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Name | Symbol | Market | Type |
---|---|---|---|
Empire State Realty OP LP | AMEX:OGCP | AMEX | Trust |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.14 | 1.56% | 9.11 | 9.11 | 9.11 | 9.11 | 1,137 | 21:00:03 |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 45-4685158 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Securities | Trading Symbol | Exchange on which traded | ||||||
Series ES operating partnership units | ESBA | NYSE Arca, Inc. | ||||||
Series 60 operating partnership units | OGCP | NYSE Arca, Inc. | ||||||
Series 250 operating partnership units | FISK | NYSE Arca, Inc. |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
EMPIRE STATE REALTY OP, L.P. | ||||||||
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2022 | ||||||||
TABLE OF CONTENTS | PAGE | |||||||
PART 1. | FINANCIAL INFORMATION | |||||||
ITEM 1. | FINANCIAL STATEMENTS | |||||||
Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021 | ||||||||
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021 (unaudited) | ||||||||
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021 (unaudited) | ||||||||
Condensed Consolidated Statements of Capital for the three and six months ended June 30, 2022 and 2021 (unaudited) | ||||||||
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (unaudited) | ||||||||
Notes to Condensed Consolidated Financial Statements (unaudited) | ||||||||
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |||||||
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK | |||||||
ITEM 4. | CONTROLS AND PROCEDURES | |||||||
PART II. | OTHER INFORMATION | |||||||
ITEM 1. | LEGAL PROCEEDINGS | |||||||
ITEM 1A. | RISK FACTORS | |||||||
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | |||||||
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | |||||||
ITEM 4. | MINE SAFETY DISCLOSURES | |||||||
ITEM 5. | OTHER INFORMATION | |||||||
ITEM 6. | EXHIBITS | |||||||
SIGNATURES |
June 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | (unaudited) | ||||||||||
Commercial real estate properties, at cost: | |||||||||||
Land | $ | 334,598 | $ | 336,278 | |||||||
Development costs | 8,162 | 8,131 | |||||||||
Building and improvements | 3,193,137 | 3,156,508 | |||||||||
3,535,897 | 3,500,917 | ||||||||||
Less: accumulated depreciation | (1,137,231) | (1,072,938) | |||||||||
Commercial real estate properties, net | 2,398,666 | 2,427,979 | |||||||||
Cash and cash equivalents | 359,424 | 423,695 | |||||||||
Restricted cash | 53,335 | 50,943 | |||||||||
Tenant and other receivables | 43,672 | 18,647 | |||||||||
Deferred rent receivables | 233,194 | 224,922 | |||||||||
Prepaid expenses and other assets | 82,256 | 76,549 | |||||||||
Deferred costs, net | 193,436 | 202,437 | |||||||||
Acquired below-market ground leases, net | 332,988 | 336,904 | |||||||||
Right of use assets | 28,781 | 28,892 | |||||||||
Goodwill | 491,479 | 491,479 | |||||||||
Total assets | $ | 4,217,231 | $ | 4,282,447 | |||||||
LIABILITIES AND CAPITAL | |||||||||||
Liabilities: | |||||||||||
Mortgage notes payable, net | $ | 916,657 | $ | 948,769 | |||||||
Senior unsecured notes, net | 973,555 | 973,373 | |||||||||
Unsecured term loan facilities, net | 388,507 | 388,223 | |||||||||
Unsecured revolving credit facility | — | — | |||||||||
Accounts payable and accrued expenses | 113,837 | 120,810 | |||||||||
Acquired below-market leases, net | 20,178 | 24,941 | |||||||||
Ground lease liabilities | 28,781 | 28,892 | |||||||||
Deferred revenue and other liabilities | 80,008 | 84,358 | |||||||||
Tenants’ security deposits | 29,615 | 28,749 | |||||||||
Total liabilities | 2,551,138 | 2,598,115 | |||||||||
Commitments and contingencies | |||||||||||
Capital: | |||||||||||
Private perpetual preferred units: | |||||||||||
Private perpetual preferred units, $13.52 liquidation preference, 4,664 issued and outstanding in 2022 and 2021, respectively | 21,936 | 21,936 | |||||||||
Private perpetual preferred units, $16.62 liquidation preference, 1,560 issued and outstanding in 2022 and 2021 | 8,004 | 8,004 | |||||||||
Series PR operating partnership units: | |||||||||||
ESRT partner's capital (2,751 and 2,812 general partner operating partnership units and 160,933 and 167,405 limited partner operating partnership units outstanding in 2022 and 2021, respectively) | 957,803 | 998,128 | |||||||||
Limited partners' interests (81,073 and 79,820 limited partner operating partnership units outstanding in 2022 and 2021, respectively) | 665,520 | 649,157 | |||||||||
Series ES operating partnership units 21,746 and 22,321 limited partner operating partnership units outstanding in 2022 and 2021, respectively) | (1,137) | (4,058) | |||||||||
Series 60 operating partnership units (5,738 and 5,885 limited partner operating partnership units outstanding in 2022 and 2022, respectively) | (637) | (1,395) | |||||||||
Series 250 operating partnership units (2,862 and 2,971 limited partner operating partnership units outstanding in 2022 and 2021, respectively) | (277) | (692) | |||||||||
Total Empire State Realty OP, L.P.'s capital | 1,651,212 | 1,671,080 | |||||||||
Non-controlling interest in other partnerships | 14,881 | 13,252 | |||||||||
Total capital | 1,666,093 | 1,684,332 | |||||||||
Total liabilities and capital | $ | 4,217,231 | $ | 4,282,447 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental revenue | $ | 149,339 | $ | 140,797 | $ | 296,853 | $ | 281,028 | |||||||||||||||
Observatory revenue | 27,368 | 8,359 | 40,609 | 10,962 | |||||||||||||||||||
Lease termination fees | 18,859 | 3,339 | 20,032 | 4,628 | |||||||||||||||||||
Third-party management and other fees | 326 | 327 | 636 | 603 | |||||||||||||||||||
Other revenue and fees | 2,130 | 586 | 3,926 | 1,491 | |||||||||||||||||||
Total revenues | 198,022 | 153,408 | 362,056 | 298,712 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Property operating expenses | 37,433 | 28,793 | 76,077 | 59,072 | |||||||||||||||||||
