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 28, 2021
Reporting Period: First Quarter 2021
This filing announces the financial results for the first quarter of 2021. The report incorporates by reference a press release (Exhibit 99.1) and a supplemental report (Exhibit 99.2) containing detailed financial data. The information is furnished under Regulation FD and is not deemed "filed" for purposes of Section 18 of the Exchange Act.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The provided text does not contain specific numerical values for revenue, net income, cash flow, margins, debt levels, or liquidity ratios. These figures are contained within the attached Exhibits 99.1 and 99.2, which are not included in the source text.
Non-GAAP Measures Defined: The filing details the methodology for several supplemental financial measures used by the Company:
- Funds From Operations (FFO): Net income excluding impairment writedowns, gains/losses from debt restructurings and sales, plus real estate depreciation/amortization, adjusted for non-controlling interests and unconsolidated partnerships.
- Modified FFO: FFO adjusted for above or below-market ground lease amortization.
- Core FFO: Modified FFO adjusted for acquisition expenses, loss on early extinguishment of debt, severance expenses, and IPO litigation expense.
- Core Funds Available for Distribution (Core FAD): Core FFO adjusted for non-real estate depreciation, financing costs, non-cash compensation, straight-line rent, leasing commissions, tenant improvements, and capital expenditures.
- Net Operating Income (NOI): Operating performance of properties excluding cost of funds, depreciation, amortization, and corporate-level expenses.
- EBITDA and Adjusted EBITDA: Net income plus interest, taxes, depreciation, and amortization; Adjusted EBITDA further adds back impairment charges.
Material Changes
The filing text does not provide specific comparative data or material changes versus the prior comparable period. It only confirms the issuance of results for the first quarter of 2021.
Guidance, Outlook, and Risks
Guidance and Outlook: The text does not contain forward-looking guidance or specific management commentary regarding future performance trends.
Risks and Limitations of Non-GAAP Measures: The filing explicitly states that FFO, Modified FFO, Core FFO, Core FAD, NOI, and EBITDA are not substitutes for GAAP net income or cash flow from operating activities. Key limitations noted include:
- These measures do not represent cash generated from operating activities.
- They are not indicative of cash available to fund ongoing needs or distributions.
- They exclude significant economic costs such as capital expenditures, leasing commissions, and interest expense.
- Comparability with other REITs is not assured due to varying calculation methods.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) and Exhibit 99.2 (Supplemental Report) for specific Q1 2021 revenue, FFO, and NOI figures.
- Verify the reconciliation of GAAP net income to Non-GAAP measures (FFO, Core FFO, Core FAD) to understand the impact of non-cash adjustments.
- Assess the impact of below-market ground lease amortization on Modified FFO as described in the filing.
- Confirm liquidity positions and debt maturity schedules in the full supplemental report, as they are not detailed in this 8-K text.