |
$ | 136,557 | | |
$ | 134,467 | | |
$ | 133,228 | | |
$ | 138,808 | |
Billed tenant
expense reimbursement | |
| 16,142 | | |
| 17,325 | | |
| 16,700 | | |
| 18,230 | | |
| 15,795 | |
Total rental
revenue | |
$ | 152,470 | | |
$ | 153,882 | | |
$ | 151,167 | | |
$ | 151,458 | | |
$ | 154,603 | |
The
preceding table of the components of rental revenue is not, and is not intended to be, a presentation in accordance with GAAP. The Company
believes this information is frequently used by management, investors, securities analysts and other interested parties to evaluate the
Company's performance.
| Second Quarter 2024
Highlights
(unaudited and dollars and shares
in thousands, except per share amounts) |
| |
Three
Months Ended | |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Office and Retail Metrics: | |
| | |
| | |
| | |
| | |
| |
Total rentable square footage | |
| 8,549,496 | | |
| 9,332,569 | | |
| 9,359,219 | | |
| 9,361,656 | | |
| 9,356,165 | |
Percent
occupied (1) | |
| 88.5 | % | |
| 87.6 | % | |
| 86.3 | % | |
| 87.0 | % | |
| 86.8 | % |
Percent
leased (2) | |
| 92.6 | % | |
| 91.1 | % | |
| 90.6 | % | |
| 90.5 | % | |
| 90.3 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Same Store Property Cash
Net Operating Income (NOI): | |
| | | |
| | | |
| | | |
| | | |
| | |
Manhattan office portfolio | |
$ | 67,165 | | |
$ | 63,911 | | |
$ | 66,897 | | |
$ | 61,985 | | |
$ | 62,800 | |
Greater New York office portfolio | |
| 1,825 | | |
| 1,383 | | |
| 1,711 | | |
| 1,981 | | |
| 2,167 | |
Retail portfolio | |
| 2,517 | | |
| 1,542 | | |
| 1,791 | | |
| 1,752 | | |
| 1,609 | |
Total Same Store
Property Cash NOI | |
$ | 71,507 | | |
$ | 66,836 | | |
$ | 70,399 | | |
$ | 65,718 | | |
$ | 66,576 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Multifamily Metrics: | |
| | | |
| | | |
| | | |
| | | |
| | |
Multifamily
Cash NOI (3) | |
$ | 4,533 | | |
$ | 4,217 | | |
$ | 4,032 | | |
$ | 4,837 | | |
$ | 3,756 | |
Total number of units | |
| 727 | | |
| 727 | | |
| 727 | | |
| 727 | | |
| 721 | |
Percent occupied | |
| 97.9 | % | |
| 97.1 | % | |
| 98.1 | % | |
| 97.1 | % | |
| 97.4 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Observatory Metrics: | |
| | | |
| | | |
| | | |
| | | |
| | |
Observatory NOI | |
$ | 25,166 | | |
$ | 16,165 | | |
$ | 26,935 | | |
$ | 28,091 | | |
$ | 24,776 | |
Number of visitors
(4) | |
| 648,000 | | |
| 485,000 | | |
| 711,000 | | |
| 743,000 | | |
| 666,000 | |
Change in visitors year-over-year | |
| (2.7 | )% | |
| 9.5 | % | |
| 7.7 | % | |
| 8.2 | % | |
| 16.2 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Ratios
at ESRT pro-rata share: (3) | |
| | | |
| | | |
| | | |
| | | |
| | |
Debt
to Total Market Capitalization (5) | |
| 46.4 | % | |
| 44.1 | % | |
| 45.2 | % | |
| 49.7 | % | |
| 51.4 | % |
Net
Debt to Total Market Capitalization (5) | |
| 39.9 | % | |
| 40.2 | % | |
| 41.1 | % | |
| 45.4 | % | |
| 47.6 | % |
Debt and Perpetual
Preferred Units to Total Market Capitalization (5) | |
| 48.2 | % | |
| 45.8 | % | |
| 47.0 | % | |
| 51.7 | % | |
| 53.5 | % |
Net Debt and
Perpetual Preferred Units to Total Market Capitalization (5) | |
| 41.9 | % | |
| 42.0 | % | |
| 43.0 | % | |
| 47.6 | % | |
| 49.8 | % |
Debt
to Adjusted EBITDA (6) | |
| 6.6 | x | |
| 6.2 | x | |
| 6.4 | x | |
| 6.6 | x | |
| 6.7 | x |
Net
Debt to Adjusted EBITDA (6) | |
| 5.1 | x | |
| 5.3 | x | |
| 5.4 | x | |
| 5.5 | x | |
| 5.8 | x |
Core
FFO Payout Ratio (7) | |
| 15 | % | |
| 17 | % | |
| 14 | % | |
| 14 | % | |
| 14 | % |
Core
FAD Payout Ratio (8) | |
| 30 | % | |
| 109 | % | |
| 35 | % | |
| 23 | % | |
| 29 | % |
Core FFO per share - diluted | |
$ | 0.24 | | |
$ | 0.21 | | |
$ | 0.25 | | |
$ | 0.25 | | |
$ | 0.26 | |
Diluted weighted average shares | |
| 268,716 | | |
| 267,494 | | |
| 267,003 | | |
| 266,073 | | |
| 264,196 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Class A common stock price at quarter end | |
$ | 9.38 | | |
$ | 10.13 | | |
$ | 9.69 | | |
$ | 8.04 | | |
$ | 7.49 | |
Dividends declared and paid per share | |
$ | 0.035 | | |
$ | 0.035 | | |
$ | 0.035 | | |
$ | 0.035 | | |
$ | 0.035 | |
Dividends per share - annualized | |
$ | 0.14 | | |
$ | 0.14 | | |
$ | 0.14 | | |
$ | 0.14 | | |
$ | 0.14 | |
Dividend
yield (9) | |
| 1.5 | % | |
| 1.4 | % | |
| 1.4 | % | |
| 1.7 | % | |
| 1.9 | % |
Series 2013 Private Perpetual
Preferred Units outstanding ($16.62 liquidation value) | |
| 1,560 | | |
| 1,560 | | |
| 1,560 | | |
| 1,560 | | |
| 1,560 | |
Series 2019 Private Perpetual
Preferred Units outstanding ($13.52 liquidation value) | |
| 4,664 | | |
| 4,664 | | |
| 4,664 | | |
| 4,664 | | |
| 4,664 | |
Class A common stock | |
| 164,483 | | |
| 163,816 | | |
| 162,062 | | |
| 161,346 | | |
| 159,843 | |
Class B
common stock (10) | |
| 982 | | |
| 982 | | |
| 984 | | |
| 987 | | |
| 988 | |
Operating partnership units | |
| 108,713 | | |
| 109,218 | | |
| 107,900 | | |
| 108,618 | | |
| 110,087 | |
Total common
stock and operating partnership units outstanding (11) | |
| 274,178 | | |
| 274,016 | | |
| 270,946 | | |
| 270,951 | | |
| 270,918 | |
Notes:
(1) | Based
on leases signed and commenced as of end of period. |
(2) | Represents
occupancy and includes signed leases not commenced. |
(3) | On
March 28, 2024, ESRT acquired the non-controlling interest in its other partnerships. The
Multifamily Cash NOI presented here reflects ESRT's pro-rata 90% for the periods prior to this
acquisition. Historical ratios remain unchanged, and June 30, 2024 and March 31, 2024
debt ratios reflect ESRT's 100% share of debt and Adjusted EBITDA. |
(4) | Reflects
the number of visitors who pass through the turnstile, excluding visitors who make a second visit
on the same ticket at no additional charge. |
(5) | Market
capitalization represents the sum of (i) Company's common stock per share price as of June 30,
2024 multiplied by the total outstanding number of shares of common stock and operating partnership
units as of June 30, 2024; (ii) the number of Series 2014 perpetual preferred units
at June 30, 2024 multiplied by $16.62, (iii) the number of Series 2019 perpetual
preferred units at June 30, 2024 multiplied by $13.52, and (iv) our outstanding indebtedness
as of June 30, 2024. |
(6) | Calculated
based on trailing 12 months Adjusted EBITDA. For the period ended June 30, 2024 excludes trailing
12 months Adjusted EBITDA of $12 million relating to First Stamford Place, Stamford CT, which was
placed into receivership at the end of May 2024. |
(7) | Represents
the amount of Core FFO paid out in distributions. |
(8) | Beginning
in the three months ended December 31, 2023, we have eliminated a deduction of other non-recurring
capital improvements from Core FFO to arrive at Core FAD and the related Core FAD Payout Ratio.
We made this modification above to the calculation of Core FAD Payout Ratio for the other periods
presented; in our previous supplemental reports prior to this change, the Core FAD Payout Ratios
were 27% and 33% for the three months ended September 30, 2023 and June 30, 2023, respectively. |
(9) | Based
on the closing price per share of Class A common stock on June 30, 2024. |
(10) | We
have two classes of common stock as a means to give our OP Unit holders voting rights in the public
company that correspond to their economic interest in the combined entity. A one-time option was
created at our formation transactions for any pre-IPO OP Unit holder to exchange one OP Unit out
of every 50 OP Units they owned for one Class B share, and such Class B share carries
50 votes to the extent such holder continnues to hold 49 OP units for every Class B share. |
(11) | Represents
fully diluted common stock and operating partnership units as it includes unvested restricted
stock and unvested LTIP units. |
| Second Quarter 2024
Property Summary - Same Store Net Operating Income ("NOI") by Quarter
(unaudited and dollars in thousands) |
| |
Three
Months Ended | |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Same Store Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenues | |
$ | 140,763 | | |
$ | 140,147 | | |
$ | 139,865 | | |
$ | 137,854 | | |
$ | 141,077 | |
Operating expenses | |
| (68,762 | ) | |
| (71,486 | ) | |
| (68,923 | ) | |
| (69,574 | ) | |
| (64,846 | ) |
Same store property NOI | |
| 72,001 | | |
| 68,661 | | |
| 70,942 | | |
| 68,280 | | |
| 76,231 | |
Straight-line rent | |
| (1,887 | ) | |
| (3,218 | ) | |
| (1,967 | ) | |
| (3,924 | ) | |
| (10,944 | ) |
Above/below-market rent revenue amortization | |
| (565 | ) | |
| (565 | ) | |
| (534 | ) | |
| (595 | ) | |
| (669 | ) |
Below-market ground lease amortization | |
| 1,958 | | |
| 1,958 | | |
| 1,958 | | |
| 1,957 | | |
| 1,958 | |
Total same
store property cash NOI - excluding lease termination fees | |
$ | 71,507 | | |
$ | 66,836 | | |
$ | 70,399 | | |
$ | 65,718 | | |
$ | 66,576 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Percent change over prior year | |
| 7.4 | % | |
| 12.3 | % | |
| 11.3 | % | |
| 8.8 | % | |
| 1.1 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Property cash NOI | |
$ | 71,507 | | |
$ | 66,836 | | |
$ | 70,399 | | |
$ | 65,718 | | |
$ | 66,576 | |
Lease termination fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total same
store property cash NOI | |
$ | 71,507 | | |
$ | 66,836 | | |
$ | 70,399 | | |
$ | 65,718 | | |
