Empire State Realty Trust (ESRT) Q2 2026 earnings summary

Executive summary

• Core FFO per share for Q2 2026 was $0.21, with updated 2026 guidance of $0.75–$0.79 per share; net loss attributable to common stockholders was $25.8 million, driven by a $166.1 million non-cash goodwill impairment in the Observatory segment, offset by a $124.6 million gain on the sale of 250 West 57th Street and $5.5 million in one-time severance costs.

• Delivered strong leasing performance, with 381,799 square feet of new, renewal, and expansion leases signed, office leasing spreads positive for the 20th consecutive quarter, and commercial portfolio 94.9% leased.

• Completed strategic transactions, including the sale of 250 West 57th Street for $275 million and acquisition of land under 111 West 33rd Street and 1400 Broadway for $110 million, recycling capital into prior acquisitions.

• Observation Deck performance weighed on results due to a significant decline in international and pass program visitors, resulting in a $166.1 million goodwill impairment and lower NOI.

• Portfolio transformation and disciplined capital allocation have improved asset quality and cash flow, with a focus on NYC assets and no unaddressed debt maturities until January 2028.

Financial highlights

• Total revenues for Q2 2026 were $196.9 million, up 3.0% year-over-year; rental revenue increased 7.6% to $165.2 million, while Observatory revenue declined 28.5% to $24.2 million.

• Core FFO for Q2 2026 was $57.1 million, or $0.21 per share; Core FAD was $16.2 million, up from $11.9 million year-over-year.

• Same-store property cash NOI, excluding lease termination fees, increased 3.3% year-over-year, but declined 3.2% when adjusted for non-recurring items.

• Observation Deck generated $12.4 million of NOI, down from $24.1 million in the prior year, with visitation down 28.5% year-over-year.

• Net operating income (NOI) for Q2 2026 was $102.6 million, nearly flat year-over-year.

Outlook and guidance

• Updated 2026 Core FFO per share guidance is $0.75–$0.79, assuming no improvement in Observation Deck visitation and $55 million of NOI from the Deck for the full year.

• Year-end commercial portfolio occupancy guidance remains at 90–92%.

• Same-store property cash NOI growth guidance is -1.5% to +2%, unchanged, with a 270 bps impact from temporary downtime.

• G&A expected to decline to ~$17 million per quarter in the second half of 2026.

• Management highlights ongoing uncertainty in the global economy, including inflation, interest rates, and tourism trends.