Business Context and Reporting Period
This Form 8-K is a current report filed by Empire State Realty Trust, Inc. and Empire State Realty OP, L.P. on July 26, 2017. The filing serves to announce the Company's financial results for the second quarter of 2017. The report incorporates by reference a press release (Exhibit 99.1) and supplemental non-GAAP financial measures (Exhibit 99.2) available on the Company's website.
Key Financial Metrics
The filing text provided does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It serves as a disclosure vehicle referencing external exhibits for these figures. However, the document details the definitions and methodologies for several key non-GAAP metrics used by the Company:
- Funds From Operations (FFO): Defined per NAREIT standards, adjusting net income for depreciation, amortization, and gains/losses on property sales.
- Modified FFO: Adds back amortization of below-market ground leases resulting from 2014 acquisitions.
- Core FFO: Excludes non-recurring items such as acquisition expenses, deferred financing cost write-offs, and prepayment penalties.
- Core Funds Available for Distribution (Core FAD): Adjusts Core FFO for capital expenditures, tenant improvements, and straight-line rent to estimate dividend funding ability.
- Net Operating Income (NOI): Measures property performance excluding financing costs, depreciation, and corporate expenses.
- EBITDA: Net income plus interest, taxes, depreciation, and amortization, used to assess debt service capability.
Material Changes
The filing text does not provide specific data points to compare current period performance against prior periods. It references the issuance of a press release containing the second quarter 2017 results but does not summarize the specific variances or trends within the text of this 8-K.
Guidance, Outlook, and Risks
The document does not contain forward-looking guidance, specific management commentary on future outlook, or a list of material risks. It includes standard disclaimers regarding the non-GAAP measures, noting that:
- FFO, Modified FFO, Core FFO, Core FAD, NOI, and EBITDA are not substitutes for GAAP net income or cash flow from operating activities.
- These measures do not represent cash available to fund ongoing needs or distributions.
- Comparability with other REITs is not assured due to varying calculation methods.
Investor Verification Checklist
- Verify the specific Q2 2017 revenue, net income, and FFO figures in the attached Press Release (Exhibit 99.1).
- Review the Supplemental Report (Exhibit 99.2) for detailed reconciliations between GAAP net income and non-GAAP measures (FFO, Core FFO, Core FAD).
- Confirm the impact of below-market ground lease amortization on Modified FFO as described in the 2014 acquisition context.
- Check the Company's website for the full text of the press release and supplemental data referenced in this filing.