$ | 66,576 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Same
Store Manhattan Office(1) | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenues | |
$ | 133,180 | | |
$ | 133,919 | | |
$ | 133,207 | | |
$ | 130,888 | | |
$ | 133,986 | |
Operating expenses | |
| (65,473 | ) | |
| (68,173 | ) | |
| (65,750 | ) | |
| (66,294 | ) | |
| (61,601 | ) |
Same store property NOI | |
| 67,707 | | |
| 65,746 | | |
| 67,457 | | |
| 64,594 | | |
| 72,385 | |
Straight-line rent | |
| (1,935 | ) | |
| (3,228 | ) | |
| (1,984 | ) | |
| (3,971 | ) | |
| (10,874 | ) |
Above/below-market rent revenue amortization | |
| (565 | ) | |
| (565 | ) | |
| (534 | ) | |
| (595 | ) | |
| (669 | ) |
Below-market ground lease amortization | |
| 1,958 | | |
| 1,958 | | |
| 1,958 | | |
| 1,957 | | |
| 1,958 | |
Total same store property cash
NOI - excluding lease termination fees | |
| 67,165 | | |
| 63,911 | | |
| 66,897 | | |
| 61,985 | | |
| 62,800 | |
Lease termination fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total same
store property cash NOI | |
$ | 67,165 | | |
$ | 63,911 | | |
$ | 66,897 | | |
$ | 61,985 | | |
$ | 62,800 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Same Store Greater New York Metropolitan Area Office | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenues | |
$ | 3,319 | | |
$ | 2,844 | | |
$ | 3,072 | | |
$ | 3,425 | | |
$ | 3,596 | |
Operating expenses | |
| (1,656 | ) | |
| (1,594 | ) | |
| (1,504 | ) | |
| (1,627 | ) | |
| (1,577 | ) |
Same store property NOI | |
| 1,663 | | |
| 1,250 | | |
| 1,568 | | |
| 1,798 | | |
| 2,019 | |
Straight-line rent | |
| 162 | | |
| 133 | | |
| 143 | | |
| 183 | | |
| 148 | |
Above/below-market rent revenue amortization | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Below-market ground lease amortization | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total same store property cash
NOI - excluding lease termination fees | |
| 1,825 | | |
| 1,383 | | |
| 1,711 | | |
| 1,981 | | |
| 2,167 | |
Lease termination fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total same
store property cash NOI | |
$ | 1,825 | | |
$ | 1,383 | | |
$ | 1,711 | | |
$ | 1,981 | | |
$ | 2,167 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Same Store Retail | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenues | |
$ | 4,264 | | |
$ | 3,384 | | |
$ | 3,586 | | |
$ | 3,541 | | |
$ | 3,495 | |
Operating expenses | |
| (1,633 | ) | |
| (1,719 | ) | |
| (1,669 | ) | |
| (1,653 | ) | |
| (1,668 | ) |
Same store property NOI | |
| 2,631 | | |
| 1,665 | | |
| 1,917 | | |
| 1,888 | | |
| 1,827 | |
Straight-line rent | |
| (114 | ) | |
| (123 | ) | |
| (126 | ) | |
| (136 | ) | |
| (218 | ) |
Above/below-market rent revenue amortization | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Below-market ground lease amortization | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total same store property cash
NOI - excluding lease termination fees | |
| 2,517 | | |
| 1,542 | | |
| 1,791 | | |
| 1,752 | | |
| 1,609 | |
Lease termination fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total same
store property cash NOI | |
$ | 2,517 | | |
$ | 1,542 | | |
$ | 1,791 | | |
$ | 1,752 | | |
$ | 1,609 | |
Notes:
| (1) | Includes 486,943 rentable
square feet of retail space in the Company's nine Manhattan office properties. |
| Second Quarter 2024
Same Store Net Operating Income ("NOI"), Initial Cash Rent Contributing to
Cash NOI
(unaudited and dollars in thousands) |
| |
Three
Months Ended | |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Reconciliation of Net Income to Cash NOI and Same Store Cash NOI | |
| | |
| | |
| | |
| | |
| |
Net income | |
$ | 28,555 | | |
$ | 10,215 | | |
$ | 15,830 | | |
$ | 19,928 | | |
$ | 36,955 | |
Add: | |
| | | |
| | | |
| | | |
| | | |
| | |
General and administrative expenses | |
| 18,020 | | |
| 15,972 | | |
| 16,144 | | |
| 16,012 | | |
| 16,075 | |
Depreciation and amortization | |
| 47,473 | | |
| 46,081 | | |
| 49,599 | | |
| 46,624 | | |
| 46,280 | |
Interest expense | |
| 25,323 | | |
| 25,128 | | |
| 25,393 | | |
| 25,382 | | |
| 25,405 | |
Interest expense associated with property
in receivership | |
| 628 | | |
| - | | |
| - | | |
| - | | |
| - | |
Loss on early extinguishment of debt | |
| - | | |
| 553 | | |
| - | | |
| - | | |
| - | |
Income tax expense (benefit) | |
| 750 | | |
| (655 | ) | |
| 1,792 | | |
| 1,409 | | |
| 733 | |
Less: | |
| | | |
| | | |
| | | |
| | | |
| | |
(Gain) loss on disposition of property | |
| (10,803 | ) | |
| - | | |
| 2,497 | | |
| - | | |
| (13,565 | ) |
Third-party management and other fees | |
| (376 | ) | |
| (265 | ) | |
| (275 | ) | |
| (268 | ) | |
| (381 | ) |
Interest income | |
| (5,092 | ) | |
| (4,178 | ) | |
| (4,740 | ) | |
| (4,462 | ) | |
| (3,339 | ) |
Net operating income | |
| 104,478 | | |
| 92,851 | | |
| 106,240 | | |
| 104,625 | | |
| 108,163 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Straight-line rent | |
| (1,900 | ) | |
| (3,061 | ) | |
| (2,133 | ) | |
| (5,015 | ) | |
| (11,859 | ) |
Above/below-market rent revenue amortization | |
| (513 | ) | |
| (514 | ) | |
| (483 | ) | |
| (554 | ) | |
| (675 | ) |
Below-market ground lease amortization | |
| 1,958 | | |
| 1,958 | | |
| 1,958 | | |
| 1,957 | | |
| 1,958 | |
Total cash NOI - including Observatory and lease termination
fees | |
| 104,023 | | |
| 91,234 | | |
| 105,582 | | |
| 101,013 | | |
| 97,587 | |
Less: Observatory NOI | |
| (25,166 | ) | |
| (16,165 | ) | |
| (26,935 | ) | |
| (28,091 | ) | |
| (24,776 | ) |
Less: cash NOI from non-Same Store properties | |
| (7,350 | ) | |
| (8,233 | ) | |
| (8,248 | ) | |
| (7,204 | ) | |
| (6,235 | ) |
Total Same Store property cash NOI - including lease
termination fees | |
| 71,507 | | |
| 66,836 | | |
| 70,399 | | |
| 65,718 | | |
| 66,576 | |
Less: Lease termination fees | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Total Same Store property cash
NOI - excluding Observatory and lease termination fees | |
$ | 71,507 | | |
$ | 66,836 | | |
$ | 70,399 | | |
$ | 65,718 | | |
$ | 66,576 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Multifamily
NOI(1) | |
| | | |
| | | |
| | | |
| | | |
| | |
Revenues | |
$ | 9,161 | | |
$ | 8,472 | | |
$ | 8,345 | | |
$ | 8,581 | | |
$ | 8,119 | |
Operating expenses | |
| (4,578 | ) | |
| (4,209 | ) | |
| (4,268 | ) | |
| (3,683 | ) | |
| (4,254 | ) |
NOI | |
| 4,583 | | |
| 4,263 | | |
| 4,077 | | |
| 4,898 | | |
| 3,865 | |
Straight-line rent | |
| (109 | ) | |
| (102 | ) | |
| (102 | ) | |
| (103 | ) | |
| (101 | ) |
Above/below-market rent revenue amortization | |
| 59 | | |
| 56 | | |
| 57 | | |
| 42 | | |
| (8 | ) |
Cash NOI | |
$ | 4,533 | | |
$ | 4,217 | | |
$ | 4,032 | | |
$ | 4,837 | | |
$ | 3,756 | |
Initial
Cash Rent Contributing to Cash NOI in the Following Years From Burn-off of Free Rent and Signed Leases not Commenced
(2)
| |
| | |
Initial | | |
| | |
| | |
| | |
| | |
| |
| |
Square | | |
Annual | | |
Initial
Cash Rent Contributing to Cash NOI in the Following Years | |
Expected Cash Commencement | |
Feet | | |
Cash Rent | | |
2024 | | |
2025 | | |
2026 | | |
2027 | | |
2028 | |
Third quarter 2024 | |
| 110,603 | | |
| 6,656 | | |
| 2,722 | | |
| 6,656 | | |
| 6,656 | | |
| 6,538 | | |
| 6,019 | |
Fourth quarter 2024 | |
| 106,639 | | |
| 5,007 | | |
| 331 | | |
| 5,007 | | |
| 5,007 | | |
| 4,997 | | |
| 4,746 | |
First quarter 2025 | |
| 32,327 | | |
| 2,005 | | |
| - | | |
| 1,745 | | |
| 2,005 | | |
| 2,005 | | |
| 2,005 | |
Second quarter 2025 | |
| 121,317 | | |
| 7,539 | | |
| - | | |
| 4,788 | | |
| 7,539 | | |
| 7,539 | | |
| 7,539 | |
Third quarter 2025 | |
| 49,477 | | |
| 2,948 | | |
| - | | |
| 859 | | |
| 2,948 | | |
| 2,948 | | |
| 2,948 | |
Fourth quarter 2025 | |
| 13,349 | | |
| 937 | | |
| - | | |
| 77 | | |
| 937 | | |
| 937 | | |
| 937 | |
First quarter 2026 | |
| 86,755 | | |
| 5,650 | | |
| - | | |
| - | | |
| 5,173 | | |
| 5,650 | | |
| 5,650 | |
Second quarter 2026 | |
| 60,403 | | |
| 4,054 | | |
| - | | |
| - | | |
| 2,763 | | |
| 4,054 | | |
| 4,054 | |
Third quarter 2026 | |
| 27,866 | | |
| 2,229 | | |
| - | | |
| - | | |
| 1,117 | | |
| 2,229 | | |
| 2,229 | |
Fourth quarter 2026 | |
| 67,865 | | |
| 4,275 | | |
| - | | |
| - | | |
| 703 | | |
| 4,275 | | |
| 4,275 | |
First quarter 2027 | |
| 77,248 | | |
| 5,016 | | |
| - | | |
| - | | |
| - | | |
| 4,958 | | |
| 5,016 | |
Second quarter 2027 | |
| 9,030 | | |
| 677 | | |
| - | | |
| - | | |
| - | | |
| 453 | | |
| 677 | |
| |
| 762,879 | | |
$ | 46,993 | | |
$ | 3,053 | | |
$ | 19,132 | | |
$ | 34,848 | | |
$ | 46,583 | | |
$ | 46,095 | |
| |
Incremental | | |
Initial | | |
| | |
| | |
| | |
| | |
| |
| |
Annual | | |
Annual | | |
Initial
Cash Rent Contributing to Cash NOI in the Following Years | |
2Q 2024 | |
Cash
Rent (3) | | |
Cash Rent | | |
2024 | | |
2025 | | |
2026 | | |
2027 | | |
2028 | |
Commenced leases in free rent period | |
$ | 18,702 | | |
$ | 18,951 | | |
$ | 2,794 | | |
$ | 14,646 | | |
$ | 18,952 | | |
$ | 18,823 | | |
$ | 18,053 | |
Signed leases not commenced | |
| 23,254 | | |
| 28,042 | | |
| 259 | | |
| 4,486 | | |
| 15,896 | | |
| 27,760 | | |
| 28,042 | |
| |
$ | 41,956 | | |
$ | 46,993 | | |
$ | 3,053 | | |
$ | 19,132 | | |
$ | 34,848 | | |
$ | 46,583 | | |
$ | 46,095 | |
Notes:
| (1) | On
March 28, 2024 we acquired the non-controlling interest in ESRT's joint venture properties.
