(ESRT) Empire State Realty Trust - Overview
Sector: Real Estate | Industry: REIT - Diversified | Exchange: NYSE (USA) | Market Cap: 1.754m USD | Total Return: -24.4% in 12m
Avg Turnover: 7.49M
EPS Trend: -90.2%
Qual. Beats: 0
Rev. Trend: 90.0%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 27.3 → Forward 116.3
High Debt/EBITDA (6.4) with thin interest coverage (1.6)
Altman Z'' 0.41 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Empire State Realty Trust, Inc. (ESRT) is a Maryland-incorporated real estate investment trust focused on the New York City metropolitan area. The company’s portfolio includes approximately 7.9 million square feet of office space, 0.8 million square feet of retail space, and 743 residential units. Its primary asset is the Empire State Building, which generates revenue through both commercial leasing and its iconic observatory operations.
As a diversified REIT, ESRT operates under a business model that requires distributing at least 90% of taxable income to shareholders in exchange for corporate tax exemptions. The company specializes in the modernization of historic assets, emphasizing energy efficiency and indoor environmental quality to maintain competitive occupancy rates in the high-density Manhattan office market.
Investors can further analyze these portfolio metrics and valuation trends on ValueRay. Established in 2011, ESRT continues to leverage its flagship landmark status to anchor a broader strategy of office and multifamily property management.
- Empire State Building Observatory tourism revenue drives high-margin cash flow growth
- New York City office occupancy rates dictate long-term rental income stability
- Local Law 97 compliance costs impact capital expenditure and operating margins
- Residential portfolio expansion diversifies revenue beyond commercial office and retail assets
- Interest rate fluctuations influence debt refinancing costs and real estate valuations
| Net Income: 39.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -2.39 > 1.0 |
| NWC/Revenue: 16.72% < 20% (prev 50.01%; Δ -33.29% < -1%) |
| CFO/TA 0.05 > 3% & CFO 234.8m > Net Income 39.6m |
| Net Debt (2.31b) to EBITDA (362.8m): 6.36 < 3 |
| Current Ratio: 1.45 > 1.5 & < 3 |
| Outstanding Shares: last quarter (269.3m) vs 12m ago -0.07% < -2% |
| Gross Margin: -10.40% > 18% (prev 0.54%; Δ -1.09k% > 0.5%) |
| Asset Turnover: 18.26% > 50% (prev 18.64%; Δ -0.37% > 0%) |
| Interest Coverage Ratio: 1.60 > 6 (EBITDA TTM 362.8m / Interest Expense TTM 104.3m) |
| A: 0.03 (Total Current Assets 416.6m - Total Current Liabilities 286.5m) / Total Assets 4.41b |
| B: -0.01 (Retained Earnings -44.4m / Total Assets 4.41b) |
| C: 0.04 (EBIT TTM 166.6m / Avg Total Assets 4.26b) |
| D: -0.01 (Book Value of Equity -33.3m / Total Liabilities 2.58b) |
| Altman-Z'' = 0.41 = B |
| DSRI: 1.00 (Receivables 284.9m/281.4m, Revenue 778.1m/766.8m) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 1.00 (AQ_t 0.25 / AQ_t-1 0.25) |
| SGI: 1.01 (Revenue 778.1m / 766.8m) |
| TATA: -0.04 (NI 39.6m - CFO 234.8m) / TA 4.41b) |
| Beneish M = -3.06 (Cap -4..+1) = AA |
As of June 01, 2026, the stock is trading at USD 5.73 with a total of 1,801,925 shares traded.
Over the past week, the price has changed by +1.60%,
over one month by +2.87%,
over three months by +0.49% and
over the past year by -24.36%.
Empire State Realty Trust has received a consensus analysts rating of 3.29. Therefore, it is recommended to hold ESRT.
- StrongBuy: 1
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 6.5 | 13.6% |
P/E Trailing = 27.2857
P/E Forward = 116.2791
P/S = 2.2585
P/B = 0.9284
P/EG = 37.3626
Revenue TTM = 778.1m USD
EBIT TTM = 166.6m USD
EBITDA TTM = 362.8m USD
Long Term Debt = 1.89b USD (from longTermDebt, last quarter)
Short Term Debt = 90.0m USD (from shortTermDebt, last quarter)
Debt = 2.38b USD (from shortLongTermDebtTotal, last quarter) + Leases 27.9m
Net Debt = 2.31b USD (calculated: Debt 2.38b - CCE 68.8m)
Enterprise Value = 4.06b USD (1.75b + Debt 2.38b - CCE 68.8m)
Interest Coverage Ratio = 1.60 (Ebit TTM 166.6m / Interest Expense TTM 104.3m)
EV/FCF = 67.45x (Enterprise Value 4.06b / FCF TTM 60.2m)
FCF Yield = 1.48% (FCF TTM 60.2m / Enterprise Value 4.06b)
FCF Margin = 7.74% (FCF TTM 60.2m / Revenue TTM 778.1m)
Net Margin = 5.09% (Net Income TTM 39.6m / Revenue TTM 778.1m)
Gross Margin = -10.40% ((Revenue TTM 778.1m - Cost of Revenue TTM 859.0m) / Revenue TTM)
Gross Margin QoQ = -1.40% (prev -172.6%)
Tobins Q-Ratio = 0.92 (Enterprise Value 4.06b / Total Assets 4.41b)
Interest Expense / Debt = 4.39% (Interest Expense 104.3m / Debt 2.38b)
Taxrate = 3.39% (2.56m / 75.5m)
NOPAT = 161.0m (EBIT 166.6m * (1 - 3.39%))
Current Ratio = 1.45 (Total Current Assets 416.6m / Total Current Liabilities 286.5m)
Debt / Equity = 2.23 (Debt 2.38b / totalStockholderEquity, last quarter 1.06b)
Debt / EBITDA = 6.36 (Net Debt 2.31b / EBITDA 362.8m)
Debt / FCF = 38.31 (Net Debt 2.31b / FCF TTM 60.2m)
Total Stockholder Equity = 1.05b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.93% (Net Income 39.6m / Total Assets 4.41b)
RoE = 3.61% (Net Income TTM 39.6m / Total Stockholder Equity 1.10b)
RoCE = 5.58% (EBIT 166.6m / Capital Employed (Equity 1.10b + L.T.Debt 1.89b))
RoIC = 3.83% (NOPAT 161.0m / Invested Capital 4.20b)
WACC = 6.14% (E(1.75b)/V(4.13b) * Re(8.70%) + D(2.38b)/V(4.13b) * Rd(4.39%) * (1-Tc(0.03)))
Discount Rate = 8.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 0.39%
[DCF] Terminal Value 73.10% ; FCFF base≈98.0m ; Y1≈85.9m ; Y5≈69.4m
[DCF] Fair Price = N/A (negative equity: EV 1.11b - Net Debt 2.31b = -1.19b; debt exceeds intrinsic value)
EPS Correlation: -90.18 | EPS CAGR: -28.56% | SUE: 0.23 | # QB: 0
Revenue Correlation: 89.96 | Revenue CAGR: 2.42% | SUE: 0.35 | # QB: 0