ESRT - Earnings call transcript Q1 2024 | Empire State Realty Trust, Inc.

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Operator

Greetings, and welcome to the Empire State Realty Trust First Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Heather Houston, Senior Vice President, Chief Counsel, Corporate and Secretary. Thank you.

You may begin.

Heather Lawson

afternoon. Good joining Earnings Empire Conference for First Realty today XXXX Quarter Call. us you State for Trust's Thank

In property income addition results management's to Investors On quarterly investor supplemental today's the were and answers those section press forward-looking financial release with presentation website detail in defined distributed of further as call, the laws, on at in proposed prepared our events. to posted including and company's latest package contain our the yesterday, transactions esrtreit.com. expenditures, remarks applicable to related operations, results and conditions, market statements expense, your questions capital securities and may a

from company's performance. meaningful reconciliations As more statements assumes call, in comparable to a uncertainties, to evaluating non-GAAP actual the update which and obligation the management's current forward-looking differ Empire GAAP EBITDA, such and review in today's modified company's which filings package, listeners the FFO, represent cause to included related and statement same-store in the financial believe directly NOI, these FFO, we risks release of supplemental the NOI, discussed we these are SEC.During Realty State discussions certain measures estimates. as available core property company's those adjusted They and the measures, the website. no any today. Trust cash and the discuss The future. statements most will definitions EBITDA in on to measures are are forward-looking forward-looking with each may encourage to subject to detailed company's We reminder, results

and over to Chief turn the Executive Malkin, Tony Now call our I Chairman Officer. will

Anthony Malkin

we our the observatory Yesterday, to afternoon ESRT sheet outlook mark-to-market spreads. of to ninth quarter, and quarter consecutive strong actions. and will proactive balance leasing consistently percentage leased results progress, positive consecutive discuss absorption delivered good them Today, growth first of our spreads above quarter strong expectations. our came strong rest for results lease with in the reported and the positive results. In showed each We Heather, year first of and XXXX. everyone. in Thanks, XXth Office start leasing quarter

continues to real portfolio markets are completed leased ensure sheet Our on which commercial to estate we current value put best-in-class about we the the capital our and strength several performance and our balance square maintain in shareholders front the company eager year. the actions feet create in start cycle. our and Year-to-date, balance We additional of sheet. Observatory XXX,XXX flexibility, top for a us foot, tier to

Manhattan portfolio is lease discuss leased. points had basis our will XX% positive activity. XXX Our office of absorption now and current Tom year-over-year nearly

of deepest the unique has attracts tenant City to top through in York Our New demand to high-quality to did good and deals have Four, modernize we cycles. look assets. and our leasing vacates and of been the up will landlord with not Six, standards high-quality who This best not tenant retention their expansions portfolio. the amenitize and our get included in our maintained times deals strong future-ready floors, consistent top and product These catered stable resulted our pay office always tenants; Two, modernization amenities portfolio consolidate square has acquisition challenged indoor three, and in tenants and invested of drives market. to intentional discipline and segment that for to Five, price IPO, value quality. a volumes our Since times, tenant did service over proposition sheet tenant prices. over environmental get of GAAP expansion addition the financing in and X.X outperformed decade, ESRT's million leadership draw our in of office we at point because, energy within commitment renovation, time. we efforts a balance and leasing one, seen maintain in through partner relationships the efficiency have financially tier feet goal to market lever during portfolio-wide booms market portfolio. upgrades the

New gradual helped increase a in in XX% was We XXXX have partially revenue shift the City a Christina and our this on April debt There of York cap back discuss NOI year Observatory's upon towers significant with of improvement later competition. and above per as perform. of to will upside travel, return. points holiday into Observatory to liquidity international tourism cap of to rainy lowest put based last, XXXX generally our first abundance as low and build further is quarter consistently was continues visitation, of year-over-year, Seven we position The the by visibility driven REIT March strong maturity the continues performance which leverage an this per of by the any in no face the NOI continued and until a December. compared how this. the up In is XX% days, board. to Easter the

global We brand awareness. have exceptional an

ESRT's New are leader City in economic philosophy, building healthy environmental investor pandemic, and is and competition of been as Our XX the stewardship business the iconic has new is all presentation.Sustainability and York on our shown and cycles, Observatory all we a cornerstone performance. resilient Slide through of

