Empire State Realty Trust posts Q2 net loss on impairment charge

Empire State Realty Trust

29/07/2026 21:40

Overview
US office and retail REIT posted Q2 net loss per share of $0.15, impacted by goodwill impairment
Core FFO per share for Q2 was $0.21, with same-store cash NOI up 3.3% yr/yr
Company completed $275 mln property sale and acquired land under two assets for $110 mln

Outlook
Empire State Realty Trust sees 2026 Core FFO per share between $0.75 and $0.79
Company assumes no improvement to Observation Deck visitation levels in 2026 forecast
Empire State Realty Trust expects commercial occupancy at year-end of 90% to 92%

Result Drivers
GOODWILL IMPAIRMENT - Net loss included a $166.1 mln non-cash goodwill impairment charge related to the Observatory unit
NON-RECURRING TAX ABATEMENTS - Same-store property cash NOI increase was mainly due to $4 mln of non-recurring real estate tax abatements; adjusted for this, same-store NOI fell 3.2% due to higher free rent and operating expenses
OBSERVATION DECK WEAKNESS - Observation Deck NOI remained pressured by reduced international tourism and weakness in the pass program channel

Company press release: ID:nBwc0PRzLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Rental Revenue
 
$165.17 mln
 
Q2 Net Loss
 
$39.55 mln
 
Q2 Operating Income
 
-$138.71 mln
 
Q2 Pretax Loss
 
$40.32 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "hold"
Wall Street's median 12-month price target for Empire State Realty Trust Inc is $6.00, about 6% above its July 28 closing price of $5.66

Reuters Recommended Reads
July 28 - Franklin Street Properties Q2 revenue dips, net loss widens amid strategic review
July 28 - BXP Q2 profit beats expectations on higher occupancy, raises FY outlook
July 28 - American Assets Trust Q2 FFO per share slips amid occupancy and expense pressures

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)