Empire State Realty Trust Announces Fourth Quarter and Full Year 2025 Results

NEW YORK--( BUSINESS WIRE)--Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory, ranked the #1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor’s 2025 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is a recognized leader in energy efficiency and indoor environmental quality. Today the Company reported its operational and financial results for the fourth quarter of 2025 and the full year. All per share amounts are on a fully diluted basis, where applicable.

Fourth Quarter and Full Year 2025 Recent Highlights

Property Operations 1

As of December 31, 2025, the Company’s operating portfolio comprised 7.6 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units, which were occupied and leased as shown below.

December 31, 2025 2, 3

September 30, 2025 2

December 31, 2024 2

Percent occupied:

Total commercial portfolio

90.3%

90.0%

88.6%

Office

89.9%

89.7%

88.4%

Retail

94.4%

92.8%

90.4%

Percent leased (includes signed leases not commenced):

Total commercial portfolio

93.6%

92.6%

93.5%

Office

93.5%

92.4%

93.5%

Retail

95.3%

94.7%

94.1%

Total multifamily portfolio

97.8%

98.6%

98.5%

1 Excludes approximately 15,000 square feet of space under redevelopment related to the June 2025 acquisition of 86-90 North 6 th Street and approximately 396,000 square feet of space, comprised of 368,000 square feet of office space and 28,000 square feet of retail space, related to the December 2025 acquisition of 130 Mercer Street, which will be redeveloped.

2 All occupancy and leased percentages exclude broadcasting and storage space.

3 Occupancy and leased percentages for December 31, 2025 exclude Metro Center, which was sold during the fourth quarter.

Leasing

The tables that follow summarize leasing activity for the fourth quarter of 2025. During this period, the Company signed 27 leases that totaled 458,473 square feet with an average lease duration of 6.7 years. Average lease duration was 11.6 years for new leases executed in the fourth quarter.

Total Portfolio

Leases executed

Square

footage executed

Average cash rent psf – leases executed

% of new cash rent over / under previously escalated rents

Office

333,451

73.63

6.4 %

Retail

125,022

81.43

(2.8) %

Total Overall

458,473

75.61

3.7 %

Office Portfolio

Leases executed

Square

footage executed

Average cash rent psf – leases executed

% of new cash rent over / under previously escalated rents

New Office

106,311

70.97

13.5 %

Renewal Office

227,140

74.88

3.6 %

Total Office

333,451

73.63

6.4 %

Leasing Activity Highlights

Balance Sheet

The Company had $0.6 billion of total liquidity as of December 31, 2025, which was comprised of $133 million of cash, plus $475 million available under its revolving credit facility. At December 31, 2025, the Company had total debt outstanding of approximately $2.4 billion at a weighted average interest rate of 4.48%. At December 31, 2025, the Company’s ratio of net debt to adjusted EBITDA was 6.3x. The Company’s balance sheet supported $417 million of all-cash acquisitions of well-located, high-quality office and retail assets in 2025.

In the fourth quarter, the Company issued $175 million of senior unsecured notes in a private placement transaction at a fixed rate of 5.47% that matures in 2031. The Company also closed on a $245 million upsize and extension of its unsecured term loan credit facility that will now mature in 2031, inclusive of extensions. Through the execution of interest rate swap agreements, the Company fixed its interest rate on this facility at 4.51%. The Company now has no unaddressed debt maturity until March 2027.

Portfolio Transaction Activity

In the fourth quarter, the Company completed the previously announced all-cash acquisition of 130 Mercer Street (555-557 Broadway, the “Scholastic Building”) for a purchase price of $386.0 million. The property is located in the SoHo submarket of Manhattan and is comprised of approximately 368,000 square feet of office and 28,000 square feet of prime retail. This follows the $31.0 million all-cash acquisition of a prime retail asset located at 86-90 North 6th Street in Williamsburg, Brooklyn completed in the second quarter.

In the fourth quarter, the company also completed the disposition of its last suburban office asset, Metro Center, in Stamford, Connecticut, and repaid the related mortgage debt of $71.6 million. The Company’s commercial portfolio is now 100% New York City.

Share Repurchases

During the fourth quarter, the Company repurchased $6.0 million of common stock at a weighted average price of $6.73 per share. For the full year, the Company repurchased $8.1 million of common stock at a weighted average price of $6.78 per share.