We tenants area. with employees of sustainability the and received and in partnerships attracts tenants. Our scores successful track highest record this their

well the we achieve makes of for Sustained This the the and and enrolled and and achieve Xx, STAR Partner safety well Award. -- were equity year first well receive the have well Excellence all health Equity buildings to at certification Safety ENERGY commercial quarter, well REIT the -- Award Award Health and to Year consecutive This second ESRT multifamily pleased scale. Leadership

growth cash continued continuing you and include and priorities all contains We focus from our details accomplishments just are full recent initiatives. ESRT's on sustainability company-wide operations. to XXXX to a committed released on report encourage value deliver to long-term shareholders through read I sustainability. and our XXXX our excellence that generation

day These shareholder enhance tickets is space, sheet focus day value. lease sell balance our to course, the together in our out, to manage actions observatory, Of sustainability the achieve and and goals.

and have an future-ready balance today. sheet, us options which We gives portfolio ready a opportunity

position are on through We progress advantage Over XXXX. and you, a of will detail to take Christina market Tom. We provide disruptions opportunities more goals Steve dislocation. how we Tom, capital in in and to our these created and accomplish plan to

Thomas Durels

of office basis in which good leased X portfolio. increased quarter and our absorption Tony, we consecutive retail percentage for Thanks, XXX increase That's quarter quarters since the and consecutive and concluded of afternoon, points We least ninth everyone. just our our of percentage positive in XXXX. an fourth

of XXth straight positive office Manhattan with was our quarter in spreads market portfolio. lease quarter The XXXX first our

are feet off XXX,XXX in We in leasing to first quarter. XXXX start square a the total strong with of

an to at were ago. occupancy of leases current We points XX,XXX we new positive our expanded by XX Manhattan a last office latest us square Broadway. with leased Burlington Manhattan that include quarter XXX,XXX basis square loss points of XX-year increased leases to Burlington rent XXX with lease compared mark-to-market renewal XX-year in square and with XX last total weighted office to from subsidiary Grand lease quarter basis basis and And XX,XXX feet. with a quarter, first the quarter pre-boot square this and XXX Central XX-year times office XX,XXX a for with X.X% in foot which average suites Notable XX.X% solid X compared spreads the term, of leases for lease year lease, at a etained XX.X%. duration totaled XX a One increased at is has signed And up Deane, Place. along will points foot an to a Burlington of occupy signed percentage New expansion We increased feet their signed first expansion, XXXX lease extension years. office approximately

leases incremental Additionally, supplemental, XX from as Page rent not $XX revenue off. in burn million shown of commenced have free on cash we signed our

tenant consecutive of office since Manhattan strong square and relocations modest offer at what we that sheet and year-to-date, our indoor XXXX tour, accessible quarters known in our We've expected is offerings, quality, performance ESRT to new are vacates abundant later transit deliver Topic us building Only help capital have financial look leasing -- invested and demonstrate efficiency, In and by is year. of the environmental balance and modernized. list of portfolio, long-term of seen the Tenants financial to which this tenant that fully of make strength a stack square as energy IPO of and sustainability covered advance modernize for market, outdoor will square leases. landlord. new which square XX,XXX expire, neighborhood set spaces tour with a with fruit undecided the X renewals, billion feet price this our with bracket mass approximately XXX,XXX spaces, the sheet. near to building variety time. our volume the on tenants want includes built quality our tenants amenities product, continues that on there locations XXX,XXX price XXX,XXX based buildings. and balance activity balance the $X conferencing the leasing feet and product drive in lounges, and strong every turnkey lease to feet strength we qualification and amenities, confidence offers commitments our fitness of and promises. brokers point feet expirations our portfolio value today's We've service remains strength.Today, service, quality for high-quality in in flight offering is Our will

improvements. deals And Manhattan strong balance property healthy a multifamily end, first our which in occupancy had in ago a lease of from have square to pipeline Once the feet our with new exceptionally market of fundamentals year. perform increased a leases XXX,XXX renewals. are of to XX.X%. XXX,XXX benefit negotiation, from we quarter and and we to XXX square the over at XX.X% by of over start signed year and basis feet points recent A of commercial leases to quarter, percentage and well again, office continues XXX,XXX feet portfolio square We strong

quarter by office occupancy Manhattan to to points compared Our increased XXX basis last XX.X%.

