Empire State Realty Trust, Inc. Class A (ESRT)

In Q1 2025, ESRT reported solid earnings with strong leasing momentum, and the Manhattan office portfolio reached 93% leased, while the Empire State Building Observatory generated $15 million in net operating income. At the Nareit REITweek: 2025 Investor Conference, ESRT showcased strong leasing performance across its diversified portfolio and announced plans to expand its retail and multifamily holdings and exit suburban office assets. In Q2 2025, the company reported improved results in leasing and tourism, signing 222,000 square feet of new and renewal leases in its Manhattan office portfolio, increasing the leased percentage to 93.8% and occupancy to 89.5%, while observatory income rebounded to $24.1 million. ESRT entered into a Note Purchase Agreement for a US$175 million private placement of 5.47% Series L Senior Notes due January 2031 to enhance financial flexibility. ESRT announced a new lease with SORA for a 14,430 square foot retail space at One Grand Central Place. As of October 27, 2025, ESRT's stock price had slipped over 21% year-to-date and 25.7% over the past year, but recent momentum showed a 9.6% gain in the week leading up to October 27, driven by the financing news.

Demand for Empire State Realty Trust's products and services, particularly its Observatory, exhibits seasonality, with 60% of its net operating income typically generated in the second half of the year. The real estate market, including office and retail properties, generally experiences seasonal fluctuations, with demand often peaking in the spring and summer and slowing down in the fall and winter.

Empire State Realty Trust, Inc. (ESRT) is a New York City-focused REIT that owns, manages, operates, acquires, and repositions a portfolio of office, retail, and multifamily properties primarily in Manhattan and the greater New York metropolitan area. ESRT generates revenue from office and retail space rentals, as well as from its flagship asset, the Empire State Building Observatory. As of June 30, 2025, ESRT's portfolio comprised approximately 7.8 million rentable square feet of office space, 0.8 million rentable square feet of retail space, and 743 residential units. The Empire State Building offers office spaces with amenities and its iconic observatories and the company is recognized for its leadership in energy efficiency and indoor environmental quality.

Empire State Realty Trust's geographic footprint is concentrated in New York City, specifically Manhattan and the broader New York metropolitan area. The company has also made investments in Williamsburg, Brooklyn, acquiring retail and multifamily assets.

Empire State Realty Trust has maintained a strong brand reputation, particularly with its flagship Empire State Building, which was ranked the #1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor's 2025 Travelers' Choice Awards. ESRT is also recognized as a leader in energy efficiency and indoor environmental quality. The company ranked first among all Americas' listed companies for the second consecutive year and achieved a Top GRESB 5 Star Rating. A new 10,000 square foot Empire Lounge opened in the Empire State Building, and new retail tenants and an Observatory Ticketing Center were welcomed. However, the Observatory experienced a drop in international tourism due to policy shifts and the tariff environment, as well as adverse weather conditions.

Empire State Realty Trust has a diverse investor base, including both institutional and individual investors. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., Ameriprise Financial Inc, State Street Corp, Resolution Capital Ltd, T. Rowe Price Investment Management, Inc., Geode Capital Management, Llc, Cohen & Steers, and Norges Bank Investment Management. Significant individual owners, categorized as "insiders," include Quark Holding LLC and Investment Authority Qatar.