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Dec 31, 2024
Empire State Realty Trust Q4 2024 Earnings Report
Empire State Realty Trust reported its fourth quarter and full year 2024 operational and financial results, showing an increase in net income per fully diluted share for the quarter and full year, alongside growth in Core FFO per fully diluted share for the full year.
Key Takeaways
Empire State Realty Trust reported a net income of $0.07 per share for Q4 2024 and $0.28 per share for the full year. Core FFO was $0.24 per share for Q4 2024 and $0.95 per share for the full year. The company signed 379 thousand rentable square feet of office leases in Q4 and 1.325 million rentable square feet for the full year, with Manhattan office blended leasing spreads at +10.8%.
Net Income per fully diluted share was $0.07 for the fourth quarter of 2024, an increase from $0.06 in the same period of 2023.
Core FFO per fully diluted share was $0.24 for the fourth quarter of 2024, a slight decrease from $0.25 in the same period of 2023.
The company signed approximately 379 thousand rentable square feet of office leases in the fourth quarter of 2024.
Manhattan office leased rate increased by 160bps year-over-year to 94.2%, marking the 12th consecutive quarter of positive commercial leased rate absorption.
Revenue by Segment
Forward Guidance
Empire State Realty Trust provides 2025 guidance for Core FFO per fully diluted share, commercial occupancy, SS Property Cash NOI, and Observatory NOI, excluding significant future lease termination fee income or unannounced acquisitions/dispositions.
Positive Outlook
- Core FFO Per Fully Diluted Share is projected to be between $0.86 to $0.89 for 2025.
- Commercial Occupancy at year-end is expected to be between 89% to 91%.
- SS Property Cash NOI (excluding lease termination fees) is projected to range from -2.0% to +1.5%, with an expected y/y growth of ~0.5% to 4.0% relative to 2024 excluding one-time items.
- Observatory NOI is guided to be between $97M to $102M for 2025.
- Assumes positive revenue year-over-year growth for commercial properties.
Challenges Ahead
- 2025 FFO includes a net $0.04 year-over-year decline from changes in interest income, G&A, interest expense, transaction income, and non-cash adjustments.
- Assumes a ~2.0% to 4.0% year-over-year increase in operating expenses and real estate taxes for SS Property Cash NOI.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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