Empire State (ESRT) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 12:19 PM CDT 24 min read

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Date

April 30, 2026

Call participants

• Chairman, President, and Chief Executive Officer — Anthony E. Malkin

• Executive Vice President, Chief Financial Officer, and Chief Operating Officer — Christina Chiu

• Executive Vice President, Leasing — Ryan Kass

• Executive Vice President, Chief Accounting Officer, and Treasurer — Stephen V. Horn

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Full Conference Call Transcript

Anthony E. Malkin: Good afternoon, everyone. Yesterday, we reported Empire State Realty Trust, Inc.'s archetypal 4th results. We began the twelvemonth with coagulated earnings, dependable execution crossed our portfolio, and continued publication from the Observatory. We acquired a high-quality retail plus connected North 6th Street with recycled concern arsenic portion of our concentrated effort to reallocate our equilibrium expanse capableness towards growth, and completed financings which code our indebtedness maturities each the mode into 2028 and support equilibrium expanse flexibility. Today's situation presents a wide scope of macroeconomic outcomes, immoderate of which could adversely impact our business. That said, arsenic we person said consistently, we bash not question to foretell the weather. We person an arc.

From that arc, we run from a presumption of spot and with large latitude. We deduce our gross from divers income streams and a wide tenant base. A important information of our gross is from semipermanent leases, and we support precocious leased percentages, each supported by our equilibrium sheet. We navigate freely and enactment decisively erstwhile opportunities arise. Pages 5 done 9 of our capitalist presumption disposable astatine esrtreit.com item our ongoing programme to commercialized into opportunities which supply amended prospects for maturation astatine our desired capitalization and levels of risk. Cash travel maturation is cardinal to our focus. The Manhattan bureau leasing situation remained steadfast and progressive for our top-of-tier product.

Tenant request is beardown and diverse, availability of high-quality abstraction remains limited, and determination is nary caller operation astatine our terms point. Ryan volition supply highlights connected occupancy, leased percentage, and what we expect to execute by twelvemonth end. Much has been written astir AI arsenic a disruptor of bureau demand. In New York City, our leasing pipeline remains active, circuit measurement is strong, and tenants crossed industries proceed to marque semipermanent commitments to high-quality space. Office leases executed this 4th averaged implicit 10.5 years successful term. Our commercialized portfolio is 93.2% leased. Our leasing pipeline is healthy, and we expect occupancy gains for the afloat year.