Ground rent expenses | 2,332 | 2,332 | 4,663 | 4,663 | |||||||||||||||||||
General and administrative expenses | 15,876 | 14,089 | 29,562 | 27,942 | |||||||||||||||||||
Observatory expenses | 7,776 | 5,268 | 13,991 | 9,856 | |||||||||||||||||||
Real estate taxes | 29,802 | 31,354 | 59,806 | 62,801 | |||||||||||||||||||
Depreciation and amortization | 58,304 | 45,088 | 125,410 | 89,545 | |||||||||||||||||||
Total operating expenses | 151,523 | 126,924 | 309,509 | 253,879 | |||||||||||||||||||
Total operating income | 46,499 | 26,484 | 52,547 | 44,833 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 431 | 164 | 580 | 286 | |||||||||||||||||||
Interest expense | (25,042) | (23,422) | (50,056) | (46,976) | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | (214) | |||||||||||||||||||
Gain on disposition of property | 27,170 | — | 27,170 | — | |||||||||||||||||||
Income before income taxes | 49,058 | 3,226 | 30,241 | (2,071) | |||||||||||||||||||
Income tax (expense) benefit | (363) | 1,185 | 1,233 | 3,291 | |||||||||||||||||||
Net income | 48,695 | 4,411 | 31,474 | 1,220 | |||||||||||||||||||
Private perpetual preferred unit distributions | (1,051) | (1,051) | (2,101) | (2,101) | |||||||||||||||||||
Net loss attributable to non-controlling interest in other partnerships | 159 | $ | — | 222 | — | ||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 47,803 | $ | 3,360 | $ | 29,595 | $ | (881) | |||||||||||||||
Total weighted average units: | |||||||||||||||||||||||
Basic | 270,078 | 277,893 | 271,834 | 277,887 | |||||||||||||||||||
Diluted | 270,085 | 278,436 | 271,837 | 277,887 | |||||||||||||||||||
Earnings per unit attributable to common unitholders: | |||||||||||||||||||||||
Basic | $ | 0.17 | $ | 0.01 | $ | 0.11 | $ | 0.00 | |||||||||||||||
Diluted | $ | 0.17 | $ | 0.01 | $ | 0.11 | $ | 0.00 | |||||||||||||||
Dividends per unit | $ | 0.035 | $ | 0.035 | $ | 0.070 | $ | 0.035 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 48,695 | $ | 4,411 | $ | 31,474 | $ | 1,220 | |||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Unrealized gain (loss) on valuation of interest rate swap agreements | 10,057 | (95) | 19,819 | (36) | |||||||||||||||||||
Less: amount reclassified into interest expense | 2,741 | 2,898 | 6,036 | 5,767 | |||||||||||||||||||
Other comprehensive income | 12,798 | 2,803 | 25,855 | 5,731 | |||||||||||||||||||
Comprehensive income | 61,493 | 7,214 | 57,329 | 6,951 | |||||||||||||||||||
Net loss attributable to non-controlling interest in other partnerships | 159 | — | 222 | — | |||||||||||||||||||
Other comprehensive income attributable to non-controlling interest | (1,627) | — | (1,627) | — | |||||||||||||||||||
Comprehensive income attributable to OP unitholders | $ | 60,025 | $ | 7,214 | $ | 55,924 | $ | 6,951 |
Series PR Operating Partnership Units | Series ES Operating Partnership Units Limited Partners | Series 60 Operating Partnership Units Limited Partners | Series 250 Operating Partnership Units Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Perpetual Preferred Units | Private Perpetual Preferred Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Non-controlling Interest in Other Partnerships | Total Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 6,224 | $ | 29,940 | 169,726 | $ | 978,421 | 80,998 | $ | 648,004 | 22,034 | $ | (5,206) | 5,821 | $ | (1,695) | 2,937 | $ | (845) | $ | 13,413 | $ | 1,662,032 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of OP units, net of costs | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of operating partnership units to ESRT Partner's Capital | — | — | 565 | 848 | (119) | (944) | (288) | 56 | (83) | 21 | (75) | 19 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common shares | — | — | (6,611) | (52,439) | — | — | — | — | — | — | — | — | — | (52,439) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 4 | 318 | 194 | 5,447 | — | — | — | — | — | — | — | 5,765 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | (1,051) | — | (5,802) | — | (2,841) | — | (763) | — | (201) | — | (100) | — | (10,758) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | 1,051 | — | 29,579 | — | 12,823 | — | 3,872 | — | 1,003 | — | 526 | (159) | 48,695 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 6,878 | — | 3,031 | — | 904 | — | 235 | — | 123 | 1,627 | 12,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 6,224 | $ | 29,940 | 163,684 | $ | 957,803 | 81,073 | $ | 665,520 | 21,746 | $ | (1,137) | 5,738 | $ | (637) | 2,862 | $ | (277) | 14,881 | $ | 1,666,093 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series PR Operating Partnership Units | Series ES Operating Partnership Units Limited Partners | Series 60 Operating Partnership Units Limited Partners | Series 250 Operating Partnership Units Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Perpetual Preferred Units | Private Perpetual Preferred Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Non-controlling Interest in Other Partnerships | Total Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 6,224 | $ | 29,940 | 172,332 | $ | 1,053,495 | 80,656 | $ | 650,254 | 23,270 | $ | (1,418) | 6,253 | $ | (727) | 3,110 | $ | (349) | $ | — | $ | 1,731,195 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of OP units, net of costs | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of operating partnership units to ESRT Partner's Capital | — | — | 1,074 | 4,173 | (521) | (4,212) | (347) | 17 | (141) | 15 | (65) | 7 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common shares | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | (6) | 240 | 106 | 5,064 | — | — | — | — | — | — | — | 5,304 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | (1,051) | — | (6,063) | — | (2,262) | — | (806) | — | (215) | — | (108) | — | (10,505) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | 1,051 | — | 2,075 | — | 887 | — | 282 | — | 79 | — | 37 | — | 4,411 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 1,739 | — | 742 | — | 233 | — | 59 | — | 30 | — | 2,803 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 6,224 | $ | 29,940 | 173,400 | $ | 1,055,659 | 80,241 | $ | 650,473 | 22,923 | $ | (1,692) | 6,112 | $ | (789) | 3,045 | $ | (383) | $ | — | $ | 1,733,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series PR Operating Partnership Units | Series ES Operating Partnership Units Limited Partners | Series 60 Operating Partnership Units Limited Partners | Series 250 Operating Partnership Units Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Perpetual Preferred Units | Private Perpetual Preferred Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Non-controlling Interest in Other Partnerships | Total Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 6,224 | $ | 29,940 | 170,217 | $ | 998,128 | 79,820 | $ | 649,157 | 22,321 | $ | (4,058) | 5,884 | $ | (1,395) | 2,970 | $ | (692) | $ | 13,252 | $ | 1,684,332 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of operating partnership units to ESRT Partner's Capital | — | — | 1,138 | 2,345 | (309) | (2,499) | (575) | 96 | (146) | 33 | (108) | 25 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from consolidated joint ventures | — | — | — | — | — | — | — | — | — | — | — | — | 224 | 224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common units | — | — | (7,866) | (64,440) | — | — | — | — | — | — | — | — | — | (64,440) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 195 | 257 | 1,562 | 9,968 | — | — | — | — | — | — | — | 10,225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | (2,101) | — | (11,750) | — | (5,584) | — | (1,534) | — | (405) | — | (203) | — | (21,577) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | 2,101 | — | 18,290 | — | 7,961 | — | 2,397 | — | 621 | — | 326 | (222) | 31,474 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 14,973 | — | 6,517 | — | 1,962 | — | 509 | — | 267 | 1,627 | 25,855 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 6,224 | $ | 29,940 | 163,684 | $ | 957,803 | 81,073 | $ | 665,520 | 21,746 | $ | (1,137) | 5,738 | $ | (637) | 2,862 | $ | (277) | $ | 14,881 | $ | 1,666,093 |
Series PR Operating Partnership Units | Series ES Operating Partnership Units Limited Partners | Series 60 Operating Partnership Units Limited Partners | Series 250 Operating Partnership Units Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partners | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Perpetual Preferred Units | Private Perpetual Preferred Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Operating Partnership Units | Operating Partnership Unitholders | Non-controlling Interest in Other Partnerships | Total Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 6,224 | $ | 29,940 | 171,565 | $ | 1,055,249 | 80,355 | $ | 648,543 | 23,678 | $ | (1,348) | 6,424 | $ | (721) | 3,255 | $ | (356) | — | $ | 1,731,307 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of operating partnership units to ESRT Partner's Capital | — | — | 2,140 | 6,835 | (863) | (6,958) | (755) | 55 | (312) | 40 | (210) | 28 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common units | — | — | (383) | (3,533) | — | — | — | — | — | — | — | — | — | (3,533) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity compensation | — | — | 78 | 164 | 749 | 9,874 | — | — | — | — | — | — | — | 10,038 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | — | (2,101) | — | (6,063) | — | (2,262) | — | (806) | — | (215) | — | (108) | — | (11,555) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | 2,101 | — | (546) | — | (232) | — | (74) | — | (19) | — | (10) | — | 1,220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 3,553 | — | 1,508 | — | 481 | — | 126 | — | 63 | — | 5,731 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 6,224 | $ | 29,940 | 173,400 | $ | 1,055,659 | 80,241 | $ | 650,473 | 22,923 | $ | (1,692) | 6,112 | $ | (789) | 3,045 | $ | (383) | $ | — | $ | 1,733,208 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash Flows From Operating Activities | |||||||||||
Net income | $ | 31,474 | $ | 1,220 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 125,410 | 89,545 | |||||||||
Gain on disposition of property | (27,170) | — | |||||||||
Amortization of non-cash items within interest expense | 5,169 | 5,398 | |||||||||
Amortization of acquired above- and below-market leases, net | (3,459) | (1,371) | |||||||||
Amortization of acquired below-market ground leases | 3,916 | 3,916 | |||||||||
Straight-lining of rental revenue | (11,192) | (10,110) | |||||||||
Equity based compensation | 10,225 | 10,038 | |||||||||
Loss on early extinguishment of debt | — | 214 | |||||||||
Increase (decrease) in cash flows due to changes in operating assets and liabilities: | |||||||||||
Security deposits | 866 | (4,523) | |||||||||
Tenant and other receivables | (24,831) | 2,303 | |||||||||
Deferred leasing costs | (21,826) | (8,372) | |||||||||
Prepaid expenses and other assets | (1,242) | 5,783 | |||||||||
Accounts payable and accrued expenses | (2,235) | (5,232) | |||||||||
Deferred revenue and other liabilities | (1,427) | (5,080) | |||||||||
Net cash provided by operating activities | 83,678 | 83,729 | |||||||||
Cash Flows From Investing Activities | |||||||||||
Development costs | (31) | (98) | |||||||||
Additions to building and improvements | (56,614) | (48,347) | |||||||||
Net cash used in investing activities | (56,645) | (48,445) |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash Flows From Financing Activities | |||||||||||
Repayment of mortgage notes payable | (3,119) | (2,026) | |||||||||
Deferred financing costs | — | (7,539) | |||||||||
Contributions from consolidated joint ventures | 224 | — | |||||||||
Repurchases of common units | (64,440) | (3,533) | |||||||||
Distributions | (21,577) | (11,555) | |||||||||
Net cash used in financing activities | (88,912) | (24,653) | |||||||||
Net increase in cash and cash equivalents and restricted cash | (61,879) | 10,631 | |||||||||
Cash and cash equivalents and restricted cash—beginning of period | 474,638 | 567,939 | |||||||||
