Key Highlights

  • Core FFO was USD 0.20 per share on Net Income of USD 0.02, and the 2026 core FFO range rose.
  • The commercial portfolio was 95.6% leased and 92.3% occupied, up from 89.4% occupied in June.
  • Office blended leasing spreads were 9.9% across 21 office leases, the 21st consecutive quarter of positive spreads.
  • The Empire State Building Observation Deck produced NOI of USD 15.6 million, with visitation still weak.

Results

Empire State Realty Trust, Inc. (NYSE:ESRT) reported third-quarter 2026 net income of USD 0.02 per fully diluted share and core FFO of USD 0.20 per share, and increased its 2026 core FFO range. Same-store property cash NOI excluding Lease termination fees rose 0.5%, helped by higher tenant reimbursement income and insurance recoveries and offset by Operating Expense growth and a roughly USD 2 million Revenue decline from the pre-leased FDIC expiration. Adjusted for the FDIC lease and USD 1.2 million of non-recurring items, the increase was 1.9%, which shows how much the pre-leased expiration and one-time items weighed on the reported same-store figure.

Leasing and Occupancy

The commercial portfolio was 92.3% occupied, up from 89.4% in June and 90.0% a year earlier, and 95.6% leased versus 94.9% and 92.6%. Office was 91.9% occupied and 95.5% leased, retail was 96.6% occupied and 96.8% leased, and the multifamily portfolio was 97.1% leased.

The company signed 27 leases totaling 189,477 square feet with an average duration of 8.1 years, and 9.5 years for new leases. Office accounted for 21 leases and 170,608 square feet at an average cash rent of USD 73.12 per square foot, 9.9% above previously escalated rents; retail accounted for 6 leases and 18,869 square feet at USD 221.79, 13.9% below. Overall average cash rent was USD 87.93, 2.8% above previously escalated rents. The 8.1 year average duration, and 9.5 years for new leases, point to longer-dated rent roll commitments, while the retail leases, at 13.9% below prior escalated rents, offset part of the office strength in the combined spread.

Observation Deck, Disposition and Buybacks

The Empire State Building Observation Deck generated NOI of USD 15.6 million, with no change to the framework of USD 55 million of NOI for 2026, and management said visitation continued to be weak. After quarter end the company completed the sale of 1359 Broadway for USD 217.5 million. Starting in late July it redeployed proceeds into share repurchases and also uses them to pay down debt, and since its second-quarter call through November 2 it acquired USD 85.8 million of its shares. The earlier Acquisition of the land beneath 111 West 33rd Street and 1400 Broadway served as a partial 1031 replacement asset.

The 2026 NOI framework of USD 55 million for the Observation Deck was left unchanged, so the third-quarter result of USD 15.6 million sits within that annual outline.

The company achieved the highest GRESB Management Score among all companies in the Americas for the second consecutive year, a recognition that applies to sustainability management practices rather than to financial results.

Signposts for Year End

Items to track include the pace of office occupancy gains across the portfolio, observation deck visitation, repurchase activity and the use of sale proceeds for Debt reduction.