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Empire State Realty Trust reports Q1 earnings

Hudson Yards: (Credit: KPF & Related)

Empire State Realty Trust (ESRT) said that it collected 69% of April rents through April 20, which compares to 92% in March. The REIT noted that 170 tenants, accounting for 32% of annualized rents, have asked for rent deferrals.

  • By the numbers: ESRT noted in their earnings report that as of last Monday, it had collected 73 percent of rent from office tenants and only 46 percent from retail tenants. But after tapping into some tenants’ security deposits, total rent collections rose to 87 percent. The REIT has granted three deferrals, representing about 8.8% of the rental revenue. 
  • The Observatory: One of the company’s most valuable businesses, the Observatory at the top of the Empire State Building, has been closed since mid-March. The Observatory generated nearly $100 million of operating income in the 12 months ended in February with $35 million in expenses. CEO Tony Malkin noted on the conference call that the firm has reduced the expense run rate by 60% to $14 million by furloughing staff and lowering operating costs. As of the quarter end, the company had $1 billion in cash on hand, and will be hiring a CIO as it ramps up acquisitions.

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