Key Highlights

  • ESRT reported third-quarter 2026 Net Income of $0.02 per diluted share, down from $0.05 a year earlier, and Core FFO of $0.20 per share versus $0.23.
  • The company raised its 2026 Core FFO guidance to $0.77 to $0.80 per share from $0.75 to $0.79 given in July.
  • The commercial portfolio was 95.6% leased and 92.3% occupied at Sep 30, 2026, up from 92.6% leased a year earlier.
  • Office leasing spreads were positive at 9.9%, the 21st straight quarter of gains.
  • ESRT repurchased $85.8 million of stock since its second-quarter call and sold 1359 Broadway for $217.5 million.

Core FFO Guidance Moves Higher as Leasing Lifts Occupancy Past 92%

Empire State Realty Trust (NYSE:ESRT) reported third-quarter 2026 results on Nov 2, 2026, with net income of $0.02 per diluted share and Core FFO of $0.20 per share. A year earlier, net income was $0.05 per share and Core FFO was $0.23. Net income attributable to common stockholders was $3.1 million, compared with $8.0 million.

The company owns and operates office, retail and multifamily properties in New York City, including the Empire State Building and its observation deck. It now expects 2026 Core FFO of $0.77 to $0.80 per share, up from a July range of $0.75 to $0.79. Same-store cash net Operating Income growth, excluding termination fees, is guided to 1.75% to 2.25%, against a prior range of negative 1.5% to positive 2.0%.

Year-end commercial occupancy is still expected at 90% to 92%.

Observation Deck Revenue Falls 25.6% While Office Leasing Spreads Stay Positive

Total revenues were $193.1 million, down about 2.4% (calculated) from $197.7 million, as observatory revenue fell to $26.8 million from $36.0 million, a drop of roughly 25.6% (calculated). The deck generated net operating income of $15.6 million, and visitation stayed weak. The 2026 deck framework remains $55 million of net operating income.

Rental revenue rose to $162.0 million from $158.4 million. Same-store cash net operating income, excluding termination fees, increased 0.5%, or 1.9% when adjusted for an expired tenant Lease and $1.2 million of non-recurring items.

The company signed 27 leases covering 189,477 square feet, including 170,608 square feet of office space. Retail leases carried cash rents 13.9% below prior escalated levels, while office rents ran 9.9% above. Office occupancy reached 91.9% from 89.1% at June 30, 2026.

Buybacks Reach $85.8 Million and the 1359 Broadway Sale Funds Debt Paydown

Since its second-quarter call, the company repurchased $85.8 million of shares at a weighted average price of $4.56, bringing total Buybacks to about $387.7 million since March 2020. It completed the $217.5 million sale of 1359 Broadway after quarter-end and plans to use proceeds for more repurchases and debt reduction.

Total Liquidity was $0.6 billion at Sep 30, 2026, made up of $85 million of cash and $520 million available on its revolver. Debt outstanding was about $2.2 billion at a weighted average rate of 4.78%, and net debt to adjusted EBITDA was 6.7 times. No debt Maturity is unaddressed until March 2029.

A quarterly Dividend of $0.035 per share was paid on Sep 30, 2026. For the nine months, Core FFO was $0.61 per diluted share versus $0.64, and a $166.1 million Goodwill Impairment charge produced a net loss attributable to common stockholders of $21.5 million.

Deck Visitation and the Nov 3 Conference Call Frame the Final Quarter of 2026

The updated Core FFO range already includes share repurchases to date and the 1359 Broadway sale, while the observation deck assumption is unchanged. Weak visitation and office Demand remain the main variables. A webcast and conference call is set for Nov 3, 2026.