Empire State Realty Trust, Inc. (NYSE: ESRT) recently released its 10-Q report, providing a detailed insight into its operations. The company, a NYC-focused REIT, owns and operates a portfolio of modernized office, retail, and multifamily assets, including the iconic Empire State Building. As of September 30, 2023, the company's portfolio comprises approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space, and 727 residential units across three multifamily properties.
In the report's "ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS," Empire State Realty Trust outlined its financial performance for the three and six months ended June 30, 2024, compared to the corresponding periods in 2023. The company reported net income attributable to common stockholders of $17.1 million and Core Funds From Operations ("Core FFO") of $65.7 million for the three months ended June 30, 2024. Additionally, it signed a total of 272,000 rentable square feet of new, renewal, and expansion leases during the same period.
The report further delves into the company's results of operations. In the three months ended June 30, 2024, compared to the same period in 2023, the company's rental revenue decreased by 1.4%, primarily due to the disposition of First Stamford Place in May 2024. However, there was an increase in interest income, reflecting higher interest rates and cash balances. The gain on the disposition of property for the three months ended June 30, 2024, was $10.8 million, compared to $13.6 million for the same period in 2023.
For the six months ended June 30, 2024, compared to the same period in 2023, Empire State Realty Trust reported an increase in rental revenue by 4.0%, driven by higher occupancy and operating and real estate tax expense escalations. The gain on the disposition of property for the six months ended June 30, 2024, was $10.8 million, compared to $29.3 million for the same period in 2023.
The report also discussed the company's liquidity and capital resources, emphasizing its ability to meet potential cash requirements, fund operations, acquisitions, and distributions to securityholders. However, it noted that unexpected increases in cash uses beyond their control could affect financial condition and operations, highlighting the need for careful financial planning and management. The market has reacted to these announcements by moving the company's shares 0.7% to a price of $10.94. For more information, read the company's full 10-Q submission here.