Beginning in the three months ended June 30, 2024, Multifamily NOI figures are presented
at 100% ownership. Prior periods disclose ESRT's pro-rata 90% share. |
| (2) | Excludes
signed leases not commenced and commenced leases in free rent period at our First Stamford
Place property. |
| (3) | Reflects
initial annual cash rent less annual cash rent from existing tenant in the space. |
| Second Quarter 2024
Property Summary - Leasing Activity by Quarter
(unaudited) |
| |
Three
Months Ended | |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Total
Office and Retail Portfolio(1) | |
| | | |
| | | |
| | | |
| | | |
| | |
Total leases executed | |
| 35 | | |
| 25 | | |
| 20 | | |
| 22 | | |
| 31 | |
Weighted average lease term | |
| 7.0
years | | |
| 7.9
years | | |
| 10.4
years | | |
| 8.4
years | | |
| 7.9
years | |
Average free rent period | |
| 7.4
months | | |
| 7.9
months | | |
| 11.9
months | | |
| 10.2
months | | |
| 7.2
months | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Office | |
| | | |
| | | |
| | | |
| | | |
| | |
Total square footage executed | |
| 262,991 | | |
| 367,262 | | |
| 177,406 | | |
| 252,562 | | |
| 326,150 | |
Average starting cash rent psf - leases executed | |
$ | 66.60 | | |
$ | 64.03 | | |
$ | 64.54 | | |
$ | 66.53 | | |
$ | 64.27 | |
Previously escalated cash rents psf | |
$ | 65.31 | | |
$ | 61.08 | | |
$ | 61.17 | | |
$ | 60.28 | | |
$ | 56.20 | |
Percentage of new cash rent over previously escalated rents | |
| 2.0 | % | |
| 4.8 | % | |
| 5.5 | % | |
| 10.4 | % | |
| 14.4 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Retail | |
| | | |
| | | |
| | | |
| | | |
| | |
Total square footage executed | |
| 8,990 | | |
| 2,458 | | |
| 7,452 | | |
| 3,187 | | |
| 10,164 | |
Average starting cash rent psf - leases executed | |
$ | 91.14 | | |
$ | 400.00 | | |
$ | 189.20 | | |
$ | 169.44 | | |
$ | 122.70 | |
Previously escalated cash rents psf | |
$ | 75.03 | | |
$ | 378.97 | | |
$ | 288.16 | | |
$ | 169.31 | | |
$ | 178.14 | |
Percentage of new cash rent over previously escalated rents | |
| 21.5 | % | |
| 5.5 | % | |
| (34.3 | )% | |
| 0.1 | % | |
| (31.1 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total Office and Retail Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | |
Total square footage executed | |
| 271,981 | | |
| 369,720 | | |
| 184,858 | | |
| 255,749 | | |
| 336,314 | |
Average starting cash rent psf - leases executed | |
$ | 67.41 | | |
$ | 66.27 | | |
$ | 70.32 | | |
$ | 67.81 | | |
$ | 66.10 | |
Previously escalated cash rents psf | |
$ | 65.63 | | |
$ | 63.20 | | |
$ | 71.71 | | |
$ | 61.64 | | |
$ | 60.03 | |
Percentage of new cash rent over previously escalated
rents | |
| 2.7 | % | |
| 4.9 | % | |
| (1.9 | )% | |
| 10.0 | % | |
| 10.1 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Leasing commission costs per square foot | |
$ | 18.87 | | |
$ | 21.01 | | |
$ | 26.88 | | |
$ | 18.99 | | |
$ | 17.34 | |
Tenant improvement costs per square foot | |
| 65.69 | | |
| 64.98 | | |
| 85.60 | | |
| 88.50 | | |
| 64.40 | |
Total
LC and TI per square foot(2) | |
$ | 84.56 | | |
$ | 85.99 | | |
$ | 112.48 | | |
$ | 107.49 | | |
$ | 81.74 | |
Total
LC and TI per square foot per year of weighted average lease term(3) | |
$ | 12.14 | | |
$ | 10.92 | | |
$ | 10.80 | | |
$ | 12.84 | | |
$ | 10.32 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Occupancy | |
| 88.5 | % | |
| 87.6 | % | |
| 86.3 | % | |
| 87.0 | % | |
| 86.8 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Manhattan Office Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | |
Total leases executed | |
| 31 | | |
| 22 | | |
| 15 | | |
| 19 | | |
| 25 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Office - New Leases | |
| | | |
| | | |
| | | |
| | | |
| | |
Total square footage executed | |
| 162,655 | | |
| 201,580 | | |
| 96,341 | | |
| 78,305 | | |
| 156,949 | |
Average starting cash rent psf - leases executed | |
$ | 67.44 | | |
$ | 59.70 | | |
$ | 62.26 | | |
$ | 65.59 | | |
$ | 66.35 | |
Previously escalated cash rents psf | |
$ | 64.36 | | |
$ | 55.66 | | |
$ | 59.54 | | |
$ | 59.89 | | |
$ | 48.93 | |
Percentage of new cash rent over previously escalated rents | |
| 4.8 | % | |
| 7.3 | % | |
| 4.6 | % | |
| 9.5 | % | |
| 35.6 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Office
- Renewal Leases(1) | |
| | | |
| | | |
| | | |
| | | |
| | |
Current Renewals | |
| 43,895 | | |
| 34,084 | | |
| 38,676 | | |
| 157,133 | | |
| 151,361 | |
Early Renewals | |
| 54,761 | | |
| 121,612 | | |
| 20,962 | | |
| 7,270 | | |
| - | |
Total square footage executed | |
| 98,656 | | |
| 155,696 | | |
| 59,638 | | |
| 164,403 | | |
| 151,361 | |
Average starting cash rent psf - leases executed | |
$ | 65.50 | | |
$ | 70.30 | | |
$ | 68.61 | | |
$ | 68.42 | | |
$ | 62.55 | |
Previously escalated cash rents psf | |
$ | 67.09 | | |
$ | 68.19 | | |
$ | 64.26 | | |
$ | 61.62 | | |
$ | 63.79 | |
Percentage of new cash rent over previously escalated rents | |
| (2.4 | )% | |
| 3.1 | % | |
| 6.8 | % | |
| 11.0 | % | |
| (1.9 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total Manhattan Office Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | |
Total square footage executed | |
| 261,311 | | |
| 357,276 | | |
| 155,979 | | |
| 242,708 | | |
| 308,310 | |
Average starting cash rent psf - leases executed | |
$ | 66.71 | | |
$ | 64.32 | | |
$ | 64.69 | | |
$ | 67.50 | | |
$ | 64.48 | |
Previously escalated cash rents psf | |
$ | 65.40 | | |
$ | 61.12 | | |
$ | 61.34 | | |
$ | 61.06 | | |
$ | 56.23 | |
Percentage of new cash rent over previously escalated
rents | |
| 2.0 | % | |
| 5.2 | % | |
| 5.5 | % | |
| 10.6 | % | |
| 14.7 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Leasing commission costs per square foot | |
$ | 18.13 | | |
$ | 19.87 | | |
$ | 26.37 | | |
$ | 18.01 | | |
$ | 17.02 | |
Tenant improvement costs per square foot | |
| 68.02 | | |
| 63.31 | | |
| 89.42 | | |
| 90.21 | | |
| 64.58 | |
Total
LC and TI per square foot(2) | |
$ | 86.15 | | |
$ | 83.18 | | |
$ | 115.79 | | |
$ | 108.22 | | |
$ | 81.60 | |
Total
LC and TI per square foot per year of weighted average lease term(3) | |
$ | 12.49 | | |
$ | 10.59 | | |
$ | 10.56 | | |
$ | 12.90 | | |
$ | 10.39 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Occupancy | |
| 88.8 | % | |
| 88.9 | % | |
| 87.3 | % | |
| 87.8 | % | |
| 87.6 | % |
| Second Quarter 2024
Property Summary - Leasing Activity by Quarter - (Continued)
(unaudited) |
| |
Three
Months Ended | |
| |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Greater New York Metropolitan Area Office Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | |
Total leases executed | |
| 1 | | |
| 2 | | |
| 2 | | |
| 2 | | |
| 3 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total square footage executed | |
| 1,680 | | |
| 9,986 | | |
| 21,427 | | |
| 9,854 | | |
| 17,840 | |
Average starting cash rent psf - leases executed | |
$ | 50.00 | | |
$ | 53.75 | | |
| N/A | (4) | |
$ | 42.53 | | |
$ | 50.55 | |
Previously escalated cash rents psf | |
$ | 52.25 | | |
$ | 59.64 | | |
| N/A | (4) | |
$ | 41.00 | | |
$ | 54.38 | |
Percentage of new cash rent over previously escalated rents | |
| (4.3 | )% | |
| (9.9 | )% | |
| N/A | (4) | |
| 3.7 | % | |
| (7.1 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Leasing commission costs per square foot | |
$ | 9.95 | | |
$ | 19.29 | | |
$ | 16.38 | | |
$ | 9.35 | | |
$ | 16.48 | |
Tenant improvement costs per square foot | |
| 3.50 | | |
| 128.47 | | |
| 80.55 | | |
| 34.49 | | |
| 81.70 | |
Total
LC and TI per square foot(2) | |
$ | 13.45 | | |
$ | 147.76 | | |
$ | 96.93 | | |
$ | 43.84 | | |
$ | 98.18 | |
Total
LC and TI per square foot per year of weighted average lease term(3) | |
$ | 4.04 | | |
$ | 18.59 | | |
$ | 13.35 | | |
$ | 7.92 | | |
$ | 11.21 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Occupancy | |
| 70.7 | % | |
| 76.8 | % | |
| 76.6 | % | |
| 79.3 | % | |
| 79.2 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Retail Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | |
Total leases executed | |
| 3 | | |
| 1 | | |
| 3 | | |
| 1 | | |
| 3 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total square footage executed | |
| 8,990 | | |
| 2,458 | | |
| 7,452 | | |
| 3,187 | | |
| 10,164 | |
Average starting cash rent psf - leases executed | |
$ | 91.14 | | |
$ | 400.00 | | |
$ | 189.20 | | |
$ | 169.44 | | |
$ | 122.70 | |
Previously escalated cash rents psf | |
$ | 75.03 | | |
$ | 378.97 | | |
$ | 288.16 | | |
$ | 169.31 | | |
$ | 178.14 | |
Percentage of new cash rent over previously escalated rents | |
| 21.5 | % | |
| 5.5 | % | |
| (34.3 | )% | |
| 0.1 | % | |
| (31.1 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Leasing commission costs per square foot | |
$ | 41.87 | | |
$ | 193.06 | | |
$ | 67.66 | | |
$ | 123.73 | | |
$ | 28.28 | |
Tenant improvement costs per square foot | |
| 9.45 | | |
| 50.00 | | |
| 20.18 | | |
| 125.00 | | |
| 28.40 | |
Total
LC and TI per square foot(2) | |
$ | 51.32 | | |
$ | 243.06 | | |
$ | 87.84 | | |
$ | 248.73 | | |
$ | 56.68 | |
Total
LC and TI per square foot per year of weighted average lease term(3) | |
$ | 5.33 | | |
$ | 23.15 | | |
$ | 10.88 | | |
$ | 15.55 | | |
$ | 6.57 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Occupancy | |
| 92.3 | % | |
| 89.8 | % | |
| 90.4 | % | |
| 90.4 | % | |
| 90.7 | % |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Multifamily Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | |
Percent occupied | |
| 97.9 | % | |
| 97.1 | % | |
| 98.1 | % | |
| 97.1 | % | |
| 97.4 | % |
Total number of units | |
| 727 | | |
| 727 | | |
| 727 | | |
| 727 | | |
| 721 | |
Notes:
(1) | Added
in the quarter ended June 30, 2024, for all comparative periods we include "Early
Renewals", defined as leases which were signed over two years prior to the lease expiration.
