Empire State Realty (ESRT) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 2.16%
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): 31.6
• Beta (1Y): 0.86
• 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: 1,374,625
• 30 Day Avg. Volume: 1,229,511
• 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: 2.97
• Enterprise Value/Revenue: 4.31
• Enterprise Value/Gross Profit: 8.11
• Enterprise Value/Ebitda: 9.74
• 1Y Price Target: $8.27
• Price Target Upside: 14.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): $746.44M

• 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 bearish momentum, and the valuation appears high, which tempers the overall score. The company's high leverage and challenges in international visitation also present risks that investors should consider.

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 publicly traded real estate investment trust (REIT) based in New York City. The company primarily focuses on owning, operating, and managing a diversified portfolio of commercial properties, including office buildings and retail spaces, with a notable emphasis on the iconic Empire State Building. ESRT is committed to sustainability and innovation in its property management, enhancing tenant experiences while maximizing asset value across its holdings in the New York metropolitan area.

How the Company Makes Money

Empire State Realty Trust generates revenue primarily through leasing space in its commercial properties. This includes long-term leases with office tenants and retail tenants, which provide a stable and recurring income stream. Additionally, the company may earn revenue from ancillary services, such as parking and event hosting at the Empire State Building. Significant partnerships with businesses and organizations can further enhance its revenue potential, particularly through promotional agreements and tourism-related activities. Furthermore, ESRT benefits from its focus on sustainability, which can lead to cost savings and increased tenant demand for energy-efficient spaces.

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	768.05M	763.15M	739.57M	707.01M	607.86M	609.23M
Gross Profit	408.44M	408.99M	400.56M	385.65M	328.38M	318.12M
EBITDA	340.03M	343.53M	378.52M	382.86M	281.43M	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	94.64M	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: Negative
• Last Price: 7.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESRT, the sentiment is Negative. The current price of 7.25 is above the 20-day moving average (MA) of 6.84, above the 50-day MA of 7.09, and below the 200-day MA of 7.47, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 34.28 is Neutral, neither overbought nor oversold. The STOCH value of 4.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ESRT.

Empire State Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLP	71 Outperform	$436.15M	12.92	10.91%	8.93%	7.71%	-5.37%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ESRT	65 Neutral	$1.11B	31.58	3.80%	2.16%	0.45%	-24.85%
GNL	62 Neutral	$1.82B	-6.77	-12.53%	10.29%	-28.94%	-28.24%
AHH	61 Neutral	$531.42M	48.67	4.09%	9.50%	-39.94%	―
GOOD	60 Neutral	$519.01M	56.26	5.96%	11.20%	4.95%	-6.49%
AAT	59 Neutral	$1.14B	18.31	5.29%	7.27%	5.95%	5.06%

Empire State Realty Corporate Events

Empire State Realty Secures $210M Credit Facility

On November 14, 2025, Empire State Realty OP, L.P. and its general partner, Empire State Realty Trust, Inc., entered into an Amended and Restated Credit Agreement with Wells Fargo Bank and other lenders. This agreement establishes a $210 million senior unsecured term loan credit facility, which can be increased to a maximum of $310 million. The facility will support the working capital needs and general corporate purposes of the Operating Partnership and its subsidiaries. The Credit Facility, which matures on January 15, 2029, includes various financial covenants and the option for extension. The agreement’s terms reflect Empire State Realty’s strategic financial management and may impact its operational flexibility and stakeholder relationships.

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.

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.