Empire State Realty Trust — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net Income per fully diluted share was $0.02 for the quarter, compared to $0.05 in the prior year period.
• Core FFO per fully diluted share was $0.20 for the quarter, compared to $0.23 in the prior year period.
• Same-Store Property Cash NOI (excluding lease termination fees) increased 0.5% year-over-year; adjusted for FDIC expiration and $1.2 million of non-recurring items, the increase was 1.9%.
• Total revenues were $193.1 million for the quarter, down from $197.7 million in the prior year period.
• Net operating income was $99.4 million for the quarter, down from $105.3 million in the prior year period.
• Total debt outstanding was approximately $2.2 billion at a weighted average interest rate of 4.78% as of September 30, 2026.
• Net debt to adjusted EBITDA ratio was 6.7x as of September 30, 2026.
• Total liquidity was $0.6 billion, comprised of $85 million in cash and $520 million available under the revolving credit facility.

Guidance and Future Outlook:

• The Company increased its 2026 Core FFO per share guidance range to $0.77 to $0.80, up from the previous range of $0.75 to $0.79.
• 2026 Commercial Occupancy at year-end is projected to be between 90% and 92%.
• 2026 Same-Store Property Cash NOI growth is projected to be between +1.75% and +2.25%, excluding lease termination fees.
• The framework for the Empire State Building Observation Deck NOI for 2026 remains at $55 million.
• A $245 million unsecured delayed draw term loan maturing in 2032 was closed in the third quarter; proceeds are expected to be drawn in January 2027 to repay existing debt.
• The Company has no unaddressed debt maturity until March 2029.

Business Segments and Product Lines:

• The total commercial portfolio was 95.6% leased and 92.3% occupied as of September 30, 2026.
• The Company signed 189,477 rentable square feet of commercial leases, including 170,608 square feet of office leases.
• Blended leasing spreads in the office portfolio were +9.9%, marking the 21st consecutive quarter of positive spreads.
• The Empire State Building Observation Deck generated NOI of $15.6 million for the quarter; visitation continued to be weak.
• The Company completed the disposition of 1359 Broadway for $217.5 million subsequent to quarter-end.
• The acquisition of land underlying 111 West 33rd Street and 1400 Broadway served as a partial 1031 replacement asset for the 1359 Broadway disposition.

Market and Competitive Landscape:

• The Company achieved the highest GRESB Management Score for All Companies in the Americas for the second consecutive year.
• The portfolio consists of approximately 7.7 million rentable square feet of commercial space and three residential properties as of November 2, 2026.
• The Company is recognized as a leader in sustainability.

Risks and Challenges:

• Same-Store Property Cash NOI growth was partially offset by operating expense growth and an approximate $2 million year-over-year revenue decline from the previously disclosed FDIC expiration.
• Forward-looking statements note risks including economic and market conditions, changes in office space usage and remote work, tourism levels, interest rate volatility, and real estate valuation declines.
• Risks include potential impairment charges, costs of integration for completed acquisitions, and the ability to execute capital projects within budget.

Management Commentary and Tone:

• Management highlighted the completion of the 1359 Broadway disposition and the redeployment of proceeds toward share repurchases and debt paydown.
• The Company noted that starting in late July, proceeds began being used for share repurchases.
• Management stated that the 2026 Core FFO range was increased based on higher than expected year-to-date results driven primarily by non-recurring items.

Other Key Points:

• The Company repurchased $85.8 million of common stock since the second quarter earnings call through November 2, 2026, at a weighted average price of $4.56 per share.
• Aggregate share repurchases totaled approximately $387.7 million since March 2020.
• A quarterly dividend of $0.035 per share was paid on September 30, 2026, to holders of Class A and Class B common stock and various partnership units.
• Quarterly preferred dividends of $0.15 and $0.175 per unit were paid on September 30, 2026, to holders of Series 2014 and 2019 private perpetual preferred units, respectively.
• Goodwill impairment charge of $166.1 million was recorded for the nine months ended September 30, 2026.
• Severance expenses of $6.2 million were recorded for the nine months ended September 30, 2026.