Empire State Realty Trust, Inc. (ESRT)
Empire State Realty Trust (ESRT) is a REIT focused on owning, managing, and operating office and retail properties in Manhattan and the greater New York metropolitan area. Their portfolio includes the iconic Empire State Building.
Company Overview
Empire State Realty Trust offers investors a unique opportunity to invest in a portfolio of prime Manhattan office and retail properties, including the world-famous Empire State Building, with a focus on sustainability and indoor environmental quality, generating stable income and long-term appreciation.
Investment Thesis
Empire State Realty Trust presents a compelling investment opportunity due to its iconic asset portfolio, focus on sustainability, and potential for long-term growth. The company's commitment to energy efficiency and indoor environmental quality positions it favorably in a market increasingly focused on ESG (Environmental, Social, and Governance) factors. With a dividend yield of 2.11% and a P/E ratio of 23.88, ESRT offers a blend of income and growth potential. Key value drivers include increasing occupancy rates in its office portfolio, strategic retail leasing, and potential acquisitions in the New York metropolitan area. Upcoming catalysts include the continued recovery of the New York City office market and the potential for increased tourism to the Empire State Building.
Key Highlights
- Portfolio of 10.1 million rentable square feet as of September 30, 2020, demonstrating significant scale in the New York metropolitan area.
- Gross margin of 60.5% reflects efficient property management and strong rental rates.
- Dividend yield of 2.11% provides a steady income stream for investors.
- P/E ratio of 23.88 suggests reasonable valuation relative to earnings.
- Beta of 1.35 indicates higher volatility compared to the overall market.
Competitors
Strengths
- Iconic properties, including the Empire State Building.
- Strong brand recognition.
- Leadership in energy efficiency and indoor environmental quality.
- Prime locations in Manhattan and the greater New York metropolitan area.
Weaknesses
- Concentration in the New York metropolitan area.
- Exposure to fluctuations in the New York City office market.
- Reliance on tourism for the Empire State Building Observatory.
- High operating expenses associated with iconic properties.
Catalysts
- Ongoing: Recovery of the New York City office market.
- Ongoing: Increased tourism to the Empire State Building.
- Ongoing: Strategic acquisitions of undervalued properties.
- Ongoing: Implementation of new sustainability initiatives.
Risks
- Potential: Economic recession in the New York metropolitan area.
- Potential: Increased competition from other REITs and landlords.
- Potential: Rising interest rates.
- Potential: Decline in tourism due to global events or economic factors.
- Ongoing: Vacancy rates in office properties.
Growth Opportunities
- Increase occupancy rates in existing office properties: ESRT can drive revenue growth by attracting new tenants and retaining existing ones in its office portfolio. The focus on energy efficiency and indoor environmental quality can be a key differentiator in attracting tenants seeking sustainable and healthy workspaces. The New York City office market is recovering, presenting an opportunity to lease vacant space and increase occupancy rates. This growth opportunity has an ongoing timeline.
- Strategic retail leasing: ESRT can enhance its retail portfolio by attracting high-quality tenants that cater to both local residents and tourists. The company's retail properties benefit from their prime locations in Manhattan and the surrounding areas. By carefully curating its tenant mix, ESRT can increase rental income and drive long-term value. This growth opportunity has an ongoing timeline.
- Acquisitions in the New York metropolitan area: ESRT can expand its portfolio through strategic acquisitions of office and retail properties in the New York metropolitan area. The company has a proven track record of acquiring and repositioning properties to enhance their value. By targeting properties with strong potential for improvement, ESRT can generate attractive returns on investment. This growth opportunity has an ongoing timeline.
- Expand sustainability initiatives: ESRT can further enhance its reputation as a leader in sustainability by implementing additional energy efficiency and indoor environmental quality initiatives. This can attract tenants who are increasingly focused on ESG factors and differentiate ESRT from its competitors. The company's commitment to sustainability can also reduce operating costs and improve property values. This growth opportunity has an ongoing timeline.
- Increase tourism revenue at the Empire State Building: ESRT can drive revenue growth by attracting more tourists to the Empire State Building's Observatory. The company can enhance the visitor experience through new exhibits, events, and marketing campaigns. As international travel recovers, the Empire State Building is poised to benefit from increased tourism. This growth opportunity has an ongoing timeline.
Opportunities
- Increase occupancy rates in existing office properties.
- Strategic retail leasing to attract high-quality tenants.
- Acquisitions of undervalued properties in the New York metropolitan area.
- Expansion of sustainability initiatives to attract ESG-focused tenants.
Threats
- Economic downturn in the New York metropolitan area.
- Increased competition from other REITs and landlords.
- Rising interest rates.
- Decline in tourism due to global events or economic factors.
Competitive Advantages
- Iconic properties, particularly the Empire State Building.
- Leadership in energy efficiency and indoor environmental quality.
- Prime locations in Manhattan and the greater New York metropolitan area.
- Strong brand recognition and reputation.
About
Empire State Realty Trust, Inc. (ESRT) is a leading real estate investment trust (REIT) with a focus on owning, managing, operating, acquiring, and repositioning office and retail properties in Manhattan and the greater New York metropolitan area. The company's portfolio is anchored by the Empire State Building, a globally recognized landmark. ESRT was formed through a series of consolidations and an initial public offering (IPO) in 2013, bringing together a collection of properties under a single, publicly traded entity. The company has positioned itself as a leader in energy efficiency retrofits and indoor environmental quality, differentiating itself from competitors. As of September 30, 2020, ESRT's portfolio comprised 10.1 million rentable square feet, including 9.4 million rentable square feet in 14 office properties (nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York) and approximately 700,000 rentable square feet in retail properties. ESRT is headquartered in New York City and is committed to creating long-term value for its shareholders through strategic property management and acquisitions.
