Business Context and Reporting Period
Company: Empire State Realty Trust, Inc. (ESRT) and Empire State Realty OP, L.P.
Filing Type: Form 8-K (Current Report)
Date of Report: April 29, 2026
Reporting Period: First Quarter 2026 (ended March 31, 2026)
Business Overview: The Company is a real estate investment trust (REIT) focused on office, retail, and multifamily properties. This filing announces the release of financial results for Q1 2026 via a press release and supplemental report (Exhibits 99.1 and 99.2).
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. The filing serves as a notification of the results and defines the non-GAAP metrics used to report them, but the actual figures are contained in the referenced Exhibits 99.1 and 99.2, which are not included in the input text.
Defined Non-GAAP Measures:
- Funds From Operations (FFO): Net income excluding impairment, gains/losses on sales, and real estate depreciation/amortization.
- Modified FFO: FFO adjusted for below-market ground lease amortization.
- Core FFO: Modified FFO excluding non-recurring items (e.g., debt extinguishment, acquisition expenses, severance).
- Core Funds Available for Distribution (Core FAD): Core FFO adjusted for non-cash items and recurring capital improvements to estimate dividend funding ability.
- Net Operating Income (NOI): Property-level performance excluding financing costs, depreciation, and corporate expenses.
- Property Cash NOI: NOI excluding straight-line rent and fair value lease revenue adjustments.
- EBITDA and Adjusted EBITDA: Net income plus interest, taxes, depreciation, and amortization; Adjusted EBITDA further adds back impairments and disposition gains/losses.
- Net Debt to Adjusted EBITDA: Leverage ratio based on trailing twelve-month Adjusted EBITDA.
Material Changes and Portfolio Activity
Same Store Portfolio Adjustments:
The filing details specific changes to the "Same Store" property portfolio as of March 31, 2026, which impacts period-over-period comparisons:
- Excluded (Acquired): 86-90 North Sixth Street (acquired June 2025), 41-55 North Sixth Street (acquired March 2026), and 130 Mercer, SoHo, NY (acquired December 2025).
- Excluded (Disposed): Metro Center, Stamford, CT (disposed December 2025).
Prior period Same Store NOI has been adjusted to reflect these acquisitions and dispositions.
Guidance, Outlook, and Risks
Management Commentary and Outlook:
The text does not provide specific forward-looking guidance, earnings projections, or management commentary on market conditions beyond the definitions of financial metrics.
Risks and Limitations of Non-GAAP Measures:
The filing explicitly states that FFO, Modified FFO, Core FFO, Core FAD, NOI, and EBITDA:
- Do not represent cash generated from operating activities.
- Should not be considered alternatives to GAAP net income or cash flow from operating activities.
- Are not indicative of cash available to fund ongoing needs or distributions.
- May not be comparable to similarly titled measures used by other REITs due to varying calculation methods.
Investor Verification Checklist
- Retrieve Exhibits 99.1 and 99.2: The actual financial results (revenue, FFO, NOI, debt levels) are not in this text and must be verified in the attached press release and supplemental report.
- Review Same Store Adjustments: Verify how the exclusion of recently acquired properties (e.g., 41-55 North Sixth Street) and disposed properties (Metro Center) impacts year-over-year growth comparisons.
- Assess Non-GAAP Reconciliations: Review the reconciliation tables in the supplemental report to understand the magnitude of adjustments made to reach Core FFO and Core FAD.
- Check Liquidity and Leverage: Confirm the current Net Debt to Adjusted EBITDA ratio and liquidity position in the full report, as these are critical for REIT credit analysis.