Steve. and to space over see absorption our year lease continue lease and new positive to of healthy start achieve the year, and call the we modest multifamily turn for demand positioned Thank pipeline to lease now strong a well leases you, expirations portfolio. are I'll for and the with We to

Stephen Horn

Tom. Thanks,

first partially which XXXX, property share, Place $XX quarter Stamford of which revenues year-over-year, now core offset expenses. year-over-year. cash Same-store diluted $X.XX primarily property the increases in cash of excludes which higher by increased was we million XX% rent or commencement, increased reported XX.X% by FFO operating For per driven First from NOI,

XQ year-over-year. by NOI items, adjusted non-recurring increased 'XX approximately X% Excluding same-store

The claim. to delays from debt was resulted million insurance $X.X a in including from recovery million relates approximately comp onetime about XQ that we recognized commencement. it settlement adjustments an period revenue less had it period, the 'XX recorded bad of as rents rent current easier items, the of for few As $X and items in various an cash

to individual this contributed material roughly X% quarters, to growth NOI While we not comparable their it out called same-store cash a pop year-over-year. in the as

well first quarter, in just as outlook We the for results same-store discuss, quarter discussed operating for which to nonrecurring Observatory income a That in admissions of Revenue driven of primarily be year. burn our last discussed. the NOI solid increase to onetime will million comp fortify balance a expense rental Christina As our remains year $XX XX% and year-over-year. Observatory discuss improve our the We was and sheet due quarter. of will a said, off growth business. the took 'XX.Moving first 'XX recurring proactive continue remains measures year-over-year $X.X year-over-year. had year strong per recently XXXX first outlook net to an the of the tougher the rent for items remainder high Christina generated and XQ as several we then of by quarter, unchanged. will capita the our benefited balance revenues through free million growth XQ discuss Christina? the in items to

Christina Chiu

March in prior $XX matures $XX extensions X.XX%. facility after In Starting with million $XXX in senior overall We busy mature that start a March received balance entered replaces million million rate strong million that XXXX. in institutional XXXX, proceeds and XXXX is which agreement purchase balance a at sheet. transaction million new sheet the we end remaining and unsecured credit indebtedness, to down of $XX tranches, including from that private to in $XXX an weighted support -- March, into new placement with credit due year a million was the We matures matures $XXX notes maturity million the Steve. revolving in we quarter standpoint. the our facility scheduled in This new and closed on both credit investors. The to eventually Thanks, and consists to of from existing loan. in green of April, facility, had average we a transaction the term issue and X note inclusive XXXX a facility including of XXXX fund XXXX million matures the a $XXX and and that intend pay drawn million high-quality on in use facility. to $XXX to mid-June, in $XXX a

maturity matures. the a to financings, debt million is when our and these that to XXXX $XXX entire extended With from of of The the credit not addressed was maturity mature loan of inclusive extension. company in debt XXXX term December the has million $XXX next successfully facility XXXX until revolving meaningful due XXXX

side, executed located On own Street the of million X cash we XX-port did XX% in already March, that and buyout of debt. $XX XXX XXX XXth remaining approximately in in-place East assets multifamily the $XX a assumption not transaction million the we the and in for Avenue of at

debt the interest assets these XXXX in X.X% have rate reminder, of X on and XXXX. blended mature and a a As

quarter. X the Westchester the we is an have into of plan.Over our of noncore a and cooperative Place asset are future is opportunity York on matures the assets Further, City. early MetroCenter of have and Its million, the lender, great Connecticut strategic Subsequent the we and City maturity. stronger $XXX with a upon have ESRT at in schedule we after for by income here, considered owns As CapEx April, to York flexibility maturity had shown In of and significant portfolio. Stamford flows, we Connecticut York past our pro for XXX% Stamford, our This decision First New just and X-plus anticipated Slide now reduces consistent outside is XX% properties agreement capital. mortgage operating a retail. quarter this as balance multifamily foreclosure our and result, capital of recycle as investor for that in and can New from and end will debt JV in million sheet and our better to cash X our focused presentation. refinance debt Pro proactively structure, our completion, financing of our discussions disposition, last we in objectives. completion manage the forma disposition disposed into we end, second capacity debt of the City and with entered be the close ownership of years, of recycled for finalization remaining align maturity for allows be which from focused of of to other lender long-term total New transaction XXXX assets reduced balance up in consensual to and net City York no frees November fundamentals avoids New adjusted via disposition the $XXX debt will with capitalization. our that allocation CapEx, portfolio. strategy in submarket forma with percentage productive to its that debt business our terms This sheet recycle our close high-quality secured XXXX, into in