Cash and cash equivalents and restricted cash—end of period | $ | 412,759 | $ | 578,570 | |||||||
Reconciliation of Cash and Cash Equivalents and Restricted Cash: | |||||||||||
Cash and cash equivalents at beginning of period | $ | 423,695 | $ | 526,714 | |||||||
Restricted cash at beginning of period | 50,943 | 41,225 | |||||||||
Cash and cash equivalents and restricted cash at beginning of period | $ | 474,638 | $ | 567,939 | |||||||
Cash and cash equivalents at end of period | $ | 359,424 | $ | 540,604 | |||||||
Restricted cash at end of period | 53,335 | 37,966 | |||||||||
Cash and cash equivalents and restricted cash at end of period | $ | 412,759 | $ | 578,570 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest | $ | 40,199 | $ | 38,639 | |||||||
Cash paid for income taxes | $ | 268 | $ | 299 | |||||||
Non-cash investing and financing activities: | |||||||||||
Building and improvements included in accounts payable and accrued expenses | $ | 67,815 | $ | 52,891 | |||||||
Write-off of fully depreciated assets | 38,518 | 8,729 | |||||||||
Derivative instruments at fair values included in prepaid expenses and other assets | 4,082 | — | |||||||||
Derivative instruments at fair values included in accounts payable and accrued expenses | 19,695 | 6,176 | |||||||||
Conversion of operating partnership units to ESRT partner's capital | 2,345 | 6,835 | |||||||||
Disposal of land in connection with foreclosure | 1,680 | — | |||||||||
Extinguishment of debt in connection with property disposition | 30,000 | — | |||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
Leasing costs | $ | 217,415 | $ | 211,189 | |||||||
Acquired in-place lease value and deferred leasing costs | 158,874 | 166,491 | |||||||||
Acquired above-market leases | 29,419 | 33,289 | |||||||||
405,708 | 410,969 | ||||||||||
Less: accumulated amortization | (218,336) | (215,764) | |||||||||
Total deferred costs, net, excluding net deferred financing costs | $ | 187,372 | $ | 195,205 |
June 30, 2022 | December 31, 2021 | ||||||||||
Acquired below-market ground leases | $ | 396,916 | $ | 396,916 | |||||||
Less: accumulated amortization | (63,928) | (60,012) | |||||||||
Acquired below-market ground leases, net | $ | 332,988 | $ | 336,904 |
June 30, 2022 | December 31, 2021 | ||||||||||
Acquired below-market leases | $ | (64,635) | $ | (65,403) | |||||||
Less: accumulated amortization | 44,457 | 40,462 | |||||||||
Acquired below-market leases, net | $ | (20,178) | $ | (24,941) |
Principal Balance | As of June 30, 2022 | ||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | Stated Rate | Effective Rate(1) | Maturity Date(2) | |||||||||||||||||||||||||
Mortgage debt collateralized by: | |||||||||||||||||||||||||||||
Fixed rate mortgage debt | |||||||||||||||||||||||||||||
Metro Center | $ | 83,824 | $ | 85,032 | 3.59 | % | 3.67 | % | 11/5/2024 | ||||||||||||||||||||
10 Union Square | 50,000 | 50,000 | 3.70 | % | 3.97 | % | 4/1/2026 | ||||||||||||||||||||||
1542 Third Avenue | 30,000 | 30,000 | 4.29 | % | 4.53 | % | 5/1/2027 | ||||||||||||||||||||||
First Stamford Place(3) | 180,000 | 180,000 | 4.28 | % | 4.73 | % | 7/1/2027 | ||||||||||||||||||||||
1010 Third Avenue and 77 West 55th Street | 36,255 | 36,670 | 4.01 | % | 4.21 | % | 1/5/2028 | ||||||||||||||||||||||
250 West 57th Street | 180,000 | 180,000 | 2.83 | % | 3.21 | % | 12/1/2030 | ||||||||||||||||||||||
10 Bank Street | 30,609 | 31,091 | 4.23 | % | 4.37 | % | 6/1/2032 | ||||||||||||||||||||||
383 Main Avenue(4) | — | 30,000 | — | % | — | % | — | ||||||||||||||||||||||
1333 Broadway | 160,000 | 160,000 | 4.21 | % | 4.29 | % | 2/5/2033 | ||||||||||||||||||||||
345 East 94th Street - Series A | 43,600 | 43,600 | 70.0% of LIBOR plus 0.95% | 3.56 | % | 11/1/2030 | |||||||||||||||||||||||
345 East 94th Street - Series B | 8,173 | 8,650 | LIBOR plus 2.24% | 3.56 | % | 11/1/2030 | |||||||||||||||||||||||
561 10th Avenue - Series A | 114,500 | 114,500 | 70.0% of LIBOR plus 1.07% | 3.85 | % | 11/1/2033 | |||||||||||||||||||||||
561 10th Avenue - Series B | 18,170 | 19,250 | LIBOR plus 2.45% | 3.85 | % | 11/1/2033 | |||||||||||||||||||||||
Total mortgage debt | 935,131 | 968,793 | |||||||||||||||||||||||||||
Senior unsecured notes:(5) | |||||||||||||||||||||||||||||
Series A | 100,000 | 100,000 | 3.93 | % | 3.96 | % | 3/27/2025 | ||||||||||||||||||||||
Series B | 125,000 | 125,000 | 4.09 | % | 4.12 | % | 3/27/2027 | ||||||||||||||||||||||
Series C | 125,000 | 125,000 | 4.18 | % | 4.21 | % | 3/27/2030 | ||||||||||||||||||||||
Series D | 115,000 | 115,000 | 4.08 | % | 4.11 | % | 1/22/2028 | ||||||||||||||||||||||
Series E | 160,000 | 160,000 | 4.26 | % | 4.27 | % | 3/22/2030 | ||||||||||||||||||||||
Series F | 175,000 | 175,000 | 4.44 | % | 4.45 | % | 3/22/2033 | ||||||||||||||||||||||
Series G | 100,000 | 100,000 | 3.61 | % | 4.89 | % | 3/17/2032 | ||||||||||||||||||||||
Series H | 75,000 | 75,000 | 3.73 | % | 5.00 | % | 3/17/2035 | ||||||||||||||||||||||
Unsecured term loan facility (5) | 215,000 | 215,000 | LIBOR plus 1.20% | 3.58 | % | 3/19/2025 | |||||||||||||||||||||||
Unsecured revolving credit facility (5) | — | — | LIBOR plus 1.30% | — | 3/31/2025 | ||||||||||||||||||||||||
Unsecured term loan facility (5) | 175,000 | 175,000 | LIBOR plus 1.50% | 4.02 | % | 12/31/2026 | |||||||||||||||||||||||
Total principal | 2,300,131 | 2,333,793 | |||||||||||||||||||||||||||
Deferred financing costs, net | (13,277) | (14,881) | |||||||||||||||||||||||||||
Unamortized debt discount | (8,135) | (8,547) | |||||||||||||||||||||||||||
Total | $ | 2,278,719 | $ | 2,310,365 |
Year | Amortization | Maturities | Total | ||||||||||||||
2022 | $ | 4,194 | $ | — | $ | 4,194 | |||||||||||
2023 | 9,632 | — | 9,632 | ||||||||||||||
2024 | 9,903 | 77,675 | 87,578 | ||||||||||||||
2025 | 7,979 | 315,000 | 322,979 | ||||||||||||||
2026 | 8,491 | 225,000 | 233,491 | ||||||||||||||
Thereafter | 35,975 | 1,606,282 | 1,642,257 | ||||||||||||||
