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Jun 30, 2020
Empire State Realty Trust Q2 2020 Earnings Report
Operational and financial results reported for the second quarter of 2020.
Key Takeaways
Empire State Realty Trust reported a net loss of $0.07 per fully diluted share and Core FFO of $0.14 per fully diluted share for Q2 2020. The company's liquidity position remained strong with $1.4 billion, and rent collections improved during the quarter. The Empire State Building Observatory remained closed during the entire second quarter and reopened on July 20, 2020.
Net loss of $0.07 per fully diluted share.
Core FFO of $0.14 per fully diluted share after a $0.03 per share reserve.
Same Store Property Cash NOI excluding lease termination fees was up 18.0% from the second quarter 2019.
Strong liquidity position with $1.4 billion of total liquidity as of June 30, 2020.
Forward Guidance
Empire State Realty Trust expects to reduce full-year 2020 G&A and property operating expenses and to reduce required capital expenditures planned for 2020.
Positive Outlook
- Reduced expected full year G&A by approximately 12% from the previously disclosed 2020 G&A run rate of $68 million to $60 million, excluding one-time severance charges.
- Reduced property operating expenses by $10 million in the second quarter 2020 from the prior year period and expect further to reduce expenses by $12 million in the second half of 2020.
- Reduced required capital expenditures planned for 2020.
- Reduced annual base salary for Anthony E. Malkin, the Company’s Chairman, President and CEO, and Thomas P. Durels, EVP Real Estate, by 33% and 25%, respectively, effective August 1 through the remainder of 2020.
- Reduced 2021 NEO annual equity compensation by $3.9 million, comprised of a $2.7 million reduction for Mr. Malkin and $1.2 million reduction for Mr. Durels.
Challenges Ahead
- Economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic
- Reduced demand for office or retail space, including as a result of the COVID-19 pandemic
Historical Earnings Impact
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Avg. Return Before/After Earnings
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