Empire State Realty Trust Q1 2026 – Net Income Plunge

By Chris Stiles • Tuesday, June 02 09:51 • Permanent Link

Empire State Realty Trust’s first-quarter 2026 results showed a sharp drop in net income but steadier underlying cash performance.

Net income fell to $2.995 million in the quarter ended March 31, 2026, from $15.778 million a year earlier and from $32.172 million in the prior quarter. For the same period, net operating income rose to $97.492 million from $91.076 million a year earlier, though it was down from $104.206 million in the previous quarter.

Cash NOI, including observatory and lease termination fees, totaled $91.571 million in the quarter, up from $86.953 million a year earlier but below $101.107 million in the prior quarter. Same-store property cash NOI, excluding observatory and lease termination fees, was $74.190 million, up from $70.327 million a year earlier and essentially flat with $74.329 million in the prior quarter.

Rental revenue increased to $553.610 million for the quarter from $133.987 million a year earlier, while tenant expense reimbursements rose to $84.166 million from $19.553 million. Total cash revenues came to $614.743 million, compared with $148.952 million in the same quarter last year and $158.226 million in the prior quarter.

EBITDA declined to $80.289 million from $91.523 million a year ago and from $109.672 million in the prior quarter. Adjusted EBITDA was also $80.289 million, versus $78.353 million a year earlier and $87.824 million in the prior quarter.

Interest expense increased to $28.137 million from $26.938 million a year earlier and from $25.880 million in the prior quarter. Depreciation and amortization was $50.219 million, down slightly from $48.779 million a year earlier but below $50.566 million in the prior quarter.

Observatory NOI was $10.642 million in the quarter, down from $15.043 million a year earlier and from $24.445 million in the prior quarter. Lease termination fees reduced same-store property cash NOI by $1.356 million in the quarter, compared with no such reduction in the prior quarter and no reduction a year earlier. Today the company's shares have moved -0.09% to a price of $5.725. For the full picture, make sure to review Empire State Realty Trust's 8-K report.

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