Dividend

On December 31, 2025, the Company paid a quarterly dividend of $0.035 per share or unit, as applicable, for the fourth quarter of 2025 to holders of the Company’s Class A common stock (NYSE: ESRT) and Class B common stock and to holders of the Series ES, Series 250 and Series 60 partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR partnership units of Empire State Realty OP, L.P., the Company’s operating partnership (the “Operating Partnership”).

On December 31, 2025, the Company paid a quarterly preferred dividend of $0.15 and $0.175 per unit for the fourth quarter of 2025 to holders of the Operating Partnership’s Series 2014 and 2019 private perpetual preferred units, respectively.

2026 Earnings Outlook

The Company provides 2026 guidance and key assumptions, as summarized in the table below. 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.

Key Assumptions

2026 Guidance

2025 Actual Results

Comments

Earnings

Core FFO Per Fully Diluted Share

$0.85 to $0.89

$0.87

• 2026 assumes ~($0.03) impact from temporary downtime associated with the previously disclosed FDIC expiration, which has been re-leased

Property Assumptions

Commercial Occupancy at year-end

90% to 92%

90.3%

SS Property Cash NOI (excluding lease termination fees)

-1.5% to +2.0%

+0.6% (ex-one-time items)

• Assumes positive y/y revenue growth

• Assumes a ~2.0 to 4.0% y/y increase in operating expenses and real estate taxes

• 2026 assumes ~(270 bps) impact from temporary downtime associated with the previously disclosed FDIC expiration, which has been re-leased

Observatory Drivers

Observatory NOI

$87M to $92M

$90M

• Reflects average quarterly expenses of ~$10M

Low

High

Net Income (Loss) Attributable to Common Stockholders and the Operating Partnership

$0.19

$0.23

Add:

Impairment Charge

0.00

Real Estate Depreciation & Amortization

0.65

Less:

Private Perpetual Distributions

0.02

Gain on Disposal of Real Estate, net

0.00

FFO Attributable to Common Stockholders and the Operating Partnership

$0.82

$0.86

Add:

Amortization of Below Market Ground Lease

0.03

Core FFO Attributable to Common Stockholders and the Operating Partnership

$0.85

$0.89

The estimates set forth above may be subject to fluctuations as a result of several factors, including continued impacts of changes in the use of office space and remote work on our business and our market, our ability to complete planned capital improvements in line with budget, costs of integration of completed acquisitions, costs associated with future acquisitions or other transactions, straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

Investor Presentation Update

The Company has posted on the “Investors” section of ESRT’s website the latest investor presentation, which contains additional information on its businesses, financial condition and results of operations.

Webcast and Conference Call Details

Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Wednesday, February 18, 2026 at 12:00 pm Eastern time.

The webcast will be accessible on the “Investors” section of ESRT’s website. To listen to the live webcast, go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers.

Starting shortly after the call until March 4, 2026, a replay of the webcast will be available on the Company’s website, and a dial-in replay will be available by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13757582.

The Supplemental Report and Investor Presentation are additional components of the quarterly earnings announcement and are now available on the “Investors” section of ESRT’s website.

The Company uses, and intends to continue to use, the “Investors” page of its website, which can be found at www.esrtreit.com, as a means to disclose material nonpublic information and to comply with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the “Investors” page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of well-leased, top of tier, modernized, amenitized, and well-located office, retail, and multifamily assets. ESRT’s flagship Empire State Building, the “World's Most Famous Building,” features its iconic Observatory, ranked the #1 Top Attraction in New York City for the fourth consecutive year in Tripadvisor’s 2025 Travelers’ Choice Awards: Best of the Best Things to Do. The Company is a recognized leader in energy efficiency and indoor environmental quality. As of December 31, 2025, ESRT’s operating portfolio is comprised of approximately 7.6 million rentable square feet of office space, 0.8 million rentable square feet of retail space and 743 residential units. The Company also owns two properties that are being redeveloped with approximately 0.4 million rentable square feet of office space and 43 thousand rentable square feet of retail space. More information about Empire State Realty Trust can be found at esrtreit.com and by following ESRT on Facebook, Instagram, TikTok, X, and LinkedIn.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend these forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts and can generally be identified by words such as “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “estimate,” “may,” “will,” “should,” “would,” and similar expressions. Forward-looking statements are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

