Empire State Realty Trust, Inc. (NYSE: ESRT) reported its financial results for the third quarter of 2026, disclosing a net income of $0.02 per fully diluted share. The company also announced the completion of a significant real estate disposition and continued activity in its share repurchase program.
For the quarter, the company reported Core Funds From Operations (Core FFO) of $0.20 per share. In terms of property operations, the total commercial portfolio was 95.6% leased and 92.3% occupied as of September 30, 2026. Same-Store Property Cash Net Operating Income (NOI), excluding lease termination fees, increased by 0.5% year-over-year. This increase was primarily driven by higher tenant reimbursement income and insurance recoveries, though it was partially offset by operating expense growth and a $2 million year-over-year revenue decline related to the expiration of FDIC arrangements.
The company signed 189,477 rentable square feet of commercial leases during the quarter, which included 170,608 square feet of office leases. The office portfolio achieved a blended leasing spread of 9.9%, marking the 21st consecutive quarter of positive leasing spreads.
In a capital allocation update, Empire State Realty Trust completed the disposition of 1359 Broadway for $217.5 million. The company stated that proceeds from the sale would be used to fund share repurchases and pay down debt. Since its second quarter earnings call through November 2, 2026, the company acquired $85.8 million of its shares at a weighted average price of $4.56 per share, bringing aggregate repurchases to approximately $387.7 million since March 2020.
Regarding its balance sheet, the company reported total liquidity of $600 million as of September 30, 2026, consisting of $85 million in cash and $520 million available under its revolving credit facility. Total debt outstanding was approximately $2.2 billion with a weighted average interest rate of 4.78%. The company also closed on a $245 million unsecured delayed draw term loan in the third quarter, which matures in 2032.
The company has maintained its 2026 guidance for Core FFO per share, projecting a range of $0.77 to $0.80. The guidance incorporates the sale of 1359 Broadway and ongoing share repurchases. The company also reaffirmed its guidance for commercial occupancy at year-end to be between 90% and 92% and Same-Store Property Cash NOI (excluding lease termination fees) to increase by 1.75% to 2.25%.
