NYSE$ESRT

Empire State Realty Trust Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced third quarter 2022 results with net income of $0.03 per fully diluted share and Core FFO of $0.21 per fully diluted share.

Empire State Realty Trust reported its Q3 2022 results, with a net income of $0.03 per fully diluted share and Core FFO of $0.21 per fully diluted share. The company's total commercial portfolio is 88.5% leased, and the Empire State Building Observatory generated $24.5 million of NOI. ESRT repurchased $20.1 million of common stock and achieved carbon neutrality for its 9.9 million square foot commercial portfolio.

  • Core FFO of $0.21 per fully diluted share, compared to $0.20 per fully diluted share in Q3 2021.
  • Same-Store Property Cash Net Operating Income excluding lease termination fees decreased 7.5% from Q3 2021.
  • Total commercial portfolio is 88.5% leased; Manhattan office portfolio is 89.4% leased.
  • Empire State Building Observatory generated $24.5 million of NOI.

Headline financials

Total Revenue

$184M

Previous: $165M+11.3%
EPS (adj)

$0.21

Previous: $0.20+5.0%
Capital Expenditures

-$89.1M

Previous: -$70.7M-26.0%
Free Cash Flow

-$79M

Previous: -$80.9M+2.4%
Net Income

$10.1M

Previous: -$10.2M+199.4%
Operating Income

$35.5M

Previous: $13.2M+169.1%
Gross Profit

$141M

Previous: $132M+7.0%
Cash & Equivalents

$387M

Previous: $582M-33.5%
Total Assets

$4.2B

Previous: $4.11B+2.2%
Stock-Based Comp

$5.37M

Previous: $5.38M-0.1%

Revenue & EPS history

Empire State Realty Trust · Revenue · Quarterly

$184M

Q3 2022+11.3%vs Q3 2021
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 updated its 2022 Core FFO guidance to a revised range of $0.83 to $0.85 per fully diluted share, from $0.80 to $0.85 per fully diluted share. The expected Observatory NOI for FY 2022 was revised from $74 to $77 million to $67 to $70 million.

Tailwinds

  • Includes $0.02 from the multifamily acquisition that closed in late-December 2021
  • Includes ~270M fully diluted shares as of October 24, 2022
  • SS Occupancy at year-end 84% to 86%
  • Base case reflects 4Q22 hypothetical Observatory admissions at two-thirds of 4Q19 visitation
  • Achievement of carbon neutrality for its 9.9 million square foot commercial portfolio

Headwinds

  • Primarily driven by normalization of operating expenses as building utilization increases; ~10% y/y increase in SS operating expenses
  • Also impacted by late-2021 occupancy decline
  • Reflects 4Q expenses of approximately $8M - $9M
  • Same-Store (SS) Commercial Property Drivers SS Cash NOI (excluding lease termination fees) -10% to -12% from 2021
  • Slowdown in the growth of international travel to the U.S.

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 Q3 2022

Historical avgQ3 2022

-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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