Empire State Realty (ESRT) AI Stock Analysis

• Market Cap: $1.35B
• Dividend Yield: 1.76%
• Average Volume (3M): 1.39M
• Price to Earnings (P/E): 33.3
• Beta (1Y): 0.86
• Revenue Growth: 1.77%
• EPS Growth: -8.72%
• Country: US
• Employees: 667
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 168,641,340
• 10 Day Avg. Volume: 1,244,871
• 30 Day Avg. Volume: 1,386,144
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.63
• Enterprise Value/Revenue: 6.38
• Enterprise Value/Gross Profit: 10.52
• Enterprise Value/Ebitda: 13.74
• 1Y Price Target: $8.58
• Price Target Upside: 10.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $8.00 ▲(2.83% Upside)

Empire State Realty's overall score is driven by strong financial performance and balanced earnings call sentiment. However, technical indicators suggest potential short-term weakness, and valuation metrics indicate the stock may be overvalued.

Positive Factors

Analyst Recommendation

The analyst's recommendation has upgraded ESRT to Outperform from Peer Perform, indicating a positive outlook.

Earnings

Earnings are expected to be steady going forward, which is favorable given the low growth environment for real estate investment trusts.

Negative Factors

Economic Uncertainty

A lower multiple is being ascribed to the stock due to the office sector's sensitivity to economic uncertainty.

Guidance Revision

ESRT reported an in-line 2Q25 Core FFOps, but lowered 2025 Core FFOps guidance by 3.4%, below the Street, driven by a reduced outlook on the Empire State Observatory.

Valuation

The target price for Empire State Realty Trust has been lowered from $10.00 to $7.50 due to a revised valuation approach.

Empire State Realty Business Overview & Revenue Model

Company Description

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the World's Most Famous Building. Headquartered in New York, New York, the Company's office and retail portfolio covers 10.1 million rentable square feet, as of September 30, 2020, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio. Long the leader in energy efficiency retrofits and Indoor Environmental Quality, Empire State Realty Trust is the first commercial real estate portfolio in the U.S. to achieve the WELL Health-Safety Rating.

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.

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	465.94M	408.99M	400.56M	405.69M	344.61M	318.12M
EBITDA	356.59M	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	2.10B	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	262.70M	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: Positive
• Last Price: 7.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESRT, the sentiment is Positive. The current price of 7.78 is above the 20-day moving average (MA) of 7.51, above the 50-day MA of 7.67, and below the 200-day MA of 8.49, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 90.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESRT.

Empire State Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALEX	79 Outperform	$1.41B	18.15	7.79%	4.62%	5.60%	93.88%
SAFE	74 Outperform	$1.17B	11.22	4.38%	4.34%	1.59%	―
AHH	67 Neutral	$739.86M	79.35	3.55%	9.43%	-25.73%	―
ESRT	66 Neutral	$1.35B	33.32	4.36%	1.76%	1.77%	-8.72%
Sector *	63 Neutral	$7.09B	13.58	-0.36%	6.87%	4.08%	-25.24%
AAT	62 Neutral	$1.28B	17.18	6.26%	6.53%	11.68%	37.31%
GNL	58 Neutral	$1.77B	―	-11.87%	11.31%	-11.06%	29.36%

Empire State Realty Corporate Events

Empire State Realty Reports Q2 2025 Financial Results

On July 23, 2025, Empire State Realty Trust announced its financial results for the second quarter of 2025, reporting a net income of $0.04 per share and core funds from operations of $0.22 per share. The company signed 232,108 rentable square feet of leases and maintained a strong liquidity position with $0.7 billion and no floating rate debt exposure. The Manhattan office portfolio saw a leasing rate increase to 93.8%, and the company completed the acquisition of a retail asset in Williamsburg, Brooklyn. The Empire State Building Observatory generated $24.1 million in net operating income, and the company continued its stock repurchase program, buying back $2.1 million of common stock during the quarter.

Empire State Realty Appoints George Malkin to Board

Empire State Realty Trust announced on July 14, 2025, that George L. W. Malkin has joined its Board of Directors, effective July 13, 2025. Mr. Malkin, who has a strong background in operational and financial roles, is the son of the company’s CEO and grandson of its Chairman Emeritus. His appointment is expected to bring valuable insights to the board, enhancing the company’s strategic direction and leadership.