Amounts listed as "Total Renewals" in prior periods have been renamed to "Current
Renewals" above. Amounts for total leases executed, weighted average lease term, average
free rent period, total square footage executed, average starting cash rent psf - leases
executed, previously escalated cash rents psf, percentage of new cash rent over previously
escalated rents, leasing commission costs per square foot, tenant improvement costs per square
foot and total LC and TI per square foot for the quarters ended March 31, 2024, December 31,
2023 and September 30, 2023 have been adjusted to include the impact of the early renewals
for those same prior quarters. There were no early renewals for the quarter ended June 30,
2023. |
(2) | Presents all
tenant improvement and leasing commission costs as if they were incurred in the period in which
the lease was signed, which may be different than the period in which they were actually paid. |
(3) | Added in the
quarter ended June 30, 2024, for all comparative periods and is calculated by dividing the
total LC and TI per square foot by the weighted average lease term. |
(4) | Leases on
spaces that have been vacant for more than two years are not included in the calculation of leasing
spreads. The average starting cash rent psf for these two leases was $42.06. |
| Second Quarter 2024
Commercial Property Detail
(unaudited) |
| |
| |
| | |
| | |
| | |
| | |
Annualized | | |
| |
Property
Name | |
Location
or Sub-Market | |
Rentable
Square Feet
(1) | | |
Percent
Occupied (2) | | |
Percent
Leased (3) | | |
Annualized
Rent
(4) | | |
Rent
per
Occupied
Square Foot (5) | | |
Number
of
Leases (6) | |
Office
- Manhattan | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
The
Empire State Building | |
Penn
Station -Times Sq. South | |
| 2,713,930 | | |
| 89.0 | % | |
| 93.4 | % | |
$ | 161,712,941 | | |
$ | 66.97 | | |
| 145 | |
One
Grand Central Place | |
Grand
Central | |
| 1,241,614 | | |
| 83.7 | % | |
| 91.5 | % | |
| 68,229,831 | | |
| 65.62 | | |
| 146 | |
1400
Broadway (7) | |
Penn
Station -Times Sq. South | |
| 917,281 | | |
| 92.6 | % | |
| 100.0 | % | |
| 50,613,173 | | |
| 59.59 | | |
| 19 | |
111
West 33rd Street (8) | |
Penn
Station -Times Sq. South | |
| 639,595 | | |
| 96.4 | % | |
| 100.0 | % | |
| 43,781,298 | | |
| 71.02 | | |
| 21 | |
250
West 57th Street | |
Columbus
Circle - West Side | |
| 474,790 | | |
| 83.4 | % | |
| 84.6 | % | |
| 26,248,935 | | |
| 66.32 | | |
| 30 | |
501
Seventh Avenue | |
Penn
Station -Times Sq. South | |
| 459,315 | | |
| 90.1 | % | |
| 90.1 | % | |
| 21,511,863 | | |
| 51.98 | | |
| 18 | |
1359
Broadway | |
Penn
Station -Times Sq. South | |
| 456,507 | | |
| 89.0 | % | |
| 89.0 | % | |
| 25,022,676 | | |
| 61.61 | | |
| 30 | |
1350
Broadway (9) | |
Penn
Station -Times Sq. South | |
| 370,922 | | |
| 82.9 | % | |
| 88.9 | % | |
| 18,747,768 | | |
| 61.00 | | |
| 48 | |
1333
Broadway | |
Penn
Station -Times Sq. South | |
| 296,349 | | |
| 94.4 | % | |
| 94.4 | % | |
| 16,258,595 | | |
| 58.10 | | |
| 13 | |
Office
- Manhattan | |
| 7,570,303 | | |
| 88.8 | % | |
| 93.3 | % | |
| 432,127,080 | | |
| 64.27 | | |
| 470 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Office
- Greater New York Metropolitan Area | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Metro
Center | |
Stamford,
CT | |
| 281,985 | | |
| 70.7 | % | |
| 73.3 | % | |
| 11,279,809 | | |
| 56.54 | | |
| 19 | |
Office
- Greater New York Metropolitan Area | |
| 281,985 | | |
| 70.7 | % | |
| 73.3 | % | |
| 11,279,809 | | |
| 56.54 | | |
| 19 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total/Weighted
Average Office Properties | |
| 7,852,288 | | |
| 88.2 | % | |
| 92.5 | % | |
| 443,406,889 | | |
| 64.05 | | |
| 489 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Retail
Properties | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
112
West 34th Street (8) | |
Penn
Station -Times Sq. South | |
| 93,057 | | |
| 100.0 | % | |
| 100.0 | % | |
| 24,909,721 | | |
| 267.68 | | |
| 4 | |
The
Empire State Building | |
Penn
Station -Times Sq. South | |
| 88,445 | | |
| 77.4 | % | |
| 77.4 | % | |
| 7,795,377 | | |
| 113.83 | | |
| 11 | |
One
Grand Central Place | |
Grand
Central | |
| 70,810 | | |
| 100.0 | % | |
| 100.0 | % | |
| 7,848,437 | | |
| 110.84 | | |
| 12 | |
1333
Broadway | |
Penn
Station -Times Sq. South | |
| 67,001 | | |
| 100.0 | % | |
| 100.0 | % | |
| 10,150,505 | | |
| 151.50 | | |
| 4 | |
250
West 57th Street | |
Columbus
Circle - West Side | |
| 63,443 | | |
| 94.4 | % | |
| 94.4 | % | |
| 8,773,508 | | |
| 146.42 | | |
| 7 | |
10
Union Square | |
Union
Square | |
| 58,006 | | |
| 91.9 | % | |
| 91.9 | % | |
| 8,295,084 | | |
| 155.63 | | |
| 10 | |
1542
Third Avenue | |
Upper
East Side | |
| 56,211 | | |
| 95.0 | % | |
| 95.0 | % | |
| 2,502,430 | | |
| 46.87 | | |
| 3 | |
1010
Third Avenue | |
Upper
East Side | |
| 38,235 | | |
| 100.0 | % | |
| 100.0 | % | |
| 3,445,744 | | |
| 90.12 | | |
| 2 | |
501
Seventh Avenue | |
Penn
Station -Times Sq. South | |
| 27,213 | | |
| 73.1 | % | |
| 83.6 | % | |
| 1,409,969 | | |
| 70.91 | | |
| 6 | |
1350
Broadway (9) | |
Penn
Station -Times Sq. South | |
| 30,710 | | |
| 77.8 | % | |
| 77.8 | % | |
| 5,977,341 | | |
| 250.31 | | |
| 5 | |
1359
Broadway | |
Penn
Station -Times Sq. South | |
| 29,247 | | |
| 82.5 | % | |
| 99.4 | % | |
| 1,659,133 | | |
| 68.80 | | |
| 4 | |
561
10th Avenue | |
Hudson
Yards | |
| 11,822 | | |
| 100.0 | % | |
| 100.0 | % | |
| 1,592,752 | | |
| 134.73 | | |
| 2 | |
77
West 55th Street | |
Midtown | |
| 25,388 | | |
| 100.0 | % | |
| 100.0 | % | |
| 2,054,538 | | |
| 80.93 | | |
| 3 | |
1400
Broadway (7) | |
Penn
Station -Times Sq. South | |
| 17,017 | | |
| 82.2 | % | |
| 82.2 | % | |
| 1,655,074 | | |
| 118.39 | | |
| 6 | |
298
Mulberry Street | |
NoHo | |
| 10,365 | | |
| 100.0 | % | |
| 100.0 | % | |
| 1,807,793 | | |
| 174.41 | | |
| 1 | |
Williamsburg
Retail | |
Brooklyn | |
| 6,538 | | |
| 100.0 | % | |
| 100.0 | % | |
| 1,182,658 | | |
| 180.89 | | |
| 3 | |
345
East 94th Street | |
Upper
East Side | |
| 3,700 | | |
| 100.0 | % | |
| 100.0 | % | |
| 270,872 | | |
| 73.21 | | |
| 1 | |
Total/Weighted
Average Retail Properties | |
| 697,208 | | |
| 92.3 | % | |
| 93.5 | % | |
| 91,330,936 | | |
| 141.85 | | |
| 84 | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Portfolio
Total | |
| 8,549,496 | | |
| 88.5 | % | |
| 92.6 | % | |
$ | 534,737,825 | | |
$ | 70.67 | | |
| 573 | |
|
Notes: |
(1) |
Excludes (i) 177,632 square feet of space
across the Company's portfolio attributable to building management use and tenant amenities, (ii) 85,334 square feet of space
attributable to the Company's Observatory, (iii) square footage related to the Company's residential units. |
(2) |
Based on leases signed and commenced as of
June 30, 2024. |
(3) |
Includes occupied space plus leases signed
but not commenced as of June 30, 2024. |
(4) |
Represents annualized base rent and current
reimbursement for operating expenses and real estate taxes. |
(5) |
Represents annualized rent under leases commenced
as of June 30, 2024 divided by occupied square feet. |
(6) |
Represents the number of leases at each property
or on a portfolio basis. If a tenant has more than one lease, whether or not at the same property, but with different expirations,
the number of leases is calculated equal to the number of leases with different expirations. |
(7) |
Denotes a ground leasehold interest in the
property with a remaining term, including unilateral extension rights available to the Company, of approximately 39 years (expiring
December 31, 2063). |
(8) |
Denotes a ground leasehold interest in the
property with a remaining term, including unilateral extension rights available to the Company, of approximately 53 years (expiring
June 10, 2077). |
(9) |
Denotes a ground leasehold interest in the
property with a remaining term, including unilateral extension rights available to the Company, of approximately 26 years (expiring
July 31, 2050). |
| Second Quarter 2024
Total Portfolio Expirations and Vacates Summary
(unaudited and in square feet) |
| |
Actual | | |
Actual | | |
Forecast
(1) | | |
Forecast
(1) | |
| |
Three
Months Ended | | |
| | |
| |
| |
March 31,
2024 | | |
June 30,
2024 | | |
September 30,
2024 | | |
December 31,
2024 | | |
July to
Dec. 2024 | | |
Full Year
2025 | |
Total Office
and Retail Portfolio (2) | |
| | |
| | |
| | |
| | |
| | |
| |
Total expirations | |
| 107,698 | | |
| 121,378 | | |
| 183,306 | | |
| 143,199 | | |
| 326,505 | | |
| 559,315 | |
Less: broadcasting | |
| - | | |
| - | | |
| (1,417 | ) | |
| - | | |
| (1,417 | ) | |
| - | |
Office and retail expirations | |
| 107,698 | | |
| 121,378 | | |
| 181,889 | | |
| 143,199 | | |
| 325,088 | | |
| 559,315 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Renewals &
relocations (3) | |
| 48,811 | | |
| 18,004 | | |
| 55,822 | | |
| 19,094 | | |
| 74,916 | | |
| 111,712 | |
New
leases (4) | |
| 4,389 | | |
| 70,641 | | |
| 24,260 | | |
| 6,738 | | |
| 30,998 | | |
| 141,747 | |
Vacates
(5) | |
| 54,498 | | |
| 32,733 | | |
| 101,807 | | |
| 102,443 | | |
| 204,250 | | |
| 170,712 | |
Unknown
(6) | |
| - | | |
| - | | |
| - | | |
| 14,924 | | |
| 14,924 | | |
| 135,144 | |
Total Office
and Retail Portfolio expirations and vacates | |
| 107,698 | | |
| 121,378 | | |
| 181,889 | | |
| 143,199 | | |
| 325,088 | | |
| 559,315 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Manhattan Office Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total expirations | |
| 82,998 | | |
| 121,378 | | |
| 182,893 | | |
| 126,229 | | |
| 309,122 | | |
| 512,140 | |
Less: broadcasting | |
| - | | |
| - | | |
| (1,417 | ) | |
| - | | |
| (1,417 | ) | |
| - | |
Office expirations | |
| 82,998 | | |
| 121,378 | | |
| 181,476 | | |
| 126,229 | | |
| 307,705 | | |
| 512,140 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Renewals &
relocations (3) | |
| 41,288 | | |
| 18,004 | | |
| 55,822 | | |
| 19,094 | | |
| 74,916 | | |
| 103,345 | |
New
leases (4) | |
| 4,389 | | |
| 70,641 | | |
| 24,260 | | |
| 6,738 | | |
| 30,998 | | |
| 132,797 | |
