Empire State Realty (ESRT) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: 1.88%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.82
• Revenue Growth: 0.45%
• EPS Growth: -24.85%
• Country: US
• Employees: 667
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.05
• Shares Outstanding: 169,221,080
• 10 Day Avg. Volume: 2,266,617
• 30 Day Avg. Volume: 1,902,067
• PEG Ratio: -9.89
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 6.52
• Enterprise Value/Market Cap: 3.80
• Enterprise Value/Revenue: 6.15
• Enterprise Value/Gross Profit: 11.58
• Enterprise Value/Ebitda: 14.03
• 1Y Price Target: $8.77
• Price Target Upside: 20.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): $741.87M

• Rating: 65 Neutral
• Price Target: $7.50 ▲(3.45% Upside)

Empire State Realty's overall stock score is driven by strong financial performance and positive earnings call sentiment. However, technical indicators suggest a bearish trend, and the stock's valuation appears high, which tempers the overall score. The company's focus on leasing and sustainability provides a positive outlook, but high leverage and valuation concerns remain significant factors.

Positive Factors

Strong Leasing Activity

Strong leasing activity with high occupancy rates in Manhattan offices indicates robust demand and solidifies ESRT's market position, ensuring stable revenue streams.

Sustainability Achievements

Consistent recognition for sustainability enhances ESRT's reputation and aligns with growing investor and tenant focus on environmental responsibility, potentially attracting more business.

Observatory Business Performance

The Observatory's steady performance and revenue growth highlight its resilience as a key asset, contributing significantly to ESRT's diversified income streams.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting ESRT's ability to invest in growth opportunities or weather economic downturns, affecting long-term financial stability.

Reduced International Visitation

Decline in international visitors impacts potential revenue growth for the Observatory segment, which may affect overall revenue diversification and growth prospects.

Limited Retail Rent Growth

Weakness in retail rent growth could hinder revenue expansion in this segment, necessitating strategic adjustments to enhance profitability and competitiveness.

Empire State Realty Business Overview & Revenue Model

Company Description

Empire State Realty Trust, Inc. (ESRT) is a real estate investment trust (REIT) based in New York City, primarily engaged in the ownership, operation, and management of office and retail properties. The company is best known for its iconic flagship asset, the Empire State Building, and its portfolio includes a diverse range of high-quality office and retail spaces located in key urban markets. ESRT focuses on creating long-term value through active property management, strategic acquisitions, and sustainable practices that enhance tenant experiences and operational efficiency.

How the Company Makes Money

Empire State Realty Trust generates revenue primarily through leasing office and retail spaces within its properties. The company earns rental income from long-term leases with tenants, which typically include provisions for rent escalations over time. Additionally, ESRT benefits from ancillary income sources such as parking facilities, advertising, and revenue from retail operations within its properties. The company may also engage in property management services for third-party clients, further diversifying its revenue streams. Significant partnerships with major corporations and organizations for office leases, as well as its iconic status as a landmark, contribute to high occupancy rates and sustained demand, thus enhancing its earnings potential.

Empire State Realty Financial Statement Overview

Summary

Empire State Realty demonstrates solid revenue growth and efficient cash flow management, with strong gross profit margins. However, high leverage and declining return on equity present potential financial risks. Overall, the company is on a positive growth trajectory but should monitor its debt levels closely.

