Empire State Realty Trust (ESRT) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $193.1M, down 2.4% YoY; net income attributable to common stockholders was $3.1M vs. $8.0M, and Core FFO was $52.733M ($0.20/share) vs. $61.293M ($0.23/share).

• Commercial portfolio was 95.6% leased and 92.3% occupied; Q3 leasing totaled 189,477 sq ft, with positive office rent spreads for the 21st consecutive quarter.

• 2026 Core FFO guidance rose to $0.77–$0.80 per diluted share; Observation Deck performance remained weak, with its $55M annual NOI framework unchanged.

Financial highlights

• Same-store property cash NOI excluding lease termination fees rose 0.5% YoY, or 1.9% excluding the FDIC expiration and $1.2M of positive non-recurring items.

• Nine-month revenue increased 2.0% to $580.3M; net loss was $30.7M, including a $166.1M non-cash goodwill impairment, partly offset by a $123.5M property-sale gain.

• Q3 operating income was $35.8M vs. $39.3M; nine-month operating loss was $73.4M vs. income of $100.2M, including the goodwill impairment.

• Nine-month operating cash flow was $149.9M, down $65.3M YoY; cash and restricted cash totaled $119.7M at quarter-end.

Outlook and guidance

• 2026 Core FFO guidance increased to $0.77–$0.80 per diluted share from $0.75–$0.79; same-store property cash NOI growth guidance increased to 1.75%–2.25% from (1.5%)–2.0%.

• Year-end commercial occupancy guidance remained 90%–92%, incorporating temporary downtime for pre-leased space; operating expense and real estate tax growth is expected at 4.0%–6.0%, largely offset by tenant reimbursements.

• Run-rate G&A is targeted to decline 5%–10% by year-end 2026 vs. 2025; further initiatives could reduce G&A by at least 2% versus the year-end run-rate, with benefits through 2027.

• Initial Observation Deck improvement opportunities are anticipated in summer 2027, with potential progress earlier; the annual NOI framework remains $55M.