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Jun 30, 2025
Empire State Realty Trust Q2 2025 Earnings Report
Empire State Realty Trust reported its operational and financial results for the second quarter of 2025, with a net income of $0.04 per share and Core FFO of $0.22 per share.
Key Takeaways
Empire State Realty Trust delivered a solid second quarter in 2025, signing over 232,000 square feet of leases and achieving positive blended leasing spreads in Manhattan office for the 16th consecutive quarter. While Same-Store Property Cash NOI saw a slight decrease primarily due to increased expenses, the company maintained strong liquidity and increased its Manhattan office leased and occupied rates.
Net Income per fully diluted share was $0.04, and Core FFO per fully diluted share was $0.22.
The company signed 232,108 rentable square feet of leases, including 221,776 square feet of Manhattan office leases.
Manhattan office blended leasing spreads were positive at +12.1%, marking the 16th consecutive quarter of positive spreads.
Total commercial portfolio was 92.9% leased and 89.0% occupied as of June 30, 2025, with Manhattan office leased rate increasing to 93.8% and occupancy to 89.5% sequentially.
Revenue by Segment
Forward Guidance
Empire State Realty Trust updated its 2025 guidance, projecting Core FFO per fully diluted share between $0.83 and $0.86. Commercial occupancy at year-end is expected to be between 89% and 91%, with Same-Store Property Cash NOI (excluding lease termination fees) ranging from -2.0% to +1.5%. Observatory NOI is projected to be between $90 million and $94 million.
Positive Outlook
- Core FFO per fully diluted share is projected to be between $0.83 and $0.86.
- Commercial occupancy at year-end is expected to remain strong, ranging from 89% to 91%.
- Same-Store Property Cash NOI (excluding lease termination fees) is anticipated to range from -2.0% to +1.5%, with positive revenue year-over-year growth assumed.
- 2025 Same-Store NOI year-over-year growth is expected to range from approximately 0.5% to 4.0% relative to 2024, excluding one-time items.
- The guidance includes approximately $0.05 from multifamily assets.
Challenges Ahead
- The updated Core FFO per fully diluted share guidance of $0.83 to $0.86 is lower than the initial guidance of $0.86 to $0.89.
- Observatory NOI guidance has been reduced from an initial range of $97 million to $102 million to a new range of $90 million to $94 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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