Total | $ | 76,174 | $ | 2,223,957 | $ | 2,300,131 |
June 30, 2022 | December 31, 2021 | |||||||||||||
Financing costs | $ | 44,065 | $ | 44,637 | ||||||||||
Less: accumulated amortization | (24,727) | (22,525) | ||||||||||||
Total deferred financing costs, net | $ | 19,338 | $ | 22,112 |
June 30, 2022 | December 31, 2021 | ||||||||||
Accrued capital expenditures | $ | 67,815 | $ | 49,247 | |||||||
Accounts payable and accrued expenses | 35,900 | 41,664 | |||||||||
Interest rate swaps liability | 5,612 | 25,308 | |||||||||
Accrued interest payable | 3,630 | 3,460 | |||||||||
Due (from) to affiliated companies | 880 | 1,131 | |||||||||
Total accounts payable and accrued expenses | $ | 113,837 | $ | 120,810 |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Derivative | Notional Amount | Receive Rate | Pay Rate | Effective Date | Expiration Date | Asset | Liability | Asset | Liability | |||||||||||||||||||||||||||||
Interest rate swap | $ | 265,000 | 1 Month LIBOR | 2.1485% | August 31, 2017 | August 24, 2022 | $ | — | $ | (98) | $ | — | $ | (3,184) | ||||||||||||||||||||||||
Interest rate swap | 36,820 | 70% of 1 Month LIBOR | 2.5000% | December 1, 2021 | November 1, 2030 | — | (1,208) | — | (4,527) | |||||||||||||||||||||||||||||
Interest rate swap | 103,790 | 70% of 1 Month LIBOR | 2.5000% | December 1, 2021 | November 1, 2033 | — | (4,306) | — | (15,945) | |||||||||||||||||||||||||||||
Interest rate swap | 10,710 | 70% of 1 Month LIBOR | 1.7570% | December 1, 2021 | November 1, 2033 | 236 | — | (754) | ||||||||||||||||||||||||||||||
Interest rate swap | 19,008 | 1 Month LIBOR | 2.2540% | December 1, 2021 | November 1, 2030 | 492 | — | — | (898) | |||||||||||||||||||||||||||||
Interest rate cap | 6,780 | 70% of 1 Month LIBOR | 4.5000% | December 1, 2021 | October 1, 2024 | 11 | — | 5 | — | |||||||||||||||||||||||||||||
Interest rate cap | 9,188 | 1 Month LIBOR | 5.5000% | December 1, 2021 | October 1, 2024 | 26 | — | 8 | — | |||||||||||||||||||||||||||||
Interest rate swap | 175,000 | 1 Month SOFR | 2.5620% | August 31, 2022 | December 31, 2026 | 1,703 | — | — | — | |||||||||||||||||||||||||||||
Interest rate swap | 107,500 | 1 Month SOFR | 2.6260% | August 19, 2022 | March 19, 2025 | 828 | — | — | — | |||||||||||||||||||||||||||||
Interest rate swap | 107,500 | 1 Month SOFR | 2.6280% | August 19, 2022 | March 19, 2025 | 824 | — | — | — | |||||||||||||||||||||||||||||
$ | 4,120 | $ | (5,612) | $ | 13 | $ | (25,308) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Effects of Cash Flow Hedges | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ | 10,057 | $ | (95) | $ | 19,819 | $ | (36) | ||||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive loss into interest expense | (2,741) | (2,898) | (6,036) | (5,767) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Effects of Cash Flow Hedges | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
Total interest expense presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded | $ | (25,042) | $ | (23,422) | $ | (50,056) | $ | (46,976) | ||||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive income into interest expense | (2,741) | (2,898) | (6,036) | (5,767) |
June 30, 2022 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Interest rate swaps included in prepaid expenses and other assets | $ | 4,082 | $ | 4,082 | $ | — | $ | 4,082 | $ | — | |||||||||||||||||||
Interest rate swap included in accounts payable and accrued expenses | 5,612 | 5,612 | — | 5,612 | — | ||||||||||||||||||||||||
Mortgage notes payable | 916,657 | 844,706 | — | — | 844,706 | ||||||||||||||||||||||||
Senior unsecured notes - Series A, B, C, D, E, F, G and H | 973,555 | 906,567 | — | — | 906,567 | ||||||||||||||||||||||||
Unsecured term loan facilities | 388,507 | 390,000 | — | — | 390,000 | ||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||||||||||
Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Interest rate swap included in accounts payable and accrued expenses | $ | 25,308 | $ | 25,308 | $ | — | $ | 25,308 | $ | — | |||||||||||||||||||
Mortgage notes payable | 948,769 | 960,933 | — | — | 960,933 | ||||||||||||||||||||||||
Senior unsecured notes - Series A, B, C, D, E, F, G and H | 973,373 | 994,389 | — | — | 994,389 | ||||||||||||||||||||||||
Unsecured term loan facilities | 388,223 | 390,000 | — | — | 390,000 | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
Rental revenue | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||||
Fixed payments | $ | 134,794 | $ | 124,432 | $ | 268,195 | $ | 250,204 | ||||||||||||||||||
Variable payments | 14,545 | 16,365 | 28,658 | 30,824 | ||||||||||||||||||||||
Total rental revenue | $ | 149,339 | $ | 140,797 | $ | 296,853 | $ | 281,028 |
Remainder of 2022 | $ | 244,025 | |||
2023 | 495,765 | ||||
2024 | 473,800 | ||||
2025 | 437,398 | ||||
2026 | 396,072 | ||||
Thereafter | 1,853,731 | ||||
$ | 3,900,791 |
Remainder of 2022 | $ | 759 | |||
2023 | 1,518 | ||||
2024 | 1,518 | ||||
2025 | 1,518 | ||||
2026 | 1,518 | ||||
Thereafter | 63,744 | ||||
Total undiscounted cash flows | 70,575 | ||||
Present value discount | (41,794) | ||||
Ground lease liabilities | $ | 28,781 |
Period | Total Number of Shares Purchased | Weighted Average Price Paid per Share | Maximum Approximate Dollar Value Available for Future Purchase (in thousands) | ||||||||||||||
April 2022 | 2,308,026 | $ | 8.95 | $ | 467,350 | ||||||||||||
May 2022 | 1,050,731 | $ | 8.09 | $ | 458,849 | ||||||||||||
June 2022 | 3,252,202 | $ | 7.16 | $ | 435,560 | ||||||||||||
Restricted Stock | Time-based LTIPs | Market-based LTIPs | Performance-based LTIPs | Weighted Average Grant Fair Value | |||||||||||||||||||||||||
Unvested balance at December 31, 2021 | 214,408 | 2,499,592 | 5,039,134 | — | $ | 7.02 | |||||||||||||||||||||||
Vested | (67,654) | (1,052,119) | — | — | 9.95 | ||||||||||||||||||||||||
Granted | 232,448 | 1,514,434 | 780,155 | 578,943 | 7.21 | ||||||||||||||||||||||||
Forfeited or unearned | (9,874) | — | (1,311,839) | — | 7.20 | ||||||||||||||||||||||||
