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: October 23, 2019
Reporting Period: Third Quarter 2019
This filing serves as a notification that the Company issued a press release announcing its financial results for the third quarter of 2019. The filing incorporates the press release and supplemental information by reference but explicitly states that this information is "furnished" and not "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 (Press Release) and 99.2 (Supplemental Report), which are referenced but not included in the source text.
Non-GAAP Measures Defined: The filing details the Company's methodology for calculating several non-GAAP financial measures used 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, non-cash compensation, straight-line rent, leasing commissions, tenant improvements, and capital expenditures.
- Net Operating Income (NOI): A measure of property performance excluding cost of funds, depreciation, amortization, and corporate-level expenses.
- EBITDA: Net income plus interest expense, income taxes, and depreciation and amortization.
Material Changes
The filing text does not provide specific data regarding material changes in financial performance compared to the prior comparable period. It only confirms the announcement of third-quarter 2019 results.
Guidance, Outlook, and Risks
Guidance and Outlook: The text does not contain specific forward-looking guidance or management commentary regarding future performance trends.
Risks and Contingencies: The filing includes standard disclaimers regarding the limitations of the non-GAAP measures presented:
- FFO, Modified FFO, Core FFO, Core FAD, NOI, and EBITDA do not represent cash generated from operating activities.
- These measures should not be considered alternatives to GAAP net income or cash flow from operating activities.
- They are not indicative of 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 numerical values for Q3 2019 revenue, FFO, and Core FAD in the attached Press Release (Exhibit 99.1).
- Review the Supplemental Report (Exhibit 99.2) for detailed reconciliations between GAAP net income and the non-GAAP measures defined in this filing.
- Confirm the Company's liquidity position and debt maturity schedule, as these are not detailed in the 8-K text itself.
- Assess the impact of the "below-market ground lease amortization" adjustment on Modified FFO, as noted as a material non-cash item.