Empire State Realty (ESRT) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 1.83%
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.81
• Revenue Growth: 1.77%
• EPS Growth: -8.72%
• Country: US
• Employees: 667
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 168,641,340
• 10 Day Avg. Volume: 1,708,856
• 30 Day Avg. Volume: 1,338,535
• 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: 3.78
• Enterprise Value/Revenue: 6.38
• Enterprise Value/Gross Profit: 10.52
• Enterprise Value/Ebitda: 13.74
• 1Y Price Target: $8.58
• Price Target Upside: 12.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $8.50 ▲(10.97% Upside)

Empire State Realty's overall score reflects solid financial performance and efficient cash flow management, but is tempered by high leverage and valuation concerns. The earnings call provided a balanced view, with strong leasing performance offset by challenges in the Observatory segment and rising expenses. Technical indicators suggest a stable outlook, but without strong momentum.

Positive Factors

Strong Office Leasing Performance

The strong office leasing performance, with a 93.8% leased Manhattan portfolio, indicates robust demand and effective leasing strategies, supporting long-term revenue stability.

Sustainability Leadership

Leadership in sustainability not only enhances brand reputation but also aligns with tenant preferences, potentially reducing costs and increasing tenant retention over the long term.

Strong Balance Sheet

A strong balance sheet with no floating rate debt and manageable leverage provides financial stability and flexibility to pursue strategic investments and weather economic fluctuations.

Negative Factors

Challenges in Observatory Performance

Declining Observatory performance due to reduced visitation and adverse weather impacts revenue diversification, highlighting vulnerability to external factors.

Increased Operating Expenses

Rising operating expenses, driven by taxes and repairs, can pressure profit margins, reducing financial flexibility and potentially impacting long-term profitability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns effectively.

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. 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	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	144.25M	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: 7.66
• 50DMA: Positive
• 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 Positive. The current price of 7.66 is below the 20-day moving average (MA) of 7.67, above the 50-day MA of 7.51, and below the 200-day MA of 8.19, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 is Neutral, 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
OLP	76 Outperform	$478.22M	17.11	9.33%	8.13%	5.57%	-14.50%
ESRT	68 Neutral	$1.30B	31.98	4.36%	1.83%	1.77%	-8.72%
AAT	62 Neutral	$1.24B	16.69	6.49%	6.67%	11.68%	37.31%
AHH	60 Neutral	$708.44M	76.20	2.60%	8.94%	-25.73%	―
GOOD	59 Neutral	$652.57M	34.20	16.84%	9.77%	5.85%	―
GNL	58 Neutral	$1.81B	-6.72	-15.59%	11.36%	-11.06%	29.36%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

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.

The most recent analyst rating on (ESRT) stock is a Sell with a $7.00 price target. To see the full list of analyst forecasts on Empire State Realty stock, see the ESRT Stock Forecast page.