Unvested balance at June 30, 2022 | 369,328 | 2,961,907 | 4,507,450 | 578,943 | $ | 6.67 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | 48,695 | $ | 4,411 | $ | 31,474 | $ | 1,220 | |||||||||||||||
Private perpetual preferred unit distributions | (1,051) | (1,051) | (2,101) | (2,101) | |||||||||||||||||||
Net loss attributable to non-controlling interests in other partnerships | 159 | — | 222 | — | |||||||||||||||||||
Earnings allocated to unvested units | (670) | (113) | (759) | (113) | |||||||||||||||||||
Net income (loss) attributable to common unitholders – basic and diluted | $ | 47,133 | $ | 3,247 | $ | 28,836 | $ | (994) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average units outstanding – basic | 270,078 | 277,893 | 271,834 | 277,887 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock-based compensation plans | 7 | 543 | 3 | — | |||||||||||||||||||
Weighted average units outstanding –- diluted | 270,085 | 278,436 | 271,837 | 277,887 | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 0.17 | $ | 0.01 | $ | 0.11 | $ | 0.00 | |||||||||||||||
Diluted | $ | 0.17 | $ | 0.01 | $ | 0.11 | $ | 0.00 |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||
Real Estate | Observatory | Intersegment Elimination | Total | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenue | $ | 149,339 | $ | — | $ | — | $ | 149,339 | ||||||||||||||||||
Intercompany rental revenue | 17,109 | — | (17,109) | — | ||||||||||||||||||||||
Observatory revenue | — | 27,368 | — | 27,368 | ||||||||||||||||||||||
Lease termination fees | 18,859 | — | — | 18,859 | ||||||||||||||||||||||
Third-party management and other fees | 326 | — | — | 326 | ||||||||||||||||||||||
Other revenue and fees | 2,130 | — | — | 2,130 | ||||||||||||||||||||||
Total revenues | 187,763 | 27,368 | (17,109) | 198,022 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating expenses | 37,433 | — | — | 37,433 | ||||||||||||||||||||||
Intercompany rent expense | — | 17,109 | (17,109) | — | ||||||||||||||||||||||
Ground rent expense | 2,332 | — | — | 2,332 | ||||||||||||||||||||||
General and administrative expenses | 15,876 | — | — | 15,876 | ||||||||||||||||||||||
Observatory expenses | — | 7,776 | — | 7,776 | ||||||||||||||||||||||
Real estate taxes | 29,802 | — | — | 29,802 | ||||||||||||||||||||||
Depreciation and amortization | 58,254 | 50 | — | 58,304 | ||||||||||||||||||||||
Total operating expenses | 143,697 | 24,935 | (17,109) | 151,523 | ||||||||||||||||||||||
Total operating income | 44,066 | 2,433 | — | 46,499 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | 426 | 5 | — | 431 | ||||||||||||||||||||||
Interest expense | (25,042) | — | — | (25,042) | ||||||||||||||||||||||
Gain on disposition of property | 27,170 | — | — | 27,170 | ||||||||||||||||||||||
Income before income taxes | 46,620 | 2,438 | — | 49,058 | ||||||||||||||||||||||
Income tax expense | (38) | (325) | — | (363) | ||||||||||||||||||||||
Net income | $ | 46,582 | $ | 2,113 | $ | — | $ | 48,695 | ||||||||||||||||||
Segment assets | $ | 3,969,257 | $ | 247,974 | $ | — | $ | 4,217,231 | ||||||||||||||||||
Expenditures for segment assets | $ | 13,115 | $ | — | $ | — | $ | 13,115 |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||
Real Estate | Observatory | Intersegment Elimination | Total | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenue | $ | 140,797 | $ | — | $ | — | $ | 140,797 | ||||||||||||||||||
Intercompany rental revenue | 6,029 | — | (6,029) | — | ||||||||||||||||||||||
Observatory revenue | — | 8,359 | — | 8,359 | ||||||||||||||||||||||
Lease termination fees | 3,339 | — | — | 3,339 | ||||||||||||||||||||||
Third-party management and other fees | 327 | — | — | 327 | ||||||||||||||||||||||
Other revenue and fees | 586 | — | — | 586 | ||||||||||||||||||||||
Total revenues | 151,078 | 8,359 | (6,029) | 153,408 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating expenses | 28,793 | — | — | 28,793 | ||||||||||||||||||||||
Intercompany rent expense | — | 6,029 | (6,029) | — | ||||||||||||||||||||||
Ground rent expense | 2,332 | — | — | 2,332 | ||||||||||||||||||||||
General and administrative expenses | 14,089 | — | — | 14,089 | ||||||||||||||||||||||
Observatory expenses | — | 5,268 | — | 5,268 | ||||||||||||||||||||||
Real estate taxes | 31,354 | — | — | 31,354 | ||||||||||||||||||||||
Depreciation and amortization | 45,066 | 22 | — | 45,088 | ||||||||||||||||||||||
Total operating expenses | 121,634 | 11,319 | (6,029) | 126,924 | ||||||||||||||||||||||
Total operating income (loss) | 29,444 | (2,960) | — | 26,484 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | 163 | 1 | — | 164 | ||||||||||||||||||||||
Interest expense | (23,422) | — | — | (23,422) | ||||||||||||||||||||||
Income (loss) before income taxes | 6,185 | (2,959) | — | 3,226 | ||||||||||||||||||||||
Income tax (expense) benefit | (135) | 1,320 | — | 1,185 | ||||||||||||||||||||||
Net income (loss) | $ | 6,050 | $ | (1,639) | $ | — | $ | 4,411 | ||||||||||||||||||
Segment assets | $ | 3,880,853 | $ | 242,619 | $ | — | $ | 4,123,472 | ||||||||||||||||||
Expenditures for segment assets | $ | 19,975 | $ | — | $ | — | $ | 19,975 |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||
Real Estate | Observatory | Intersegment Elimination | Total | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenue | $ | 296,853 | $ | — | $ | — | $ | 296,853 | ||||||||||||||||||
Intercompany rental revenue | 27,729 | — | (27,729) | — | ||||||||||||||||||||||
Observatory revenue | — | 40,609 | — | 40,609 | ||||||||||||||||||||||
Lease termination fees | 20,032 | — | — | 20,032 | ||||||||||||||||||||||
Third-party management and other fees | 636 | — | — | 636 | ||||||||||||||||||||||
Other revenue and fees | 3,926 | — | — | 3,926 | ||||||||||||||||||||||
Total revenues | 349,176 | 40,609 | (27,729) | 362,056 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating expenses | 76,077 | — | — | 76,077 | ||||||||||||||||||||||