Forward-looking statements are based on our current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks and uncertainties include, among others: economic and market conditions (including the impact of catastrophic events, pandemics, extreme weather, terrorism, armed hostilities, cybersecurity threats and other technology disruptions); increased costs due to tariffs or other economic factors; changes in the New York City office, retail and tourism markets (including changes in the use of office space and remote work); leasing activity, tenant defaults, early terminations and renewals, occupancy levels and rental rates; performance of the Observatory (including tourism levels, currency and geopolitical impacts, weather and competition); interest rate volatility and capital markets conditions, including our ability to refinance, restructure or extend indebtedness; real estate valuation declines and potential impairment charges; our ability to execute capital projects and complete acquisitions on acceptable terms; risks relating to governmental regulation, environmental and climate-related requirements (including Local Law 97), and our ability to achieve sustainability goals and metrics; risks relating to our ground leases; our ability to maintain our qualification as a REIT; potential taxable gain arising from transactions structured to qualify under Section 1031; legal proceedings; and risks relating to our disclosure controls and internal control over financial reporting. For a discussion of these and other factors, see the section entitled “Risk Factors” of our annual report on Form 10-K for the year ended December 31, 2024 and any additional factors that may be contained in any filing we make with the U.S. Securities and Exchange Commission.

Any forward-looking statement speaks only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statement to reflect subsequent events or circumstances, except as required by law.

Empire State Realty Trust, Inc.

Consolidated Statements of Operations

(unaudited and amounts in thousands, except per share data)

Three Months Ended December 31,

2025

2024

Revenues

Rental revenue

159,721

155,127

Observatory revenue

35,232

38,275

Lease termination fees

—

Third-party management and other fees

240

258

Other revenue and fees

4,031

3,942

Total revenues

199,224

197,602

Operating expenses

Property operating expenses

47,817

46,645

Ground rent expenses

2,332

General and administrative expenses

18,474

17,870

Observatory expenses

10,787

9,730

Real estate taxes

33,842

32,720

Depreciation and amortization

50,566

45,365

Total operating expenses

163,818

154,662

Total operating income

35,406

42,940

Other income (expense):

Interest income

1,949

5,068

Interest expense

(25,880

)

(27,380

)

Interest expense associated with property in receivership

—

(1,921

)

Loss on early extinguishment of debt

(97

)

—

Gain on disposition of properties

21,848

1,237

Income before income taxes

33,226

19,944

Income tax expense

(1,054

)

(1,151

)

Net income

32,172

18,793

Net income attributable to non-controlling interests:

Non-controlling interest in the Operating Partnership

(11,446

)

(6,575

)

Preferred unit distributions

(1,050

)

(1,050

)

Net income attributable to common stockholders

19,676

11,168

Total weighted average shares

Basic

168,693

166,671

Diluted

270,328

270,251

Earnings per share attributable to common stockholders

Basic and Diluted

0.12

0.07

Empire State Realty Trust, Inc.

Consolidated Statements of Operations

(unaudited and amounts in thousands, except per share data)

Year ended December 31,

2025

2024

Revenues

Rental revenue

626,213

614,596

Observatory revenue

128,329

136,377

Lease termination fees

464

4,771

Third-party management and other fees

1,483

1,170

Other revenue and fees

11,781

11,009

Total revenues

768,270

767,923

Operating expenses

Property operating expenses

184,714

179,175

Ground rent expenses

9,326

General and administrative expenses

72,842

70,234

Observatory expenses

38,237

36,834

Real estate taxes

132,740

128,826

Depreciation and amortization

194,762

184,818

Total operating expenses

632,621

609,213

Total operating income

135,649

158,710

Other income (expense):

Interest income

8,748

21,298

Interest expense

(103,133

)

(105,239

)

Interest expense associated with property in receivership

(647

)

(4,471

)

Loss on early extinguishment of debt

(97

)

(553

)

Gain on disposition of properties

35,018

13,302

Income before income taxes

75,538

83,047

Income tax expense

(2,558

)

(2,688

)

Net income

72,980

80,359

Net income attributable to non-controlling interests:

Non-controlling interest in the Operating Partnership

(25,379

)

(28,713

)

