Empire State Realty OP, L.P. reported its financial results for the third quarter of 2025, revealing a net income of $13.6 million, a decrease of 40.1% from $22.8 million in the same period last year. For the nine months ending September 30, 2025, net income totaled $40.8 million, down 33.7% from $61.6 million in 2024. Total revenues for the quarter were $197.7 million, slightly lower than $199.6 million in the prior year, while year-to-date revenues reached $569.0 million, a marginal decline from $570.3 million.
The company experienced a 3.5% increase in rental revenue for the third quarter, totaling $158.4 million compared to $153.1 million in 2024. However, observatory revenue fell by 8.5% to $36.0 million, attributed to decreased visitation levels. The decline in overall profitability was influenced by increased operating expenses, which rose to $158.4 million from $154.3 million year-over-year, driven by higher repair and maintenance costs and increased real estate taxes.
In terms of strategic developments, Empire State Realty OP completed the acquisition of two retail properties in Williamsburg, Brooklyn, for $31 million in June 2025, following a larger acquisition of a portfolio of retail properties in the same area for $195 million in late 2024. The company also executed a buyout of a 10% non-controlling interest in two multifamily properties for $14.2 million in cash and the assumption of $18 million in debt. These acquisitions are part of the company's strategy to enhance its portfolio and capitalize on growth opportunities in the New York City market.
Operationally, the company reported a total of 87,880 square feet of new, renewal, and expansion leases signed during the quarter. As of September 30, 2025, the company had approximately 0.9 million rentable square feet available to lease, representing 10.4% of its commercial portfolio. The company’s total consolidated indebtedness stood at approximately $2.1 billion, with a weighted average interest rate of 4.34%. The company maintained compliance with all financial covenants related to its unsecured facilities.
Looking ahead, Empire State Realty OP expressed cautious optimism regarding its future performance, despite the uncertain economic environment characterized by inflation and interest rate fluctuations. The company believes its diversified portfolio, which includes office, retail, multifamily, and the iconic Empire State Building Observatory, positions it well for continued growth. The company plans to leverage its strong balance sheet and access to liquidity to navigate potential challenges and capitalize on market opportunities.
About Empire State Realty OP, L.P.
Empire State Realty OP, L.P. manages a portfolio of iconic New York City office, retail, and residential properties, including the Empire State Building. It generates revenue from leasing, ticket sales for the observatory, and licensing. The company emphasizes high-quality, energy-efficient assets, long-term tenant relationships, and strategic acquisitions, operating primarily in NYC and Stamford, Connecticut, with a focus on maximizing property value and shareholder returns.
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