Earnings

Empire State Realty Raises 2026 Core FFO After Broadway Sale

The Tip Desk · November 10, 2026 · 4 min read

The New York City REIT lifted its 2026 Core FFO range to $0.77–$0.80 a share after closing the $217.5 million sale of 1359 Broadway.

Empire State Realty Trust, Inc. (ESRT) raised its 2026 Core FFO outlook to $0.77 to $0.80 a fully diluted share from $0.75 to $0.79, citing capital-markets transactions, share repurchases to date and the sale of 1359 Broadway.

The New York City REIT, which owns office, retail and multifamily assets including the Empire State Building, also lifted its same-store property cash NOI guidance (excluding lease termination fees) to a 1.75% to 2.25% year-over-year increase from a range of minus 1.5% to plus 2.0%. The company said the update incorporates higher-than-expected year-to-date results driven primarily by non-recurring items.

For the three months ended September 30, 2026, net income attributable to common stockholders was $0.02 a share, after a $0.15 net loss in the second quarter that included a $166.1 million goodwill impairment, a $124.6 million gain on the 250 West 57th Street sale and $5.5 million of severance. Core FFO was $0.20 a share, matching the first-quarter level after $0.21 in the second quarter.

Same-store property cash NOI, excluding lease termination fees, rose 0.5% year-over-year, after a 3.3% increase in the second quarter and a 5.5% increase in the first quarter. The company attributed the third-quarter increase primarily to tenant reimbursement income and insurance recoveries, partially offset by operating-expense growth and an approximate $2 million year-over-year revenue decline from a previously disclosed FDIC expiration that was pre-leased. Adjusted for FDIC and $1.2 million of third-quarter non-recurring items, the year-over-year increase was 1.9%.

Total revenues were $193.1 million, down from $197.7 million a year earlier. Rental revenue was $162.0 million. Observatory revenue was $26.8 million.

The Observation Deck generated NOI of $15.6 million, up from $12.4 million in the second quarter and $10.6 million in the first quarter. The company said visitation continued to be weak and left the second-quarter framework of $55 million of 2026 Observation Deck NOI unchanged.

Commercial leasing volume was 189,477 rentable square feet, including 170,608 square feet of office, versus 381,799 square feet (363,968 office) in the second quarter and 113,484 square feet (90,687 office) in the first quarter. Office blended leasing spreads were plus 9.9%, the 21st consecutive quarter of positive spreads, after plus 17.8% in the second quarter and plus 6.8% in the first quarter. Average lease duration was 8.1 years.

As of September 30, 2026, the commercial portfolio was 92.3% occupied and 95.6% leased. Those percentages exclude 1359 Broadway, which was sold after quarter-end, as well as Metro Center and 250 West 57th Street. Office occupancy was 91.9% and retail occupancy 96.6%. Multifamily occupancy was 97.1%.

Subsequent to quarter-end, the company completed the disposition of 1359 Broadway for $217.5 million, after selling 250 West 57th Street for $275 million in the second quarter. Starting in late July it began redeploying proceeds toward share repurchases and said it will also use proceeds to pay down debt. Land acquired in the second quarter under 111 West 33rd Street and 1400 Broadway was used as a partial 1031 replacement asset. Since the second-quarter earnings call through November 2, 2026, the company acquired $85.8 million of shares at a weighted average price of $4.56, bringing aggregate repurchases since March 2020 to about $387.7 million.

The company closed a $245 million unsecured delayed-draw term loan maturing in 2032; proceeds are expected to be drawn in January 2027 to repay existing debt. Total debt was about $2.2 billion at a 4.78% weighted average interest rate. Net debt to adjusted EBITDA was 6.7 times. Liquidity was $0.6 billion, including $85 million of cash and $520 million available under a revolving credit facility. The company said it has no unaddressed debt maturity until March 2029.

Year-end commercial occupancy is assumed at 90% to 92%, incorporating temporary downtime for pre-leased space. The company said the NOI outlook assumes a 4.0% to 6.0% year-over-year increase in operating expenses and real estate taxes largely offset by tenant reimbursement income.

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Empire State Realty Trust, Inc. — all coverage and financials