Empire State Realty Trust Reports $47.4M Net Income and $767.9M Revenue for Fiscal Year 2024

Empire State Realty Trust, Inc. (NYSE: ESRT) reported a net income attributable to common stockholders of $47.4 million for the fiscal year ending December 31, 2024, a decrease of 3.3% from $49.0 million in 2023. The company achieved total revenues of $767.9 million, reflecting a 3.8% increase from $739.6 million in the previous year. This growth was primarily driven by a rise in rental revenue, which increased by 2.9% to $614.6 million, and a 5.4% increase in Observatory revenue, which reached $136.4 million. The company also reported Core Funds From Operations (Core FFO) of $256.2 million, up from $245.8 million in 2023.

In terms of operational performance, Empire State Realty Trust signed a total of 1,324,824 square feet of new, renewal, and expansion leases during 2024, compared to 981,907 square feet in 2023. The company reported a 130 basis point increase in Manhattan office occupancy to 89.0% and a 160 basis point increase in the leased rate to 94.2%. The company’s portfolio, as of December 31, 2024, comprised approximately 7.8 million rentable square feet of office space, 0.8 million rentable square feet of retail space, and 732 residential units, with an overall occupancy rate of 88.6%.

Strategically, Empire State Realty Trust has been active in acquisitions and dispositions. In 2024, the company acquired a portfolio of retail properties on North 6th Street in Williamsburg, Brooklyn, for $195 million and entered into an agreement for an additional retail asset for approximately $30 million. The company also executed a buyout of a 10% non-controlling interest in two multifamily properties for $14.2 million. These acquisitions are part of the company's strategy to focus on New York City office, retail, and multifamily properties to achieve attractive returns on invested capital.

The company’s financial position remains strong, with total consolidated indebtedness of approximately $2.3 billion as of December 31, 2024, and a weighted average interest rate of 4.27%. Empire State Realty Trust had approximately $385.5 million in cash and cash equivalents and $500 million available under its unsecured revolving credit facility. The company declared dividends of $0.035 per share for each quarter of 2024, maintaining an annualized rate of $0.14 per share. Looking ahead, the company anticipates continued growth driven by its strategic focus on high-quality assets and operational efficiencies, while also navigating potential challenges in the real estate market.