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Sep 30, 2025
Empire State Realty Trust Q3 2025 Earnings Report
Empire State Realty Trust reported its operational and financial results for the third quarter of 2025, with a net income of $0.05 per share and Core FFO of $0.23 per share.
Key Takeaways
Empire State Realty Trust delivered a solid third quarter in 2025, achieving a net income of $13.645 million and Core FFO of $0.23 per share. The company demonstrated strong leasing activity, signing 87,880 rentable square feet of commercial leases, with Manhattan office occupancy increasing to 90.3%. Despite a slight decrease in Same-Store Property Cash NOI, adjusted for non-recurring items, it showed an increase of 1.1%. The company maintained a healthy balance sheet with $0.8 billion in total liquidity.
Net Income per fully diluted share was $0.05, with a total net income of $13.645 million for the quarter.
Core FFO per fully diluted share was $00.23, reflecting strong operational performance.
Total commercial portfolio occupancy increased by 80 basis points sequentially to 90.0%, driven by an 80 basis point increase in Manhattan office occupancy to 90.3%.
The company signed 87,880 rentable square feet of commercial leases, including 71,859 rentable square feet of Manhattan office leases, with blended leasing spreads of +3.9% for Manhattan office.
Total liquidity stood at $0.8 billion, comprising $154 million in cash and $620 million available under its revolving credit facility.
Revenue by Segment
Forward Guidance
Empire State Realty Trust reaffirms its 2025 guidance, expecting Core FFO per fully diluted share to range from $0.83 to $0.86. Commercial occupancy at year-end is projected to be between 89% and 91%, with Same-Store Property Cash NOI (excluding lease termination fees) expected to range from -2.0% to +1.5%. Observatory NOI is anticipated to be between $90 million and $94 million.
Positive Outlook
- Reaffirmed 2025 Core FFO guidance of $0.83 to $0.86 per fully diluted share.
- Commercial occupancy at year-end is expected to remain strong, projected between 89% and 91%.
- Same-Store Property Cash NOI (excluding lease termination fees) is expected to show positive revenue year-over-year growth.
- Observatory NOI is projected to be robust, ranging from $90 million to $94 million.
- 2025 SS NOI year-over-year growth is expected to range from ~0.5% to 4.0% relative to 2024, excluding one-time items.
Challenges Ahead
- Same-Store Property Cash NOI (excluding lease termination fees) could decrease by up to 2.0% year-over-year.
- Operating expenses and real estate taxes are assumed to increase by approximately 2.0% to 4.0% year-over-year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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