NYSE$ESRT

Empire State Realty Trust Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net income per share and core FFO per share were reported, and 2023 guidance was raised.

Empire State Realty Trust reported its Q3 2023 results, featuring a net income of $0.07 per share and a core FFO of $0.25 per share. The company increased its full-year core FFO guidance to $0.85-$0.87 per share. ESRT completed the acquisition of a prime retail asset in Williamsburg, Brooklyn for $26.4 million.

  • Net Income of $0.07 per share.
  • Core Funds From Operations (Core FFO) of $0.25 per share in the third quarter.
  • Signed approximately 248K rentable square feet of new, renewal, and expansion leases, inclusive of a 144K square foot lease with LinkedIn and a 25K square foot office lease with Starbucks.
  • Manhattan office portfolio leased rate increased by 30bps sequentially and increased by 250bps year-over-year to 91.9%. Total commercial portfolio is 90.5% leased as of September 30, 2023.

Headline financials

Total Revenue

$192M

Previous: $184M+4.3%
EPS (adj)

$0.25

Previous: $0.21+19.0%
Total liquidity

$1.2B

No prior period
Capital Expenditures

-$128M

Previous: -$89.1M-44.0%
Free Cash Flow

-$108M

Previous: -$79M-37.2%
Net Income

$19.9M

Previous: $10.1M+97.0%
Operating Income

$42.3M

Previous: $35.5M+18.9%
Gross Profit

$149M

Previous: $141M+5.5%
Cash & Equivalents

$354M

Previous: $387M-8.6%
Total Assets

$4.22B

Previous: $4.2B+0.4%
Stock-Based Comp

$4.99M

Previous: $5.37M-7.2%

Revenue & EPS history

Empire State Realty Trust · Revenue · Quarterly

$192M

Q3 2023+4.3%vs Q3 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 updates the 2023 Core FFO guidance range to $0.85 to $0.87 per fully diluted share. This reflects an improvement in the 2023 same-store property cash NOI outlook. The Company’s guidance does not include the impact of any significant future lease termination fee income or any unannounced acquisition, disposition or other capital markets activity.

Tailwinds

  • Includes $0.04 from multifamily assets
  • Assumes modest revenue growth
  • Assumes increased building utilization
  • Assumes an ~8% y/y increase in operating expenses and real estate taxes, partially offset by higher tenant expense reimbursements
  • Reflects average quarterly expenses of ~$9M

Headwinds

  • Commercial Occupancy at year-end 85% to 87%
  • SS Property Cash NOI (excluding lease termination fees) -2% to -4% from 2022
  • Continued impacts of pandemics on our business and our market
  • Our ability to complete planned capital improvements in line with budget
  • Costs of integration of completed acquisitions

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 2023

Historical avgQ3 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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