Vacates
(5) | |
| 37,321 | | |
| 32,733 | | |
| 101,394 | | |
| 88,013 | | |
| 189,407 | | |
| 162,422 | |
Unknown
(6) | |
| - | | |
| - | | |
| - | | |
| 12,384 | | |
| 12,384 | | |
| 113,576 | |
Total expirations
and vacates | |
| 82,998 | | |
| 121,378 | | |
| 181,476 | | |
| 126,229 | | |
| 307,705 | | |
| 512,140 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Greater
New York Metropolitan Area Office Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Office expirations | |
| - | | |
| - | | |
| - | | |
| 2,540 | | |
| 2,540 | | |
| 23,304 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Renewals &
relocations (3) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,089 | |
New
leases (4) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Vacates
(5) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Unknown
(6) | |
| - | | |
| - | | |
| - | | |
| 2,540 | | |
| 2,540 | | |
| 21,215 | |
Total expirations
and vacates | |
| - | | |
| - | | |
| - | | |
| 2,540 | | |
| 2,540 | | |
| 23,304 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Retail Portfolio | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Retail expirations | |
| 24,700 | | |
| - | | |
| 413 | | |
| 14,430 | | |
| 14,843 | | |
| 23,871 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Renewals &
relocations (3) | |
| 7,523 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 6,278 | |
New
leases (4) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 8,950 | |
Vacates
(5) | |
| 17,177 | | |
| - | | |
| 413 | | |
| 14,430 | | |
| 14,843 | | |
| 8,290 | |
Unknown
(6) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 353 | |
Total expirations
and vacates | |
| 24,700 | | |
| - | | |
| 413 | | |
| 14,430 | | |
| 14,843 | | |
| 23,871 | |
|
Notes: |
(1) |
These forecasts, which are subject to change,
are based on management's current expectations, including, among other things, discussions with and other information provided by
tenants as well as management's analyses of past historical trends. |
(2) |
Any lease on month
to month or short-term will re-appear in "Actual" in each period until tenant has vacated or renewed, and thus it would
be double counted if periods were cumulated. "Forecast" avoids double counting. |
(3) |
For forecasted periods, “Renewals &
relocations” includes the following: tenants renew their existing leases in all or a portion of their current spaces; tenants
which signed renewal leases for a term of less than six months and reappear in forecast periods in 2024; and tenants who move within
a building or within the Company's portfolio. |
(4) |
For forecasted periods, “New Leases”
represents leases that have been signed with a new tenant, a subtenant who signed a direct lease or a tenant who expanded. There
may be downtime between the lease expiration and the new lease commencement. |
(5) |
For forecasted periods, “Vacates”
assumes a tenant elects not to renew at the end of their existing lease or exercises an early termination option; leases
that the Company decides not to renew at the end of tenants' existing lease due to anticipated future redevelopment or for other
reasons. This also may include early lease terminations. |
(6) |
For forecasted periods, "Unknown"
represents tenants whose intentions are unknown. |
| Second Quarter 2024
Tenant Lease Expirations
(unaudited) |
| |
Number of
Leases
Expiring(1) | | |
Rentable
Square Feet
Expiring (2) | | |
Percent of
Portfolio
Rentable
Square Feet
Expiring | | |
Annualized
Rent
(3) | | |
Percent of
Annualized
Rent | | |
Annualized
Rent Per
Rentable
Square Foot | |
Total Office and Retail Lease Expirations | |
| | |
| | |
| | |
| | |
| | |
| |
Available | |
| - | | |
| 631,716 | | |
| 7.4 | % | |
$ | - | | |
| 0.0 | % | |
$ | - | |
Signed
leases not commenced | |
| 26 | | |
| 351,075 | | |
| 4.1 | % | |
| - | | |
| 0.0 | % | |
| - | |
2Q
2024 (4) | |
| 5 | | |
| 64,788 | | |
| 0.8 | % | |
| 3,846,657 | | |
| 0.7 | % | |
| 59.37 | |
3Q
2024 | |
| 15 | | |
| 118,518 | | |
| 1.4 | % | |
| 6,910,268 | | |
| 1.3 | % | |
| 58.31 | |
4Q
2024 | |
| 32 | | |
| 143,199 | | |
| 1.7 | % | |
| 8,091,665 | | |
| 1.5 | % | |
| 56.51 | |
Total
2024 | |
| 52 | | |
| 326,505 | | |
| 3.9 | % | |
| 18,848,590 | | |
| 3.5 | % | |
| 57.73 | |
1Q
2025 | |
| 23 | | |
| 120,947 | | |
| 1.4 | % | |
| 8,822,343 | | |
| 1.6 | % | |
| 72.94 | |
2Q
2025 | |
| 17 | | |
| 134,406 | | |
| 1.6 | % | |
| 10,853,637 | | |
| 2.0 | % | |
| 80.75 | |
3Q
2025 | |
| 16 | | |
| 69,907 | | |
| 0.8 | % | |
| 4,503,444 | | |
| 0.8 | % | |
| 64.42 | |
4Q
2025 | |
| 22 | | |
| 234,055 | | |
| 2.7 | % | |
| 16,382,325 | | |
| 3.1 | % | |
| 69.99 | |
Total
2025 | |
| 78 | | |
| 559,315 | | |
| 6.5 | % | |
| 40,561,749 | | |
| 7.5 | % | |
| 72.52 | |
2026 | |
| 69 | | |
| 588,107 | | |
| 6.9 | % | |
| 36,918,071 | | |
| 6.9 | % | |
| 62.77 | |
2027 | |
| 88 | | |
| 700,719 | | |
| 8.2 | % | |
| 48,983,013 | | |
| 9.2 | % | |
| 69.90 | |
2028 | |
| 60 | | |
| 937,982 | | |
| 11.0 | % | |
| 54,913,877 | | |
| 10.3 | % | |
| 58.54 | |
2029 | |
| 53 | | |
| 895,260 | | |
| 10.5 | % | |
| 72,651,924 | | |
| 13.6 | % | |
| 81.15 | |
2030 | |
| 39 | | |
| 716,215 | | |
| 8.4 | % | |
| 51,276,458 | | |
| 9.6 | % | |
| 71.59 | |
2031 | |
| 23 | | |
| 184,302 | | |
| 2.2 | % | |
| 21,516,329 | | |
| 4.0 | % | |
| 116.74 | |
2032 | |
| 27 | | |
| 344,862 | | |
| 4.0 | % | |
| 26,040,073 | | |
| 4.9 | % | |
| 75.51 | |
2033 | |
| 27 | | |
| 240,590 | | |
| 2.8 | % | |
| 17,595,319 | | |
| 3.3 | % | |
| 73.13 | |
2034 | |
| 21 | | |
| 250,005 | | |
| 2.9 | % | |
| 19,974,084 | | |
| 3.7 | % | |
| 79.89 | |
Thereafter | |
| 36 | | |
| 1,822,843 | | |
| 21.2 | % | |
| 125,458,340 | | |
| 23.5 | % | |
| 68.83 | |
Total | |
| 599 | | |
| 8,549,496 | | |
| 100.0 | % | |
$ | 534,737,827 | | |
| 100.0 | % | |
$ | 70.67 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Manhattan
Office Properties (5) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Available | |
| - | | |
| 510,853 | | |
| 6.7 | % | |
$ | - | | |
| 0.0 | % | |
$ | - | |
Signed
leases not commenced | |
| 21 | | |
| 336,109 | | |
| 4.4 | % | |
| - | | |
| 0.0 | % | |
| - | |
2Q
2024 (4) | |
| 5 | | |
| 64,788 | | |
| 0.9 | % | |
| 3,846,657 | | |
| 0.9 | % | |
| 59.37 | |
3Q
2024 | |
| 14 | | |
| 118,105 | | |
| 1.6 | % | |
| 6,893,025 | | |
| 1.6 | % | |
| 58.36 | |
4Q
2024 | |
| 30 | | |
| 126,229 | | |
| 1.7 | % | |
| 7,133,505 | | |
| 1.7 | % | |
| 56.51 | |
Total
2024 | |
| 49 | | |
| 309,122 | | |
| 4.2 | % | |
| 17,873,187 | | |
| 4.2 | % | |
| 57.82 | |
1Q
2025 | |
| 22 | | |
| 118,647 | | |
| 1.6 | % | |
| 8,330,659 | | |
| 1.9 | % | |
| 70.21 | |
2Q
2025 | |
| 15 | | |
| 117,166 | | |
| 1.5 | % | |
| 7,995,349 | | |
| 1.9 | % | |
| 68.24 | |
3Q
2025 | |
| 14 | | |
| 57,547 | | |
| 0.8 | % | |
| 3,798,888 | | |
| 0.9 | % | |
| 66.01 | |
4Q
2025 | |
| 17 | | |
| 218,780 | | |
| 2.9 | % | |
| 14,391,067 | | |
| 3.3 | % | |
| 65.78 | |
Total
2025 | |
| 68 | | |
| 512,140 | | |
| 6.8 | % | |
| 34,515,963 | | |
| 8.0 | % | |
| 67.40 | |
2026 | |
| 60 | | |
| 493,118 | | |
| 6.5 | % | |
| 31,080,105 | | |
| 7.2 | % | |
| 63.03 | |
2027 | |
| 78 | | |
| 624,784 | | |
| 8.3 | % | |
| 40,146,523 | | |
| 9.3 | % | |
| 64.26 | |
2028 | |
| 54 | | |
| 921,448 | | |
| 12.2 | % | |
| 53,020,553 | | |
| 12.3 | % | |
| 57.54 | |
2029 | |
| 41 | | |
| 766,689 | | |
| 10.1 | % | |
| 49,541,326 | | |
| 11.5 | % | |
| 64.62 | |
2030 | |
| 30 | | |
| 620,879 | | |
| 8.2 | % | |
| 40,442,659 | | |
| 9.4 | % | |
| 65.14 | |
2031 | |
| 13 | | |
| 97,882 | | |
| 1.3 | % | |
| 7,262,599 | | |
| 1.7 | % | |
| 74.20 | |
2032 | |
| 20 | | |
| 312,806 | | |
| 4.1 | % | |
| 23,104,182 | | |
| 5.3 | % | |
| 73.86 | |
2033 | |
| 15 | | |
| 141,059 | | |
| 1.9 | % | |
| 8,821,695 | | |
| 2.0 | % | |
| 62.54 | |
2034 | |
| 15 | | |
| 229,340 | | |
| 3.0 | % | |
| 15,688,933 | | |
| 3.6 | % | |
| 68.41 | |
Thereafter | |
| 27 | | |
| 1,694,074 | | |
| 22.3 | % | |
| 110,629,355 | | |
| 25.5 | % | |
| 65.30 | |
Total
Manhattan office properties | |
| 491 | | |
| 7,570,303 | | |
| 100.0 | % | |
$ | 432,127,080 | | |
| 100.0 | % | |
$ | 64.27 | |
| Second Quarter 2024
Tenant Lease Expirations
(unaudited) |
| |
Number
of
Leases
Expiring(1) | | |
Rentable
Square Feet
Expiring(2) | | |
Percent
of
Portfolio
Rentable
Square Feet
Expiring | | |
Annualized Rent
(3) | | |
Percent of
Annualized
Rent | | |
Annualized
Rent Per
Rentable
Square Foot | |
Greater
New York Metropolitan Area Office Portfolio | |
| | |
| | |
| | |
| | |
| | |
| |
Available | |
| - | | |
| 75,351 | | |
| 26.7 | % | |
$ | - | | |
| 0.0 | % | |
$ | - | |
Signed
leases not commenced | |
| 1 | | |
| 7,137 | | |
| 2.4 | % | |
| - | | |
| 0.0 | % | |
| - | |
2Q
2024 (4) | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
3Q
2024 | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
4Q
2024 | |
| 1 | | |
| 2,540 | | |
| 0.9 | % | |
| 63,500 | | |
| 0.6 | % | |
| 25.00 | |
Total
2024 | |
| 1 | | |
| 2,540 | | |
| 0.9 | % | |
| 63,500 | | |
| 0.6 | % | |
| 25.00 | |
1Q
2025 | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
2Q
2025 | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
3Q
2025 | |
| 2 | | |
| 12,360 | | |
| 4.4 | % | |
| 704,556 | | |
| 6.2 | % | |
| 57.00 | |
4Q
2025 | |
| 2 | | |
| 10,944 | | |
| 3.9 | % | |
| 694,031 | | |
| 6.2 | % | |
| 63.42 | |
Total
2025 | |
| 4 | | |
| 23,304 | | |
| 8.3 | % | |
| 1,398,587 | | |
| 12.4 | % | |
| 60.01 | |
2026 | |
| 1 | | |
| 23,268 | | |
| 8.3 | % | |
| 1,395,039 | | |
| 12.4 | % | |
| 59.96 | |
2027 | |
| 4 | | |
| 21,546 | | |
| 7.6 | % | |
| 1,214,780 | | |
| 10.8 | % | |
| 56.38 | |
2028 | |
| 2 | | |
| 11,480 | | |
| 4.1 | % | |
| 635,538 | | |
| 5.6 | % | |
| 55.36 | |
2029 | |
| 2 | | |
| 12,183 | | |
| 4.3 | % | |
| 693,381 | | |
| 6.1 | % | |
| 56.91 | |
2030 | |
| 2 | | |
| 26,973 | | |
| 9.6 | % | |
| 1,572,084 | | |
| 13.9 | % | |
| 58.28 | |
2031 | |
| 1 | | |
| 15,030 | | |
| 5.3 | % | |
| 820,187 | | |
| 7.3 | % | |
| 54.57 | |
2032(6) | |
| 1 | | |
| - | | |
| 0.0 | % | |
| 6,365 | | |
| 0.1 | % | |
| - | |
2033 | |
| 1 | | |
| 63,173 | | |