net pursue of company We term shareholder investment in York At of weighted a reinvest X.X portfolio $X.X weighted to interest and with continue to average years. the manner capital average debt of X.XX% opportunities New had enhance look additive and City for to billion quarter maturity value. our a ways rate tax-efficient to are end, focused and a that

XXXX the The New strong revolver old a From FFO. SOFR dilutive perspective, have net $XXX $X.XX transaction term and loan debt new floating sheet EBITDA. date to no million the leverage proceeds approximately place of among million includes schedule be debt well-laddered March million from using repayment $XX draw. X.Xx rate $XXX in debt at City from March exposure, and maturity the XXXX liquidity, lowest REITs We remains an XXXX. announced all through the York in loan and million our swap net impact will term the to $XXX This focused earnings the balance the activity adjusted to

the will change around a XX% also only including X interest assets It year the $XXX quarter, at assume balance $X.X XXXX. approximately notes disposition interest by XXXX. Place rate for our buyout share the the first a multifamily the of includes of transaction of of of for of in So First in partner's expense. these the outlook of includes NOI it spread our on end debt. of impact of includes second current which repayment is earn of cash the income the incurred quarter.Now million $XX and the modest We mid-June. the finally, the is assumption to approximately debt, XXXX, in new private X%. Prior generated placement to of for It end million And also proceeds funding their of Stamford of any full this interest completed million

We FFO $X.XX continue to between and expect diluted XXXX fully $X.XX share. per range to

have and guidance a on prior As did with XXXX date. Based have our these room impact we performance sheet and this items the provided, to to date include FFO, forward assumptions reminder, balance But only our transactions $X.XX $X.XX range. range. activity confident discussed, as announced not within on we and range remain our therefore

occupancy XXXX, in leases by not and commercial XX% net the assumes strong up of pipeline positive commenced income to year-end expect to a portfolio to lease growth, yet a cash by signed XXXX relative XXXX. expect we manageable the for commercial this expirations levels. at midpoint We driven positive with Within range which of continue X% X% modestly range, of operating revenue down to XX% same-store to be

and offset income. We which higher approximate expect partially operating reimbursement estate X% in increase an X% by to property forecasted in XXXX, real expenses is taxes

Lastly, productive we per quarter call back and for a Observatory to the $XX million turn $XXX In million, expenses Operator? another approximately with executed XXXX had summary, the million that, quarter. will our Q&A expect NOI to average session. and be now of well And I to $X observatory approximately on priorities. ESRT operator

Operator

be moment, please, pull will for Instructions]One your [Operator questions.

of come questions first Evercore Steve ISI. the from line Sakwa Our with

Steve Sakwa

new a the market? you whether the in on Maybe, the Tom, for seems tenants trigger. leasing. detail We've tenants bit pull in maybe discussions little with in decisions. in to C-suites starting currently what the pipeline. more And space And seeing in provide some to, that of tenants little effect, the hesitation making on you're seeing areas be gun-shy heard maybe more just just about curious the Could being the I'm there from just other types the the any pipeline, you're looking a

Thomas Durels

first Well, quarter, in our Steve, at portfolio-wide the of office XX% was new for just about the and for looking leasing. leasing results Manhattan

think I has brands, variety our we're not consumer services tenant financial by industry. in So portfolio don't services, tied of of from decision-makers. professional hesitancy that We're which I activity that, types, technology. always in We've got a tenants seeing hallmark and a think, those that been, indicates activity from to one tech,

negotiation. square as feet a I we said look, So XXX,XXX got, leases of before, in

hundred We active up. exchanged have and is feet our being toric of thus few volume a proposals square

our but I are is things to standout. that balance attracts portfolio, we're a mentioned continue be that tenants, modernized our access things the things The IE activity of the the the about leading quality monetized strength all the locations, performed So to We these stated, well. sheet, look, transit, great seeing. to that including that we and and flight earlier to

