Empire State Realty Trust Inc. released its first quarter 2025 results, reporting a core FFO per share of $0.19. The company's 2025 FFO guidance remains unchanged at $0.86-$0.89. The same-store property cash NOI saw a year-over-year decrease of 1.9% but showed a slight increase of 0.4% when adjusted for non-recurring items. Leasing fundamentals are solid, with net absorption aligning with guidance and contracting sequentially to 95.0% from 94.2%. The company leased 221,000 square feet, achieving a positive lease spread of 10.4% for the 15th consecutive quarter. The Empire State Building Observatory experienced a 4.6% year-over-year drop in ex-Easter visitation, impacted by bad weather during President's Day and Martin Luther King weekends. However, the revenue per visitor increased by 5.9%. The 2025 guidance for the Observatory remains at $97-102 million. The company maintains a strong balance sheet, with leverage at 5.2x net debt to adjusted EBITDA and no floating rate debt exposure or unaddressed maturity until December 2026. Empire State Realty Trust repaid $100 million in unsecured notes and $120 million on its revolving credit facility, while repurchasing $2.1 million of shares at $6.92 each. Liquidity stands at $0.8 billion.
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