Intercompany rent expense | — | 27,729 | (27,729) | — | ||||||||||||||||||||||
Ground rent expense | 4,663 | — | — | 4,663 | ||||||||||||||||||||||
General and administrative expenses | 29,562 | — | — | 29,562 | ||||||||||||||||||||||
Observatory expenses | — | 13,991 | — | 13,991 | ||||||||||||||||||||||
Real estate taxes | 59,806 | — | — | 59,806 | ||||||||||||||||||||||
Depreciation and amortization | 125,325 | 85 | — | 125,410 | ||||||||||||||||||||||
Total operating expenses | 295,433 | 41,805 | (27,729) | 309,509 | ||||||||||||||||||||||
Total operating income (loss) | 53,743 | (1,196) | — | 52,547 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | 575 | 5 | — | 580 | ||||||||||||||||||||||
Interest expense | (50,056) | — | — | (50,056) | ||||||||||||||||||||||
Gain on disposition of property | 27,170 | — | — | 27,170 | ||||||||||||||||||||||
Income (loss) before income taxes | 31,432 | (1,191) | — | 30,241 | ||||||||||||||||||||||
Income tax (expense) benefit | (182) | 1,415 | — | 1,233 | ||||||||||||||||||||||
Net income | $ | 31,250 | $ | 224 | $ | — | $ | 31,474 | ||||||||||||||||||
Expenditures for segment assets | $ | 51,999 | $ | 291 | $ | — | $ | 52,290 |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||
Real Estate | Observatory | Intersegment Elimination | Total | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Rental revenue | $ | 281,028 | $ | — | $ | — | $ | 281,028 | ||||||||||||||||||
Intercompany rental revenue | 10,961 | — | (10,961) | — | ||||||||||||||||||||||
Observatory revenue | — | 10,962 | — | 10,962 | ||||||||||||||||||||||
Lease termination fees | 4,628 | — | — | 4,628 | ||||||||||||||||||||||
Third-party management and other fees | 603 | — | — | 603 | ||||||||||||||||||||||
Other revenue and fees | 1,491 | — | — | 1,491 | ||||||||||||||||||||||
Total revenues | 298,711 | 10,962 | (10,961) | 298,712 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Property operating expenses | 59,072 | — | — | 59,072 | ||||||||||||||||||||||
Intercompany rent expense | — | 10,961 | (10,961) | — | ||||||||||||||||||||||
Ground rent expense | 4,663 | — | — | 4,663 | ||||||||||||||||||||||
General and administrative expenses | 27,942 | — | — | 27,942 | ||||||||||||||||||||||
Observatory expenses | — | 9,856 | — | 9,856 | ||||||||||||||||||||||
Real estate taxes | 62,801 | — | — | 62,801 | ||||||||||||||||||||||
Depreciation and amortization | 89,485 | 60 | — | 89,545 | ||||||||||||||||||||||
Total operating expenses | 243,963 | 20,877 | (10,961) | 253,879 | ||||||||||||||||||||||
Total operating income (loss) | 54,748 | (9,915) | — | 44,833 | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | 283 | 3 | — | 286 | ||||||||||||||||||||||
Interest expense | (46,976) | — | — | (46,976) | ||||||||||||||||||||||
Loss on early extinguishment of debt | (214) | — | — | (214) | ||||||||||||||||||||||
Income (loss) before income taxes | 7,841 | (9,912) | — | (2,071) | ||||||||||||||||||||||
Income tax (expense) benefit | (418) | 3,709 | — | 3,291 | ||||||||||||||||||||||
Net income (loss) | $ | 7,423 | $ | (6,203) | $ | — | $ | 1,220 | ||||||||||||||||||
Expenditures for segment assets | $ | 43,307 | $ | 4 | $ | — | $ | 43,311 |
Three Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Change | % | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental revenue | $ | 149,339 | $ | 140,797 | $ | 8,542 | 6.1 | % | |||||||||||||||
Observatory revenue | 27,368 | 8,359 | 19,009 | 227.4 | % | ||||||||||||||||||
Lease termination fees | 18,859 | 3,339 | 15,520 | 464.8 | % | ||||||||||||||||||
Third-party management and other fees | 326 | 327 | (1) | (0.3) | % | ||||||||||||||||||
Other revenues and fees | 2,130 | 586 | 1,544 | 263.5 | % | ||||||||||||||||||
Total revenues | 198,022 | 153,408 | 44,614 | 29.1 | % | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Property operating expenses | 37,433 | 28,793 | (8,640) | (30.0) | % | ||||||||||||||||||
Ground rent expenses | 2,332 | 2,332 | — | — | % | ||||||||||||||||||
General and administrative expenses | 15,876 | 14,089 | (1,787) | (12.7) | % | ||||||||||||||||||
Observatory expenses | 7,776 | 5,268 | (2,508) | (47.6) | % | ||||||||||||||||||
Real estate taxes | 29,802 | 31,354 | 1,552 | 4.9 | % | ||||||||||||||||||
Depreciation and amortization | 58,304 | 45,088 | (13,216) | (29.3) | % | ||||||||||||||||||
Total operating expenses | 151,523 | 126,924 | (24,599) | (19.4) | % | ||||||||||||||||||
Operating income | 46,499 | 26,484 | 20,015 | 75.6 | % | ||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 431 | 164 | 267 | 162.8 | % | ||||||||||||||||||
Interest expense | (25,042) | (23,422) | (1,620) | (6.9) | % | ||||||||||||||||||
Gain on disposition of property | 27,170 | — | 27,170 | 100.0 | % | ||||||||||||||||||
Income before income taxes | 49,058 | 3,226 | 45,832 | (1,420.7) | % | ||||||||||||||||||
Income tax (expense) benefit | (363) | 1,185 | (1,548) | 130.6 | % | ||||||||||||||||||
Net income | 48,695 | 4,411 | 44,284 | (1,003.9) | % | ||||||||||||||||||
Private perpetual preferred unit distributions | (1,051) | (1,051) | — | — | % | ||||||||||||||||||
Net loss attributable to non-controlling interests in other partnerships | 159 | — | 159 | 100.0 | % | ||||||||||||||||||
Net income attributable to common unitholders | $ | 47,803 | $ | 3,360 | $ | 44,443 | (1,322.7) | % |
Six Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | Change | % | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Rental revenue | $ | 296,853 | $ | 281,028 | $ | 15,825 | 5.6 | % | |||||||||||||||
Observatory revenue | 40,609 | 10,962 | 29,647 | 270.5 | % | ||||||||||||||||||
Lease termination fees | 20,032 | 4,628 | 15,404 | 332.8 | % | ||||||||||||||||||
Third-party management and other fees | 636 | 603 | 33 | 5.5 | % | ||||||||||||||||||
Other revenues and fees | 3,926 | 1,491 | 2,435 | 163.3 | % | ||||||||||||||||||
Total revenues | 362,056 | 298,712 | 63,344 | 21.2 | % | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Property operating expenses | 76,077 | 59,072 | (17,005) | (28.8) | % | ||||||||||||||||||