What They Do
- Owns and manages office and retail properties.
- Operates the Empire State Building Observatory.
- Acquires and repositions properties in Manhattan and the greater New York metropolitan area.
- Focuses on energy efficiency retrofits.
- Prioritizes indoor environmental quality.
- Leases office and retail space to tenants.
- Manages tenant relationships and property operations.
Business Model
- Generates revenue primarily from leasing office and retail space.
- Earns revenue from the Empire State Building Observatory.
- Increases property value through strategic acquisitions and repositioning.
- Manages operating expenses to maximize profitability.
Industry Context
Empire State Realty Trust operates within the REIT - Diversified industry, which is influenced by macroeconomic factors such as interest rates, employment growth, and overall economic activity. The New York City commercial real estate market is highly competitive, with numerous REITs and private landlords vying for tenants. ESRT differentiates itself through its iconic properties, particularly the Empire State Building, and its focus on sustainability. The industry is currently experiencing a shift towards more flexible and environmentally friendly office spaces, which aligns with ESRT's strengths. Competitors include other REITs such as Alexandria Real Estate Equities (ALX) and American Assets Trust (AAT).
Key Customers
- Office tenants in Manhattan and the greater New York metropolitan area.
- Retail tenants in Manhattan and the greater New York metropolitan area.
- Tourists visiting the Empire State Building Observatory.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $199M | $21M | $0.08 |
| Q3 2025 | $198M | $9M | $0.03 |
| Q2 2025 | $191M | $8M | $0.03 |
| Q1 2025 | $180M | $10M | $0.04 |
Source: Company filings
Chart & Info
Price Chart
Empire State Realty Trust, Inc. (ESRT) stock price: $6.41 (-0.06, -0.85%)
Why Bull
- •ESRT's iconic status and prime real estate portfolio are a draw, especially as tourism rebounds in NYC.
- •Insider buying activity suggests confidence in the company's long-term prospects.
- •Community sentiment reflects optimism about the return to office trend benefiting ESRT's occupancy rates.
- •Positive market perception of real estate investment trusts (REITs) as a hedge against inflation.
Why Bear
- •NYC commercial real estate faces continued headwinds, with high vacancy rates a persistent concern.
- •Community discussions reveal skepticism about ESRT's ability to compete with newer, more modern office spaces.
- •Recent market developments point to increased interest rate sensitivity for REITs, potentially impacting ESRT's borrowing costs.
- •Bearish community views highlight concerns about the long-term impact of remote work on ESRT's revenue streams.
Latest News
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Earnings Scheduled For February 17, 2026
benzinga · Feb 17, 2026
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Earnings Scheduled For October 29, 2025
benzinga · Oct 29, 2025
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Earnings Scheduled For April 29, 2025
benzinga · Apr 29, 2025
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Stocks That Hit 52-Week Lows On Friday
benzinga · Jun 10, 2022
Technical Analysis
Rationale
AI-generated technical analysis for ESRT including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for ESRT.
Make a Prediction
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Current price: $6.41
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ESRT.
Price Targets
Median: $6.90 (+7.6% from current price)
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 4/100
Revenue grew only 0.0% YoY, suggesting the company is in a slower growth phase.
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Gross Margin 8/100
Gross margin at 52.5% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates ESRT's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Empire State Realty Trust, Inc. do?
Empire State Realty Trust (ESRT) is a real estate investment trust (REIT) that owns, manages, operates, acquires, and repositions office and retail properties primarily in Manhattan and the greater New York metropolitan area. Its most famous asset is the Empire State Building, which also includes a popular observatory. The company generates revenue through leasing office and retail space, as well as from the Empire State Building Observatory. ESRT focuses on sustainability and indoor environmental quality to attract and retain tenants.
Is ESRT stock a good buy?
ESRT presents a mixed investment profile. Its iconic assets and focus on sustainability are attractive, but its concentration in the New York City market and exposure to office vacancy rates pose challenges. With a dividend yield of 2.11% and a P/E ratio of 23.88, ESRT offers a blend of income and growth potential. Investors should consider the company's growth opportunities, such as increasing occupancy rates and strategic retail leasing, as well as the potential risks, such as an economic downturn in New York City.
What are the main risks for ESRT?
The main risks for Empire State Realty Trust include its concentration in the New York City real estate market, which is subject to economic fluctuations and competition. Rising interest rates could increase borrowing costs and reduce property values. A decline in tourism could negatively impact revenue from the Empire State Building Observatory. Additionally, the company faces the risk of increased competition from other REITs and landlords, as well as the ongoing challenge of managing vacancy rates in its office properties.
Is ESRT a good stock to buy?
Whether ESRT is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the ESRT MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is ESRT data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for ESRT?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to Empire State Realty Trust, Inc..
Who are ESRT's main competitors?
Empire State Realty Trust, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how ESRT compares.
What do analysts say about ESRT?
Analyst ratings and price targets for ESRT are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is ESRT's market cap?
Market capitalization reflects the total market value of ESRT's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has ESRT stock performed recently?
Check the Chart & Info tab for ESRT's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in ESRT?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for ESRT-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling ESRT?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for ESRT.
Is ESRT a good stock for beginners?
Empire State Realty Trust, Inc. (ESRT) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is ESRT for first-time investors?
Every stock carries risk, including Empire State Realty Trust, Inc. (ESRT). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like ESRT.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Data as of September 30, 2020. Market conditions may have changed since then.