Non-controlling interests in other partnerships

—

)

Preferred unit distributions

(4,201

)

(4,201

)

Net income attributable to common stockholders

43,400

47,441

Total weighted average shares

Basic

168,539

164,902

Diluted

270,040

269,019

Earnings per share attributable to common stockholders

Basic

0.26

0.29

Diluted

0.25

0.28

Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

Three Months Ended December 31,

2025

2024

Net income

32,172

18,793

Preferred unit distributions

(1,050

)

(1,050

)

Real estate depreciation and amortization

49,689

44,386

Gain on disposition of properties

(21,848

)

(1,237

)

FFO attributable to common stockholders and Operating Partnership units

58,963

60,892

Amortization of below-market ground leases

1,958

Modified FFO attributable to common stockholders and Operating Partnership units

60,921

62,850

Interest expense associated with property in receivership

—

1,921

Loss on early extinguishment of debt

—

IPO litigation expense 4

632

—

Core FFO attributable to common stockholders and Operating Partnership units

61,650

64,771

Total weighted average shares and Operating Partnership units

Basic

266,825

264,798

Diluted

270,328

270,251

FFO per share

Basic

0.22

0.23

Diluted

0.22

0.23

Modified FFO per share

Basic

0.23

0.24

Diluted

0.23

Core FFO per share

Basic

0.23

0.24

Diluted

0.23

0.24

4Included as a component of general and administrative expenses in the accompanying consolidated statements of operations.

Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)

Year ended December 31,

2025

2024

Net income

72,980

80,359

Non-controlling interests in other partnerships

—

)

Preferred unit distributions

(4,201

)

(4,201

)

Real estate depreciation and amortization

191,222

180,513

Gain on disposition of properties

(35,018

)

(13,302

)

FFO attributable to common stockholders and Operating Partnership units

224,983

243,365

Amortization of below-market ground leases

7,831

Modified FFO attributable to common stockholders and Operating Partnership units

232,814

251,196

Interest expense associated with property in receivership

647

4,471

Loss on early extinguishment of debt

553

IPO litigation expense 5

632

—

Core FFO attributable to common stockholders and Operating Partnership units

234,190

256,220

Total weighted average shares and Operating Partnership units

Basic

266,939

264,706

Diluted

270,040

269,019

FFO per share

Basic

0.84

0.92

Diluted

0.83

0.90

Modified FFO per share

Basic

0.87

0.95

Diluted

0.86

0.93

Core FFO per share

Basic

0.88

0.97

Diluted

0.87

0.95

5 Included as a component of general and administrative expenses in the accompanying consolidated statements of operations.

Empire State Realty Trust, Inc.

Consolidated Balance Sheets

(unaudited and amounts in thousands)

December 31, 2025

December 31, 2024

Assets

Commercial real estate properties, at cost

4,205,907

3,786,653

Less: accumulated depreciation

(1,366,829

)

(1,274,193

)

Commercial real estate properties, net

2,839,078

2,512,460

Contract asset 6

—

170,419

Cash and cash equivalents

132,657

385,465

Restricted cash

33,854

43,837

Tenant and other receivables

22,063

31,427

Deferred rent receivables

255,270

247,754

Prepaid expenses and other assets

93,355

101,852

Deferred costs, net

267,682

183,987

Acquired below market ground leases, net

305,579

313,410

Right of use assets

27,944

28,197

Goodwill

491,479

Total assets

4,468,961

4,510,287

Liabilities and equity

Mortgage notes payable, net

619,269

692,176

Senior unsecured notes, net

1,270,668

1,197,061

Unsecured term loan facility, net

336,794

268,731

Unsecured revolving credit facility

145,000

120,000

Debt associated with property in receivership

—

177,667

Accrued interest associated with property in receivership

—

5,433

Accounts payable and accrued expenses

120,150

132,016

Acquired below market leases, net

39,767

19,497

Ground lease liabilities

27,944

28,197

Deferred revenue and other liabilities

59,901

62,639

Tenants’ security deposits

27,276

24,908

Total liabilities

2,646,769

2,728,325

Total equity

1,822,192

1,781,962

Total liabilities and equity

4,468,961

4,510,287

6 This contract asset represents the amount of obligation which was released on February 5, 2025, upon the final resolution of the foreclosure process on First Stamford Place.