Ground rent expenses | 4,663 | 4,663 | — | — | % | ||||||||||||||||||
General and administrative expenses | 29,562 | 27,942 | (1,620) | (5.8) | % | ||||||||||||||||||
Observatory expenses | 13,991 | 9,856 | (4,135) | (42.0) | % | ||||||||||||||||||
Real estate taxes | 59,806 | 62,801 | 2,995 | 4.8 | % | ||||||||||||||||||
Depreciation and amortization | 125,410 | 89,545 | (35,865) | (40.1) | % | ||||||||||||||||||
Total operating expenses | 309,509 | 253,879 | (55,630) | (21.9) | % | ||||||||||||||||||
Operating income | 52,547 | 44,833 | 7,714 | 17.2 | % | ||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 580 | 286 | 294 | 102.8 | % | ||||||||||||||||||
Interest expense | (50,056) | (46,976) | (3,080) | (6.6) | % | ||||||||||||||||||
Loss on early extinguishment of debt | — | (214) | 214 | 100.0 | % | ||||||||||||||||||
Gain on disposition of property | 27,170 | — | 27,170 | 100.0 | % | ||||||||||||||||||
Income (loss) before income taxes | 30,241 | (2,071) | 32,312 | 1,560.2 | % | ||||||||||||||||||
Income tax benefit | 1,233 | 3,291 | (2,058) | (62.5) | % | ||||||||||||||||||
Net income | 31,474 | 1,220 | 30,254 | (2,479.8) | % | ||||||||||||||||||
Private perpetual preferred unit distributions | (2,101) | (2,101) | — | — | % | ||||||||||||||||||
Net loss attributable to non-controlling interests in other partnerships | 222 | — | 222 | 100.0 | % | ||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 29,595 | $ | (881) | $ | 30,476 | 3,459.3 | % |
Financial covenant | Required | June 30, 2022 | In Compliance | ||||||||
Maximum total leverage | < 60% | 31.6 | % | Yes | |||||||
Maximum secured leverage | < 40% | 12.7 | % | Yes | |||||||
Minimum fixed charge coverage | > 1.50x | 3.4x | Yes | ||||||||
Minimum unencumbered interest coverage | > 1.75x | 6.6x | Yes | ||||||||
Maximum unsecured leverage | < 60% | 23.2 | % | Yes | |||||||
Six Months Ended June 30, | |||||||||||
Total New Leases, Expansions, and Renewals | 2022 | 2021 | |||||||||
Number of leases signed(2) | 76 | 57 | |||||||||
Total square feet | 634,582 | 350,196 | |||||||||
Leasing commission costs per square foot(3) | $ | 22.14 | $ | 18.27 | |||||||
Tenant improvement costs per square foot(3) | 62.15 | 58.62 | |||||||||
Total leasing commissions and tenant improvement costs per square foot(3) | $ | 84.29 | $ | 76.89 |
Six Months Ended June 30, | |||||||||||
Total New Leases, Expansions, and Renewals | 2022 | 2021 | |||||||||
Number of leases signed(2) | 5 | 4 | |||||||||
Total square feet | 4,289 | 12,459 | |||||||||
Leasing commission costs per square foot(3) | $ | 16.64 | $ | 46.03 | |||||||
Tenant improvement costs per square foot(3) | — | 32.49 | |||||||||
Total leasing commissions and tenant improvement costs per square foot(3) | $ | 16.64 | $ | 78.52 |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Total Portfolio | |||||||||||
Capital expenditures (1) | $ | 19,697 | $ | 9,331 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||
Net income | $ | 48,695 | $ | 4,411 | $ | 31,474 | $ | 1,220 | |||||||||||||||
Add: | |||||||||||||||||||||||
General and administrative expenses | 15,876 | 14,089 | 29,562 | 27,942 | |||||||||||||||||||
Depreciation and amortization | 58,304 | 45,088 | 125,410 | 89,545 | |||||||||||||||||||
Interest expense | 25,042 | 23,422 | 50,056 | 46,976 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 214 | |||||||||||||||||||
Income tax expense (benefit) | 363 | (1,185) | (1,233) | (3,291) | |||||||||||||||||||
Less: | |||||||||||||||||||||||
Gain on disposition of property | (27,170) | — | (27,170) | — | |||||||||||||||||||
Third-party management and other fees | (326) | (327) | (636) | (603) | |||||||||||||||||||
Interest income | (431) | (164) | (580) | (286) | |||||||||||||||||||
Net operating income | $ | 120,353 | $ | 85,334 | $ | 206,883 | $ | 161,717 | |||||||||||||||
Other Net Operating Income Data | |||||||||||||||||||||||
Straight-line rental revenue | $ | 8,597 | $ | 3,763 | $ | 11,192 | $ | 10,110 | |||||||||||||||
Net increase in rental revenue from the amortization of above-and below-market lease assets and liabilities | $ | 1,675 | $ | 717 | $ | 3,459 | $ | 1,371 | |||||||||||||||
Amortization of acquired below-market ground leases | $ | 1,958 | $ | 1,958 | $ | 3,916 | $ | 3,916 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||
Net income | $ | 48,695 | $ | 4,411 | $ | 31,474 | $ | 1,220 | |||||||||||||||
Noncontrolling interests in other partnerships | 159 | — | 222 | — | |||||||||||||||||||
Private perpetual preferred unit distributions | (1,051) | (1,051) | (2,101) | (2,101) | |||||||||||||||||||
Real estate depreciation and amortization | 56,571 | 43,480 | 121,985 | 86,584 | |||||||||||||||||||
Gain on disposition of property | (27,170) | — | (27,170) | — | |||||||||||||||||||
FFO attributable to common unitholders | 77,204 | 46,840 | 124,410 | 85,703 | |||||||||||||||||||
Amortization of below-market ground leases | 1,958 | 1,958 | 3,916 | 3,916 | |||||||||||||||||||
Modified FFO attributable to common unitholders | 79,162 | 48,798 | 128,326 | 89,619 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 214 | |||||||||||||||||||
Core FFO attributable to common unitholders | $ | 79,162 | $ | 48,798 | $ | 128,326 | $ | 89,833 | |||||||||||||||
Weighted average Operating Partnership units | |||||||||||||||||||||||
Basic | 270,078 | 277,893 | 271,834 | 277,887 | |||||||||||||||||||
Diluted | 270,085 | 278,436 | 271,837 | 277,887 |
Period | Total Number of Shares Purchased | Weighted Average Price Paid per Share | Maximum Approximate Dollar Value Available for Future Purchase (in thousands) | ||||||||||||||
April 2022 | 2,308,026 | $ | 8.95 | $ | 467,350 | ||||||||||||
May 2022 | 1,050,731 | $ | 8.09 | $ | 458,849 | ||||||||||||
June 2022 | 3,252,202 | $ | 7.16 | $ | 435,560 | ||||||||||||
1 Year Empire State Realty OP Chart |
1 Month Empire State Realty OP Chart |
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