So I think... again, I good. feel

Anthony Malkin

Steve, thing, people not do do one people on make clearly, to add a action of minds. point, the who -- are us Tom's understand just might tours who have are sure with doing you lot their who I see tire kicking. We

Steve Sakwa

relates I'm the you with seeing curious, just you I'm across up in Scott the several have it ability you to what front, been on opportunities, to levels and are disciplined the just and debt to through doesn't Maybe just back today how years. sticking the and greatly be door. picking stacks transaction last to the that as get vary multifamily curious distressed marketplace complex? office, maybe activity get properties may over retail

Anthony Malkin

approach. and buy rising see actually office the believe opportunity extremely in cracks. maturities on crisis the the opportunity York and we into City have We from basis. heavy with our And created Â So is New the focus market definitely And will begun resi. certain once capital and right right to interesting our by create near-term assets. a with rates once-in-a-lifetime the Resi finance a We're situations backstop disciplined we GSEs. dislocation, generation a has retail see in in to

transaction They very what not degree, the level would wealthy of opportunity are success on Office based and capital we a individuals, inbound have created our And per on is received exactly I I have say our very much have we focus somewhere a our us. are people invested middle. of is done market over individuals dislocation. we types. by is pleasantly the model they higher on inbound capital call surprised on capital received So individuals with who really have new interested -- on are stroke based a really And what is are groups who not level really, focus or to What current requirements, product eminently multiple basis. on They by financeable. large important what IRR surprised and significant XX-year see is leverage, it's of hold. on more participants, checks been the these by can the they the the and people is partner more complicated basis and to what the who will in from also see so with we retail

basis. will and we the begun of banks existing more are quickly as CMBS We sales totally And tax think to where sale we disciplined products than a and break. opportunity the hands, as that interest, yields recognition changing where event deals current far sets maintain both to can absolutely basis which avoid it and on or drive of in on focused our our to So with will them allow can accommodate we a capital worth structure while. completely perhaps priority perhaps and their make a invest minority desires, basis needs, owners will

Operator

come John Kim Our the Markets. next from questions with BMO of line Capital

John Kim

just owners color ask up that to Â Tony, Or of private entering to follow about with. joint when on And and maybe I this on market, last unpacked you is other what timing you that deploy this on looking wanted you the just is some Or any could office? provide partnerships of the on could on venture with said. it conversions? type kind of you're asset capital. partner

Anthony Malkin

So specific. I to be want really super

the We X.X our our says, period. changed. including will has we not pre-IPO discipline. the did remain transacted very in focused That in than That more prior we've years on last XX,

absolutely nevus That hasn't changed. are on we So opportunivores.

do we'd without to the New Our sense problems. which on recently, done you with lot because have said say without our motivations find residential. you to do anything conversions, do. to into we do. way to portfolio any balance a think us is thing player portfolio to it to a the view certainly you've And is than and -- and sheet to you've York. there good we people can view our do transactions product. so with need focus leased. your a we've with for And regard great is that have pretty have a is see makes conversions difficult are stronger you that The in be are continues like we of the our compromised a that talk interesting strong office think well-established produce in have on These to I'll really we opportunities conversions don't others leasing extraordinarily who simple. believe existing our doesn't see do And before. last We We come may about who it we whatever are well said, accomplished,

don't resi put office, on to we high list conversions do. our So from

John Kim

quarter XXXX, What XX My is last your supplement. could And that? ended looks led on were color second in of these known quarter that related your the looks in expecting Any first than vacates? like the That's just question that little maybe up tenant great or like a note, vacates to color. It provide on this on have less up picked Page timing it the tenants Was a vacates on the quarter. you bit. year issue? a you second of locations half of estimated

Thomas Durels

timing. just really it's Â Yes,

If you that overall, vacates hasn't expected the total the office portfolio. deal feet of out just significantly in it changed from But the it's significant it's our with, tenants the at caused change. square about And for volume with nothing Manhattan timing we that year. look given quarter-to-quarter. XXX,XXX really stands that that