Income Statement

Empire State Realty shows a strong gross profit margin of 60.63% in TTM, indicating efficient cost management. However, the net profit margin has decreased to 5.81% from 6.77% in the previous year, reflecting a slight decline in profitability. Revenue growth is robust at 22.3% TTM, showcasing a positive growth trajectory. EBIT and EBITDA margins are stable, suggesting consistent operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 2.03 TTM, indicating significant leverage, which could pose financial risks. Return on equity has decreased to 4.31% TTM, reflecting reduced profitability for shareholders. The equity ratio stands at 25.46%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Empire State Realty's free cash flow growth rate is strong at 14.42% TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy at 2.52, suggesting strong cash flow relative to earnings. The free cash flow to net income ratio remains stable at 1.0, highlighting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	768.52M	763.15M	739.57M	727.04M	624.09M	609.23M
Gross Profit	408.44M	408.99M	400.56M	405.69M	344.61M	318.12M
EBITDA	337.04M	343.53M	336.62M	343.92M	288.66M	251.05M
Net Income	44.65M	51.64M	53.24M	40.64M	-6.51M	-12.52M
Balance Sheet
Total Assets	4.08B	4.51B	4.22B	4.16B	4.28B	4.15B
Cash, Cash Equivalents and Short-Term Investments	136.73M	385.46M	346.62M	264.43M	423.69M	526.71M
Total Debt	2.09B	2.48B	2.27B	2.27B	2.34B	2.17B
Total Liabilities	2.29B	2.73B	2.49B	2.48B	2.60B	2.42B
Stockholders Equity	1.04B	1.03B	985.52M	954.38M	998.13M	1.06B
Cash Flow
Free Cash Flow	62.45M	260.89M	232.49M	84.91M	117.45M	39.17M
Operating Cash Flow	262.70M	260.89M	232.49M	211.17M	212.49M	182.29M
Investing Cash Flow	-425.03M	-397.12M	-77.34M	-230.89M	-212.74M	-143.12M
Financing Cash Flow	-277.49M	158.58M	-62.87M	-140.24M	-93.05M	257.17M

Empire State Realty Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESRT, the sentiment is Neutral. The current price of 7.25 is below the 20-day moving average (MA) of 7.49, below the 50-day MA of 7.57, and below the 200-day MA of 7.82, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 48.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ESRT.

Empire State Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESRT	65 Neutral	$1.25B	35.67	3.80%	1.88%	0.45%	-24.85%
OLP	60 Neutral	$434.81M	15.57	10.91%	8.70%	7.71%	-5.37%
GOOD	59 Neutral	$534.13M	59.35	5.96%	10.68%	4.95%	-6.49%
AAT	59 Neutral	$1.18B	19.02	5.29%	6.75%	5.95%	5.06%
AHH	56 Neutral	$510.58M	47.12	4.09%	9.72%	-39.94%	―
GNL	52 Neutral	$1.72B	―	-12.53%	10.66%	-28.94%	-28.24%

Empire State Realty Corporate Events

Empire State Realty Trust Reports Steady Q3 2025 Results

Empire State Realty Trust, Inc. (NYSE: ESRT) is a New York City-focused real estate investment trust (REIT) that manages a diverse portfolio of modernized office, retail, and multifamily properties, including the iconic Empire State Building. The company is known for its leadership in energy efficiency and indoor environmental quality.

Empire State Realty Reports Q3 2025 Financial Results

Empire State Realty Trust reported its third-quarter 2025 financial results, highlighting a net income of $0.05 per share and core funds from operations of $0.23 per share. The company experienced a slight year-over-year decrease in same-store property cash net operating income due to increased real estate taxes and operating expenses, though these were partially offset by higher tenant reimbursements. Notably, the Manhattan office occupancy increased to 90.3%, and the company signed significant commercial leases, including a 19,883 square foot renewal and expansion with Jencap Group. The Empire State Building Observatory generated $26.5 million in NOI, and the company announced a $175 million issuance of senior unsecured notes. Empire State Realty Trust also achieved the highest GRESB 5 Star Rating for the sixth consecutive year.

The most recent analyst rating on (ESRT) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Empire State Realty stock, see the ESRT Stock Forecast page.

Empire State Realty Enters $175M Note Purchase Agreement

On October 15, 2025, Empire State Realty Trust, Inc. and its subsidiary, Empire State Realty OP, L.P., entered into a Note Purchase Agreement for a private placement of $175 million in Series L Senior Notes due January 7, 2031. The sale is expected to fund on December 18, 2025, and the proceeds will be used to refinance existing debt and for general corporate purposes. The agreement includes financial covenants and customary conditions, and the notes will not be registered under the Securities Act of 1933.

The most recent analyst rating on (ESRT) stock is a Sell with a $8.30 price target. To see the full list of analyst forecasts on Empire State Realty stock, see the ESRT Stock Forecast page.