Empire State Realty Op L.p. Series 250 Operating Partnership Units Representing Partnership Interests Stock Earnings Reports

Empire State Realty Trust reported solid Q1 2026 results with steady portfolio execution, a healthy Manhattan leasing market, and continued contributions from the Empire State Building Observatory. Key operational highlights: commercial portfolio 93.2% leased (93% referenced elsewhere), 113,000 sq ft of leases signed in Q1, a 280,000 sq ft active leasing pipeline, and the nineteenth consecutive quarter of positive mark-to-market rent spreads (6.8% in Manhattan). The company completed strategic capital recycling by acquiring 4155 North 6th Street (22,000 sq ft) and building a dominant North 6th Street retail position (124,000 sq ft total), redeploying proceeds from the Metro Center disposition. Capital markets activity included $184M of financings year-to-date (including $130M senior notes at 5.99% and a $53.5M mortgage at 5.3%), leaving no unaddressed maturities until 2028 and maintaining liquidity and a conservative leverage profile (net debt / adjusted EBITDA ~6.3x). Observatory NOI was $10.6M (seasonally light quarter) with visitation pressures from soft international travel, but management emphasizes low capex, high margins, dynamic pricing, and a focus on domestic/direct sales. Financially, core FFO was $0.20 per diluted share; same-store cash NOI rose 5.5% YoY (1.3% excluding ~$3M of nonrecurring items). Management reaffirmed full-year 2026 guidance and reiterated five priorities: lease space, sell Observatory tickets, manage the balance sheet, identify growth opportunities, and achieve sustainability goals. Management remains opportunistic on acquisitions (office, retail, multifamily), focused on capital allocation (including potential buybacks), and confident in year-end occupancy guidance of 90–92% despite near-term tourism/visitation headwinds.