John Kim

particular that's asset others? saying vacates than Â Any more

Thomas Durels

the State floor consolidated a XXXX these us out, done. for year. full as are has really floor work, built base we -- full Broadway, No, we've that We've Broadway. the news Florida a vacates base-building board. -- full No. The got Building across been XXXX Tower a floors. lease. that They've it's we the got Broadway, mean, the consolidated have are have good XXXX But been backfilled floors work I a of at being vacated uncovered, bearing Empire by this is lot the Burlington

space us And puts on then at the spaces. one on and XXXX, a position a in it built vacates Street. XX,XXX XXX It's really good that lease pre-basis, the XXrd foot in market those So about a board, built the largest square across we to West feet. being XXX,XXX known square really

spaces rest the board. the smaller are So across

Operator

of Michael Citi. with the Our line from next questions Griffin come

Michael Griffin

in new the go to more to color. the some get maybe back want and quarter I leasing

throughout higher affordability those And For that expect space, continue new taking down are buildings? if trend this curve to rent tenants so, moving year? the would from is it people you the

Thomas Durels

service, to better cash a Well, are tenants offer spaces, mix markets, forward from installations, provide to we're provide which better modernized a to of of of amenitized, that and buildings move are and turnkey trying looking built that we and newly it's to all all that.

So some are their and some are employee office environment. to Others looking expansion. their experience improve involved for

really to attract and -- tenants we submarkets. so from And all continue

that mention the tenants, quality very continue the spoken so it locations, we've the that to And we development. I market not again, new amenities, to It's this to just it's appealing that things our the things modernization, continue flight and that is and speaks service. great to a all about, it's to

tenants having but and more looking better we just have. better and overall when success more that large, experience, better -- by environment, landlord, we an that's we're as why product, for So and are better the see

Michael Griffin

guess is -- are you that are building? better that seeing is, people a for rent price I'm tenants middle-of-the-road that currently it to that But of $XX what trying to I looking Right. just point, amenitized saying $XXs? pay move are to Or the are paying paying in

Thomas Durels

are that's deals I would the that's play, high think product tenants vast that for that XXs top we that our deals for in win at characterize provide of it price the speaks we per they have price the in that market in high square look call and tier. point, value. deck provide, occurs, And this a vast we of look recognize XXs tenants afford certainly where pay in we that's, of they foot bulk look the that is to deals. And and more. value it, could all the to where Â Well, investor really we the and our market, the there's if where And that you compete activity majority and to -- majority attracted more they I absolute patient

Michael Griffin

then And on year quarter. appreciate It the a just full pretty seemed color strong I there. you. guide. the like Got

think deciding the to particularly the Observatory. good is now? maybe about it pretty should raise conservatism saw guide how wonder, not right Or I You increases, in we that? just

Christina Chiu

Yes.

as drivers. adjustments. mentioned, tighten very to at clear we proceeds, various that. range guidance. the able announced, can up have can as we just year the activity as and and think the a the mentioned, there impact always we on building we blocks where for was all we look areas from that And maintain I We're And were make $X.XX

along. So make we'll monitor to we adjustments continue as and go

Operator

with come line questions Our Wells from Fargo. next the Blaine Heck of

Blaine Heck

definitely Observatory and NOI now above levels. attendance improve has pre-pandemic continued is to

to about a how how hypothetical to on business plan that slowdown just those you the U.S. maybe consumption be just in talk can in numbers? you sensitive improve And could So continuing

Anthony Malkin

that welcome question. really Â I

did in the all sorts -- page, look shows COVID, If economic do major epidemic continue the very don't through deck great new Observatory performed the obviously, what happened what time partnerships the -- really continue a upheavals it's and with SARS you with build of the we brand back a Star has -- Wars. going State me, We maybe continue just Christina, Disney one Building the candidly, a do how attractions opening to you I long , to maintain intend and co-branding to performer. of cite we worldwide, have to solid take we the of period could the And front a that Empire do at have. which to

all one that what performance has have improve is We the over -- is shortly, in time our Slide set of midst frankly, over very enhance steady competition towers of again, the go. that, the anybody Observatory per to towards economic XX, reports. built and NOI more And cap been else through which surprise who cycles performance our another is and look at all up a will this come that if of you to