| 22.5 | % | |
| 3,480,347 | | |
| 30.8 | % | |
| 55.09 | |
2034 | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
Thereafter | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
Total
greater New York metropolitan area office portfolio | |
| 20 | | |
| 281,985 | | |
| 100.0 | % | |
$ | 11,279,809 | | |
| 100.0 | % | |
$ | 56.54 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Retail
Properties | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Available | |
| - | | |
| 45,512 | | |
| 6.5 | % | |
$ | - | | |
| 0.0 | % | |
$ | - | |
Signed
leases not commenced | |
| 4 | | |
| 7,829 | | |
| 1.1 | % | |
| - | | |
| 0.0 | % | |
| - | |
2Q
2024 (4) | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
3Q
2024 | |
| 1 | | |
| 413 | | |
| 0.1 | % | |
| 17,243 | | |
| 0.0 | % | |
| 41.75 | |
4Q
2024 | |
| 1 | | |
| 14,430 | | |
| 2.1 | % | |
| 894,660 | | |
| 1.0 | % | |
| 62.00 | |
Total
2024 | |
| 2 | | |
| 14,843 | | |
| 2.2 | % | |
| 911,903 | | |
| 1.0 | % | |
| 61.44 | |
1Q
2025 | |
| 1 | | |
| 2,300 | | |
| 0.3 | % | |
| 491,684 | | |
| 0.5 | % | |
| 213.78 | |
2Q
2025 | |
| 2 | | |
| 17,240 | | |
| 2.5 | % | |
| 2,858,288 | | |
| 3.1 | % | |
| 165.79 | |
3Q
2025 | |
| - | | |
| - | | |
| 0.0 | % | |
| - | | |
| 0.0 | % | |
| - | |
4Q
2025 | |
| 3 | | |
| 4,331 | | |
| 0.6 | % | |
| 1,297,227 | | |
| 1.4 | % | |
| 299.52 | |
Total
2025 | |
| 6 | | |
| 23,871 | | |
| 3.4 | % | |
| 4,647,199 | | |
| 5.0 | % | |
| 194.68 | |
2026 | |
| 8 | | |
| 71,721 | | |
| 10.3 | % | |
| 4,442,926 | | |
| 4.9 | % | |
| 61.95 | |
2027 | |
| 6 | | |
| 54,389 | | |
| 7.8 | % | |
| 7,621,710 | | |
| 8.3 | % | |
| 140.13 | |
2028 | |
| 4 | | |
| 5,054 | | |
| 0.7 | % | |
| 1,257,786 | | |
| 1.4 | % | |
| 248.87 | |
2029 | |
| 10 | | |
| 116,388 | | |
| 16.7 | % | |
| 22,417,217 | | |
| 24.5 | % | |
| 192.61 | |
2030 | |
| 7 | | |
| 68,363 | | |
| 9.8 | % | |
| 9,261,714 | | |
| 10.1 | % | |
| 135.48 | |
2031 | |
| 9 | | |
| 71,390 | | |
| 10.2 | % | |
| 13,433,543 | | |
| 14.7 | % | |
| 188.17 | |
2032 | |
| 6 | | |
| 32,056 | | |
| 4.6 | % | |
| 2,929,526 | | |
| 3.2 | % | |
| 91.39 | |
2033 | |
| 11 | | |
| 36,358 | | |
| 5.2 | % | |
| 5,293,277 | | |
| 5.8 | % | |
| 145.59 | |
2034 | |
| 6 | | |
| 20,665 | | |
| 3.0 | % | |
| 4,285,151 | | |
| 4.7 | % | |
| 207.36 | |
Thereafter | |
| 9 | | |
| 128,769 | | |
| 18.5 | % | |
| 14,828,985 | | |
| 16.4 | % | |
| 115.16 | |
Total
retail properties | |
| 88 | | |
| 697,208 | | |
| 100.0 | % | |
$ | 91,330,937 | | |
| 100.0 | % | |
$ | 141.85 | |
Notes:
(1) | If
a tenant has more than one lease, whether or not at the same property, but with different
expirations, the number of leases is calculated equal to the number of leases with different
expirations. |
(2) | Excludes
(i) 177,632 square feet of space across the Company's portfolio attributable to building
management use and tenant amenities, (ii) 85,334 square feet of space attributable to
the Company's Observatory, and (iii) square footage related to the Company's residential
units. |
(3) | Represents
annualized base rent and current reimbursement for operating expenses and real estate taxes. |
(4) | Represents
leases that are included in occupancy as of June 30, 2024 and expire on June 30,
2024. |
(5) | Excludes
(i) retail space in the Manhattan office and (ii) the Empire State Building broadcasting
licenses and Observatory operations. |
(6) | Represents
a telecom lease with no square footage. |
| Second Quarter 2024
20 Largest Tenants and Portfolio Tenant Diversification by Industry
(unaudited) |
| |
| |
| |
| |
Weighted | |
| | |
Percent of | | |
| | |
| |
| |
| |
| |
| |
Average | |
Total | | |
Portfolio | | |
| | |
Percent of | |
| |
| |
| |
| |
Remaining | |
Occupied | | |
Rentable | | |
| | |
Portfolio | |
| |
| |
| |
Lease | |
Lease | |
Square | | |
Square | | |
Annualized | | |
Annualized | |
20 Largest
Tenants | |
Property | |
Expiration
(1) | |
Term(2) | |
Feet
(3) | | |
Feet
(4) | | |
Rent
(5) | | |
Rent
(6) | |
1. | |
LinkedIn | |
Empire State Building | |
Aug. 2036 | |
12.2 years | |
| 501,409 | | |
| 5.90 | % | |
$ | 35,069,711 | | |
| 6.60 | % |
2. | |
Flagstar Bank | |
1400 Broadway | |
Aug. 2039 | |
15.2 years | |
| 313,109 | | |
| 3.70 | % | |
| 18,792,986 | | |
| 3.50 | % |
3. | |
Centric Brands Inc. | |
Empire State Building | |
Oct. 2028 | |
4.3 years | |
| 252,929 | | |
| 3.00 | % | |
| 13,969,655 | | |
| 2.60 | % |
4. | |
PVH Corp. | |
501 Seventh Avenue | |
Oct. 2028 | |
4.3 years | |
| 237,281 | | |
| 2.80 | % | |
| 12,302,889 | | |
| 2.30 | % |
5. | |
Sephora | |
112 West 34th Street | |
Jan. 2029 | |
4.6 years | |
| 11,334 | | |
| 0.10 | % | |
| 10,543,956 | | |
| 2.00 | % |
6. | |
Target | |
112 West 34th St., 10 Union Sq. | |
Jan. 2038 | |
13.6 years | |
| 81,340 | | |
| 1.00 | % | |
| 9,382,132 | | |
| 1.80 | % |
7. | |
Coty Inc. | |
Empire State Building | |
Jan. 2030 | |
5.6 years | |
| 156,187 | | |
| 1.80 | % | |
| 9,070,671 | | |
| 1.70 | % |
8. | |
Macy's | |
111 West 33rd Street | |
May 2030 | |
5.9 years | |
| 131,117 | | |
| 1.50 | % | |
| 8,803,204 | | |
| 1.60 | % |
9. | |
Li & Fung | |
1359 Broadway, ESB | |
Oct. 2027 - Oct. 2028 | |
4.0 years | |
| 149,061 | | |
| 1.70 | % | |
| 8,245,864 | | |
| 1.50 | % |
10. | |
Urban Outfitters | |
1333 Broadway | |
Sep. 2029 | |
5.3 years | |
| 56,730 | | |
| 0.70 | % | |
| 8,180,619 | | |
| 1.50 | % |
11. | |
Institutional Capital Network, Inc. | |
One Grand Central Place | |
Feb. 2040 | |
15.7 years | |
| 111,611 | | |
| 1.30 | % | |
| 8,114,229 | | |
| 1.50 | % |
12. | |
Footlocker | |
112 West 34th Street | |
Sep. 2031 | |
7.3 years | |
| 34,192 | | |
| 0.40 | % | |
| 7,777,115 | | |
| 1.50 | % |
13. | |
Federal Deposit Insurance Corp. | |
Empire State Building | |
Dec. 2025 | |
1.5 years | |
| 119,226 | | |
| 1.40 | % | |
| 7,638,979 | | |
| 1.40 | % |
14. | |
HNTB Corporation | |
Empire State Building | |
Feb. 2029 | |
4.7 years | |
| 105,143 | | |
| 1.20 | % | |
| 7,541,912 | | |
| 1.40 | % |
15. | |
The Michael J. Fox Foundation | |
111 West 33rd Street | |
Nov. 2029 | |
5.4 years | |
| 86,492 | | |
| 1.00 | % | |
| 6,519,359 | | |
| 1.20 | % |
16. | |
Fragomen | |
1400 Broadway | |
Feb. 2035 | |
10.7 years | |
| 107,680 | | |
| 1.30 | % | |
| 6,292,009 | | |
| 1.20 | % |
17. | |
Shutterstock, Inc. | |
Empire State Building | |
Apr. 2029 | |
4.8 years | |
| 104,386 | | |
| 1.20 | % | |
| 6,223,370 | | |
| 1.20 | % |
18. | |
Burlington Merchandising Corp. | |
1400 Broadway | |
Jan. 2038 | |
13.6 years | |
| 102,898 | | |
| 1.20 | % | |
| 6,145,288 | | |
| 1.10 | % |
19. | |
ASCAP | |
250 West 57th Street | |
Aug. 2034 | |
10.2 years | |
| 87,943 | | |
| 1.00 | % | |
| 5,997,648 | | |
| 1.10 | % |
20. | |
The Interpublic
Group, Inc. | |
1400 Broadway, 111 West 33rd St. | |
Jul. 2024 - Feb. 2025 | |
0.3 years | |
| 77,364 | | |
| 0.90 | % | |
| 5,001,478 | | |
| 0.90 | % |
| |
Total | |
| |
| |
| |
| 2,827,432 | | |
| 33.1 | % | |
$ | 201,613,074 | | |
| 37.6 | % |
|
Notes: |
(1) |
Expiration dates are per lease and do not assume
exercise of renewal or extension options. For tenants with more than two leases, the lease expiration is shown as a range. |
(2) |
Represents the weighted average lease term
based on annualized rent. |
(3) |
Based on leases signed
and commenced as of June 30, 2024. |
(4) |
Represents the percentage of rentable square
feet of the Company's office and retail portfolios in the aggregate. |
(5) |
Represents annualized base rent and current
reimbursement for operating expenses and real estate taxes. |
(6) |
Represents the percentage of annualized rent
of the Company's office and retail portfolios in the aggregate. |
Portfolio
Tenant Diversification by Industry (based on annualized rent)
| Second Quarter 2024
Capital Expenditures and Redevelopment Program and Leasing Opportunity
(unaudited and dollars in thousands) |
| |
Three
Months Ended | |
Capital expenditures | |
June 30
2024 | | |
March 31
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Tenant improvements - first generation | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | |
Tenant improvements - second generation | |
| 25,087 | | |
| 27,404 | | |
| 28,817 | | |
| 18,047 | | |
| 19,823 | |
Leasing commissions - first generation | |
| 129 | | |
| 35 | | |
| 125 | | |
| 203 | | |
| 98 | |
Leasing commissions - second generation | |
| 3,807 | | |
| 9,730 | | |
| 5,706 | | |
| 2,319 | | |
| 4,370 | |
Building improvements - first generation | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Building improvements - second generation | |
| 11,362 | | |
| 13,509 | | |
| 12,102 | | |
| 7,425 | | |
| 8,879 | |
Non-recurring capital improvements | |
| 5,979 | | |
| 6,464 | | |
| 4,420 | | |
| 5,226 | | |
| 3,935 | |
Total | |
$ | 46,364 | | |
$ | 57,142 | | |
$ | 51,170 | | |
$ | 33,220 | | |
$ | 37,105 | |
Leasing
Opportunity - Inventory of Current Vacant Space as of June 30, 2024 (in square feet) (1) |
|
|
| | |
Total Portfolio vacant space |
|
| 983,000 | |
|
|
| | |
Signed leases not commenced ("SLNC"): |
|
| | |
Manhattan Office Properties SLNC |
|
| 336,000 | |
Greater New York Office Properties SLNC |
|
| 7,000 | |
Retail Properties SLNC |
|
| 8,000 | |
Greater New York Office Properties |
|
| 75,000 | |
Retail Properties |
|
| 46,000 | |
Manhattan Office Properties |
|
| 422,000 | |
Manhattan Office Properties off market |
|
| 46,000 | |
Manhattan Office Properties other |
|
| 43,000 | |
Total |
|
| 983,000 | |
|
Notes: |
(1) |
These
estimates are based on the Company's current budgets and are subject to change. |
| Second Quarter 2024
Observatory Summary
(unaudited and dollars in thousands) |
| |
| | |
Three
Months Ended | |
| |
Twelve
Months to
Date | | |
June 30,
2024 | | |
March 31,
2024 | | |
December 31,
2023 | | |
September 30,
2023 | | |
June 30,
2023 | |
Observatory NOI | |
| | |
| | |
| | |
| | |
| | |
| |
Observatory
revenue (1) | |
$ | 132,499 | | |
$ | 34,124 | | |
$ | 24,596 | | |
$ | 36,217 | | |
$ | 37,562 | | |
$ | 33,433 | |
Observatory expenses | |
| 36,142 | | |
| 8,958 | | |
| 8,431 | | |
| 9,282 | | |
| 9,471 | | |
| 8,657 | |
