Wed, May 7, 9:30 PM (5 days ago)
Empire State Realty OP, L.P. (ESRT) reported a mixed financial performance for the quarter ended March 31, 2025. Revenue increased slightly by 0.4% to $154.5 million, driven by higher operating and real estate tax expense escalations, partially offset by the impact of acquisitions and dispositions. Operating income decreased by 17% to $25.8 million due to higher interest expenses and a gain on disposition of property. Net income attributable to common unitholders rose by 60.8% to $14.7 million, primarily due to a gain on disposition of property and lower general and administrative expenses. The company's cash flow from operating activities increased by 17.3% to $83.1 million, while cash used in investing activities decreased by 41.2% to $42.1 million. Cash used in financing activities increased by 99.9% to $233.0 million due to the repayment of senior unsecured notes and a pay-down on the unsecured revolving credit facility. ESRT's liquidity position remains strong, with $187.8 million in cash and cash equivalents and $620.0 million available under its unsecured revolving credit facility. The company's debt profile shows a weighted average interest rate of 4.30% and a weighted average maturity of 5.3 years. ESRT's portfolio includes approximately 7.9 million rentable square feet of office space, 0.8 million rentable square feet of retail space, and 732 residential units. The company's Observatory hosted 428,000 visitors, a decrease of 11.8% compared to the previous year, due to the timing of the Easter holiday. ESRT's outlook remains positive, with a focus on leasing activity, Observatory performance, and a well-positioned balance sheet. The company's diversified portfolio and strong liquidity position provide optionality for capital recycling, acquisitions, and buybacks.