Empire State Realty Op L.p. Series 60 Operating Partnership Units Representing Partnership Interests Stock Earnings Reports

Empire State Realty Trust reported a solid start to 2026 with steady portfolio execution, strong leasing activity, proactive balance sheet management, and continued contribution from the Empire State Building Observatory. Key operating highlights: the commercial portfolio is ~93% leased (Manhattan office mark-to-market spreads +6.8%), 113k sq ft of leases signed in Q1, ~280k sq ft in active negotiations, and average office lease terms above 10 years. The company reiterated year-end occupancy guidance of 90–92% after starting the year at ~93.6% and signaled occupancy gains expected for the full year. Observatory NOI was $10.6 million in Q1 (seasonally light); visitation was soft vs. prior year, but management emphasized focus on domestic/direct sales and that ~85% of Observatory NOI is generated later in the year. Financial and capital actions: core FFO was $0.20/share; same-store property cash NOI +5.5% (1.3% ex nonrecurring items); core FAD improved to ~$33 million driven by lower FAD CapEx (~$22M vs $53M prior-year quarter). Capital recycling and growth: acquired 4155 North 6th Street (22k sq ft) for $46M and now control ~124k sq ft on North 6th Street, reflecting a strategic rotation from suburban assets; total redeployments funded without leverage. Balance sheet moves: $184M of financings YTD including $130M senior notes (5.99%, private placement, funds mid-July, matures 2032) and a $53.5M mortgage (5.3% IO, 10-year) — management says there are no unaddressed debt maturities until Jan 2028 and net debt / adjusted EBITDA is 6.3x. Capital allocation remains disciplined (evaluating NYC office, retail, multifamily opportunities, opportunistic buybacks), with guidance for full-year 2026 unchanged.