NOI | |
| 96,357 | | |
| 25,166 | | |
| 16,165 | | |
| 26,935 | | |
| 28,091 | | |
| 24,776 | |
Intercompany
rent expense (2) | |
| 80,705 | | |
| 20,980 | | |
| 16,067 | | |
| 21,545 | | |
| 22,113 | | |
| 20,942 | |
NOI after intercompany rent | |
$ | 15,652 | | |
$ | 4,186 | | |
$ | 98 | | |
$ | 5,390 | | |
$ | 5,978 | | |
$ | 3,834 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Observatory Metrics | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Number of visitors
(3) | |
| | | |
| 648,000 | | |
| 485,000 | | |
| 711,000 | | |
| 743,000 | | |
| 666,000 | |
Change in visitors year over year | |
| | | |
| (2.7 | )% | |
| 9.5 | % | |
| 7.7 | % | |
| 8.2 | % | |
| 16.2 | % |
Number
of bad weather days ("BWD") (4) | |
| | | |
| 8 | | |
| 17 | | |
| 11 | | |
| 10 | | |
| 12 | |
Notes:
| (1) | Observatory
revenues include the fixed license fee received from WDFG North America, the Observatory
gift shop operator. For the three months ended June 30, 2024, March 31, 2024, December 31,
2023, September 30, 2023, and June 30, 2023, the fixed license fee was $1,855,
$1,855, $1,807, $1,807 and $1,807, respectively. |
| (2) | The
Observatory pays a market-based rent payment comprised of fixed and percentage rent to the
Empire State Building. Intercompany rent is eliminated upon consolidation. |
| (3) | Reflects
the number of visitors who pass through the turnstile, excluding visitors who make a second
visit on the same ticket at no additional charge. |
| (4) | The
Company defines a bad weather day as one in which the top of the Empire State Building is
obscured from view for more than 50% of the day. |
Annual
Observatory NOI 2018 to 2023
Notes:
(1) | The 102nd floor Observatory was closed for approximately
nine months in 2019 for renovations. |
(2) | Due to the COVID-19 pandemic, the Observatory was closed
on March 16, 2020. The 86th floor Observatory reopened on July 20, 2020 and the 102nd floor
Observatory reopened on August 24, 2020. |
(3) | The Observatory continued to experience a gradual recovery
in visitors due to the COVID-19 pandemic. |
|
Second Quarter 2024
Funds from Operations ("FFO"), Modified Funds From Operations ("Modified FFO"), Core Funds
from Operations ("Core FFO"), Core Funds Available for Distribution ("Core FAD") and EBITDA (unaudited
and in thousands, except per share amounts) |
| |
Three
Months Ended | |
| |
June
30, 2024 | | |
March
31, 2024 | | |
December
31, 2023 | | |
September
30, 2023 | | |
June
30, 2023 | |
Reconciliation of Net Income to FFO, Modified FFO and Core FFO | |
| | |
| | |
| | |
| | |
| |
Net Income | |
$ | 28,555 | | |
$ | 10,215 | | |
$ | 15,830 | | |
$ | 19,928 | | |
$ | 36,955 | |
Non-controlling interests in other partnerships | |
| - | | |
| (4 | ) | |
| 1 | | |
| (111 | ) | |
| (1 | ) |
Preferred unit distributions | |
| (1,051 | ) | |
| (1,050 | ) | |
| (1,050 | ) | |
| (1,050 | ) | |
| (1,051 | ) |
Real estate depreciation and amortization | |
| 46,398 | | |
| 44,857 | | |
| 48,548 | | |
| 45,174 | | |
| 44,887 | |
(Gain) loss on dispostion of properties | |
| (10,803 | ) | |
| - | | |
| 2,497 | | |
| - | | |
| (13,565 | ) |
FFO attributable
to common stockholders and the Operating Partnership | |
| 63,099 | | |
| 54,018 | | |
| 65,826 | | |
| 63,941 | | |
| 67,225 | |
Amortization of below-market ground lease | |
| 1,958 | | |
| 1,958 | | |
| 1,958 | | |
| 1,957 | | |
| 1,958 | |
Modified
FFO attributable to common stockholders and the Operating Partnership | |
| 65,057 | | |
| 55,976 | | |
| 67,784 | | |
| 65,898 | | |
| 69,183 | |
Interest expense associated with property in receivership | |
| 628 | | |
| - | | |
| - | | |
| - | | |
| - | |
Loss on early extinguishment of debt | |
| - | | |
| 553 | | |
| - | | |
| - | | |
| - | |
Core
FFO attributable to common stockholders and the Operating Partnership | |
$ | 65,685 | | |
$ | 56,529 | | |
$ | 67,784 | | |
$ | 65,898 | | |
$ | 69,183 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total weighted
average shares and Operating Partnership units | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 264,676 | | |
| 264,562 | | |
| 262,775 | | |
| 262,756 | | |
| 262,903 | |
Diluted | |
| 268,716 | | |
| 267,494 | | |
| 267,003 | | |
| 266,073 | | |
| 264,196 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
FFO attributable
to common stockholders and the Operating Partnership per share and unit | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.24 | | |
$ | 0.20 | | |
$ | 0.25 | | |
$ | 0.24 | | |
$ | 0.26 | |
Diluted | |
$ | 0.23 | | |
$ | 0.20 | | |
$ | 0.25 | | |
$ | 0.24 | | |
$ | 0.25 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Modified
FFO attributable to common stockholders and the Operating Partnership per share and unit | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.25 | | |
$ | 0.21 | | |
$ | 0.26 | | |
$ | 0.25 | | |
$ | 0.26 | |
Diluted | |
$ | 0.24 | | |
$ | 0.21 | | |
$ | 0.25 | | |
$ | 0.25 | | |
$ | 0.26 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Core FFO
attributable to common stockholders and the Operating Partnership per share and unit | |
| | | |
| | | |
| | | |
| | | |
| | |
Basic | |
$ | 0.25 | | |
$ | 0.21 | | |
$ | 0.26 | | |
$ | 0.25 | | |
$ | 0.26 | |
Diluted | |
$ | 0.24 | | |
$ | 0.21 | | |
$ | 0.25 | | |
$ | 0.25 | | |
$ | 0.26 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Reconciliation of Core FFO
to Core FAD | |
| | | |
| | | |
| | | |
| | | |
| | |
Core FFO | |
$ | 65,685 | | |
$ | 56,529 | | |
$ | 67,784 | | |
$ | 65,898 | | |
$ | 69,183 | |
Add: | |
| | | |
| | | |
| | | |
| | | |
| | |
Amortization of deferred financing
costs | |
| 1,050 | | |
| 1,019 | | |
| 1,075 | | |
| 1,089 | | |
| 1,088 | |
Non-real estate depreciation and amortization | |
| 1,074 | | |
| 1,107 | | |
| 1,077 | | |
| 1,298 | | |
| 1,248 | |
Amortization of non-cash compensation
expense | |
| 6,388 | | |
| 3,449 | | |
| 5,294 | | |
| 4,989 | | |
| 5,369 | |
Amortization of loss on interest rate
derivative | |
| 1,480 | | |
| 1,527 | | |
| 1,527 | | |
| 1,527 | | |
| 1,527 | |
Deduct: | |
| | | |
| | | |
| | | |
| | | |
| | |
Straight-line
rental revenues, above/below market rent, and other non-cash adjustments | |
| (2,744 | ) | |
| (3,904 | ) | |
| (3,013 | ) | |
| (5,569 | ) | |
| (12,534 | ) |
Corporate capital expenditures | |
| (157 | ) | |
| (238 | ) | |
| (71 | ) | |
| (90 | ) | |
| (225 | ) |
Tenant improvements - second generation | |
| (25,087 | ) | |
| (27,404 | ) | |
| (28,817 | ) | |
| (18,047 | ) | |
| (19,823 | ) |
Building improvements - second generation | |
| (11,362 | ) | |
| (13,509 | ) | |
| (12,102 | ) | |
| (7,425 | ) | |
| (8,879 | ) |
Leasing commissions
- second generation | |
| (3,807 | ) | |
| (9,730 | ) | |
| (5,706 | ) | |
| (2,319 | ) | |
| (4,370 | ) |
Core
FAD (1) | |
$ | 32,521 | | |
$ | 8,846 | | |
$ | 27,047 | | |
$ | 41,351 | | |
$ | 32,584 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Reconciliation of Net Income
to EBITDA and Adjusted EBITDA | |
| | | |
| | | |
| | | |
| | | |
| | |
Net income | |
$ | 28,555 | | |
$ | 10,215 | | |
$ | 15,830 | | |
$ | 19,928 | | |
$ | 36,955 | |
Interest expense | |
| 25,323 | | |
| 25,128 | | |
| 25,393 | | |
| 25,382 | | |
| 25,405 | |
Interest expense associated with property
in receivership | |
| 628 | | |
| - | | |
| - | | |
| - | | |
| - | |
Income tax expense (benefit) | |
| 750 | | |
| (655 | ) | |
| 1,792 | | |
| 1,409 | | |
| 733 | |
Depreciation and
amortization | |
| 47,473 | | |
| 46,081 | | |
| 49,599 | | |
| 46,624 | | |
| 46,280 | |
EBITDA | |
| 102,729 | | |
| 80,769 | | |
| 92,614 | | |
| 93,343 | | |
| 109,373 | |
(Gain) loss on
disposition of properties | |
| (10,803 | ) | |
| - | | |
| 2,497 | | |
| - | | |
| (13,565 | ) |
Adjusted
EBITDA | |
$ | 91,926 | | |
$ | 80,769 | | |
$ | 95,111 | | |
$ | 93,343 | | |
$ | 95,808 | |
| (1) | Beginning in the three months
ended December 31, 2023, we have eliminated a deduction of other non-recurring capital improvements
from Core FFO to arrive at Core FAD and the related Core FAD payout ratio. We made this modification
to the calculation of Core FAD for the other periods presented; in our previous supplemental
reports prior to this change, Core FAD was $35,922 and $28,551 for the three months ended
September 30, 2023 and June 30, 2023, respectively. |
|
Second Quarter 2024
Debt Summary (unaudited and dollars in thousands) |
| |
June 30, 2024 | | |
March 31, 2024 | |
| |
| | |
Weighted Average | | |
| | |
Weighted Average | |
| |
| | |
Interest | | |
Maturity | | |
| | |
Interest | | |
Maturity | |
Debt Summary | |
Balance | | |
Rate | | |
(Years) | | |
Balance | | |
Rate | | |
(Years) | |
Mortgage debt (1) | |
$ | 713,177 | | |
| 3.64 | % | |
| 5.8 | | |
$ | 890,529 | | |
| 3.77 | % | |
| 5.5 | |
Senior unsecured notes | |
| 1,200,000 | | |
| 4.69 | % | |
| 5.8 | | |
| 975,000 | | |
| 4.05 | % | |
| 5.9 | |
Unsecured term loan facilities (2) | |
| 270,000 | | |
| 4.19 | % | |
| 3.3 | | |
| 270,000 | | |
| 4.12 | % | |
| 3.5 | |
Unsecured revolving credit
facility (3) | |
| 120,000 | | |
| 4.04 | % | |
| 4.7 | | |
| 120,000 | | |
| 4.03 | % | |
| 4.9 | |
Total fixed rate debt | |
| 2,303,177 | | |
| 4.27 | % | |
| 5.4 | | |
| 2,255,529 | | |
| 3.97 | % | |
| 5.4 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Unsecured term loan facilities (4) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Unsecured revolving credit
facility (4) | |
| - | | |
| - | | |
| 4.7 | | |
| - | | |
| - | | |
| 4.9 | |
Total variable rate debt | |
| - | | |
| - | | |
| 4.7 | | |
| - | | |
| - | | |
| 4.9 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total debt | |
| 2,303,177 | | |
| 4.27 | % | |
| 5.4 | | |
| 2,255,529 | | |
| 3.97 | % | |
| 5.4 | |
Deferred financing costs, net | |
| (10,844 | ) | |
| | | |
| | | |
| (9,834 | ) | |
| | | |
| | |
Debt discount | |
| (6,574 | ) | |
| | | |
| | | |
| (6,769 | ) | |
| | | |
| | |
Total | |
$ | 2,285,759 | | |
| | | |
| | | |
$ | 2,238,926 | | |
| | | |
| | |
| | |
| | | |
| Outstanding
at | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| June
30, | | |
| Letters | | |
| Available | |
