NYSE$ESRT

Empire State Realty Trust Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported operational and financial results for the first quarter 2023

Empire State Realty Trust reported a net income of $0.04 per share and Core Funds From Operations (FFO) of $0.16 per share for Q1 2023. The Manhattan office portfolio occupancy increased, and the Empire State Building Observatory saw a significant rise in NOI and visitor count.

  • Net Income of $0.04 per share.
  • Core Funds From Operations (“Core FFO”) of $0.16 per share, which includes a one-time $0.024 straight-line rent receivable reserve.
  • Manhattan office portfolio occupancy increased by 180bps sequentially and 390bps year-over-year. Commercial portfolio is 89.4% leased and Manhattan office is 90.7% leased as of March 31, 2023.
  • Empire State Building Observatory generated $14.3 million of NOI and visitor count increased 65% year-over-year.

Headline financials

Total Revenue

$165M

Previous: $164M+0.4%
EPS (adj)

$0.16

Previous: $0.18-11.1%
Total liquidity

$1.1B

No prior period
Capital Expenditures

-$41.8M

Previous: -$35M-19.4%
Free Cash Flow

-$30.1M

Previous: -$52.2M+42.4%
Net Income

$11.7M

Previous: -$17.2M+167.9%
Operating Income

$17.5M

Previous: $6.05M+189.2%
Gross Profit

$123M

Previous: $125M-2.2%
Cash & Equivalents

$273M

Previous: $430M-36.6%
Total Assets

$4.16B

Previous: $4.24B-2.0%
Stock-Based Comp

$4.37M

Previous: $4.46M-1.9%

Revenue & EPS history

Empire State Realty Trust · Revenue · Quarterly

$165M

Q1 2023+0.4%vs Q1 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Empire State Realty Trust · $21.3M total across 3 segments · Q2 2022

  • Lease termination fees
    $18.9M+464.8%
  • Other revenue and fees
    $2.13M+263.5%
  • Third-party management and other fees
    $326K-0.3%

Forward guidance

The Company currently expects 2023 Core FFO to range between $0.80 to $0.84 per fully diluted share. We have reduced our 2023 Core FFO guidance range by $0.02 to reflect a one-time straight-line rent receivable reserve taken in 1Q23 tied to the accounting treatment for Signature Bank.

Tailwinds

  • Update includes impact from straight-line rent receivable reserve in 1Q23
  • Includes $0.04 from multifamily assets
  • Assumes modest revenue growth
  • Assumes increased building utilization
  • Reflects average quarterly expenses of ~$9M

Headwinds

  • Update includes impact from straight-line rent receivable reserve in 1Q23
  • Assumes increased building utilization and an ~8% increase in operating expenses and real estate taxes
  • The estimates set forth above may be subject to fluctuations as a result of several factors, including continued impacts of pandemics on our business and our market
  • There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above
  • The Company will recognize future rent collection on a cash basis for the balance of the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.1%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.2%

Avg return

30 days after

49%

25 / 51 earnings

Positive

+8.6%

Q2 2022

Best reaction

-6.8%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.6%+2.0%
Q4 2025-3.0%-5.6%-20.5%
Q3 2025-5.8%-4.1%-7.7%
Q2 2025+0.4%-0.9%+6.9%
Q1 2025+2.3%+6.5%+10.1%
Q4 2024-2.9%-3.7%-11.5%
Q3 2024-2.0%-4.5%-5.5%
Q2 2024-5.2%-3.9%-6.3%
Q1 2024-3.8%-2.0%-4.7%
Q4 2023-2.5%+0.8%+0.7%
Q3 2023+4.8%+7.2%+11.6%
Q2 2023+7.1%+12.7%+1.6%
Q1 2023-0.5%+0.9%+0.7%
Q4 2022+2.5%-0.6%-23.3%
Q3 2022-2.0%+3.2%+7.6%
Q2 2022+8.6%+10.6%-4.6%
Q1 2022+0.2%-1.6%-6.3%
Q4 2021+3.0%+1.0%+5.1%
Q3 2021-6.8%-9.2%-10.3%
Q2 2021-2.0%-4.0%-11.3%
Q1 2021+1.1%+3.3%+4.9%
Q4 2020-3.3%+8.3%+14.6%
Q3 2020-4.8%-1.7%+67.8%
Q2 2020-1.5%-5.9%-5.8%
Q1 2020+0.1%+1.8%-12.1%
Q4 2019+1.0%-3.0%-41.7%
Q3 2019+1.8%-0.1%-3.3%
Q2 2019-3.0%-4.2%-8.6%
Q1 2019+1.1%+1.3%+3.7%
Q4 2018-1.1%+0.1%+1.5%
Q3 2018+0.7%+0.4%+2.7%
Q2 2018-0.7%-1.9%+4.7%
Q1 2018+2.1%+2.2%-2.9%
Q4 2017-3.0%-5.0%-10.1%
Q3 2017-0.2%-0.3%+1.0%
Q2 2017+3.5%+4.2%+2.0%
Q1 2017-3.2%-3.0%-3.5%
Q4 2016+1.3%+2.0%-2.7%
Q3 2016-2.4%-0.2%+2.6%
Q2 2016+1.8%+2.9%+1.4%
Q1 2016+1.5%
Q4 2015+1.1%
Q3 2015+1.4%
Q2 2015+0.5%
Q1 2015-0.4%
Q4 2014-0.2%
Q3 2014+0.0%
Q2 2014-1.0%
Q1 2014+3.2%
Q4 2013+1.9%
Q3 2013+3.9%
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010

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