Blaine Heck

with kept expected flat Second largely Occupancy stay same-store had year. question, unchanged to negative can expected cadence quarter is to the the positive of a guidance you great for the X% the you guys first just quarter the but by year. higher modestly throughout about Obviously, to end XX% talk in at X%. NOI

some onetime think higher tougher OpEx I items. and you about talked some comps,

the on more little color same-store relative we throughout So from trend might just each on first bit and how is expect quarter hoping the same-store NOI the year? to you those can give impact to of a what

Anthony Malkin

XQ buoyed With looking of first for get the far those I -- regards in materiality my expect versus comps from the the 'XX through difficult opening the that. the remainder those. last comparing the far those earnings positive start items more highlight year, to call have look we in that much against coming We in our When the as remarks quarter you the out to rents due items as as we to 'XX, comp and work those same-store have at right the delays. of timing as it to we less the that Yes. had to the out of of by to onetime in called 'XX XQ from the recommencement onetime you NOI, as called lower short-term cash

and in there We'll that change into our guidance. guidance why to in, really at see expect baked all our towards that's time. no leading So that's come in was this point

Christina Chiu

Yes. as positive maintain in X% to OpEx. mentioned we And still in overall, revenue X% growth, our we earnings release, continued increase assume and

an drove holds. that just of all highlighted that XQ. the And factors still outsized Steve So

Operator

from Our Bonnel next of questions line of with America. Camilla Bank the come

Camilla Bonnel

Street to Station, clear traction around or team West space and unique doesn't has success these up being like the there Ten in there Â Tom, interest or Just plates to get XXX about how your the X anything gained you're Avenue. trying XXth sense seem leasing of but it spaces. where XXX some is the had for Seventh are X buildings have a getting level floor Is of marketed? the much

Thomas Durels

and specifically it's is clear located is good the the showings. where activity XXX And XXX some of submarkets. in had Well, on we other our seen not level a XX seeing Avenue, Xth Circle XXX West Xth XXX submarket, we've submarket have Columbus the the Avenue, is same

have We and core floor full is side grateful very that X efficient. for. It's single

attractive an at price with point access it's great Penn think to Station. I

had will good earlier, I'm But I across and absorption. from aside positive we've we've quarters really So that, board, that's of spoke that space with good confident pipeline which to consecutive in I that the that, ninth activity move. got momentum think the

Camilla Bonnel

out I the this appreciate in Observatory pickup quarter. called additional color Tony the there. And visitors

in of above first line quarter? If or of tracking you the is expectations your business this for for normalize Easter, side the timing

Anthony Malkin

in tracking is with expectations. this -- line our It's

Camilla Bonnel

only model, business curious, upcoming on into period reservations the Got or a moved visibility what since looks have do the it. demand you I'm in this like peak has to months?

Anthony Malkin

Â The vast far that majority of extend we do reservations not receive out.

Operator

Thank you.

end Anthony closing now back reached our to have question-and-answer and like session. turn Chairman the of over I Malkin for remarks. would floor CEO, We to the

Anthony Malkin

office thrilled the on team we're diverse York is points growing our traffic to REIT, New multifamily continuation of X with the with quarter. retail foot targets to perform high an a tier thrilled continues segment, of and and we have the We're Again, City and platform. play market this pure-play board. portfolio ESRT our it, observatory everyday our ways top that street the our that is deepest

balance an We have and a portfolio sheet. opportunity future-ready

months of confident work a to our we great Many are all ability that you who We one continue and for in goals to We your you with you to meet and every hard, tours today's upward. the thank in the for execute on we job Onward planned in thanks will interest, shareholders your had chance the fall incredibly forward conferences very on we participation call great drive confidence of our thank to have and look in then, at to company's Europe. property further and XXXX. do stakeholders. growth for in roadshows, ahead, including the behalf non-deal many Until and much for team

Operator

teleconference. Thank you. conclude This does today's

enjoy You at your your you may disconnect time. for Thank this the participation, and of rest day.

Empire State Realty Trust (ESRT) 25 Apr 242024 Q1 Earnings call transcript