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 and strong leasing activity, but a net loss of $25.8 million due to 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.

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

• Commercial portfolio is 94.9% leased and 89.4% occupied, with positive leasing fundamentals and a 17.8% positive mark-to-market on office leases for the 20th consecutive quarter.

• Completed the sale of 250 West 57th Street for $275 million and acquired land under 111 West 33rd Street and 1400 Broadway for $110 million.

• Observation Deck performance weighed on results due to a sharp decline in international and pass program visitors, with NOI down to $12.4 million from $24.1 million year-over-year.

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.

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

• Core FFO for Q2 2026 was $57.1 million, or $0.21 per share.

• Net loss attributable to common stockholders was $25.8 million for Q2 2026, compared to net income of $6.5 million in Q2 2025.

• Operating expenses rose to $335.6 million, primarily due to the goodwill impairment charge and higher general and administrative expenses.

Outlook and guidance

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

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

• Same-store property cash NOI growth guidance unchanged at -1.5% to +2%.

• 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.