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%
Drivers behind the quarter
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
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
Quarterly results and impairment charge
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
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