Empire State Realty Op L.p. Series Es Operating Partnership Units Representing Partnership Interests Stock Earnings Reports

Empire State Realty Trust reported solid first-quarter 2026 results with steady portfolio execution and continued contribution from the Empire State Building Observatory. Key operational highlights: commercial portfolio ~93% leased (Manhattan office 93.2%), 19 consecutive quarters of positive mark-to-market rent spreads, average office lease term ~10–12 years, and a healthy leasing pipeline (~280,000 sq ft in negotiation). The Observatory had seasonally light Q1 NOI ($10.6M) with visitation soft vs. prior-year international travel; management reiterates full-year guidance and emphasizes that ~85% of NOI is earned after Q1. Capital allocation and balance sheet: acquired 4155 North 6th Street (vacant retail) as part of capital recycling into NYC urban retail; completed $184M of financings including $130M senior notes (5.99%) and a $53.5M mortgage (5.3% interest-only) resulting in no unaddressed maturities until Jan 2028; leverage ~6.3x net debt to adjusted EBITDA and ample liquidity. Financials: core FFO $0.20/share; same-store property cash NOI +5.5% YoY (adjusted +1.3% excluding ~$3M nonrecurring items); core FAD ~ $33M (material improvement vs prior year driven by lower FAD CapEx). Management remains focused on five priorities: leasing, Observatory revenue, balance sheet management, growth investments, and sustainability. They continue to underwrite office/retail/multifamily opportunities and may consider share buybacks opportunistically.