Available
Capacity | | | |
| Facility | | |
| 2024 | | |
| of
Credit | | |
| Capacity | |
Unsecured
revolving credit facility (5) | | |
$ | 620,000 | | |
$ | 120,000 | | |
$ | - | | |
$ | 500,000 | |
| |
| | |
Current | | |
In | |
Covenant Summary | |
Required | | |
Quarter | | |
Compliance | |
Maximum
Total Leverage(6) | |
| <60% | | |
| 32.7 | % | |
| Yes | |
Maximum
Secured Leverage (6) | |
| <40% | | |
| 11.1 | % | |
| Yes | |
Minimum Fixed Charge Coverage | |
| >1.50 | x | |
| 3.2 | x | |
| Yes | |
Minimum Unencumbered Interest Coverage | |
| >1.75 | x | |
| 5.6 | x | |
| Yes | |
Maximum
Unsecured Leverage (6) | |
| <60% | | |
| 26.2 | % | |
| Yes | |
Notes:
| (1) | As of June 30, 2024, excludes First Stamford
Place, Stamford, CT, which was placed into receivership in May 2024. |
| (2) | SOFR is fixed at 2.56% for
$175 million and 2.63% for $95 million under variable to fixed interest rate swap agreements. |
| (3) | SOFR is fixed at 2.63% for
$120 million under a variable to fixed interest rate swap agreement. |
| (4) | As of June 30, 2024, each
of our unsecured term loan facilities and the balance drawn on our revolving credit facility
are fixed under variable to fixed interest rate swap agreements. |
| (5) | This unsecured revolving
credit facility matures in March 2029, inclusive of two additional six-month extension options. |
| (6) | Represents the ratio of
total indebtedness to total asset value as determined in accordance with the credit facility
agreement. |
|
Second Quarter 2024
Debt Detail (unaudited and dollars in thousands) |
| |
Stated | | |
| | |
| | |
|
| |
Interest | | |
Principal | | |
Maturity | | |
|
| |
Rate (%) | | |
Balance | | |
Date | | |
Amortization |
Metro Center(1) | |
| 3.59 | % | |
$ | 78,774 | | |
| 11/5/2024 | | |
30 years |
10 Union Square | |
| 3.70 | % | |
| 50,000 | | |
| 4/1/2026 | | |
Interest only |
1542 Third Avenue | |
| 4.29 | % | |
| 30,000 | | |
| 5/1/2027 | | |
Interest only |
1010 Third Avenue & 77 West 55th St. | |
| 4.01 | % | |
| 34,508 | | |
| 1/5/2028 | | |
30 years |
250 West 57th Street | |
| 2.83 | % | |
| 180,000 | | |
| 12/1/2030 | | |
Interest only |
1333 Broadway | |
| 4.21 | % | |
| 160,000 | | |
| 2/5/2033 | | |
Interest only |
345 East 94th Street - Series A | |
| 70%
of SOFR plus 0.95 | % | |
| 43,600 | | |
| 11/1/2030 | | |
Interest only |
345 East 94th Street - Series B | |
| SOFR
plus 2.24 | % | |
| 6,857 | | |
| 11/1/2030 | | |
30 years |
561 10th Avenue - Series A | |
| 70%
of SOFR plus 1.07 | % | |
| 114,500 | | |
| 11/1/2033 | | |
Interest only |
561 10th Avenue - Series B | |
| SOFR
plus 2.45 | % | |
| 14,938 | | |
| 11/1/2033 | | |
30 years |
Total fixed rate mortgage debt | |
| | | |
| 713,177 | | |
| | | |
|
Unsecured term loan facility | |
| SOFR
plus 1.50 | % | |
| 175,000 | | |
|
12/31/2026 | |
|
Interest only |
Unsecured term loan facility | |
| SOFR plus 1.50 | % | |
| 95,000 | | |
|
3/8/2029 | |
|
Interest only |
Unsecured revolving credit facility | |
| SOFR plus 1.30 | % | |
| 120,000 | | |
|
3/8/2029 | |
|
Interest only |
Senior unsecured notes: | |
| | | |
| | | |
|
| |
|
|
Series A | |
| 3.93 | % | |
| 100,000 | | |
|
3/27/2025 | |
|
Interest only |
Series B | |
| 4.09 | % | |
| 125,000 | | |
|
3/27/2027 | |
|
Interest only |
Series C | |
| 4.18 | % | |
| 125,000 | | |
|
3/27/2030 | |
|
Interest only |
Series D | |
| 4.08 | % | |
| 115,000 | | |
|
1/22/2028 | |
|
Interest only |
Series E | |
| 4.26 | % | |
| 160,000 | | |
|
3/22/2030 | |
|
Interest only |
Series F | |
| 4.44 | % | |
| 175,000 | | |
|
3/22/2033 | |
|
Interest only |
Series G | |
| 3.61 | % | |
| 100,000 | | |
|
3/17/2032 | |
|
Interest only |
Series H | |
| 3.73 | % | |
| 75,000 | | |
|
3/17/2035 | |
|
Interest only |
Series I | |
| 7.20 | % | |
| 155,000 | | |
|
6/17/2029 | |
|
Interest only |
Series J | |
| 7.32 | % | |
| 45,000 | | |
|
6/17/2031 | |
|
Interest only |
Series K | |
| 7.41 | % | |
| 25,000 | | |
|
6/17/2034 | |
|
Interest only |
Total / weighted average debt | |
| 4.27 | % | |
| 2,303,177 | | |
|
| |
|
|
Deferred financing costs, net | |
| | | |
| (10,844 | ) | |
|
| |
|
|
Debt discount | |
| | | |
| (6,574 | ) | |
|
| |
|
|
Total | |
| | | |
$ | 2,285,759 | | |
|
| |
|
|
Note:
| (1) | In July 2024, this loan
was refinanced and the new principal balance of $72 million will be interest only at the
same interest rate of 3.6%, with a maturity of November 2029, inclusive of a one-year extension
option. |
|
Second Quarter 2024
Debt Maturities and Ground Lease Commitments (unaudited and dollars in thousands) |
| |
| | |
| | |
| | |
| | |
Weighted | |
| |
| | |
| | |
| | |
| | |
Average | |
| |
| | |
| | |
| | |
| | |
Interest | |
| |
| | |
| | |
| | |
Percentage of | | |
Rate of | |
Year | |
Maturities
(1) | | |
Amortization | | |
Total | | |
Total Debt | | |
Maturing Debt | |
2024 (2) | |
$ | 77,675 | | |
$ | 2,827 | | |
$ | 80,502 | | |
| 3.5 | % | |
| 3.59 | % |
2025 | |
| 100,000 | | |
| 3,664 | | |
| 103,664 | | |
| 4.5 | % | |
| 3.93 | % |
2026 | |
| 225,000 | | |
| 3,957 | | |
| 228,957 | | |
| 9.9 | % | |
| 4.06 | % |
2027 | |
| 155,000 | | |
| 4,276 | | |
| 159,276 | | |
| 6.9 | % | |
| 4.13 | % |
2028 | |
| 146,092 | | |
| 3,556 | | |
| 149,648 | | |
| 6.5 | % | |
| 4.06 | % |
2029 | |
| 370,000 | | |
| 3,988 | | |
| 373,988 | | |
| 16.2 | % | |
| 5.42 | % |
2030 | |
| 508,600 | | |
| 4,413 | | |
| 513,013 | | |
| 22.3 | % | |
| 3.67 | % |
2031 | |
| 45,000 | | |
| 3,283 | | |
| 48,283 | | |
| 2.1 | % | |
| 7.32 | % |
2032 | |
| 100,000 | | |
| 3,591 | | |
| 103,591 | | |
| 4.5 | % | |
| 3.61 | % |
2033 | |
| 439,007 | | |
| 3,248 | | |
| 442,255 | | |
| 19.2 | % | |
| 4.20 | % |
Thereafter | |
| 100,000 | | |
| - | | |
| 100,000 | | |
| 4.4 | % | |
| 4.65 | % |
Total debt | |
$ | 2,266,374 | | |
$ | 36,803 | | |
| 2,303,177 | | |
| 100.0 | % | |
| 4.27 | % |
Deferred financing costs, net | |
| | | |
| | | |
| (10,844 | ) | |
| | | |
| | |
Debt discount | |
| | | |
| | | |
| (6,574 | ) | |
| | | |
| | |
Total | |
| | | |
| | | |
$ | 2,285,759 | | |
| | | |
| | |
Debt
Maturity Profile
Ground
Lease Commitments (3) | |
| | |
| | |
| | |
| |
| |
| | |
| | |
| | |
| |
Year | |
1350
Broadway (4) | | |
1400
Broadway (5) | | |
111
West 33rd Street (6) | | |
Total | |
2024 | |
$ | 54 | | |
$ | 338 | | |
$ | 368 | | |
$ | 760 | |
2025 | |
| 108 | | |
| 675 | | |
| 735 | | |
| 1,518 | |
2026 | |
| 93 | | |
| 675 | | |
| 735 | | |
| 1,503 | |
2027 | |
| 72 | | |
| 675 | | |
| 735 | | |
| 1,482 | |
2028 | |
| 72 | | |
| 675 | | |
| 735 | | |
| 1,482 | |
Thereafter | |
| 1,584 | | |
| 23,625 | | |
| 35,586 | | |
| 60,795 | |
| |
$ | 1,983 | | |
$ | 26,663 | | |
$ | 38,894 | | |
$ | 67,540 | |
|
Notes: |
(1) |
Assumes extension options are exercised for
the 2029 maturities of the term loan and revolving credit facility. |
(2) |
In July 2024, the Metro Center loan was
refinanced and the new principal balance of $72 million will be interest only at the same interest rate of 3.6%, with a maturity
of November 2029, inclusive of a one-year
extension option. |
(3) |
There are no fair value market resets, no step-ups,
and no escalations in the three ground lease commitments. |
(4) |
Expires July 31, 2050 with a remaining
term, including unilateral extension rights available to the Company, of approximately 26 years. |
(5) |
Expires December 31, 2063 with a remaining
term, including unilateral extension rights available to the Company, of approximately 39 years. |
(6) |
Expires June 10, 2077 with a remaining
term, including unilateral extension rights available to the Company, of approximately 53 years. |
v3.24.2
Cover
|
Jul. 24, 2024 |
Document Information [Line Items] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Jul. 24, 2024
|
Entity File Number |
001-36105
|
Entity Registrant Name |
EMPIRE STATE REALTY TRUST, INC.
|
Entity Central Index Key |
0001541401
|
Entity Tax Identification Number |
37-1645259
|
Entity Incorporation, State or Country Code |
MD
|
Entity Address, Address Line One |
111 West 33rd Street
|
Entity Address, Address Line Two |
12th Floor
|
Entity Address, City or Town |
New York
|
Entity Address, State or Province |
NY
|
Entity Address, Postal Zip Code |
10120
|
City Area Code |
212
|
Local Phone Number |
687-8700
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Common Stock [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Class
A Common Stock, par value $0.01 per share
|
Trading Symbol |
ESRT
|
Security Exchange Name |
NYSE
|
Empire State Realty Op Lp [Member] |
|
Document Information [Line Items] |
|
Document Type |
8-K
|
Amendment Flag |
false
|
Document Period End Date |
Jul. 24, 2024
|
Entity File Number |
001-36106
|
Entity Registrant Name |
EMPIRE STATE REALTY OP, L.P.
|
Entity Central Index Key |
0001553079
|
Entity Tax Identification Number |
45-4685158
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
111 West 33rd Street
|
Entity Address, Address Line Two |
12th Floor
|
Entity Address, City or Town |
New York
|
Entity Address, State or Province |
NY
|
City Area Code |
212
|
Local Phone Number |
687-8700
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Empire State Realty Op Lp [Member] | Series E S Operating Partnership Units [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Series ES Operating Partnership Units
|
Trading Symbol |
ESBA
|
Security Exchange Name |
NYSEArca
|
Empire State Realty Op Lp [Member] | Series 60 Operating Partnership Units [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Series 60 Operating Partnership Units
|
Trading Symbol |
OGCP
|
Security Exchange Name |
NYSEArca
|
Empire State Realty Op Lp [Member] | Series 250 Operating Partnership Units [Member] |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Series 250 Operating Partnership Units
|
Trading Symbol |
FISK
|
Security Exchange Name |
NYSEArca
|
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Empire State Realty (NYSE:ESRT)
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De Nov 2024 até Dez 2024
Empire State Realty (NYSE:ESRT)
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De Dez 2023 até Dez 2024