Business Context and Reporting Period
This Form 8-K filing by Empire State Realty Trust, Inc. and Empire State Realty OP, L.P. was submitted on July 24, 2019. The report serves to disclose the Company's financial results for the second quarter of 2019, referencing a press release and supplemental information attached as Exhibits 99.1 and 99.2.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it defines the non-GAAP financial measures used to evaluate performance:
- Funds From Operations (FFO): Defined per NAREIT standards, excluding impairment writedowns, gains/losses from debt restructurings and property sales, and adding back real estate depreciation and amortization.
- Modified FFO: Adds back adjustments for above or below-market ground lease amortization to traditional FFO.
- Core FFO: Adds back acquisition expenses, deferred tax asset write-offs, and losses on early extinguishment of debt to Modified FFO to exclude non-recurring items.
- Core Funds Available for Distribution (Core FAD): Adjusts Core FFO by adding non-real estate depreciation and non-cash compensation, while deducting straight-line rent, leasing commissions, tenant improvements, and capital expenditures.
- Net Operating Income (NOI): Measures property performance excluding cost of funds, depreciation, amortization, and general administrative expenses.
- EBITDA: Calculated as net income plus interest expense, income taxes, and depreciation and amortization.
Material Changes
The filing text does not contain specific data regarding material changes in financial position or results of operations compared to the prior comparable period. It only notes that the Company issued a press release announcing Q2 2019 results.
Guidance, Outlook, and Risks
The document does not provide forward-looking guidance, specific management commentary on future outlook, or a list of specific risks and contingencies. It includes standard disclosures stating that the non-GAAP measures (FFO, Modified FFO, Core FFO, Core FAD, NOI, EBITDA) are not substitutes for GAAP net income or cash flow from operating activities and may not be comparable to similarly titled measures used by other REITs.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) and Exhibit 99.2 (Supplemental Report) for the actual numerical values of Q2 2019 revenue, net income, and FFO.
- Verify the specific amounts of capital expenditures and leasing commissions deducted in the calculation of Core FAD.
- Confirm the impact of below-market ground lease amortization on Modified FFO.
- Check the Company's website for the full supplemental information referenced in the filing.