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Sep 30, 2023
Empire State Realty Trust Q3 2023 Earnings Report
Net income per share and core FFO per share were reported, and 2023 guidance was raised.
Key Takeaways
Empire State Realty Trust reported its Q3 2023 results, featuring a net income of $0.07 per share and a core FFO of $0.25 per share. The company increased its full-year core FFO guidance to $0.85-$0.87 per share. ESRT completed the acquisition of a prime retail asset in Williamsburg, Brooklyn for $26.4 million.
Net Income of $0.07 per share.
Core Funds From Operations (Core FFO) of $0.25 per share in the third quarter.
Signed approximately 248K rentable square feet of new, renewal, and expansion leases, inclusive of a 144K square foot lease with LinkedIn and a 25K square foot office lease with Starbucks.
Manhattan office portfolio leased rate increased by 30bps sequentially and increased by 250bps year-over-year to 91.9%. Total commercial portfolio is 90.5% leased as of September 30, 2023.
Revenue by Segment
Forward Guidance
The Company updates the 2023 Core FFO guidance range to $0.85 to $0.87 per fully diluted share. This reflects an improvement in the 2023 same-store property cash NOI outlook. The Company’s guidance does not include the impact of any significant future lease termination fee income or any unannounced acquisition, disposition or other capital markets activity.
Positive Outlook
- Includes $0.04 from multifamily assets
- Assumes modest revenue growth
- Assumes increased building utilization
- Assumes an ~8% y/y increase in operating expenses and real estate taxes, partially offset by higher tenant expense reimbursements
- Reflects average quarterly expenses of ~$9M
Challenges Ahead
- Commercial Occupancy at year-end 85% to 87%
- SS Property Cash NOI (excluding lease termination fees) -2% to -4% from 2022
- Continued impacts of pandemics on our business and our market
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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