Empire State Realty Trust (ESRT) Tops Q1 EPS by 1c, Revenues Miss

Empire State Realty Trust (NYSE: ESRT) reported Q1 EPS of $0.02, $0.01 better than the analyst estimate of $0.01. Revenue for the quarter came in at $170.22 million versus the consensus estimate of $174.34 million.

First Quarter Highlights

• Net income attributable to the Company was $0.02 per fully diluted share.
• Core Funds From Operations (“Core FFO”) was $0.18 per fully diluted share.
• Fortified its already strong balance sheet with the completion of several financings that raised $300 million in net incremental proceeds.
• Increased its cash balance to over $1 billion with a $550 million draw under its $1.1 billion unsecured revolving credit facility.
• Repurchased 8.5 million shares at a weighted average price of $9.37 per share, totaling $79.8 million in aggregate, through April 22, 2020.
• Occupancy and leased percentages at March 31, 2020:
  • Total portfolio was 88.7% occupied; including Signed Leases Not Commenced (“SLNC”), the total portfolio was 91.1% leased.
  • Manhattan office portfolio (excluding the retail component of these properties) was 90.0% occupied; including SLNC, the Manhattan office portfolio was 92.6% leased.
  • Retail portfolio was 88.5% occupied; including SLNC, the retail portfolio was 94.0% leased.
  • Empire State Building was 93.7% occupied; including SLNC, was 95.4% leased.
• Signed 35 leases, representing 149,143 rentable square feet across the total portfolio, and achieved a 3.4% increase in mark-to-market cash rent over previous fully escalated cash rents portfolio-wide on new, renewal, and expansion leases.
• Signed 12 new leases, representing 63,153 rentable square feet for the Manhattan office portfolio (excluding the retail component of these properties), and achieved an increase of 19.4% in mark-to-market cash rent over previous fully escalated cash rents.
• Increased Empire State Building Observatory revenues during the first two months of 2020 by 13.2%, after adjusting for the 102nd floor observation deck, to $14.4 million from $12.7 million in the first two months of 2019. On March 16, 2020, the Company complied with the instructions of authorities and closed the Empire State Building Observatory.
• Declared a dividend of $0.105 per share.

“We have positioned ourselves for change and face this special period with a rock-solid balance sheet to allow us to meet our requirements and provide for external growth. I look forward to our earnings call and a full discussion of the impacts on our business from the “19,” the repurchase of our shares, and our plans for the use of our balance sheet,” stated Anthony E. Malkin, Empire State Realty Trust’s Chairman and Chief Executive Officer.

For earnings history and earnings-related data on Empire State Realty Trust (ESRT) click here.

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