Business Context and Reporting Period
Company: Empire State Realty Trust, Inc. and Empire State Realty OP, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: April 29, 2026
Reporting Period: First Quarter 2026 (ended March 31, 2026)
This filing announces the release of financial results for the first quarter of 2026. The detailed financial data, including revenue, profit, and cash flow metrics, is contained in the attached press release (Exhibit 99.1) and supplemental report (Exhibit 99.2), which are incorporated by reference but not deemed "filed" under Section 18 of the Exchange Act.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The filing text does not provide specific numerical values for revenue, net income, funds from operations (FFO), cash flow, margins, debt levels, or liquidity ratios. These figures are located in the referenced Exhibits 99.1 and 99.2.
Non-GAAP Measures Defined: The filing outlines the company's methodology for calculating several supplemental financial measures, though no period-specific values are listed in the text:
- Funds From Operations (FFO): Net income excluding impairment, gains/losses on sales, and depreciation/amortization, adjusted for non-controlling interests.
- Modified FFO: FFO adjusted for below-market ground lease amortization.
- Core FFO: Modified FFO excluding non-recurring items such as debt extinguishment losses, acquisition expenses, and severance.
- Core Funds Available for Distribution (Core FAD): Core FFO adjusted for non-cash items and recurring capital improvements to estimate dividend funding ability.
- Net Operating Income (NOI): Property-level performance excluding financing costs, depreciation, and corporate expenses.
- EBITDA and Adjusted EBITDA: Net income plus interest, taxes, depreciation, and amortization, with Adjusted EBITDA further excluding impairment and disposition gains/losses.
Material Changes and Portfolio Activity
The filing details changes to the "Same Store" property portfolio as of March 31, 2026, which impacts period-over-period comparisons:
- Excluded from Same Store (Acquired): 86-90 North Sixth Street (acquired June 2025), 41-55 North Sixth Street (acquired March 2026), and 130 Mercer, SoHo, NY (acquired December 2025).
- Excluded from Same Store (Disposed): Metro Center, Stamford, CT (disposed December 2025).
- Adjustments: Prior period Same Store NOI has been adjusted to reflect these acquisition and disposition activities.
Guidance, Outlook, and Risks
Management Commentary: Management emphasizes that the defined non-GAAP measures (FFO, Core FFO, Core FAD, NOI) are useful for evaluating operating performance and comparing results among REITs, as they exclude non-cash accounting treatments and non-recurring items.
Risks and Limitations: The filing explicitly states that these non-GAAP measures:
- Do not represent cash generated from operating activities.
- Should not be considered alternatives to GAAP net income or cash flow from operating activities.
- Are not indicative of cash available to fund ongoing needs or distributions.
- May not be comparable to similarly titled measures used by other companies due to varying calculation methods.
- Exclude significant economic costs such as capital expenditures and leasing commissions necessary to maintain property performance.
Guidance: No specific forward-looking guidance or outlook figures are provided in the text of this 8-K filing.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) and Exhibit 99.2 (Supplemental Report) for specific Q1 2026 revenue, FFO, and net income figures.
- Verify the impact of the March 2026 acquisition of 41-55 North Sixth Street on current period results versus prior periods.
- Confirm the Net Debt to Adjusted EBITDA ratio calculation, specifically regarding the treatment of recently acquired properties financed with indebtedness.
- Assess the Core FAD metric to understand the company's stated ability to fund dividends after accounting for recurring capital improvements.
- Check for any updates on properties in receivership mentioned in the Core FFO definition.