Empire State Realty OP, L.P., traded under the symbol ESBA, is a Delaware limited partnership and the principal operating partnership associated with Empire State Realty Trust, Inc. The partnership is controlled by the publicly traded REIT and functions as the asset-owning and operating vehicle for much of the platform’s real ...Empire State Realty OP, L.P., traded under the symbol ESBA, is a Delaware limited partnership and the principal operating partnership associated with Empire State Realty Trust, Inc. The partnership is controlled by the publicly traded REIT and functions as the asset-owning and operating vehicle for much of the platform’s real estate business. Public descriptions characterize the organization as a New York City-focused real estate owner, manager, and operator, with an emphasis on office and retail properties in Manhattan and the broader New York metropolitan area. The portfolio is linked to recognizable and strategically located assets, most notably the Empire State Building, as well as other modernized, well-leased, and amenitized properties.
The company’s core activities include leasing commercial space, managing buildings, operating retail and office facilities, improving properties, acquiring assets, and repositioning underperforming or outdated real estate. Unlike a manufacturing company, ESBA does not have a conventional bill of materials, production line, or research-and-development program. Its principal cost structure instead consists of property operating expenses, utilities, repairs and maintenance, real estate taxes, insurance, payroll, property management, marketing, tenant improvements, leasing commissions, and capital expenditures for building upgrades. Capital investment is directed toward modernization, energy efficiency, amenities, technology, safety, and preservation of landmark assets.
The supplied data reports 642 full-time employees, placing the organization in the 501-1000 employee category. Anthony E. Malkin serves as chairman and chief executive officer of Empire State Realty Trust and is the key executive associated with the ESRT operating partnership. He joined predecessor entities in 1989 and has led the platform through its public-company and REIT structure.
The supplied trailing-twelve-month information reports approximately $865.6 million in market capitalization for the ESBA security, enterprise value of roughly $3.0 billion, revenue per share of about $4.59, operating cash flow per share of approximately $1.73, and free cash flow per share of approximately $0.90. It also reports a dividend of $0.14 per share and a dividend yield near 2.9 percent. Leverage is material, with debt-to-assets of approximately 52.1 percent and debt-to-equity of roughly 2.14. These figures should be interpreted in the context of real estate accounting, where depreciation, property valuation, rent collections, occupancy, refinancing costs, and funds from operations can be more informative than conventional earnings alone. ESBA’s long-term objectives are generally aligned with maintaining occupancy, improving property quality, attracting tenants, preserving balance-sheet access, generating recurring rental cash flow, and enhancing the value of its New York-focused portfolio.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$768.3M
+0.0%
+3.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$47.6M
-40.8%
-1420.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+1.8%
-96.7%
+177.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+17.7%
-14.6%
-10.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+6.2%
-40.8%
-1376.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$50.6M
-42.5%
-45.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+6.6%
-42.6%
-47.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
133.9%
-4.7%
—
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
6.48x
+306.1%
+18.8%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Empire State Realty Trust Second Quarter 2026 Earnings Call.[Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Susanne Lieu, SVP, Chief Counsel, Real Estate. Thank you. You may begin.
Susanne Lieu: Good afternoon. Welcome to Empire State Realty Trust's Second Quarter 2026 Earnings Conference Call. In addition to the press release distributed yesterday, a quarterly supplemental package with further detail on our results and our latest investor presentation were posted in the Investors section of the company's website at esrtreit.com. During today's call, management's prepared remarks and responses to questions may include forward-looking statements within the meaning of applicable securities laws. These statements reflect management's current views and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Empire State Realty Trust assumes no obligation to update any forward-looking statement in the future. We encourage listeners to review the more detailed discussions related to these forward-looking statements in the company's filings with the SEC. During today's call, we will discuss certain non-GAAP financial measures such as FFO, modified and core FFO, NOI, same-store property cash NOI, EBITDA and adjusted EBITDA, which we believe are meaningful in evaluating the company's performance. The definitions and reconciliations of these measures to the most directly comparable GAAP measures are included in the earnings release and supplemental package, each available on the company's website. Now I will turn the call over to Tony Malkin, our Chairman and Chief Executive Officer.
Anthony Malkin: Good afternoon, everyone. Yesterday, we reported ESRT's second quarter results. We delivered strong performance across the property portfolio, which represents approximately 80% of our NOI. Office leasing accelerated from the first quarter as we converted our pipeline into executed leases. Our retail portfolio is highly leased, and our multifamily properties delivered solid growth. We remain active on transactions. During the quarter, we completed the once-in-a-lifetime opportunity to acquire the land under 111 West 33rd Street and 1400 Broadway and executed on the sale of 250 West 57th Street, the proceeds from which we swapped into the prior purchase of 130 Mercer. Against excellent leasing in our property portfolio, the Empire State Building observation deck weighed on performance. In our press release, we gave an updated FFO range under an assumption there is no improvement to current visitation levels, and it utilizes $55 million of NOI for the observation deck for full year 2026. I'll spend a few minutes on our Observation Deck business, then get to our strong leasing. During our first quarter call, we called out softer visitation amidst today's geopolitical environment and K-shaped consumer economy and …
