Business Context and Reporting Period
This Form 8-K Current Report was filed by Empire State Realty Trust, Inc. and Empire State Realty OP, L.P. on February 19, 2020. The filing serves to announce the Company's financial results for the fourth quarter of 2019. The report incorporates by reference a press release and supplemental information regarding these results, which are furnished but not deemed "filed" under Section 18 of the Exchange Act.
Key Financial Metrics
The provided text does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The filing focuses on the disclosure of the results rather than the data itself, referring investors to attached Exhibits 99.1 and 99.2 for the actual figures.
The document defines several non-GAAP financial measures used by the Company to evaluate performance:
- Funds From Operations (FFO): Net income excluding impairment writedowns, gains/losses from debt restructurings and sales, plus real estate-related depreciation and amortization.
- Modified FFO: FFO adjusted for above or below-market ground lease amortization.
- Core FFO: Modified FFO adjusted for acquisition expenses, deferred tax asset write-offs, and loss on early extinguishment of debt.
- Core Funds Available for Distribution (Core FAD): Core FFO adjusted for non-real estate depreciation, financing costs, straight-line rent, leasing commissions, and capital expenditures.
- Net Operating Income (NOI): A measure of property performance excluding cost of funds, depreciation, and corporate-level expenses.
- EBITDA: Net income plus interest, taxes, depreciation, and amortization.
Material Changes
The filing text does not provide specific data points to quantify material changes versus the prior comparable period. It only confirms that the Company issued a press release announcing fourth-quarter 2019 results.
Guidance, Outlook, and Risks
The document does not contain forward-looking guidance, specific management commentary on future outlook, or a detailed discussion of risks and contingencies beyond the standard definitions of non-GAAP measures. The text includes standard disclaimers stating that the non-GAAP measures (FFO, Modified FFO, Core FFO, Core FAD, NOI, EBITDA) do not represent cash generated from operating activities and should not be considered alternatives to GAAP net income or cash flow from operating activities.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) and Exhibit 99.2 (Supplemental Report) for the actual numerical financial results for Q4 2019, as they are not included in the 8-K text.
- Verify the reconciliation of GAAP net income to the non-GAAP measures (FFO, Core FFO, Core FAD) to understand the impact of non-cash adjustments.
- Confirm the specific impact of below-market ground lease amortization on Modified FFO.
- Check the Company's website for the supplemental information referenced in the filing.