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Empire State Realty (ESRT)
NYSE:ESRT
US Market
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EarningsQ2 2026 Earnings Report

Empire State Realty (ESRT) Q2 2026 Earnings Report

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ESRT Q2 2026 EPS Results

Actual EPS-$0.15
Consensus EPS―
Beat/Miss―
One Year Ago EPS$0.04

ESRT Q2 2026 Revenue Results

Actual Revenue$196.90M
Expected Revenue$198.06M
Beat/MissMissed by -$1.16M
YoY Revenue Growth+2.95%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
ESRT Upcoming Earnings
Empire State Realty's next earnings date is estimated for November 2, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

ESRT Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presented a strong operational performance across ESRT's core property portfolio: robust office leasing (382k sq ft signed, 94.9% leased), sustained pricing power (17.8% mark-to-market spreads), healthy multifamily rent growth (+8%) and active capital recycling (sale of 250 West 57th, strategic land acquisitions). These positives improved core FAD and support long-term cash flow objectives. Offsetting these strengths, the Empire State Building Observation Deck experienced a significant and persistent decline in visitation and NOI (visitation -28.5% YoY; NOI down ~48.6% YoY), driven largely by a collapse in pass-program/international budget traveler demand (pass visitors down ~45% YTD) and changes in distribution channels. Management responded with a conservative FY assumption for Observation Deck NOI ($55M) that reduced core FFO guidance by ~$0.13 and emphasized remediation plans (marketing, AI/search changes) but acknowledged limited short-term visibility. On balance, portfolio fundamentals and capital actions provide a constructive backdrop and appear to outweigh the temporary, albeit material, Observation Deck weakness.
Company Guidance
Management updated 2026 guidance with a core FFO range of $0.75–$0.79 (Q2 core FFO $0.21), reflecting a $0.13 reduction from prior guidance based on an assumed $55.0 million of full‑year NOI from the Empire State Building observation deck (Q2 OBS NOI $12.4M vs $24.1M LY; Q2 OBS revenue $24.2M, expenses $11.8M; visitation down ~28.5% Y/Y; revenue per capita +1.6% ex gift shop), while maintaining year‑end commercial occupancy guidance of 90%–92% and same‑store property cash NOI growth guidance of -1.5% to +2% (includes a 270 bps FDIC downtime impact); Q2 same‑store property cash NOI was +3.3% ex lease termination fees (–3.2% adjusted), Q2 core FAD was ≈$16.2M (vs $11.9M LY) aided by ≈$14M of FAD CapEx savings, and management expects G&A to decline to ≈$17M per quarter in H2; other metrics: Q2 leasing 382,000 sq ft (>250,000 sq ft new), portfolio lease rate 94.9% (from 93.8%), Manhattan mark‑to‑market spread 17.8% (20th consecutive positive quarter), average new lease term 12 years, multifamily net rents +8% with ~98% occupancy, and leverage ≈6.6x net debt to TTM adjusted EBITDA (plus a $245M delayed‑draw term loan maturing 2032 and recent transactions including the $275M sale of 250 W 57th and $110M aggregate land purchases).
Strong Office Leasing Momentum
Signed 382,000 sq ft in Q2, including over 250,000 sq ft of new leases (highest quarterly new-lease volume since Q4 2021). Portfolio lease rate rose to 94.9% (from 93.8% in Q1 on a comparable basis, excluding 250 West 57th). Achieved 20th consecutive quarter of positive mark-to-market spreads in Manhattan office with a 17.8% spread in Q2. Average new-lease duration was 12 years (including a 16-year, 101,000 sq ft lease with United Talent Agency).
Top-line Transactions and Capital Recycling
Completed sale of 250 West 57th Street for $275 million (buyer assumed $180 million mortgage). Acquired land under 111 West 33rd Street and 1400 Broadway for $110 million (~$65/sq ft) with below-market ground rent of $1.4 million. Transaction strategy focused on long-term value creation and portfolio recycling.
Multifamily and Retail Performance
Multifamily net rents increased approximately 8% year-over-year and the multifamily portfolio was nearly 98% occupied. Retail and other non-office assets described as highly leased and performing well.
Improved Funds Available for Distribution (FAD)
Core FAD for Q2 was approximately $16.2 million, up from $11.9 million year-over-year, driven largely by FAD CapEx savings of roughly $14 million tied to reduced capital requirements for recycled assets and lease-ups executed since late 2021.
Portfolio-Level Same-Store Cash NOI (Reported)
Same-store property cash NOI (excluding lease termination fees) increased 3.3% year-over-year for the quarter, aided in part by ~$4 million of prior-period real estate tax abatements.
Balance Sheet and Liquidity Actions
Announced a $245 million unsecured delayed-draw term loan maturing in 2032 (expected draw January 2027) to repay existing debt and the line of credit. Company reports no unaddressed maturities until January 2028 and maintains a predominantly unencumbered, well-laddered balance sheet.
2026 Guidance and Expense Targets
Updated full-year 2026 core FFO range of $0.75 to $0.79 per share (reflects conservative Observatory assumptions). Management expects G&A to decline to ~ $17 million per quarter in H2 2026 (targeting a 5%-10% reduction in run-rate G&A by year-end).

ESRT Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 02, 2026
2026 (Q3)
- / -
0.05―
2026 (Q2)
- / -0.15
0.04-475.00% (-0.19)
2026 (Q1)
- / 0.01
0.05-80.00% (-0.04)
2025 (Q4)
- / 0.12
0.0771.43% (+0.05)
2025 (Q3)
- / 0.05
0.08-37.50% (-0.03)
2025 (Q2)
- / 0.04
0.1-60.00% (-0.06)
2025 (Q1)
- / 0.05
0.0366.67% (+0.02)
2024 (Q4)
- / 0.07
0.0616.67% (+0.01)
2024 (Q3)
- / 0.08
0.0714.29% (<+0.01)
2024 (Q2)
- / 0.10
0.14-28.57% (-0.04)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed