Empire State Realty OP, L.P. reported a net income of $76.2 million for the fiscal year ending December 31, 2024, a decrease of 5% from the previous year's net income of $80.1 million. The company's total revenues increased by 3.8% to $767.9 million, driven primarily by a 2.9% rise in rental revenue, which reached $614.6 million, and a 5.4% increase in Observatory revenue, totaling $136.4 million. The growth in rental revenue was attributed to higher occupancy rates and escalations in operating and real estate taxes, while the Observatory's revenue benefited from increased ticket prices and visitor numbers.
In terms of operational performance, Empire State Realty OP leased a total of 1,324,824 square feet of space during 2024, which included new, renewal, and expansion leases. The occupancy rate for the office portfolio improved to 89.0%, with a leased rate of 94.2% in Manhattan. The company also reported a significant increase in its multifamily portfolio, which included 732 residential units in New York City. The total annualized rent from the portfolio was approximately $544 million, reflecting a diverse tenant base across various industries.
Strategically, the company made notable acquisitions, including a portfolio of retail properties on North 6th Street in Williamsburg, Brooklyn, for $195 million, and an additional retail asset for approximately $30 million, expected to close in mid-2025. Additionally, Empire State Realty OP executed a buyout of a 10% non-controlling interest in two multifamily properties for $14.2 million. These acquisitions align with the company's strategy to focus on high-quality assets in New York City, where it aims to maximize cash flow and total returns to shareholders.
The company maintained a strong balance sheet with approximately $385.5 million in cash and cash equivalents as of December 31, 2024, and $500 million available under its unsecured revolving credit facility. Total consolidated indebtedness stood at $2.3 billion, with a weighted average interest rate of 4.27%. The company is committed to achieving its sustainability goals and is recognized as a leader in energy efficiency and indoor environmental quality, which it believes enhances its competitive advantage in the market.
Looking ahead, Empire State Realty OP anticipates continued growth driven by its strategic acquisitions and operational improvements. The company plans to focus on maximizing occupancy and rental rates while managing its balance sheet effectively to capitalize on future investment opportunities. The management remains optimistic about the recovery of the New York City market and its ability to attract high-quality tenants, which is expected to support its long-term growth objectives.
About Empire State Realty OP, L.P.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.